Witnesses have told detectives that Lil' Kim had just walked out of the studios of WQHT radio in the Greenwich Village section of New York and entered her limo Sunday afternoon when the gunfire erupted, the source said. A security video seized by police shows the limo starting to pull away, then stopping to allow four or five men to jump in and racing off, the source added.
"We have reason to believe that some of those people were involved in the shooting," the source said.
On Monday, Lil' Kim -- whose real name is Kimberly Jones -- denied she and her entourage were involved.
"Lil' Kim and her security had nothing to do whatsoever with the incident," the rapper's manager, Hillary Weston, said in a statement. "Kim had no knowledge of any argument nor what instigated the gunfire."
Earlier reports said she had left 15 minutes before the shooting started. But the source said police "have evidence that puts her at the scene" at the time of the incident.
The source said lawyers had stymied detectives' attempts to question Lil' Kim.
More than 20 shots were fired from at least five different weapons and one man was wounded. No arrests had been made.
Detectives were investigating reports that the gunfire stemmed from a simmering feud between Lil' Kim and a rap duo, Capone-N-Noreaga.
On Sunday, their entourages apparently exchanged angry words after crossing paths at a rap music celebration sponsored by Clue, a disc jockey at the station, police said.
The security video shows a Ford Explorer, believed to carrying Kiam "Capone" Holley, arrive at the station shortly after Lil' Kim exited, the source said. Moments later, it shows "people frantically running in all directions," the source added.
Both groups fled before police arrived.
A member of Capone-N-Noreaga's group was treated for a back wound and released.
Lil' Kim's 1996 debut album, Hardcore was produced by Sean "Puffy" Combs and went platinum.
Holley and Victor "Noreaga" Santiago also debuted in 1996 with The War Report.
Calls to WQHT were not returned. A statement from Capone-N-Noreaga's publicist said the duo would have no comment.
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