DJ Paul and Juicy J, along with Nick Scarfo, founded Prophet in 1991. Scarfo had known them for some time. Nick Scarfo had invested money in Prophet and bought music equipment and studio time for DJ Paul and Juicy J. On the label, Three 6 Mafia released the original Mystic Stylez and Chapter 1: The End. Nick Scarfo caught a federal case, and sent money and support to DJ Paul and Juicy J while he was in prison. However, Scarfo had a falling out with them. As a result, DJ Paul and Juicy J left Prophet (on less than positive terms with Nick Scarfo) to found Hypnotize Minds , and took Three 6 Mafia with them. Nick Scarfo bought Indo G out of his contract with Hypnotize Minds for $120,000. Scarfo sued DJ Paul and Juicy J, though they settled out of court.
In early 2000 some former members of the original Prophet rejoined the label, which was led by Nick Scarfo. They have released three albums since that time. In 2007, Nick Scarfo announced and confirmed he was relaunching Prophet and was returning with a new album featuring original Prophet Posse called “The Return”. Gangsta Boo, T-Rock, K-Rock, Koopsta Knicca, and Lil Pat became members of the Prophet Posse. The last Prophet release was "Hood U.S.A.", released in 2008. Nick Scarfo would pass away on August 7, 2015.