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Accounting agency BDO misplaced movie star shoppers led by the rapper Jay-Z following accusations {that a} employees member had been stealing cash from buyer accounts.
People aware of the matter stated Jay-Z and Megan Thee Stallion have been among the many stars who've severed relationships with BDO’s Miami operations, which manages private and enterprise funds ranging from paying payments to submitting taxes on behalf of the wealthy and well-known.
Jay-Z’s departure stemmed from anger over how BDO handled accusations in 2022 {that a} employees member had stolen from the rapper Joseph Cartagena — who goes by the skilled identify Fat Joe — and that companions had failed to identify inconsistencies in his monetary affairs, the individuals stated.
The worker, Vanessa Rodriguez, used bank cards and financial institution accounts belonging to Fat Joe, his spouse and his companies to take out 1000's of {dollars} of money and pay faculty charges, based on a lawsuit the rapper filed in opposition to the agency, Rodriguez and the companion overseeing the account in September 2022.
Fat Joe claimed BDO’s administration of his affairs was so chaotic that his mortgage funds have been typically late, it was inconceivable to reconcile completely different accounts, and it appeared his bank card payments have been typically paid from accounts belonging to different movie star shoppers, together with Major League Baseball gamers.
Last month, Rodriguez was indicted in Miami on 4 counts of fraud, accused of spending on bank cards that didn't belong to her. More particulars of the costs, and the names of two alleged victims, have been stored below seal. Rodriguez has not entered a proper plea, however she advised the Financial Times she deliberate to plead not responsible and that accusations made in opposition to her within the 2022 lawsuit have been additionally unfaithful. Rodriguez declined to remark additional.
BDO stated in a authorized submitting that it denied the allegations in Fat Joe’s lawsuit, which was settled on undisclosed phrases earlier this 12 months. The issues detailed within the swimsuit have had wider repercussions contained in the accounting agency, nonetheless. The departure of a number of high-profile shoppers has solid a pall over BDO’s January 2021 acquisition of Morrison, Brown, Argiz & Farra, which was the biggest accounting agency in Florida and had signed Fat Joe, Jay-Z and others as shoppers a few decade in the past.
Staff working for Jay-Z, whose actual identify is Shawn Carter, have been angered by how BDO responded to the accusations of theft from Fat Joe, who's a consumer of Jay-Z’s leisure firm Roc Nation. They felt the accounting agency turned overly defensive and didn't rapidly present Fat Joe with full entry to his monetary affairs, stated individuals aware of the matter and his 2022 lawsuit.
That anger led to Jay-Z’s departure as a BDO consumer in 2023, the individuals stated, inside months of Fat Joe leaving.
Meanwhile, earlier issues about Rodriguez additionally contributed to a different Roc Nation star, rapper Megan Thee Stallion, splitting from BDO, the individuals stated. She left as a consumer in 2022. Spokespeople for Jay-Z and the opposite stars declined to remark.
BDO stated the agency “does not comment on pending litigation or matters related to current or former clients”.
Additional reporting by Sara Germano
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