Court papers say the audit is the “direct result” of negligence by the Berdon accounting firm, which was hired to manage the singer’s money after she was discovered at age 16 and embarked on her chart-topping career.
The Manhattan federal court filing also alleges that Berdon — which Rihanna fired in 2010 — defrauded her and her Tourihanna company out of untold “tens of millions of dollars in lost revenues and profits,” by hiding the true state of her finances while charging “exorbitant and excessive” commissions that exceeded her own income.
For example, she says the firm made millions from her 2009 “Last Girl on Earth” tour, even though its “gross mismanagement” caused her to lose a bundle.
And overall, she says, Berdon’s “improper financial arrangement” gave it 23 percent of her total touring income between 2007 through 2010 — while she got a measly 6 percent.
Rihanna also blames the firm for her disastrous purchase of a $6.9 million Beverly Hills mansion in 2009, saying since-retired Berdon accountant Michael Mitnick told her it “would be a good investment,” while failing “to explain the true nature of her financial situation at that time.”
In February, she took a nearly $2 million hit by unloading the eight-bedroom contemporary, which reportedly sustained “extensive damage from moisture and water intrusion,” for little more than $5 million.
Her suit seeks unspecified damages from Berdon, Mitnick and another former Berdon accountant, Peter Gounis.
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