Friday, July 06, 2012

Rihanna Going Broke Rumors Were True


Back in 2008 there were rumors that Rihanna was going broke [click here if you missed that] and it turns out the rumors were true...

Rihanna is suing her former accountants The Berdon Firm claiming they stole millions from her and gave her bad financial advice.

RiRi is being audited by the IRS and is blaming her former accountants, claiming the audit is a direct result of their negligence.

According to The NY Post RiRi has been with Berdon since the start of her career and claims they defrauded her and her Tourihanna company out of tens of millions of dollars, while hiding the true state of her finances and charging exorbitant and excessive commissions that exceeded her own income.

Rihanna accuses Berdon of setting up an improper financial arrangement that netted the firm 23% of her income while giving her only 6%.

RiRi also blames Berdon for her misguided home purchase in 2009, claiming they failed to explain the true nature of her financial situation at that time.

Rihanna is seeking unspecified damages.

60 comments:

Anonymous said...

I can see where it proves some business partners were thieves, but,where does this 'prove' that shes broke snitch?

Anonymous said...

Such a nasty dirty bizness. Bet everyone will point the finger now yet Somebody(ies) pocketed her cash.

Anonymous said...

This is why you should ALWAYS stay on top of your game with these crooks, especially when it comes to your money.

Anonymous's guide to staying rich. said...

**before going into show business-take the basic 4 accounting classes. be your own accountant,maybe with advice from an experienced one here and there as you learn.do NOT ever let anyone else handle your money.

**do not hire family or friends. EVER!

**do not risk your millions in stock, youre already rich.

**at most hire a chef, bodyguard or two, assistant, and manager, you really dont need anyone else.

**always buy used cars. no one will know,who cares! even buying a 1 year old car can save you tens of thousands, not including the $$ you save in insurance.and they still look brand new.

**do not have more than 2 cars.Whats the point? you are ONE person.

** Never more than 2 homes at a time,and only in places you frequently travel to. Yeah you might be able to afford 10 homes, but you have to remember,theres insurance,tax, etc to pay for it. not to mention ongoing costs like electricity, home repairs,etc.

**private jets are a waste of money,unless you can rent it out. it is like throwing hundreds of thousand of dollars per month into a hole.

**dont bother with a gated community,IMO they are a waste of money(ushers fan broke in twice smh). Buy a good piece of land that you can gate around,and invest in a good security system and a german shepherd or two. cheaper,and more reliant.


**set yourself on a monthly allowance and try not to go over it.if you do, reduce the next months allowance.

**prenup,prenup,PRENUP!!

**wrap it up.one night of fun can cost you millions.

POW!

Anonymous said...

This does not mean she is going broke..just suing to get ALL OF HER OTHER MONEY..next!

Lili said...

Smh. You would think Jay-Z would have looked out for her a bit more since she was under his tutelage and guidance for majority of her career. He could've hooked her up with the right people. Or maybe she did pull away and picked the wrong people on her own.

She can't sing, but the girl has spunk; I do like her. This is a shame. She made all that money for the label and her handlers. And she's been so wild she hasn't realized her finances were in disarray? SMH

Anonymous said...

True that 10:41 but me thinks she was taken advantage of. She was a teen just getting started in the business. She was on tour half the time with a crazy ass schedule. She put her trust in the professionals like most people would have done. Maybe her parents should have been more involved....

Anonymous said...

Pimp Matty woulda NEVA let this happen to Bey!

Anonymous said...

@10:47 didnt beyonce fire him for stealing money from her?

Anonymous said...

10:46 you cant blame her parents. they were just comes,new to the country. didnt know anything themselves,and also let themselves trust the wrong people. im surprised her 'mentor' jayz let this happen,hes more experienced in the industry and should know who the snakes are.

Anonymous said...

Ultimately the responsiblity is hers. Shoulda coulda woulda . . . didn't. Had she given enough attention to her financial matters as she did being in the limelight . . . i'm just sayin . . . grow up.

Just having this conversation this morning how little girls love playing like grown ups; when all in fact they want is the attention, props, gifts, glamour, etc., with no absolutely no responsibility. Like thinking daddy is around to take care of them because they so cute.

Grow up little girls who want to be treated like grown women but act like children! Handle your business, Rhi . . . cuz like Luther says, at the end of the day, it's YOUR name on the marquis . . . i hope this teaches her petulant butt a lesson . . . next she gonna blame the person who brought to berdon . . . s m d h

Anonymous said...

@10:49 hell he raised her! a little extra cash aint the same as lying about her overall financial situation.

Anonymous said...

so all of rihanna's team who were judging lauryn hill, r kelly, etc., now what??!! do what you will, but remember THE TAX MAN COMETH for everybody!!!!

Anonymous said...

Everyone here is a financial expert? Oh, OK...

Anonymous said...

10:54 matthew STOLE from her. so what he raised her? that was his responsibility to.she didnt ask to be born. im tired of parents thinking they deserve a trophy for something they are supposed to do. no one forced you to spread your legs. he was already getting his 10% plus benefits. its sad when u cant trust ur own father.

Anonymous said...

Newsflash: Everybody robbed in some way in the industry. And just because you THINK you're grown and play grown don't mean you are. Most teens think they're grown & it don't mean shit.

But that still don't mean you deserve to be lied to or deceived. That's plain fraud.

Anonymous said...

Thats her fucking fault, if she wasn't so busy, getting drunk, smoking blunts, and other dumb shit, she would take hold of her finances.

Only1Nikki said...

@ 10:45 Good Advice. I would add to that when you decide buy your used car buy a CD first for the value of the car then borrow against that CD when you finish paying the car off you have your money back with interest.

BANG BANG

Anonymous said...

@10:45 good advice and I'm sure many would agree. I'm sure Jay-z did give Rihanna great advice about the business, but when she first came into the business she did already have a management team that was managing her. Also being that rich who wouldn't do a daily or every other check on you money/finance's. At best when taxes are due don't you havae eveything in view of what has been done/spent that year?

Anonymous said...

@10:45AM

I like that model. That's a good model for anyone to use regardless what profession they are in. This is the problem I have with government funded public school. They teach you a bunch of bullshit but NEVER teach the essentials of life. Like, filling out a check, learning tax forms and filling out different ones, learning what a credit score is, learning about stocks/bonds (even though it is one big paper scheme) how to manage money in a bank (though I prefer a credit union).

Anonymous said...

10;45 is correct, only after having the opportunity of being burned once. Oprah and Will Smith learned and now they know better. Now Rhi will know better.

As far as buying cds that interest would be for your children's children s because banks are paying 1% on your money.

Anonymous said...

PEOPLE HANDLE YOUR OWN MONEY, YOU MAKE IT HANDLE IT!

CELEBS NEED TO STOP BEING STUPID!

Anonymous said...

That's what you get when you mess with the devil.

Anonymous said...

The people who set her up with this management team gets a percentage, (jayz), so some of you ask, why didn't jayz help her, he did.

get my point

Anonymous said...

Oh please I don't see how any of you feel sorry for her when she is knowingly leading people astray.

Anonymous said...

But that still don't mean you deserve to be lied to or deceived. That's plain fraud.
10:57 AM
__________________________________

Lol really? Isn't this what she is doing to her fans? So she can do this to millions of people and no one can do it to her. Lol. What people fail to understand is the devil only comes to seek, kill and destroy. What should she expect? That's like a mafioso being killed by one of his own and everyone is shocked, you are messing with criminals what else did you expect? they were going to have your back?

Anonymous said...

Couldn't have happened to a better person. Ugly big head bitch!!!

Anonymous said...

@12:04 and how is she defrauding millions of people? they see how talentless she is,cant dance,sing,etc and they still love her and choose to spend their money on her. so again, how is she defrauding people?

Anonymous said...

No big suprise here; it's a well known fact that the entertainment industry has a lot of sharks in it and everyone has their hand in the pot. The industry isn't made for folks that 'want a lot of money'. At least Rhianna had sense enough to pay her income tax and fire the accountant/firm when things started to look shady. It actually is not difficult to go broke when you are in the entertainment industry.

TruthBeTold said...

@ 10:45 this bitch is ON POINT! THank you ,not that I have any money but if I do I will do as you preached

Rhi Rhi is sooo young ,don't let young ppl have too much money

I bet her daddy is robbing her blind too

Anonymous said...

10:45 I dont get why people buy houses with HOA's. Whats the point of buying your dream house,when others have the power to tell you what you can and cant do with it? some wont even let u park in your own driveway,and they have the power to foreclose your house.that sht is just crazy. i would never buy a house in a gated community,id do just like u said. get land and build a gate around it.

Anonymous said...

I wish I WOULD give ANYONE access to my accounts. Ho many times have we heard this story? Instead of bouncing up and down on ding a ling, she should've been balancing her own checkbook. Mess with my shit and somebody will catch a bullet.

I get pissed off when those shady Indians at the bodega try to cheat me out of twenty cents, thinking I can't count, and flirting is going to distract me.

Industry men & women need to know that there are ppl sent to them to get them strung out on drugs in order to take over their finances, and to get them to sign over their publishing & royalties. Ask El DeBarge and some of the old timers. That industry is run by evil people.

Anonymous said...

Wasn't it also said around the same time that story came out, that they were inflating her networth and album sales, and that her management team were purchasing her albums? This hoe is a FRAUD. If her ass is broke it's because nobody's buying her shit. Everybody knows she can't sing or dance. That's why she's Always putting out new albums to pay back the money she borrowed from her label. Being that nobody's buying her wack shit she'll be working forever. When she was exhausted or whatever the fuck was wrong with her and people were telling her to take a break, truth of the matter is she can't take a break. She's a prostitute and her label and management team are her pimps. They don't give a damn how tired her special ed looking ass all they want is their money.

Anonymous said...

^'they said'? and who is they? national enquirer?

Anonymous said...

"Industry men & women need to know that there are ppl sent to them to get them strung out on drugs in order to take over their finances, and to get them to sign over their publishing & royalties. "

Wouldn't doubt it

Anonymous said...

What's amazing is that this shit still goes on

Anonymous said...

I now that rich people have handlers for thier money, but in this day and age you got to be proactive like a mother with your funds.

Check on the balance of your money directly with the institutions that hold your assests. dont let your accountant tell you

get somebody that keeps receits for shit. sounds like a pain in the ass but if you not on top, money can get gone quick. if you checking you damn sure gonna see a huge amount missing from your funds.

large transactions should not be able to happen without your say so from said institutions that hold your funds, your financial whoever should not be ablel to do it without you. you gots to get ANAL for real!

Anonymous said...

@12:23 an HOA can't foreclose on your house but they can fine you and put a levy on your property. The only one who can foreclose on your house is your mortgage lender.

Anonymous said...

It's a good thing she is nipping this in the bud
right now, you would think that jay would be able
to see things like this, make me question his
abilities to over see her business.

Anonymous said...

12:23 I don't get buying a house. The house is paid but still have to pay taxes like I'm renting?

Anonymous said...

Why didn't she know this though?... How could she not know what percentage EVERYONE was gettin of her money. I mean, I know she's young, but I need to know where EVERY piece of my pie goin. Even if that means hiring a lawyer to watch the accountant, another accountant to watch the lawyer, and a private investigator to watch him...And make sure don't none of them ninjas know one another. Call me cheap, but I put every one of my paystubs under a microscope everytime I get paid. Times too hard for that sht...

Anonymous said...

I like that model. That's a good model for anyone to use regardless what profession they are in. This is the problem I have with government funded public school. They teach you a bunch of bullshit but NEVER teach the essentials of life. Like, filling out a check, learning tax forms and filling out different ones, learning what a credit score is, learning about stocks/bonds (even though it is one big paper scheme) how to manage money in a bank (though I prefer a credit union).
11:23 AM

________________________________________________

This comment is all kinds of stupid bullsh*t. Your PARENTS should be teaching you these things NOT school. If your PARENTS are not teaching you about saving, managing YOUR money, and the importance of keeping and maintaining good credit blame your welfare living mammy.

ThatBKChick said...

I doubt Ri-ri is going broke. Going broke to rich folk is like only having like about 5 milli in the bank or more. I am sure as long as she has been going, with endorsements, etc, she should be worth about 15-20 million. People need to remember if you don't write and produce your own shit, you get less points on record sales. The record company usually winds up getting about 70 to sometime 80 cents on each dollar of record sales. On top of this, they charge the artist for their own video's, wardrobe, travel, touring, etc. The only time you make money as an artist is touring/performances, which would explain why she is always on tour.

RocNation is couping most of her dough, then she has PR, Lawyers, assistants, handlers, security, accountants and "hang-on's" and family to all support.

Ri-ri really needs to step back and re-assess her position in the industry (as far as writing and producing her own stuff) and think about getting the hell away from DefJam and or RocNation. I am not sure where she is signed at the moment. I doubt if she will live RocNation because of her relationship with J...but damn...cut the girl a break J!!!!....SMDH!

Anonymous said...

She's not a wise girl, and she made bad choices. I agree with 10:45...great advice.

She needs to tour and stack chips...record sales don't make the money so stay clean, sober and keep your legs clothes.

Stop trying to act...it's not her strong suite...stay with the non singing the "fans" like that mess.

jazzyphile said...

Everybody gets got in the entertainment industry, add singing billy goat to the list.

Anonymous said...

Everybody gets got in the entertainment industry, add singing billy goat to the list.
3:31 PM
-----------------------------------------------
That's bull crap, ask MaDonna if she ever got GOT! She is one person who is not playing about her money.The DUMBEST thing she ever did was marry guy Ritchie without a prenupt. Other than that, mess with MaDonna's money if you want, cause she DOES NOT play!

It is important to be SOBER when you are in the entertainment industry. Just ask Whitney Houston, oh wait, you can't!

Anonymous said...

I hope she put some money in all those mattresses she's been sleeping on! Chile, you should have been savin'!

Anonymous said...

This comment is all kinds of stupid bullsh*t. Your PARENTS should be teaching you these things NOT school. If your PARENTS are not teaching you about saving, managing YOUR money, and the importance of keeping and maintaining good credit blame your welfare living mammy.
2:08 PM

^^
Wow. The ignorance. Just...Wow!

Anonymous said...

Co-sign 4:29. The stuff you see on this site can be amazing sometimes huh? If school can teach you cooking , sewing and Latin. then I know they can teach kids about FINANCES.

NubianGoddez/ Auset Ra Amunet said...

I hope she wins, so tired of them taking advantage of these artist, they are but mere slaves!! Riri gurl get a good root doctor to get the IRS off your back and get your money from them damn crooks.

NOLA said...

CHECK FOR MY BOYS JAZFLOW.... LAFAYETE ,LA ......................................................youtube.com/watch?v=bBXd5E8cu-U

Anonymous said...

There are so many riches to rags stories out there that everyone should know or seek advice how to handle their moolah!

Anonymous said...

@4:29 Schools used to teach those things. Balancing checkbooks, loans, paying bills,etc but that all changed when school moved towards 'everyone has to go to college' mindset. They got rid of the life skills classes and replaced them with useless classes like calculus 3, geometry ,etc. and we see how the 'everyone has to go to college' mindset ended. (occupation wallstreet anyone?)

Anonymous said...

@2:08 You actually sound like the fool! Some parents don't even know how to balance a check book, so they more than likely dont have the knowledge to teach their kids about finance! In this day in age when education is declining and we have rising numbers of ppl that aren't even graduating from high school, the LEAST our failing school systems can do is teach our future leaders and worker bees basic finance and other subjects relating to self sufficiency. I was fortunate to have parents that taught me the importance of not giving into the debt system our country is built on, but they learned this through trial and error as my grandparents were not well versed in providing the basics abt finance! Education is education, don't matter where it comes from.

Planet Jackson said...

^the movement is called "OCCUPY Wall Street" not occupation wallstreet. Since when is Calc 3 useless and honestly, how many schools offer it? You are being short-sighted. Schools have cut out a lot of courses including home economics, life skills, health, physical education, music, art, and so on. Don't blame the push towards higher education, blame the budget cuts and shady politicians. Everyone doesn't have to go to college, but those who do should have the opportunity to take classes to both prepare them and make them competitive to apply.

PLANET JACKSON
www.planetjackson.net

Anonymous said...

The public schools in my area offer calc 3 also. Gifted kids can take it in middle school, but its mostly taken in high school. I guess maybe its just your area that has budget cuts.

-- dee truth

Anonymous said...

I always enjoy reading planetjackson comments! deetruth not so much...

Anonymous said...

^Its hard when someone disagrees or disproves with your own comment,so you have to cosign yourself. Its okay.
We obviously live in very different areas, since calc 3 is the norm here. In the hood, where budget cuts affect the must, I wouldnt expect them to offer a calc 3 class. Its okay. Nothing to get mad at=]

--- dee truth

Anonymous said...

This is why you get your education!

Most of the artists are dumb and let others control their money while they spend like there's no limit.

I dont feel sorry for none of em.

Its called managing money. Learn it.

Anonymous said...

RIRI I hope you win your case. Handle your own business. You should sign everything yourself, do not authorize anyone to sign any paper work for you, and "read" everything before you sign it, especially the fine print. If you don't understand adocument, hire a manager, lawyer and an accountant, and then hire someone to watch their azzes. You really need to get away from Jay Z, because if he had your best interests at heart, this shit never would have happened to you in the first place. Think about it!!! Start your own Independent Label. Surround yourself with people that you know are going to have your back, get rid of all the "negative" people and influences in your life. Last but not least, Stop drinking and smoking so much!!!

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