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10:53 am - 02/12/2014

Rihanna: Accountant Made Her "Effectively Bankrupt" in 2009



Rihanna allegedly blames her accountant for making her "effectively bankrupt" in 2009.

TMZ claims to have obtained the 25-year-old singer's legal documents, in which she is said to have insisted she had $11 million in cash at the beginning of 2009.

These files were reportedly handed in with connection to Rihanna's case against her accounting firm Berdon LLP. She sued them for gross mismanagement in 2012.

The gossip site writes: "Rihanna says the accountant was not on the ball and she was horrified to learn at the end of the year she had $2 million left."

It continues to claim her expenses had doubled at the time, which left her struggling more.

Rihanna would have lost $9 million in the year and in the legal documents she also reportedly says her accountant gave her the thumbs up to buy a house priced at between $7 million and $7.5 million. After allegedly taking their advice, she ended up selling the home with a $2 million loss.

In addition to these reported statements, the Bajan musician is also said to blame her accountants for not letting her know that her 2009 Last Girl on Earth Tour was also losing money.

In 2012 Berdon LLP hit back at Rihanna's lawsuit, insisting it was her own fault she lost so much money.

TMZ reported at the time that the law firm also defended the 22 per cent commission, saying it was "signed off on by [Rihanna] in an engagement letter that gave them permission to do so."

They reportedly claimed it was the pop star's "own financial action or inaction" or the work of those close to her, which resulted in the loss.

source
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legoheadprince 12th-Feb-2014 06:12 pm (UTC)
Can't read article. Too distracted by beauty.
calinewarkwc69 12th-Feb-2014 06:12 pm (UTC)
I don't know how celebs do it; hand over their money to business manager or accountant and just look away. I would so far up my bank account's ass checking on every penny.

I'm not sure I'd believe that the accountant mismanaged the money, they probably went along with her requests on spending it without ever sitting her down and being like "you're gonna go broke like this" which is equally fucked up because you were trusted with someone's finances, and they trusted you to tell them when shit was not OK.
murdertheopera 12th-Feb-2014 06:17 pm (UTC)
someone with that much money doesn't have it all in one place to be looked at so easily like that.
imabadkid 12th-Feb-2014 06:18 pm (UTC)
lol wut
solid_girl 12th-Feb-2014 06:42 pm (UTC)
girl. online banking lol.
chasind01 12th-Feb-2014 06:47 pm (UTC)
When you have that much money, it gets complicated to figure out where everything is and how much you actually have.
sbenner 12th-Feb-2014 07:30 pm (UTC)
Haha. She ain't getting direct deposit sis
feijoana 12th-Feb-2014 06:29 pm (UTC)
I mean, I would do what I do now, and do an overview of my expenses once a month.

Money disappears so quickly, especially when you live in an expensive place. On food alone I somehow manage to spend up to $300 a week.

I can't count the number of times I've looked at my bank statement and thought I was scammed/robbed, only to remember a day later that I had dropped a ton of cash on something minor.
r4wrdinosaur 12th-Feb-2014 07:50 pm (UTC)
I think a lot of it is how fucking confusing finances can be. You really do need an expert to help you navigate when you have that much money. I mean she probably has real estate, insurance, business accounts, stocks, bonds, investments, etc. It's not as simple as just signing on to online banking like us poor bitches!

Edited at 2014-02-12 07:51 pm (UTC)
perznpoprietess 12th-Feb-2014 06:14 pm (UTC)
how is it an accountant's fault that the housing market took a turn. they aren't financial advisers or real estate agents.
miszchelle 12th-Feb-2014 07:08 pm (UTC)
Everyone blames the accountant for everything. That's the first thing I learned in my accounting classes.
veritasaequ1tas 13th-Feb-2014 01:03 am (UTC)
My accounting prof said that too. Classic example of shooting the messenger.
shinebrighter 12th-Feb-2014 07:48 pm (UTC)
the accountant was probably her business manager which is an adviser. it's pretty shitty if they told her she could afford a $7 million dollar house when she didn't have much more than that
murdertheopera 12th-Feb-2014 06:14 pm (UTC)
i remember this story circulating around that time and thinking how unbelievable it was
arielazul_22 12th-Feb-2014 06:24 pm (UTC)
yeah, it was all over the black blogs a few years back and i thought it was bs...crazy that it was true
emptyobsidian 12th-Feb-2014 09:49 pm (UTC)
I am actually surprised it is true. I remember having a random fight with a Rihanna fan over it and she accused me of being a Beyonce stan for believing it at the time lol.
imabadkid 12th-Feb-2014 06:16 pm (UTC)
I remember people used to say her situation was similar to TLC's but I never believed it but hmmmmmm...
pistol_eyes 12th-Feb-2014 06:17 pm (UTC)
strip clubs and dolla bills...still got my money.
romann 13th-Feb-2014 05:21 am (UTC)
Making it rain and picking it up when they not looking
lovehimnot 13th-Feb-2014 10:00 pm (UTC)
deeeeaaaadddd
hbic_monalisa 12th-Feb-2014 06:17 pm (UTC)
wait, does that mean the rumor from back in the day about her being poor was true?
chandyland11 12th-Feb-2014 06:17 pm (UTC)
she was horrified to learn at the end of the year she had $2 million left

OH GOD, THE HORROR
endingonfire 12th-Feb-2014 06:19 pm (UTC)
I get what you mean, but that's still 8mil down the drain. That's pretty fucked up.
_xxtom 12th-Feb-2014 06:20 pm (UTC)
yah that is pretty horrific considering she lost 8 million dollars.
heavy 12th-Feb-2014 06:21 pm (UTC)
Right? Nobody would survive on 2 mil.
fakeplants 12th-Feb-2014 06:45 pm (UTC)
i know it may seem ridiculous to us that $2 million is "effectively bankrupt" but aside from the fact that that represented almost an 80% loss, you do also have to take into consideration that her costs are significantly higher by necessity. there are things like taxes, agent fees, etc that she might still have to pay and those amounts could be relatively huge.
bloopbloop1 12th-Feb-2014 06:57 pm (UTC)
it is fucking horrifying to have your bank account cut down by 80%
saintvlas22 12th-Feb-2014 07:33 pm (UTC)
not the point
hershelwalker 12th-Feb-2014 08:07 pm (UTC)
come on sis. you have more common sense than that
chandyland11 12th-Feb-2014 08:16 pm (UTC)
omg it was a damn joke.
chandyland11 12th-Feb-2014 08:15 pm (UTC)
damn y'all, take a xanax. it was a joke. it ain't that serious.
milotic2 12th-Feb-2014 09:56 pm (UTC)
...
slinkhard 13th-Feb-2014 10:49 pm (UTC)
lol, imagine how much money she could have earned to replace it if only she sang or danced in her concerts...
myhipusername 12th-Feb-2014 06:18 pm (UTC)
it's not like she can't make millions more
theidolhands 12th-Feb-2014 08:01 pm (UTC)
When your fortune depends on the fame machine running you, or nasty contracts, you can't necessarily.

They'll black list you, make sure the press says negative things (like "crazy", that's a fave), and drive your work into the gutter.

See: Prince, Mariah Carey, Michael Jackson for similar situations.
supertex 12th-Feb-2014 06:20 pm (UTC)
wasn't it riri who got served papers when she was performing on stage? or am i getting her mixed up with someone else?
blackstarnebula 12th-Feb-2014 06:21 pm (UTC)
that's Ciara
supertex 12th-Feb-2014 06:25 pm (UTC)
cici can't even get respect from me. my bad.
heavy 12th-Feb-2014 06:22 pm (UTC)
that's Cici and it was hilarious.
anchellada 12th-Feb-2014 06:26 pm (UTC)
WHAT. jeez that'd be embarrassing as hell for anyone.
polaroidmoment 12th-Feb-2014 10:27 pm (UTC)
omg that's so embarrassing. One of my former co-workers got his car reposessed at work in front of all of us, by one of our own clients :/ the co-worker was an asshole, but still.
whilstinvogue 12th-Feb-2014 06:20 pm (UTC)
It's scary how easily million can be swiped away from these artists.
heavy 12th-Feb-2014 06:23 pm (UTC)
*idiots

fixed it.
whilstinvogue 12th-Feb-2014 06:40 pm (UTC)
Not all are idiots. There is such a thing as theft &/or embezzlement. No one is beyond having it happen to them.
vldtheimpaler 12th-Feb-2014 07:21 pm (UTC)
It really is, especially when it's just down to you actually trusting people to do their jobs properly or ethically. In the 80s one of the most famous broadcasters here in Ireland found he'd lost most of his savings when his friend (who had been his accountant) died, and it turned out his friend had basically squandered everything.
prophecypro 12th-Feb-2014 06:20 pm (UTC)
This is why I'm always cautious when I hear financial stories about celebs. Sometimes its all about the trust of people with your finance and equity
tiltheworldend 12th-Feb-2014 06:20 pm (UTC)
That would explain why she was churning out albums and tours every 5 months tbh. Bitch was hauling ass
theantipoet 12th-Feb-2014 06:20 pm (UTC)
never hire an accountant when you're talking about that much money.

hire 2 so you've got one to watch the other.
blackstarnebula 12th-Feb-2014 06:22 pm (UTC)
exactly. If I was ever rich that's what I would do and from rival companies too. And every other year they would be independently audited.
nalaa1906 12th-Feb-2014 06:27 pm (UTC)
yep
swimsowild 12th-Feb-2014 06:32 pm (UTC)
ia, and make sure the 2 hate each other lol
hpxstac 12th-Feb-2014 06:35 pm (UTC)
I'm confused. The article says "accountant" (singular) in the beginning and then switches to "accountants" (plural) towards the end. I would assume she had a team looking over her finances though...? Either way they were all from the same company so maybe the company was just shady as hell.
theantipoet 12th-Feb-2014 06:39 pm (UTC)
it sounds like, if nothing else, they just weren't that good (like encouraging her to buy a 7 million dollar house at the peak of the housing bubble, which she had to sell at a $2-million loss)
chasind01 12th-Feb-2014 06:48 pm (UTC)
Sounds like she hired a firm.
endingonfire 12th-Feb-2014 06:44 pm (UTC)
I didn't even think of that, that's good advice.
chilli_cheese 12th-Feb-2014 06:50 pm (UTC)
I would definitely get an independent overseer to look things over every month. idk if 2 seperate accountants would work, like wouldn't that conflict when they're moving money for her?
demonsandsongs 13th-Feb-2014 01:15 am (UTC)
Yep.
perznpoprietess 12th-Feb-2014 06:21 pm (UTC)
Bajan musician is also said to blame her accountants for not letting her know that her 2009 Last Girl on Earth Tour was also losing money.


also, shouldn't this have been handled by her label, or whichever company manages tours. like, her personal accountants aren't the ppl watching that, right?

also, we could have told her her tours are a waste of money.
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