- BDO, the 5th largest accounting firm, faces a scandal as it loses its rich and famous clients, including Jay-Z and Megan Thee Stallion.
- The reason? Allegations that BDO employees have stolen over $100,000 from clients’ accounts.
- This isn’t BDO’s first brush with controversy.
2022. Rapper Fat Joe accuses BDO of stealing
The trouble began when rapper Fat Joe filed a lawsuit against BDO.
But Why?
In the September 2022 lawsuit, Fat Joe also known as Joseph Cartagena, accused Vanessa Rodriguez, a BDO employee, of,
- Misusing his and his wife’s business accounts and credit cards to withdraw thousands of dollars in cash.
- Alleged to have siphoned off cash to pay off personal expenses.
Fat Joe also claimed that his finances were in disarray, including inefficient services like:
- Late mortgage payments
- Mixed-up credit cards
- Missing funds
According to insiders, Rodriguez allegedly misappropriated funds from various client accounts.
Jay-Z and Megan Thee Stallion cut ties with BDO
Jay-Z, who shares a connection with Fat Joe through his entertainment company, Roc Nation, didn’t take this lightly.
Displeased with BDO’s handling of the situation, he severed ties with BDO’s Miami operations in 2023.
Megan Thee Stallion, another Roc Nation artist, also left in 2022 due to earlier concerns about Rodriguez’s actions.
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BDO’s response
BDO has settled Fat Joe’s lawsuit on undisclosed terms.
Meanwhile, Rodriguez, who was indicted on fraud charges, plans to plead not guilty.
BDO has chosen to remain tight-lipped, stating they don’t comment on litigation or issues involving current or former clients.
While BDO has denied all allegations, the damage to its reputation has already been done.
BDO’s Miami office
BDO’s Miami operation is known for handling personal and business finances, including bill payments and tax filings for the wealthy and renowned.
Acquisition of a Florida-based firm
In 2021 BDO US acquired Morrison, Brown, Argiz & Farra, LLP. Florida’s largest accounting and advisory firm.
BDO aimed to attract high-profile clients through this acquisition. However, it has all gone to the South in the wake of the scandal.
