Grammy-nominated Latin music superstar Romeo Santos has initiated legal action against his accounting and business management firm, asserting losses exceeding $2.3 million due to alleged malpractice and negligence.
Lawsuit Details
In a lawsuit filed in Miami federal court, Santos claims that Morrison Brown Argiz & Farra LLP, now known as BDO, failed to accurately file his complex, multi-state tax returns and allowed a substantial cash balance in his checking account to remain idle, “earning nothing.” The lawsuit, which details accusations of malfeasance, highlights specific errors in Santos’s 2021 tax return.
Tax Filing Errors
Santos contends that BDO mistakenly categorized him as a full-year non-resident of New York, triggering an audit by tax authorities. According to his complaint, the firm’s return was not merely aggressive but “incoherent,” resulting in an inappropriate apportionment of a quarter of his W-2 income to the state without substantive documentation or analysis. The lawsuit states, “BDO thus erred in both directions at once: omitting the New York income the law required and asserting New York income the facts did not support.”
Additional Claims of Mismanagement
The singer also alleges that BDO purchased an unnecessary duplicate workers’ compensation insurance policy and retained him on an expensive private health insurance plan despite his eligibility for superior SAG-AFTRA health coverage at a lower cost. Furthermore, Santos asserts that the firm failed to contribute to his IRA and unlawfully debited funds from his account following the termination of their services.
Claims for Damages
In his lawsuit, filed with the assistance of attorney James Sammataro from Pryor Cashman, Santos claims damages resulting from BDO’s actions include tax penalties, interest, costs incurred to address the errors, unauthorized transactions, and the lost value of mismanaged cash and retirement accounts. He seeks a jury trial to quantify the damages, estimating them at no less than $2.3 million.
About Romeo Santos
At 45 years old, Santos has made an indelible mark on the Latin music scene. He was nominated for Best Tropical Album for his 2011 solo debut, Formula, Vol. 1, and took home the award for Best Merengue/Bachata Album for Fórmula, Vol. 3 at the 2023 Latin Grammys.
Representatives for BDO have yet to respond to requests for comment regarding the ongoing litigation.
