50 Cent Says Ex-Managers Botched His Finances
50 Cent said his business managers robbed him blind and mismanaged his money so badly that he ended up owing the IRS $200,000.
50 Cent, whose real name is Curtis Jackson, sued GSO Business Management LLC for malpractice and negligence in New York Federal Court last month, alleging they took his money and botched his financial affairs, leaving him vulnerable to a six-figure tax bill, according to court papers obtained by BOSSIP. One of the defendants named, Jonathan Schwartz, was convicted for stealing nearly $5 million from 90s musician Alanis Morissette.
GSO were 50 Cent’s accountants and business managers from 2013 through 2015 when he filed for bankruptcy. The company oversaw his income, taxes, investment accounts and made sure his employees were paid.
But instead of minding his millions, 50 Cent said GSO was bleeding him dry. He said GSO “helped themselves” to about $90,000 of 50’s money to pay for “bankruptcy services” without first filing a petition for professional fees, which was required under U.S. Bankruptcy law, court papers state.
The “Power” actor and producer said GSO also allowed him to overpay $200,000 on his income taxes the year he filed for bankruptcy, ignoring federal tax law that says a person’s tax year ends the day they file for bankruptcy. Those taxes are instead added to the bankruptcy debt. 50 said the company never told him about the bankruptcy tax rules or that he would have major financial consequences if he didn’ get in touch with Uncle Sam.
And because one of the defendants, Schwartz, stole his former client Morissette’s money, 50 Cent said he also believes he may have been a victim as well. 50 said he has tried to get Schwartz to participate in a forensic accounting examination to see if GSO had mishandled more of 50’s money, but Schwartz has refused.
The rapper wants an order forcing GSO to give him a full accounting of his finances, both compensatory and punitive damages and legal fees.
GSO has not yet responded to the lawsuit, court records show.