Could Demi Lovato's new romance post-rehab put her in danger? The songstress, who completed a 90-day stint in rehab following a near-fatal drug overdose, has been inseparable from troubled fashion designer Henry Levy despite his ongoing legal battle. Now, RadarOnline.com can exclusively reveal Levy has been accused of stealing money from family and friends in the bombshell lawsuit against him.
Former employee of Levy's clothing company Enfants Riches Déprimés, Brendan Thompson, sued Lovato's man on July 25, 2018. In the complaint, he accused him of drug use, racist remarks, fraud, failure to pay overtime wages, defamation and more claims.
But the wild allegations don't end there. In Thompson's amended complaint filed on December 14, 2018, he accused him of being involved in an "illegal course of conduct."
"The conduct involved stealing money from family, friends, clients, vendors and various third parties, by authorizing and performing fraudulent credit card transactions," the amended complaint read.
Thompson claimed Levy did it to generate false sales for the clothing company to "pay off his personal bills."
"His intent was to fund a lavish lifestyle on other people's money," the filing obtained from Los Angeles County Court read.
In the initial complaint previously reported by Radar, Thompson claimed he began working for the company on June 15, 2014 as a financial planner until his termination in April 2018.
Thompson allegedly failed to receive compensation in 2017 or 2018. He claimed that he invested over $170,000 of his own money into the company from 2014 to 2018.
Thompson claimed the company intentionally lied to him about his stake.
"Defendants actively concealed this fact in order to take control of the company through illegal and fraudulent means," the filing alleged. He then accused defendants of "embezzlement" and "squandering company capital for personal use."
Thompson alleged he was subject to jokes about the races of employees, specifically workers with Mexican heritage.
"He was subject to anti-Semitic comments about himself and 3rd parties," the former employee alleged. "He was subject to homophobic and xenophobic rants by Mr. Levy."
He also mentioned Levy's alleged drug use.
"During Mr. Thompson's employment with ERD, Mr. Levy constantly engaged in illegal drug use and made racially charged remarks concerning employees and other third parties," the court papers read.
Thompson claimed he was terminated on April 23, 2018 after being accused of theft with no investigation. He claimed that when he confronted Levy over the alleged discrimination and not being compensated, he was subject to "hundreds of threatening and inflammatory text messages and emails from Defendants."
Thompson is seeking $5,000,000 in general damages.
But Levy isn't giving up without a fight. He filed a motion for the court to subpoena business records served on Barclays Bank of Delaware and American Express Company.
He is accusing Thompson of diverting company funds to his personal banking accounts, as well as his girlfriend's, who was an independent contractor and employee of ERD.
Thompson fought back by filing a motion to quash or modify the deposition of subpoenas to produce bank accounts and details of Thompson, his girlfriend and others.
"Many of these account holders, each and all, have party privacy rights, which should be protected," the filing read.
He claims the Defendant has presented no evidence to suggest the accounts "are relevant information."
Levy has admitted to abusing drugs. Levy completed his first of many rehab stints at the age of 15. He attended an outpatient high school and has lived in sober living homes over the years.
Lovato, 26, was first spotted holding hands with Levy during a dinner date in Beverly Hills on Saturday, November 10.
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