Beyonce and Tina Knowles’ House of Dereon is being Accused of RICO and Sued for Half a Milli

Posted on February 8th, 2010 - By Bossip Staff

Categories: Beyonce, Lawsuits, News, SMH

Beyonce and Tina Knowles’ companies are being sued by a Hong Kong Manufacturer, Vier International, LTD. Vier claims that House of Dereon and other affiliated companies are in breach of contract and also accusing them of RICO. In case you’re not familiar with RICO, Racketeer Influenced and Corrupt Organizations Act, it is normally affiliated with the mafia and their business tactics.

According to the complaint filed in the U.S. District Court in Manhattan, the apparel maker claims it lost more than $500,000 because clothing company Donna Loren LLC and shipping outfit HJM International were “conspirators who induced the shipment of goods to the United States with the intent to convert them or pay less than the agreed upon contract price,” says the source.

The alleged low-balling scheme reaches far and wide. Vier also names Beyond Productions LLC and House of Deréon — both companies owned by Knowles and partners — for taking part through purchase orders and requesting manufacturer specifications.

Along with looking for its $500k back, Vier is not playing around: The company included claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), the same law used in most Mafia prosecutions!

This is definitely nothing to take lightly. Bey Bey better find her own modern day Johnny Cochran… Be careful who you have running your businesses because they can get you into some sh*zzz.

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  • MzThickWitIt

    first

  • prettyfaceAKA

    As the article stated RICO is serious…I never realized how serious until I asked someone about it yesterday, and was told…the RICO Act is what is normally used when the government is trying to take down a big criminal, and they have nothing else on the person to shut them down…it’s usually used against mobsters, dope dealers, etc…but the fashion industry ? I think this is some kind of personal attack…she needs to hire lawyers who deal with RICO specifically…cause from what I hear people almost always go to jail when convicted under the RICO Act…

  • TGIF

    Heffas tried to cheat the wrong ppl. Money can’t buy you outta this one

  • JB (Riding hard for Pat Summit the Greek Goddes of Basketball)

    ANd I wonder how seriously she is taking this.

  • http://mipagina.univision.com/vquest VQUEST

    Don’t know about the rest of you, but the sight of Beyonce doing the perp walk would crack me up to end.

    http://www.attorneygeneral.gov/uploadedImages/Press/Berzins-arrest-366×244.jpg

  • JB (Riding hard for Pat Summit the Greek Goddes of Basketball)

    As a Beyonce hater, I do have to admit this might be the only picture of her where I see her emotions. THe way she is hugging her mom seems so genuine and loving.I think her make-up is nice. She rellys looks nice in this pic.

    OK got that out the w, back to the hating

  • JB (Riding hard for Pat Summit the Greek Goddes of Basketball)

    that’s supposed to be out the way

  • ts

    well…that’s what her butt gets, trying to get products cheaper than what she signed the contract for…so wonder her clothes look so cheap

  • Matix B

    I wonder who will tighten her weave in the Big House. Better not bath Bey caz those big girls gonna make you eat some serious BOX! Don’t worry girl i will send you a money order so you can buy some chips and a magazine…trifling a s s b i t ch

  • Glok9…Im repping Nat Turner & Marcus Garvey all tis month !

    MZ KNOWLES BYTCH THIS THE KINDA CHIT RIGHT HERE THAT GONNA SEND THE HOUSE OF DEREON INTO 4CLOSURE !

  • STEFANY

    Wow! You mean that bootleg @$$, cheap looking clothing line is still in existence, I’m suprised House of Dereon has lasted this long.

  • Dilla

    I seriously doubt that Bey or Tina will go time.

  • The One

    Wow it’s funny how everyone is throwing her under the bus and no one has seenor heard the facts! $500,000…that’s like pocket change to her. I’m going to wait until the facts come out before I pass judgment. Seriously people grow the f**k up!

  • Love Hangover

    as others said, House of Deadwrong!

  • Matix B

    @The One … You want maturity on a gossip blog? GTFOOH…..with your holier than thou attitude, this is all for JOKES!

  • jay

    beyonce pay up 500,000 lol

  • UrHeinessDaQueen

    just wanted to say that this is a gorgeous pic of Bey & momma Knowles :)

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    @the one…

    it does matter if you have money or not… rico is a crime weather it’s beyonce or you

    this story have been on the web for like 2 dayz now..and you still dont believe it…why because you’re beyonce fan

    if you was truly a beyonce fan you’ll know that this is not the first time that beyonce and her family have been sued and as a matter of fact they get sued like every year…something gotta be up with that

    i love beyonce music and always will….but you gotta admit that this girl’s contract have been shady from day one

  • PinkMe

    Thank you Matix B! LMAO, people who get all emotional over this stuff kill me! They are the ones that need to grow up.

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    i hate it when people think that beyonce and her family is perfect just because she’s a star

    this have notting to do with that..this is about a law sued and all her fans can do is talk about how much money she has…this aint got notting to do with that…wrong is wrong this is what happins when you’re greedy and tryin to get over on people..

    her family been doing this since the destiny’s child dayz soo these people cant be lying

  • Matix B

    Let the Stan’s stand up for this b i t c h

    Question of the Day: What has Beyonce and her clan done for you latley?

    Answer: NOTHING …get off her jock All BEY BEY STAN’T NEED TO KICK ROCKS

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    THIS STORY IS ON 50 OTHER WEB SITES

    SO IT’S GOTTA BE TRUE!!!

    MATTHEWS KNOWLES HAVE BEEN MIXING BEYONCE UP IN SHADY DEALS FROM DAY ONE…NOW IT’S TIME TO GIVE EVERYBODY BACK THEIR MONEY

    SH!T IT’S ABOUT TIME THE LAW IS LOOKING INTO BEYONCE BANK ACCOUNT….80 MILLION IN THE BANK EVERY YEAR…SOMETHINGS NOT RIGHT

    I BAT SHE OWES BACK TAXES

  • chaka1

    RICO???!! The courts can multiply the damages by 3. That will be a lot of money…

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    @Matix B

    LOL…THEY KNOW SOMETHINGS UP WITH BEYONCE AND FAMILY

  • chaka1

    Yes. If Beyonce loses they will have to pay $1.5 million. OUCH!

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    MATTHEW KNOWLES KNEW HOW TO GET MONEY OUT OF PEOPLE SO HE WENT OVER SEAS THINKIN THAT NO ONE WILL EVER CATCH HIM DOING HIS DIRT

    I NEVER COULD UNSTAND WHY WOULD BEYONCE AND HER MOTHER TINA OPEN UP THEY’ER VERY FIRST “HOUSE OF DEREON” STORE OVER SEAS IN JAPAN INSTEAD OF THE U.S.A…WHATS UP WITH THAT!!!

    THE KNOWLES IS VERY SLICK WHEN IT COMES TO MONEY…THAT’S WHY THEY HAD TO GET RID OF THE OLD DESTINY’S CHILD MEMBERS BECAUSE PEOPLE WAS CATCHING ON TO THEM

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    @chaka1

    OHH MAN 4 REAL…

    I GUESS EVERYTHING COMES TO A END…WELL ATLEASE SHE’LL STILL HAVE HER AWARDS..LOL

  • http://bossip.com too cute

    Who wears the house of dereon? I really don’t see it in any major department stores.

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    THE FEDS NEEDS TO LOOK INTO MATTHEW KNOWLES TAX RECORDS…HOW THE F#*K BEYONCE GET “80 MILLION” IN THE BANK AFTER TAXES…SOMETHING’S NOT RIGHT

    BEYONCE WHO EVER’S DOING YOUR TAXES TELL THEM I SAID HALLO!!!!!

  • WE NEED MORE BLACK FEMALE ARTIST OUT!!!!OTHER THAN BEYONCE

    BEYONCE NEEDS TO LAY LOW FOR A LIL WHILE…CUZ THE FEDS IS CATCHING ON TO HER

    DONT BE GREEDY AND TRY TO ROB THE WHOLE BANK JUST TAKE WHAT YOU HAVE AND FLEE THE SEEN BEFORE SOMEBODY CATCHES YOU!!!!

  • loveme loveme not

    And just to think they charge you like 150 for a pair of jeans that aint worth 50 cents. Please thats why when I shop I don’t try to keep up with ta jones but get what my money is worth. Cause sometimes when you pay more you get less.

  • Ara

    just wanted to say this is a gorgeous pic of Bey & momma Knowles
    _______________________________________________cosign

  • kellz_88

    when i seen beyonces clothes in stores i took a good look at them and they definetely looked cheap and tacky . just because your a singer doesnt mean your a fashion designerher mom might make clothes for beyonce performances but how many well.. CLASSY girls would actucally wear that out i know a few hoodrats would though ,

  • real black is chocolate f’ck fake azz bullsh’t!!!! real nikka aka Gmen

    she’s not black!

  • Money First

    Once again like “The One” said get the facts! If this is indeed true it is an attempt by a company to do what most people do when suing for money–”throw every company involved off the bus!” That way you maximize the chances of getting your money back and you make it look extra serious by throwing words like “Rico” out there. Wait for the FEDS to say that charge is out there before you take this story as the truth!!

  • Dee

    Don’t worry haters beyonce mother is a very intelligent black women. Haters like yourself wish something bad would happen to one of or African American queens but God has her back as well as he has yours. Keep her head up with positiveness. and If the clothing is jeep it is because they are making it affordable for your broke assssssses.

  • LBCER

    LOL @ thembeing accused of RICO over some clothes. Come on man!

  • brandimus

    UrHeinessDaQueen
    2/8/10, 11:52:am

    just wanted to say that this is a gorgeous pic of Bey & momma Knowles
    ———-

    You’ve always got something positive to say about Bey.

    No matter how much bad publicity she gets, she’ll still be number 1 to her fans, just like so many other celebs who get bad press, the ppl who love them will continue to love them.

  • Mixi

    While I respect Beyonce’s hustle, HOD is by far the tackiest clothing line I’ve seen in a while. I’m not surprised by this at all. The craftsmaship, stitching and material all scream swap meet. She should be sued by anyone who has ever bought a HOD piece for misrepresentation! Now all the times I’ve laughed @ fools wearing HOD is rightly justified!

  • vee

    who even buys her clothes? lmao

  • memchee

    it’s one thing to be agressive…..

    most big enterprises hire someone to specifically handle contract and negotiations…not just a purchasing agent.

  • county50

    bey looks really pretty in this pic…

  • BEYONCE FAN

    I BUY HOUSE OF DEREON FOR MY WIFE I SUPPORT THE MOVEMENT.
    THESE ARE ANTS THAT CRAWL FROM UNDER ROCKS IN ORDER TO SHAKE THE BANK. HAPPEN TO OPRAH SVERAL TIMES, THATS WHAT HAPPEN WHEN PEOPLE HEAR THAT YOU GROSS 80 MILL LAST YEAR THEY WANT PIECES OF UR PIE- HATERS

  • Ramie

    maybe she will take a break after court SHE NEEDS TO STOP AND SMELL THE ROSES SHE IS AVERY HARD WORKER. WHAT KIND OF DEALS DID HER DAD MAKE HER MOM TO . THEY WILL PAY OUT A LITTLE MONEY

  • solder of love

    NEVER HEARD OF BEY CLOTHES IN THE MIA, DONT HEAR PEOPLE TALKING,ABOUT IT , NOR DO I SEE PEOPLE IN THE MIA WEARING HER CLOTHES BECAUS WE HAVE ENOUNGH CHEAP WEAR DOWN HERE

  • EbonyNicole

    I just have to say, if this is true Beyonce needs to wake up and smell the damn Late because is No joke!!!

  • LGO

    Bey Bey’s mommy is beautiful.

  • Annelli

    Someone wrote citing that $500,000 is chump change to Beyonce…well if that is true, then why doesn’t she just pay up??? Also, to the writer that cited the Feds should look into how Beyonce made 87 million after taxes is wrong….dead wrong. First off, Beyonce probably takes home way less than that amount because, she has to pay her taxes, and all those who work for and with her. There are also mang. fees to her father and the splitting of profits from her clothing line with her mother, and all sorts of other things. I am certain Beyonce has millions in the bank, just not as much as the media would like us to believe…why do you think she works as hard as she does? It’s not just because, she loves what she does, she loves the fame, she loves being the top black female entertainer, and she loves the money she makes, but like everyone else, doesn’t like to pay millions in taxes or to thousands to a clothing distru. If Bey is bringing in $87 million in one year, she probably takes home maybe between $30 and $25 million at the least and once again, that is after she has paid her taxes and all her other bills.

  • http://toagreeornottoagree shonnie

    I have never ever bought anything from HOD,*HIT beyonce and her camp have enough money, they dont need my lil ole $100 dollars lol

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