Exclusive: 50 Cent’s Ex-Business Managers Deny Botching His Bankruptcy & Blame Another Company For Fleecing The Rapper

NEW YORK, NY – SEPTEMBER 09: 50 Cent frontrow at the Philipp Plein S/S 18 show at Hammerstein Ballroom on September 9, 2017 in New York City. (Photo by Thaddaeus McAdams/FilmMagic)

Rapper Says Ex-Managers Cost Him Big Time As He Battled Bankruptcy

A business management firm that 50 Cent said robbed him blind and mismanaged his money so badly that he ended up owing the IRS $200,000 in unnecessary tax fees is firing back at the “Power” producer’s claims.

GSO Business Management LLC said they were not negligent in handling 50 Cent’s finances, and said it was another company Boulevard, who is responsible for 50’s bankruptcy woes.

50 Cent, whose real name is Curtis Jackson, sued GSO Business Management LLC for malpractice and negligence in New York Federal Court last year, alleging they took his money and screwed up 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 on his income taxes the year he filed for bankruptcy, ignoring federal tax law that says a person no longer has to pay income taxes for the rest of that year 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’t get in touch with Uncle Sam.

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 recently responded to the lawsuit by pointing the finger at another company, Boulevard. GSO said that after 50 Cent fired them, he retained Boulevard to manage his business affairs. But neither 50 Cent nor Boulevard asked GSO to file the necessary tax info so that the rapper wouldn’t be on the hook for the additional taxes. GSO contends that it did nothing wrong, and said if they are found liable, Boulevard would also be on the hook.

A judge hasn’t yet ruled on the case.