Romeo Santos Files Lawsuit Against Former Accounting Firm Over Alleged Financial Missteps

Latin music star Romeo Santos has filed a lawsuit against his former accounting and business management firm, accusing the company of financial errors and mismanagement that he says cost him more than $2 million.

The Grammy-nominated bachata singer filed the complaint in federal court in Miami against Morrison Brown Argiz & Farra LLP, the firm now operating under the name BDO. According to the lawsuit, Santos claims the company mishandled tax filings across multiple states and left substantial cash balances sitting in checking accounts rather than placing the money in interest-bearing or investment accounts.

At the heart of the complaint, which alleges malpractice and gross negligence, is a claim that the firm incorrectly classified Santos as a full-year nonresident of New York on his 2021 tax return, an error that ultimately triggered a tax audit. Santos argues that the return was inconsistent with the fact that he had lived in New York for part of that year. The lawsuit also claims the firm attributed 25% of his W-2 income to the state without supporting documentation or analysis.

Beyond the New York tax filing, Santos alleges the firm made other costly errors, including purchasing an unnecessary duplicate workers' compensation policy and keeping him enrolled in private health insurance after he became eligible for less expensive coverage through SAG-AFTRA.

Santos's complaint also accuses the firm of failing to properly fund his individual retirement account and, after their business relationship ended, withdrawing money from one of his accounts without authorization.

A professional malpractice claim generally requires more than showing that an accountant made a mistake. Santos must ultimately establish that the firm failed to meet the professional standard of care and that the alleged failures caused the financial losses he is seeking to recover.

Santos is seeking damages for tax penalties and interest, professional fees incurred to investigate and correct the alleged errors, the unauthorized account withdrawal, and losses tied to the management of his cash, insurance and retirement accounts. The complaint puts his damages at no less than $2.3 million, with the final amount to be determined at trial.

Santos, 45, has demanded a jury trial. The Bronx-born singer rose to prominence as the frontman of the bachata group Aventura before launching a solo career. He received a Grammy nomination for Best Tropical Latin Album for his 2011 debut, Fórmula, Vol. 1, and won Best Merengue/Bachata Album at the 2023 Latin Grammys for Fórmula, Vol. 3.

The lawsuit is pending in federal court in Miami.