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Accusations that Selena Gomez duped investors into putting $1.2 million into mental health startup Wondermind are baseless, the star’s lawyer, Mathew S. Rosengart, says after Gomez was named in a lawsuit filed Thursday (Aug. 13). Rosengart will be filing a motion to dismiss claims made in the suit.
On Saturday (Aug. 15), the litigator denied allegations made against Gomez in the statement seen below, which was first published by People. Billboard independently verified the statement with Rosengart.
“The allegations that Selena Gomez engaged in any way whatsoever in any purported ‘fraud’ or other wrongdoing are completely meritless, both factually and legally. We will vigorously defend these…
MANAGEMENT & CULTURE (THE “TONE AT THE TOP”)
Fraud thrives in “sloppy” environments where leadership ignores the rules.
- The Fraud Triangle: For fraud to occur, three elements must be present: Pressure (the need for money), Rationalization (thinking “I deserve this”), and Opportunity (weak controls). You can only control the Opportunity.
- Whistleblower Hotline: Provide an anonymous way for staff to report “odd behavior.” Most internal frauds are caught via tips, not audits.
- Background Checks: Conduct credit and criminal record checks for all employees in financial or data-sensitive roles.
- Annual Ethics Training: Make sure every staff member knows that the company has a Zero Tolerance policy toward “borrowing” from petty cash or fudging overtime.