- Connor Franta is suing his Heard Well business partners. He says they used the company as a "piggy bank."
- Franta accuses them of embezzlement to the tune of more than $1 million.
- Lawyers for all three defendants denied the allegations to Business Insider.
YouTube star Connor Franta is suing his business partners, alleging in a lawsuit that they embezzled more than $1 million from the company they cofounded in 2015.
In the suit, filed in California Superior Court this week, Franta — a 32-year-old YouTuber with 4.8 million subscribers — is suing his cofounders in Heard Well, a music label that works with influencers. He also names the company's business manager — who is the father of one of the cofounders — as a defendant, accusing him of turning a blind eye to the alleged theft.
The business partners and manager all denied the allegations in statements to Business Insider.
The suit alleges Heard Well cofounder Jeremy Wineberg used an American Express Black Card obtained in the company's name for personal expenses, including international travel, concert tickets, tattoos, groceries, and plastic surgery. The suit says Wineberg "systematically looted the company of essentially every penny," using Heard Well funds to pay the Amex balances.
Another cofounder, Franta's former CAA agent Andrew Graham, also "converted thousands of Heard Well dollars" for personal use, the suit alleges. The suit says Graham was not "the principal bad actor."
CAA is a leading Hollywood talent agency with a digital arm that represents influencers on YouTube, Instagram, and TikTok. The agency works with creators to monetize their followings through brand partnerships, consumer products, and other business ventures. CAA is not named as a defendant in the suit.
Wineberg, and to a lesser extent Graham, used the company's earnings as "a de facto personal piggy bank," the suit alleges.
Meanwhile, Franta, in the lawsuit, said Lindsay Wineberg & Associates — Heard Well's business manager and accountant, led by Jeremy Wineberg's father — acted negligently by turning the other cheek, "and in doing so negligently facilitated the draining of over $1 million of company monies into the personal pockets of Wineberg (and Graham)."
Bryan Sullivan, a lawyer for Jeremy Wineberg and Lindsay Wineberg & Associates, said the allegations aren't true.
"The lawsuit filed by Connor Franta is without merit," Sullivan told Business Insider in a statement. Sullivan said his clients never "engaged in any misconduct."
"We intend to pursue all of our rights and expect to be vindicated in Court," Sullivan said.
John Shenk, a lawyer for Graham, told BI in a statement that his client "denies the allegations of the complaint and looks forward to defending this case in court."
Graham told BI that he no longer represents Franta, nor does CAA.
Franta has been on YouTube for more than a decade and is also the author of the memoir "A Work in Progress." He cofounded Heard Well in 2015, with each of the cofounders contributing $2,000 to capitalize the startup, according to an operating agreement that was filed as part of the lawsuit.
Heard Well published dozens of albums, but Franta "hardly saw a dime of profit directed his way throughout the company's nearly 10-year lifespan," the suit says.
This spring, the suit says, Franta learned Heard Well had fallen behind on royalty payments after a YouTube video accused the company of scamming.
Heard Well's Instagram account was active as of Thursday, though Franta said in the suit that he's been blocked from the company's social media accounts.
"Acting with integrity and respect in all my professional endeavors — especially with fellow creators — has always been a top priority for me," Franta told BI in a statement.
He said that while the matter had only recently come to his attention, he'd taken action this week "to protect the company and to facilitate its pursuit of all necessary and appropriate legal remedies."