Global Courant
The designer behind Los Angeles-based streetwear company Rhude, a favorite brand of Jay-Z, Justin Bieber, LeBron James, Saweetie and many other celebrities, was charged in a federal lawsuit this week with plundering corporate funds to live as one of his rich and famous clients.
The owner of a minority stake in the clothing line claimed in the US District Court in LA that designer Rhuigi Villaseñor was “the Rhude Companiescoffers in support of a “lavish lifestyle” that includes private jet travel, Italian vacations, Ferraris, Lamborghinis, and a $100,000 watch collection.
George Robertson, who owns 20% of Rhude, alleged in the lawsuit that Villaseñor boasted annual earnings of more than $30 million but made distributions of only $41,000 a year to his co-owner.
“He abused his power and control over the products, designs, bank accounts and financial records of the Rhude companies to enrich himself to the detriment of Robertson,” the lawsuit alleges.
Through his attorney and publicist, Villaseñor, 32, declined to comment.
Robertson is seeking compensation, a chance to inspect the company’s books and removal of Villaseñor’s control of the company.
A self-taught designer raised in an undocumented Filipino family in the San Fernando Valley, Villaseñor has become an industry darling in recent years. The Swiss fashion house Bally appointed him design director last year, although the position was short-lived. He left in May.
He founded Rhude in 2015 with an aesthetic that he honed after school through Goodwill. He has described his style as “what I would buy if I had money when I had no money.”
The mix of luxury and street style attracted hip-hop artists and NBA stars. One of the best-known products is the “traxedo” pants, track pants with high-end finishes that sell for $800 and have been worn on stage by Ellen DeGeneres and A$AP Rocky.
Robertson acquired a stake in the company after investing $50,000 in 2016. Robertson, an entrepreneur and music agent, also co-wrote the 2011 LMFAO hit “Sexy and I Know It,” and according to his lawsuit, provided “industry connections” that helped build the brand.
The pair fell out in 2019. Robertson claims that Villaseñor “became jealous” that he came up with the idea for the “traxedo” pants and other bestsellers and banned him from the office.
To hide the earnings from him, Robertson alleges, Villaseñor “routinely sold (Rhude) goods to VIP clients – many of them NBA players, celebrities and musicians – in private sales” and kept the proceeds for himself.
The parties made unsuccessful attempts to resolve their dispute, with Villaseñor offering in 2021 to pay Robertson $5 million for his stake in the company, according to the lawsuit.
Speaking to The Times in 2021, Villaseñor acknowledged that he liked the finer things.
“After all those Italian trips I’ve been on, I love a villa,” he said. However, he never forgot his roots, he said, and still frequented the Goodwill where he drew inspiration as a teenager. “I like the valley.”
