The clothing designer is currently facing a lawsuit from his former employee accusing him of constantly engaging 'in illegal drug use' and making 'racially charged remarks concerning employees.'

AceShowbiz - Demi Lovato's close ones, including her former boyfriend Wilmer Valderrama, have every reason to be worried about her relationship with Henry Levy. The clothing designer, who has been spotted twice with the singer/actress following her discharge from rehab, has a bad history not only with drugs, but also with racism and the law.

The founder of Enfants Riches Deprimes, who opened up about his past drug use to Complex magazine in 2016, was recently hit with a lawsuit from a former employee. According to documents obtained by Radar Online, Henry was accused of drug use, fraud, discrimination and failure to pay overtime wages among other things.

The plaintiff, Brendan Thompson, said he worked for Enfants Riches Deprimes in June 2014 as a financial planner until his termination in April 2018. During his time working at the company, he handled legal matters, which stemmed from Henry's "repeated and persistent illegal and hostile behavior," including his alleged "illegal drug use" and "racially charged remarks concerning employees and other third parties."

Brendan said he himself was subject to "constant jokes about the races of employees," specifically their Mexican heritage. "He was subject to anti-Semitic comments about himself and 3rd parties," the court papers stated. "He was subject to homophobic and xenophobic rants by Mr. Levy."

Brendan claimed he was promoted to CFO in 2017, but failed to receive compensation in 2017 or 2018. He said he was persuaded to invest over $170,000 of his own money into the company from 2014 to 2018 for the "sole benefit" of Henry.

He also claimed he created a "unique 2-dimensional artwork" for the company, which was "then exploited by the company without accreditation or compensation." Furthermore, Brendan alleged the company intentionally lied to him about his stake in the company and accused Henry of "embezzlement" and "squandering company capital for personal use."

Brendan said he wasn't paid over 40 hours of overtime and holidays, and didn't receive meal or rest periods. He claimed he was fired on April 23 after being accused of theft with no investigation. When he complained about the discrimination and not being properly compensated, he was subjected to "hundreds of threatening and inflammatory text messages and emails from Defendants."

Brendan is seeking $5,000,000 in general damages in the lawsuit, which is still ongoing.

Henry first entered rehab at the age of 15 for drug use. Over the course of his teenage years and into his twenties, he also visited Cirque Lodge in Utah and Promises in Malibu. "He used to have a drug problem. He used to like to party," an insider said, before adding that he is now "sober and straight-edge."

Demi and Henry reportedly met a few years ago when they were both in rehab. They were spotted going to an AA meeting together on Sunday night, November 4.

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