Uh oh, is this a bad romance?!

Demi Lovato's boyfriend Henry Levy has been accused of shady business and personal financial transactions in a lawsuit brought forth by his former employee, but he's not taking things lying down, Radar reports.

Brendan Thompson, a former employee for Levy's clothing company Enfants Riches Déprimés, sued his former boss on July 25, 2018, alleging that he took money from family, friends, and clients to pay off his personal bills and fund his lavish lifestyle. Thompson is claiming drug use, racist remarks, fraud, failure to pay overtime wages, defamation and much more.

"The conduct involved stealing money from family, friends, clients, vendors and various third parties, by authorizing and performing fraudulent credit card transactions,” the court documents read. "His intent was to fund a lavish lifestyle on other people’s money,” it added.

Thompson worked as a financial planner for the company from 2014 to 2018, and he claims he received no pay for 2017 and 2018, despite investing $170K of his money into the brand.

"He was subject to anti-Semitic comments about himself and 3rd parties. He was subject to homophobic and xenophobic rants by Mr. Levy. During Mr. Thompson’s employment with ERD, Mr. Levy constantly engaged in illegal drug use and made racially charged remarks concerning employees and other third parties," another part of the documents state.

Not true, says the "Skyscraper" songstress' new man!

Levy filed a motion to obtain Thompson and his girlfriend's bank records, claiming that they were the ones mismanaging and embezzling funds.