Big Brother 7: All-stars winner Mike "Boogie" Malin and his business partner are reportedly being sued for embezzlement after they allegedly gambled away an "illegally siphoned" wad of cash.

Restaurant investor Shereene Arazm claims her partners Malin and Lonnie Moore -- who are both currently appearing on VH1's Famous Food reality series -- "illegally siphoned away [money]" from their Geisha House, LLC restaurant group for years to "support their lavish party-boy lifestyles," TMZ reported Wednesday.

"They gambled away hundreds of thousands of dollars that never belonged to them, they used some of the stolen monies to pay for sex, and they traveled the world at Arazm's and the restaurant group's expense," Arazm filed in her lawsuit.

In addition, Arazm claims Malin -- who also competed on the second season of Big Brother -- used the business' capital "to have multiple sexual encounters with various older men during which Malin would live out fetish role play fantasies."

However, the parties' courthouse roles were originally reversed as Malin and Moore reportedly sued Arazm and her lawyer Marty Singer for extortion before Arazm got a chance to file her own lawsuit.  Both lawsuits are seeking millions of dollars in damages.

According to TMZ, Singer wrote up a legal complaint and passed it off to Malin last week, allegedly that he would file the lawsuit in court if the Big Brother champion didn't agree to resolve the financial disagreement quickly.

Malin reportedly believes Singer's actions were civil extortion, and is also claiming Singer and Arazm illegally tapped his phone and hacked into his email account. Singer is denying the allegations.

"The lawsuit filed by Malin was simply a preemptive strike since Malin and his partners knew they were being sued for serious wrongful conduct. The claims in the suit are completely false and fabricated. We fully expect to get the suit promptly dismissed," Singer told TMZ.
About The Author: Elizabeth Kwiatkowski
Elizabeth Kwiatkowski is Associate Editor of Reality TV World and has been covering the reality TV genre for more than a decade.