James Franco's former manager Miles Levy has been sued by his own firm for skimming commissions and charging a six-figure balance of personal purchases on Franco's credit card.

Levy has been at his game for a decade, cleverly negotiating a deal with his partners at James Levy Management back in 2006, saying that Franco no longer wanted to pay their 15% fee, and instead would only fork over 10%. The firm agreed to the discount, but Levy continued to charge Franco 15% and just pocketed the 5% for himself.

According to the suit, Miles had enlisted the help of the prominent celeb accounting firm Tanner, Mainstain, Blatt, Glynn & Johnson, who helped him set up a shell company to deposit the siphoned cash. Tanner Mainstain also allegedly collected fees for their dirty work.

Franco had already reached a settlement with Miles in December but now his former partners at Levy Management want their turn at Levy. Franco dropped Levy as his manager last year.

The suit was filed by Randall James, Levy's longtime partner in James Levy Management, and Kenneth Jacobson. The suit claims that when Randy James discovered the diverted money a month ago, Blatt "turned" on Levy and disclosed what had been going on.

Recent reports also indicated that Tanner, Mainstain, Blatt, Glynn & Johnson filed a counter complaint on Friday afternoon, claiming that the management company was "rife with internal mismanagement, surreptitious behavior, duplicitousness, and questionable ethical acts."

They contend that James and Jacobson believed back in 2006 that Levy had an "enormous gambling addiction" that was sliding him deeper into debt and that he stole money from the company and made side deals with his clients. That was the reason that Jacobson left in 2006, the countersuit contends, but James stayed because Levy was still "generating significant business." Only when Franco quit the firm did James claim "ignorance of Mr. Levy's character and actions," and then "foist responsibility on others for the acts of their co-owner, Miles D. Levy, and for their own careless and reckless actions."

The accounting firm is seeking indemnification on the grounds that Levy, acting on behalf of the management company, represented to Blatt and the accounting firm that he and James would personally split 5% management commissions on Franco's income. "Mr. Blatt reasonably relied on the representation of Mr. Levy with respect to the split of management commissions and reasonably believed that Mr. Levy was acting within the scope of his agency for [James Levy Management] in making such representations," they said.

McRae responded to the countersuit late on Friday. "This is no defense to the complaints allegations that Tanner Mainstain name partner Steve Blatt knowingly facilitated, concealed and profited from Mr. Levy's theft from the corporation. The law doesn't allow fraudsters to point to the victim and say it's your fault I duped you. This pleading will be shut down quickly."