Reclusive funk musician Sly Stone has filed a $50m (£30.9m) legal claim against his former manager, alleging fraud and 20 years of stolen royalties.
He also claims Mr Goldstein registered the band's name with authorities as his own and used it borrow money.
Stone is best known for his hit songs Family Affair and Dance to the Music.
The musician - whose real name is Sylvester Stewart - has also asked the Los Angeles Superior Court for the full accounts from royalty collection companies to determine exactly how much had been taken from him.
'Unscrupulous people'
The legal papers said that Stone had been homeless at times and was currently living off benefits. It added the musician depended on Mr Goldstein to handle his financial affairs and had paid Stone some money until 2007, but then stopped.
Stone's lawyer, Robert Allen said the legal action highlighted "a dark side of the music business where some of these artists are being robbed of their intellectual property and the fruits of their genius by unscrupulous people who prey on their trusting nature and lack of business and legal knowledge."
A representative for Mr Goldstein was not available for comment.
Sly and the Family Stone had hits throughout the 1960s and 1970s but the group fell apart because of heavy drug use and erratic behaviour among the band members.
After years out of the public eye, Stone gave his first live musical performance since 1987 at the 2006 Grammy awards in a tribute to the band, but left the stage before his song was over.
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