Mercado is being sued by former manager Fred Crawford,.
Crawford claims Mercado agreed to fork over 20% of whatever she made in the entertainment industry. Crawford says he helped her land the "Book of Mormon" deal ... for which she earned $40,000 a month.
But Crawford claims right after the ink dried Mercado cut off all communication and never paid him a cent. He's suing for his "Mormon" cut -- roughly $300,000.