jan 15, 2018 - Johnny Depp supports
his $2 million-a-month
lifestyle by taking out
LOANS claim former
business managers
in court documents
Description:
EXCLUSIVE: Johnny Depp supports his $2 million-a-month lifestyle - complete with multiple mansions and a staff of 40 - by taking out LOANS, claim former business managers in court docs
By CHEYENNE ROUNDTREE
Johnny Depp's former business managers have accused the A-lister of living off borrowed funds to support his $2 million-a-month lifestyle and are demanding he hand over his financial documents as proof, DailyMail.com can reveal.
The actor had filed a $25 million lawsuit against former business managers Joel and Robert Mandel at The Management Group (TMG) last January, who he fired in 2016 after his new team allegedly discovered financial misconduct by the brothers.
Depp, 54, accused TMG of negligence and fraud for failing to pay his taxes on time - resulting in $5.6 million in tax penalties and interest - loaning out $10 million of his money to third parties without his permission and keeping sloppy financial records.
TMG fired back and claimed Depp lived beyond his means, shelling out $2 million-a-month for his exuberant lifestyle while knowingly choosing 'to live in debt'.
Now, TMG is demanding that Depp hand over any documents for loans he has received that are more than $5,000, according to papers filed in a Los Angeles court last week.
TMG says the documents are relevant because Depp 'falsely alleges' TMG took out loans without his knowledge. They also claim Depp is lying that he didn't know about the loans because he signed every loan he received while TMG was working for him.
The firm claims that Depp uses the borrowed money to maintain his lifestyle, which consists of multiple homes, an $18 million luxury yacht, as well as dropping $30,000 a month on fancy wine and having a fleet of at least 45 luxury vehicles.
Other costs included Depp's full-time staff of 40 employees, costing him $300,000 per month, $150,000 on 24/7 security for himself and his two children, a Gulfstream GV which sets him back $200,000 every month and the $4 million he put up to fund a friend's independent music label, Unison.
However, Depp is refusing the request that would reveal his financial position and claims the loan documents aren't relevant to the case.
He insists that if he had to take out loans it doesn't prove that he chooses to live an extravagant lifestyle as alleged, but rather he was forced into this situation due to TMG failing to properly manage his finances for 17 years.
TMG believes the documents Depp won't fork over will prove he is living on borrowed money and could show the actor knowingly chooses to live in debt rather than reduce his over-the-top lifestyle.
In December, Depp's lawyer said TMG has 'chosen to employ a reprehensible "blame the victim" strategy in a transparent attempt to save their own skin and deflect away from their malfeasance.'
The statement continues: 'Mr. Depp did not sue his former business managers for his own personal investment decisions or the "financial distress" they wildly allege - Mr. Depp sued them for fraud and multiple breaches of their fiduciary duty, among other claims.
'Gaslighting the public with global press releases will not save the defendants in court from their gross misconduct set forth in the complaint.'
Depp filed his $25 million lawsuit after claiming he discovered that he had been a victim of 'gross misconduct at the hands of TMG' according to the original filing in January of last year.
The actor claims he learned this shortly after he left TMG, who he had been with since just before his career took off in 1999, with the already A-list star becoming the highest-paid actor in the world following the success of the 'Pirates of the Caribbean' franchise.
This alleged misconduct was detailed later in the complaint, and included the more than $28 million in contingency fees TMG paid itself without any written agreement from Depp; a $5.6 million fine that the actor incurred when TMG failed to file his federal taxes on time; and a $10 million loan made by TMG to a third party using their client's money without his consent.
The Mandel brothers have said in court papers that 'Depp, and Depp alone, is fully responsible for any financial turmoil he finds himself in today.'
Meanwhile, Depp has been unloading some of his properties, as reports say he is $40 million in debt.
In November, he sold the final unit of his five penthouses for $1.425 million, having originally listed all five as one listing of $12.78 million.
In the end, the five units - which totalled a combined 11,500 square feet of space - were each sold separately, bringing in $10.88 million, around $2 million under the collective asking price.
Depp is also suffering fiscally from his divorce from Amber Heard last year, and was said to be facing selling his other LA properties in order to pay back his debts.
After a convoluted and bitter battle, the couple settled on $7 million which Amber donated to the Children's Hospital Los Angeles and the American Civil Liberties Union.
Despite getting rid of the five LA apartments, Depp is now set to lose a further five of his other homes as his former business managers at TMG attempt to have the actor repay the massive loan owed to them.
The Management Group filed in November to force a sale of Johnny's properties - all of which are in Los Angeles - in order to cover the $5 million loan TMG says it gave the actor in December 2012.
