Cage Sues Financial Adviser Over Money Woes
NICOLAS CAGE is taking his former business manager to court in a multi-million dollar lawsuit, accusing the adviser of sending the actor "down a path toward financial ruin".
The National Treasure star has been hit with a $6.26 million (£4.2 million) tax lien from America's Internal Revenue Service (IRS), alleging he failed to pay income tax on wages dating back to 2007.
Cage is also facing other claims of unpaid tax related to his earnings between 2002 and 2004, while he was accused of defaulting on a $2 million (£1.3 million) loan earlier this month (Oct09).
The actor has blamed financial mismanagement for his money woes and is holding his ex-employee Samuel Levin accountable for the huge debts, reports TMZ.com.
In a lawsuit filed against Levin in Los Angeles County Superior Court, the star claims he was misled over his monetary situation over a period of seven years, while being "grossly" overcharged for his services.
The legal documents state, "Levin placed Cage in numerous highly speculative and risky real estate investments, resulting in Cage suffering catastrophic losses."
The 45-year-old explains he fired Levin earlier this year (09) after learning "the gravity of his financial condition", adding he hid the actor's "true financial condition prior to investments and assets being acquired by (Cage)".
Cage has hired top celebrity lawyer Marty Singer to represent him and is demanding a minimum of $20 million (£13.3 million) in damages.
He made efforts to cutback on his property empire this year (09) by selling off a Bavarian castle he owned in Germany and one of his two properties in Bath, England, as well as listing his New Orleans, Louisiana mansion for $3.7 million (£2.6 million).
According to Forbes magazine, the actor earned $40 million (£26.7 million) in the year ending June 2009.