Toni Braxton - Toni Braxton Accused of Fraud, Claimed She Was $50m in Debt30 October 2012
Toni Braxton Accused of Fraud, Claimed She Was $50m in Debt
In 2010 singer and actress Toni Braxton filed for bankruptcy, reportedly owing somewhere between $10m-50m, reports the Daily Mail. Although the first thought the comes to mind is- HOW does someone let that kind of money slip out of their grasp and under the radar? That's quickly shadowed by the latest revelatory allegation that she has committed fraud.
According to trustee of her bankruptcy estate, she illegally wired over $53,000 to her ex husband Keri Lewis. According to TMZ this was due to not wanting to pay the repayments that were due to bank creditors. Responding to the allegations, Braxton's reps said "All of the payments made to Lewis prior to Toni's bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business."
After going bankrupt originally in 2008 she said "Most artists go bankrupt at some stage because you don't get your percentage [of the profits] till you pay back all the money the company has invested in you - and everyone coming into the business gets lousy deals at first." However, as the Daily Mail says, in a first-time ruling she won her case with the Congress who ruled that her music contract was still valid despite her bankruptcy and consequently continued recording and subsequently went on to make profit the following year. Fingers crossed we'll see a repeat of history for Braxton's sake.