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Celebrities in Financial Trouble This Week

Money problems are not limited to us mere mortals alone. Celebrities fall into financial problems as well. Here is the latest crop reported by TMZ.

Screech From Saved By The Bell

Celebrities in Financial Trouble This WeekScreech had his first foreclosure scare in 2006 — when he allegedly fell behind $250,000 on his mortgage payments. It all happened again a few months ago in April — except according to Wells Fargo Bank, Screech’s debt had ballooned to $290,000.

Now, the foreclosure monster is rearing its ugly head yet again — Wells Fargo just filed more foreclosure papers in Wisconsin, claiming DD is still in default, owing $278,309 since May … and now the bank is tightening the screws for realsies.

WF wants to recoup their losses stat — demanding immediate foreclosure on Screech’s property. So far, no word from the goateed one. Zoiks!

Singer Toni Braxton Bankrupt

Celebrities in Financial Trouble This WeekBraxton — who sold more than 40 million albums in her career — just filed for Chapter 7 bankruptcy in California … and in the docs, the singer claims she’s only worth somewhere between $1 mil and $10 mil … but she could have up to $50 mil in debts.

In the docs, 43-year-old Braxton lists a ton of creditors to whom she thinks she may owe money… including:

– AT&T
– The Four Seasons Hotels
– Cedars-Sinai Medical Center
– Various medical bills
– DirecTV
– Neiman Marcus
– The William Morris Agency
– Tiffany & Co.
– Orkin Pest Control
– The Internal Revenue Service
– BMW Financial Services
– ADT Security
– American Express
– Flamingo Las Vegas
– Mesa Air Conditioning
– Nevada Power Company
– Screen Actors Guild
– The Westin
– Wells Fargo Bank

Braxton also claims she may owe money to the City of L.A. Parking Violations Bureau — and the DMV in both California and Nevada.

Braxton has a storied history of financial problems — she filed for bankruptcy back in 1998 … and earlier this year, the IRS filed a lien against her for $396k.

CHiPs Star Charged in Securities Fraud

Celebrities in Financial Trouble This WeekThe Securities and Exchange Commission just charged Wilcox and more than a dozen others with allegedly manipulating the volume and price of penny stocks to illegally generate stock sales. Translation: Wilcox and the others allegedly set up a phony company to generate bogus stock sales.

This is not a criminal charge. The SEC is asking for an injunction against Wilcox and some of the others, as well as financial penalties.

Joanie Loves Foreclosure Avoidance

Celebrities in Financial Trouble This WeekErin Moran’s had some happier days … TMZ has learned the former “Joanie Loves Chachi” actress lost her home after the bank foreclosed.

Seems Erin — who now goes by the name Erin Fleischmann — was in arrears to the tune of $315k and didn’t fork over the cash.

So, the house — located in Palmdale, CA just north of L.A. — went into foreclosure, according to documents obtained by TMZ, and was sold at public auction back in July for $291k.

But the not-so-happy-days plot thickens … seems Erin kept living in the house and refused to leave. So the L.A. County Sheriff’s Dept. served her last Monday with eviction papers.

When called for comment, Erin’s rep said our facts were inaccurate … but would not say why.

Celebrities in Financial Trouble This Week
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Theoconnaly712

    He’s made some great movies: Raising Arizona, Leaving Las Vegas, Adaptation.

    He’s made some huge blockbusters:  The Rock, Gone in 60 Seconds, National Treasure.

    He is the 5th youngest actor to win the Academy Award for Best Actor for his role in Leaving Las Vegas.

    But, Nicolas Cage has found himself in the news quite a bit lately
    for his money fails- problems with the IRS in particular.  As we
    repeatedly mention in the Road Out of Debt, you don’t want to get on the
    bad side of the IRS of all creditors.  The IRS is smart and
    relentless.  Here’s what happened to Nicolas Cage.

    Nicolas Cage likes to buy property.  Cage had a Malibu home he sold
    in 2005 for $10 million. In 2004, he bought a property on Paradise
    Island, Bahamas. In May 2006, he bought a 40-acre island in the Exuma
    archipelago.  He once owned the medieval castle in the Oberpfalz region
    in Germany.  In August 2007, Cage purchased a home in Middletown, Rhode
    Island with 12 bedroom, 10 full bathrooms, and ocean views home. The
    estate is called the “Grey Craig” and the sale ranked among the state’s
    most expensive residential purchases.  Cage’s former financial manager,
    whom Cage has sued for negligence and fraud for not paying Cage’s taxes,
    alleges that Cage owned at least 15 personal residences and has gone on
    extremely extravagant shopping sprees.

    On July 14, 2009, the Internal Revenue Service started the process to
    place a federal tax lien against property owned by Cage in Louisiana on
    account of unpaid federal taxes. The IRS alleges that Cage failed to
    pay over $6.2 million in federal income tax for the year 2007.  In
    addition he is alleged to owe $350,000 in unpaid taxes dating from 2002
    to 2004 because he is alleged to have given gifts worth a combined $1.8
    million. Givers of large gifts must pay a 35 percent tax on the value of
    those gifts.

    Whether or not the unpaid taxes are the fault of his financial
    manager, Nicolas Cage is in deep trouble now that the IRS is pursuing
    him.  The IRS is extremely good at what they do and when they set their
    sights on someone, they usually get that person.  They don’t file suits
    randomly.  They normally have very strong evidence and certainty in
    their facts.  Not that they never lose in court- they certainly do- but
    odds are they are coming with a very strong case.  Failure by Nicolas
    Cage to resolve his issues could certainly result in incarceration.

    Nicolas Cage certainly has had the money and resources to avoid such
    serious financial issues.  It’s not a complete financial failure but
    it’s at least a huge lack of oversight.

    Grade of the Fail: C-

    Rebound Grade: INCOMPLETE. He should rebound nicely
    from this set back but if he thinks he can avoid or ignore the IRS, he
    could find himself spending time in the federal penitentiary with fellow
    actor, Wesley Snipes, who is serving 3 years for tax related crimes.
     

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