Action, reaction. Spend more money than you make, and you’re going to have serious problems.
Threaten to assassinate the President, and you just cut off any sympathy from his supporters.
Welcome to reality, Johnny Depp.
Nearly a year after Depp and his former business managers start throwing accusations and betrayals at each other in court over millions in the seemingly spendthrift actor’s troubled finances, The Management Group on Monday filed an “action for judicial foreclosure” against the Pirates of the Caribbean star.
Aiming for the heart of what started the lawsuits flying back in January when the actor went after TMG in a $25 million fraud suit, the move Monday is to force a sale of five Los Angeles properties owned by Depp run trusts. Those sales are part of a larger play to repay a $5 million loan TMG made to the strapped actor in December 2012, reports Deadline.
“TMG agreed to come to the aid of its long-time client,” the complaint filed in LA Superior Court today said of a pressing and due City National Bank loan that Depp had no way of meeting and his ex-biz managers got a “pass-through” for. “The idea behind this arrangement, which was designed to save Depp from a public and devastating financial collapse, was that Depp would pay TMG what TMG was required to pay CNB under the loan,” the non-jury trial seeking document adds of the company and its 17-year long client’s deal (read it here).
“At least at the time, Depp and his sister, personal manager, and the president of his production company, (Elisa Christi) Dembrowski, were very grateful to TMG for coming to Depp’s aid and helping him to avoid a public financial collapse,” TMG’s lawyers Michael Kump and Suann MacIsaac assert. “In fact, three years later, Depp used the fact that TMG had lent him money to pressure his long-time agent, United Talent Agency, to guarantee a further multi-million dollar loan from Bank of America,” the duo declare.
These sort of foreclosure actions usually move through the courts faster than most matters and, if a judgment is found in Depp’s disfavor, could see the Sheriff or a marshall snagging the properties within a year and selling them to pay the loan Depp has apparently decided not to.
“Depp paid interest and some principal payments under the TMG/Depp Note until he terminated TMG as his business manager on March 14, 2016,” the 10-page plus exhibits filing states. “After that date, Depp and his new business manager, (Edward) White, have refused to pay any interest or principal on the loan,” it goes on to detail. “Well over $4.4 million is due and owing under the TMG/Depp Note,” the document cites of the big bucks involved as well as fees and interest.
“Although Depp is refusing to pay his debts, he does not and cannot dispute that he received the full benefits of the TMG/Depp Note by avoiding a public calamity in 2012,” the duo from of Tinseltown heavyweights Kinsella Weitzman Iser Kump & Aldisert LLP state. “Nor can he dispute that TMG gained nothing from the transactions and instead, became indebted to CNB for $5 million.”
Then there’s that kicker: “However, in Depp’s self-centered world, ‘no good deed goes unpunished.’”
Reps for Depp did not reply to request for comment from Deadline.
TMG added, “As a result of Depp’s uncontrollable spending, which exceeded the net income he received from his films, Depp was forced to borrow large sums of money to fund a lifestyle that continued to become more and more extravagant over the years,” Monday’s fairly detailed filing says. “At the outset, this borrowing was in the form of advances from various movie studios, primarily Disney.”
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