Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Discuss the latest Johnny Depp news, his career, past and future projects, and other related issues.
Lbock
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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby Lbock » Thu Nov 09, 2017 3:46 pm

Ade wrote:I honestly think that his lawyer was speaking the truth when he said of course he isn't going to be repossessed - it's a publicity play by TMG and they know how much he hates publicity about his personal life so they always do these things when he has to be out in the public eye anyway. If you look at every single statement or response they've made, there is very little based on law and an awful lot of smoke and mirrors whereas Johnny's rep has always based his responses in fact and law. Much as I love seeing pictures of Johnny out and about I hope he is allowed to just keep his head down, working hard on FB2. There seems to be so much vitriol going around at they moment directed at Hollywood men, many of whom do not deserve it, I think his natural instinct of keeping low profile is the right one.

I agree. Glad he is working. Also, TMG pattern is to make a media splash when they know he is making a public appearance or movie coming out. I hope they do incur sanctions for this ploy

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby sleepy » Thu Nov 09, 2017 5:32 pm

It's kind of scary to be a male in Hollywood, right now.
Funny ol' world, innit?

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby SnoopyDances » Thu Nov 30, 2017 3:08 pm

In court papers filed in Cook County Circuit Court this week, Depp’s lawyers subpoenaed records from Lionheart, L.P. — a Wilmette-based hedge fund. SEC filings list the Mandel brothers as directors of the company.





The Chicago link to Johnny Depp's Hollywood lawsuit: A hedge fund, mayor's brother

Steve Schmadeke
Contact Reporter
Chicago Tribune

Embattled actor Johnny Depp, engrossed in a multi-million dollar legal battle with his former business managers, is seeking records from a Chicago-area hedge fund, including any communications relating to Mayor Rahm Emanuel’s Hollywood mogul brother.

The "Pirates of the Caribbean” star and his new business manager in January filed a $25 million lawsuit against The Management Group, the Beverly-Hills-based company founded by brothers Joel and Rob Mandel, alleging it defrauded Depp out of millions over 17 years.

A few weeks later, the Mandels counter-sued for hundreds of thousands of dollars in unpaid management fees, alleging that Depp had ignored repeated warnings about his finances and continued spending $2 million-a-month, including $200,000 a month for private flights and a $30,000 monthly wine bill.

In court papers filed in Cook County Circuit Court this week, Depp’s lawyers subpoenaed records from Lionheart, L.P. — a Wilmette-based hedge fund. SEC filings list the Mandel brothers as directors of the company.

Lionheart allegedly received over $2 million from a trust held by the actor “despite the fact that (the Mandels) possessed direct ownership interests” in the company, Depp's attorneys said in a separate legal filing. The filing alleged TMG had their client invest hundreds of thousands of dollars in at least three other companies owned by TMG employees.

In court papers, the Mandels have said TMG and Depp jointly invested in Lionheart and that the actor cashed out at a profit in 2008.

The subpoenas from Depp’s attorneys, filed Wednesday, also seek any communications the hedge fund, its directors or TMG had that “relate to” Ari Emanuel, the Hollywood mogul who runs the talent agency WME-IMG.

Court filings here do not explain why Depp’s attorneys want those records, but last summer Vanity Fair quoted Ari Emanuel as saying the Mandels are “true, honest, loyal brokers” who he’d trusted with his own finances.

Katrina Dela Cruz, one of Depp’s attorneys, declined to comment Wednesday on the subpoenas.

Representatives for Lionheart and Ari Emanuel couldn’t be reached for comment.

Several federal agencies, including the Securities and Exchange Commission, have launched probes of TMG, according to the Los Angeles Times. One of the probes, which is being led by the Internal Revenue Service and the Justice Department, is examining the possibility that the company engaged in fraud and money laundering, according to people familiar with the matter who were not authorized to comment.

The dueling lawsuits don’t completely explain why Depp, who has earned hundreds of millions of dollars during his career, is in such financial jeopardy. Depp reportedly paid $7 million in his divorce earlier this year from actress Amber Heard.

But court papers filed by TMG allege Depp spent $75 million on some 14 homes, including a French chateau and a chain of islands in the Bahamas. He also put together a large art collection with works by Basquiat and Andy Warhol.

Depp, who starred in “Fear and Loathing in Las Vegas” also spent more than $3 million blasting the ashes of his friend gonzo journalist Hunter S. Thompson from a 15-story canon outside Thompson's Aspen, Colorado home in 2005.

TMG took a 5 percent cut of Depp's earnings and the actor gave $10 million to his family and friends, the filing alleges. He provided over $400,000 to his close friend, the actor James Russo, to help Russo keep his home. He also gave over $260,000 to his friend Jonathan Shaw, a self-described “outlaw artist” and son of jazz icon Artie Shaw, who needed help after being arrested on charges of possessing an AK-47 assault rifle and three other guns along with 96 knives and more than 2,800 rounds of ammunition.

A date for the trial, which will take place in California, has tentatively been set for Aug. 15.

sschmadeke@chicagotribune.com

Twitter @SteveSchmadeke

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby sleepy » Thu Nov 30, 2017 9:51 pm

So the trial is now in August??
Funny ol' world, innit?

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby meeps » Fri Dec 01, 2017 6:41 am

Yes - poor Johnny ...
But in a way it seems understandable, if there is more to be looked into. According to the above more charges have been added after all, right?
Still - poor guy having to wait and wait to hear, what the verdict will be :sad:

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby Lbock » Fri Dec 01, 2017 9:28 am

meeps wrote:Yes - poor Johnny ...
But in a way it seems understandable, if there is more to be looked into. According to the above more charges have been added after all, right?
Still - poor guy having to wait and wait to hear, what the verdict will be :sad:

I didnt read as more charges. I thought the filed for subpoenas to get the information they need regarding THG holdings and using Johnny’s money to invest. Think I saw this in the original complaint.

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby Ruby Begonia » Fri Dec 01, 2017 11:09 am

Coincidence that Ari Emanuel heads William Morris, the talent agency that, last I heard, still represents the Sea Witch?

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby justintime » Fri Dec 01, 2017 1:26 pm

Ruby Begonia wrote:Coincidence that Ari Emanuel heads William Morris, the talent agency that, last I heard, still represents the Sea Witch?


Not good news. Johnny's legal team has its work cut out for it. Don't believe in coincidences, and this would be a disturbingly big one...
"Stay low." ~ JD
"I don't like it in here . . . it's terribly crowded." ~ Hatter
"There's something about Johnny that breaks your heart." ~ John Logan, ST
"Tear deeper, Mother." ~ Wilmot

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby meeps » Fri Dec 01, 2017 1:44 pm

Lbock wrote:
meeps wrote:Yes - poor Johnny ...
But in a way it seems understandable, if there is more to be looked into. According to the above more charges have been added after all, right?
Still - poor guy having to wait and wait to hear, what the verdict will be :sad:

I didnt read as more charges. I thought the filed for subpoenas to get the information they need regarding THG holdings and using Johnny’s money to invest. Think I saw this in the original complaint.


OK, I probably used the wrong word - charges - there. So sorry :love:
But they have more to figure out and get ready before the actual courtcases, right? So more time is good that way. But not so good for Johnny waiting to hear what will be the verdict ...

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby Judymac » Sun Dec 03, 2017 7:21 pm

meeps wrote:
Lbock wrote:
meeps wrote:Yes - poor Johnny ...
But in a way it seems understandable, if there is more to be looked into. According to the above more charges have been added after all, right?
Still - poor guy having to wait and wait to hear, what the verdict will be :sad:

I didnt read as more charges. I thought the filed for subpoenas to get the information they need regarding THG holdings and using Johnny’s money to invest. Think I saw this in the original complaint.


OK, I probably used the wrong word - charges - there. So sorry :love:
But they have more to figure out and get ready before the actual courtcases, right? So more time is good that way. But not so good for Johnny waiting to hear what will be the verdict ...



It is not surprising the American court system is very slow.

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby tralala » Tue Dec 19, 2017 3:02 pm

Has anyone heard anything about this?:


Johnny Depp Is Dealing With A Lawsuit Over Money, Again
BY DIRK LIBBEY

Johnny Depp has been dealing with a lot of money issues in recent months. However, things just seem to continue to pile up for the actor, as a new financial problem has been added to the pile, a brand new lawsuit. Previously, Depp had filed a lawsuit against his former business managers, only to be countersued in return. However, part of that suit included a malpractice suit against Depp's former lawyers. Now, that law firm has also countersued Depp, to the tune of $30 million.

Johnny Depp's entire 2017 has been taken up with major legal matters as back in January the first lawsuit was filed by Johnny Depp which accused his former business managers at The Management Group of mishandling his money, leaving him in serious financial straights. TMG then responded to the lawsuit by filing their own lawsuit against the actor, claiming that Depp's own free-spending was the cause of any financial issues, and demanding repayment of a significant loan they had given Depp previously.
A couple of months ago the legal drama took another turn as Johnny Depp accused the law firm that previously represented him, Bloom Hergott Diemer Rosenthal LaViolette Feldman Schenkman & Goodman LLP, of mismanagement of Depp's legal affairs for their own financial benefit. Unsurprisingly, Deadline reports that the law firm claims they did no such thing, stating that any problems Depp is having are due to bad decision making by the man himself, or his representatives, for which he is responsible.

Whoever's to blame for Johnny Depp financial issues, a pair of multimillion-dollar lawsuits is certainly not going to help things in that department. TMG has released some information publicly which purports to show Depp's extravagant spending, but if one assumes that Depp's initial lawsuit isn't utterly baseless, we have yet to see or hear any details that might show the mismanagement which led to the original lawsuit, which could go a long way to explaining how the actor found his way here.

On the plus side, if Johnny Depp does actually prevail in all of these lawsuits, especially the countersuits, he'll almost certainly get a large portion of his court costs covered. However, he'll still have to spend the money up front, likely putting the actor in a much worse position for a while. If Depp loses all of these suits, he'll be in a much worse financial position than when everything started.

It's been almost a year since the legal drama began, and clearly, this is far from over. We'll likely be into 2018 before any decisions are actually made. CinemaBlend will be here covering this interesting case as it continues to develop.



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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby Lbock » Tue Dec 19, 2017 3:49 pm



DECEMBER 18, 2017 2:09pm PT by Ashley Cullins

Johnny Depp Countersued by Ex-Law Firm Bloom Hergott

Meanwhile, the actor has added an expert on legal ethics to his team.
Bloom Hergott is countersuing its former client Johnny Depp after the star in October filed a malpractice claim seeking repayment of $30 million in legal fees.

The actor says his former lawyer Jake Bloom knowingly, recklessly or negligently failed to disclosed years of misconduct by his former business managers at The Management Group, whom he's also suing. (Read more on that fight here.)

Specifically, Depp claims Bloom introduced TMG to Grosvenor Park to secure a hard money loan for the actor — without disclosing that he had a relationship with the company's founder. The loan, through Grosvenor affiliate Tryon, was secured by Depp's residuals from four installments of the Pirates of the Caribbean franchise, Alice in Wonderland and Into the Woods. The actor says in the three years since that loan agreement he's earned $32 million in residuals but hasn't received a penny because of the structure of that deal, which prioritizes payments to Bloom Hergott and TMG ahead of loan payments to Tryon.

Bloom Hergott's answer to the complaint filed Dec. 11 features a general denial of the allegations and the assertion of 20 affirmative defenses, including that the actor or his other representatives are at fault for any losses.

"Ensuing injuries and losses, if any, were proximately caused and contributed to by the negligence, fault, and misconduct of Plaintiffs and/or their agents and representatives (whose acts, conduct, and/or omissions are chargeable to Plaintiffs)," writes attorney Peter J. Kennedy.

A four-page cross-complaint filed the same day focuses on a 1999 oral agreement between Depp and Bloom, which provided that Depp would pay Bloom's firm a fixed percentage of his entertainment income, and claims the actor hasn't paid his fees since July.

"We have alleged that Bloom doesn’t have any legal entitlement to fees dating not just to July, but all the way back to the inception of the client relationship," Depp's attorney Adam Waldman tells The Hollywood Reporter.

“Bloom’s court filings did not respond to any of the specific allegations in Mr. Depp’s complaint, including the allegation regarding the predatory hard money loan that has cost Mr. Depp tens of millions of dollars in just 3 years where Bloom fed Mr. Depp to another party who was actually an undisclosed Bloom client," says Waldman. "Messrs. Bloom and Mandel then shoveled money from the loan proceeds immediately out the back door to themselves, and quietly smuggled in provisions to the loan providing themselves multi-million dollar rights off the top that they didn’t otherwise possess to Mr. Depp’s film residuals.”

Waldman has also argued that the Depp-Bloom oral agreement violates California law, which requires a written contract for contingent fee agreements between a lawyer and his or her client. (It's an argument he's also using against Robert and Joel Mandel of TMG, who are both licensed attorneys.)

Kennedy, in Bloom's answer, argues that Depp knew of the facts alleged since as early as 1999 and failed to "use reasonable care to mitigate, minimize, or avoid any injury or loss."

The actor is asking the court for a declaration that their agreement is invalid; Bloom, meanwhile, is now asking for the mirror image.

"Bloom Hergott seeks a declaration that the fee agreement between Cross-Defendants and Bloom Hergott be declared valid and enforceable and a declaration that Bloom Hergott is not required to disgorge any fees paid by Cross-Defendants for legal services that Bloom Hergott provided," writes Kennedy in the cross-complaint.

In the event the court sides with Depp and declares the agreement unenforceable, Bloom Hergott is seeking the "reasonable value of its legal services."

In preparing for litigation with Bloom, Waldman says Depp hired Stanford Law professor Nora Engstrom, an expert on legal ethics, who sent THR a statement Monday.

"Depp contends that Jake Bloom pocketed tens of millions of dollars, while flouting the very specific statute that governs the charging of legal fees in California — and he also, on numerous occasions, put his own interest ahead of his client's," she says. "While Bloom's Answer and Cross-Complaint tries to throw up some technical defenses, nothing they say undermines or minimizes those basic and troubling facts. ... Lawyers are supposed to serve clients with undivided loyalty and unswerving fidelity. Here, if it is proved that Jake Bloom was willing to sell Depp out to make a buck or to curry favor with another client, the ethical breach established will be egregious."




Countersuit
Bloom Response

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Johnny Sues Business Managers, Accuses Fraud. Added: Johnny is Countersued

Unread postby tralala » Wed Dec 20, 2017 4:09 pm

Thanks! Is it just me, or does it really seem like the lawyers enjoy firining their ammo right before Christmas?


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