The Lawsuits Thread

[Lbock]

I can't help wondering if there's any mention, in all of the documentation available thus far, of any sound, strategic investments made for Johnny with Johnny's money during all the time TMG was collecting its millions on Johnny's payroll. Since TMG made such a big deal out of presenting themselves as a one stop money management agency it would seem the first and foremost distributions after taxes, from any client's income, would be precisely that.

"Depp rarely had any meaningful funds available for savings and/or traditional investments"

[justintime]

I can't help wondering if there's any mention, in all of the documentation available thus far, of any sound, strategic investments made for Johnny with Johnny's money during all the time TMG was collecting its millions on Johnny's payroll. Since TMG made such a big deal out of presenting themselves as a one stop money management agency it would seem the first and foremost distributions after taxes, from any client's income, would be precisely that.

"Depp rarely had any meaningful funds available for savings and/or traditional investments"

From day 1 of their relationship??? "Rarely" does not mean "never". TMG's self-serving comment begs the question: What was the state of Johnny's finances when TMG initially assumed control? How could any reasonably responsible business managers not put the brakes on their involvement with Johnny the moment they realized they were not going to be able to fulfill the most basic of their fiduciary duties?? It didn't take TMG sixteen years to figure out exactly what they had in Johnny: an honest, trusting, and talented artist - admittedly unschooled in the vagaries of personal economics - on the brink of generating multiple millions in income. From the outset, TMG was slick enough to recognize Johnny's need and grateful willingness to depend on them across the board to make the tough financial calls. They took the ball and ran with it, Johnny's portfolio and solvency be damned.

[Judymac]

This article (comparing him to Brad Pitt) shows the hypocrisy of the press when dealing with Johnny. It does seem like they enjoy making him look bad. I think the press are irritated that the public did not believe his ex wife. They still want to make her a victim and slam Johnny.

I thought the whole idea of buying a couch from the Kardashians was ridiculous. I wonder if TMG made this up as an outrageous example of spending. I know you are supposed to tell the truth in a deposition but not everyone does. But, even if he did buy a couch, it's his money. TMG did not do what they should have done. If they thought he was spending too much they should have come up with a budget that both Johnny and TMG agreed on. They paid his bills and his credit cards so they knew how much he was spending every single month. Coming up with a budget is not the same as saying "you are spending too much". I also do not believe he is broke. How can he be? TMG took loans out against two of his properties which means that he has the assests from 12 properties besides everything else of value that he owns. He is also still working. It seems that TMG is just out to make him look like a bad guy. Sorry for the rant. This mess irritates me.

[Lbock]

I don't know how to post this kind of stuff. The Wall Street article is now subscription view, although you may get one or two hits. I took a screen shot and used in for a twitter post. So this is the best I can offer right now



If you can click and view this on twitter, you will find the screen shot of the article

[justintime]

WOW! Yes, it was posted after the print copy went into circulation - my morning hard copy does not contain this article anywhere in today's paper. I'm not on twitter or any of those sites so I guess I'll have to be patient (definitely not my strong suit) and wait . . .

[Lbock]

Excerpt from THR
The IRS, Department of Justice and SEC are all looking into the claims alleged in Depp's civil suit as well as possible money laundering. The probe is in its early stages, and no charges may follow. The actor's attorneys shopped the case around to multiple agencies, according to one source close to the lawsuit, who adds the agencies have confirmed as much.

That the probe was leaked to WSJ could be an indication the tactical battle has reached a new stage. (The Hollywood Reporter heard similar information about the probe over the weekend.)

"In 30 years of business, no current or former client of TMG has raised any issue, other than Johnny Depp who continues to spread malicious, unfounded lies about the company," said TMG attorney Michael Kump in a Tuesday statement. "TMG will vigorously defend and defeat all of Depp's fabricated claims."

Depp's attorneys have not yet responded to multiple requests for comment on the actor's possible role in prompting an investigation. The SEC declined to comment, a DOJ rep says it does not confirm or deny the existence of an investigation and the IRS has yet to reply.

[AdeleAgain]

JD's lawyers would be professionally/legally obligated to share any information regarding something like money laundering with the appropriate authorities.

[PaulKemp]

I don't know how to post this kind of stuff. The Wall Street article is now subscription view, although you may get one or two hits. I took a screen shot and used in for a twitter post. So this is the best I can offer right now



If you can click and view this on twitter, you will find the screen shot of the article

This is copy of the complete article:

Johnny Depp’s Former Business Managers Face Federal Probes IRS, Justice Department and SEC look into Management Group

By

Scott Patterson ,

Justin Baer and

Ben Fritz

Aug. 15, 2017 12:03 p.m. ET

Federal investigators from three agencies are probing a top Hollywood business-management firm facing fraud allegations from a former client, actor Johnny Depp, according to people familiar with the situation.

The Internal Revenue Service and Justice Department are jointly looking into possible fraud and money laundering by the Management Group, founded by brothers Joel and Rob Mandel, the people said.

The Securities and Exchange Commission is separately investigating how the Management Group handled Mr. Depp’s funds, according to people familiar with the matter.

Mr. Depp sued the brothers in January and is seeking more than $25 million in damages from the Mandels for alleged fraud and professional negligence. The Mandels have denied Mr. Depp’s claims in a countersuit, calling them “baseless.”

The IRS-Justice Department probe, which is in its early stages, is being led by the IRS’s criminal investigation division and is currently focused on elements of the Mandels’ dealings with Mr. Depp, according to people familiar with the matter. Mr. Depp’s lawyers have met with government officials, the people said.

The probe may not result in any charges against the Management Group or its owners. Federal investigators typically look at the possibility of money laundering as they trace the path of funds that allegedly have been misappropriated, said the people familiar with the situation.

“In 30 years of business, no current or former client of TMG has raised any issue” of impropriety other than Mr. Depp, a lawyer for the Management Group said.

The SEC has subpoenaed at least one person in its probe, according to a person familiar with the matter.

The actor in his lawsuit alleged the Mandels invested millions of his dollars into ventures partly owned by the Management Group and the Mandels, which the lawsuit says created a conflict of interest. The firm in its countersuit called those allegations “absurd,” claiming that Mr. Depp cashed out one such $1.5 million investment in 2008 for a profit and that another, for less than $450,000, has been profitable.

Business managers are a staple in Hollywood, charged with making investments, paying bills and handling taxes for wealthy actors and executives. Like many business-management firms in Hollywood, the Management Group maintains a low profile and keeps its client list private.

Mr. Depp alleged in his lawsuit, filed in Los Angeles Superior Court in January, that the Mandels caused him to lose tens of millions of dollars, incur more than $40 million in debt and dispose of significant assets.

The Mandels, who worked for Mr. Depp from 1999 to March 2016, said in the countersuit that the actor’s financial problems are the result of his own overspending and failure to heed repeated warnings. Alleging breach of contract and fraud, they claimed Mr. Depp lived a “selfish, reckless and irresponsible lifestyle” that cost $2 million a month.

The Mandels claim they repeatedly warned Mr. Depp that he couldn’t continue to afford his lifestyle, their suit claims. He responded “by rebuking and cursing his business managers for issuing such warnings and advice,” according to their suit.

The Management Group is seeking $560,000 in unpaid fees and a ruling that the movie star himself is solely responsible for his financial situation. Both suits are pending.

Mr. Depp, in an April interview with The Wall Street Journal, said it was the Mandels’ negligence and fraud, not his spending, that caused him to lose tens of millions of dollars over more than a decade.

Mr. Depp in his suit also accused the Mandels of failing to make timely tax payments on his income for years, resulting in about $8 million in penalties. The Mandels, in their firm’s countersuit, said they were unable to pay all of Mr. Depp’s taxes because he was “squandering vast sums of money and had insufficient funds to timely pay all of his taxes.”

[justintime]

Thank you, PaulKemp, for posting the article.

[Lbock]

Is it necessary to copy and post each article? (I'm in a phone)

And after a day in court, TMG has updated their Cross complaint and is now bringing in everyone of Johnnys family and friends they made loans to, which they insist JD and/or his sister approved. So now all of them have to get a lawyer and go to court. And the court date now pushed to August 2018

Deadline article


Court documents


Hollywood Reporter


Variety

[Sweeney Todd]

From January to August? Oh God.

[SnoopyDances]

They must really be desperate. Why not just settle this between lawyers or in court?
Why continue to drag this out in public unless Johnny has some really good evidence against TMG that they are trying to discredit him while delaying the trial?

[Lbock]

They must really be desperate. Why not just settle this between lawyers or in court?
Why continue to drag this out in public unless Johnny has some really good evidence against TMG that they are trying to discredit him while delaying the trial?

I don't think TMG is wanting a settlement. I think they are trying to get Johnny to drop it all together "Now we are dragging your friends and family into this. They will all have to get a lawyer, we are going to put them on the stand and ask them all kinds of questions. As much leeway as the judge will allow us. We are going to embarrass them and you as much as we can. And they will either admit they ripped you off or you agreed to the loan and they will throw you under the bus. It's all your fault Johnny because you sued us and started this"

[SnoopyDances]

Agreed. It's a scare tactic, but once you throw out all your weapons, you don't have anything left to fight with.
I'm sure Johnny and company knew what they were getting into. It's not unusual for people to lend/give money to friends and family. But it is unethical for a management group to air a client's dirty laundry.

I bet other clients are putting pressure on them too.

[Lbock]

But the claim here from Johnny from the beginning....you loaned money without my approval.

So he put himself out there saying his friends and family went behind his back to get money without his permission. And now TMG is basically saying put up or shut up. We are dragging your friends and family through the mud. How badly do you want this?

I am so sad that so many people took advantage of him. Maybe yes, he said help them, but expected to be able to have the final approval. Maybe some kept going back for more and he didn't know that. Even then, maybe some of them he would have let slide and not pay him back. I'm just sad for him. Even if he wanted to be generous, he is looking like the bad guy,

I am so looking forward to his attorney statement in this.