Alyssa Milano has just filed a $10 million lawsuit against her manager for mishandling her finances and using her money for his personal investments. Can you say… embezzlement? Kenneth Hellie and his firm, Hellie, Hoffer & Co. are being accused of forging signatures, failure to pay bills and taxes, and convincing Milano to make bad investments in which Hellie was also an investor. She is now millions in debt and her credit is ruined.
It all began with a home remodel. Her home is worth $3 million, but she spent $5 million on the make-over. Milano was also not notified of building code violations which cost her more than $375k in fines. Mortgage payments were continuously late. And on top of all that, her manager did not pay her federal income taxes for 2013 and 2014. Instead, he used the money for the remodel. How did this go on so long and she not put a stop to it or know about it? Is she really that dumb?
From MSN Entertainment:
Alyssa Milano has accused her former business manager of mismanaging her money and leaving her in financial ruin.
The former “Who’s The Boss” star has filed a $10 million lawsuit accusing Kenneth Hellie and his firm, Hellie, Hoffer & Co., of forging her signature on checks, failing to pay overdue bills and taxes and inducing her to make bad investments in businesses in which he was also an investor, the New York Post reported on June 18.
Alyssa alleges that the decisions left her “with millions of dollars in debt and their credit in ruins.”
It all started, she claims, with a “home improvement debacle” in which the manager did a poor job overseeing a remodel. She says she spent $5 million on the project even though the home is worth $3 million. According to The Post, she also claims that her accountants failed to notify her of Ventura County building code violations for five years, which resulted in $376,950 in fines.
Late mortgage payments followed, she alleges. In addition, she says the manager failed to pay her federal income taxes in 2013 and 2014. That money, she says, was used for remodeling project, which further incurred penalties and interest.
The whole time this was allegedly going on, the manager told her she was in good shape. Again, she never looked at the financials? How about bank balances and credit card statements? The IRS situation alone is going to have her in very hot water. And the manager is disputing her. The manager equated Alyssa’s situation to that of Johnny Depp, in which he claimed his manager misused his money. In January, Johnny filed a $25 million lawsuit against his former managers alleging fraud.
“We anticipated this defense,” Alyssa’s attorney said. “Nothing could be further from reality. Alyssa and David live a relatively modest lifestyle centered on their family. It is unfortunate that Mr. Hellie finds it appropriate to blame the clients who trusted him rather than take responsibility for his own negligence and misconduct.”
As money got tight, Milano claims that Hellie engaged in a “shell game” with clients’ money, initiating loans between clients to keep each one solvent. Milano alleges that Hellie had her borrow funds from some clients while lending to others, all at high interest rates.
In 2014, she turned down appearing in the third season of the ABC show “Mistresses.” The season would have paid her $1.3 million and she claims she may have negotiated an even more lucrative deal for the fourth season. Had she known how dire her finances truly were, the suit states she “would never have turned down” the job.
After firing Hellie in June of 2016, Milano says that Hellie demanded a $26,000 payment for “professional services,” which she refused to pay. Hellie then forged her signature on a check in that amount. She says she and her husband did not discover the theft until they overdrew their account. She says that Hellie paid another $25,000 from Milano’s account in “interest” to two other clients for loans that Milano and her husband never received.
As an actress, I like Alyssa Milano. She’s a moonbat liberal politically. But that aside, I feel sorry for her and I believe she was ripped off. I just can’t believe she let it get that far out of hand for that long and trusted someone so much that she never even checked up on them. If she is millions in debt, the manager probably is as well and I doubt she will get the settlement she is seeking. It’s a very sad state of affairs for such a gifted actress. I hope she prevails in her lawsuit and that she recovers from this.