Celebrities That Went Broke After Making A Fortune
Lauryn Hill ended up spending three months in prison after failing to pay taxes on $1.8 million she had earned between 2005 and 2007. She had told the judge that she lives a fairly modest lifestyle relative to how many albums she’s sold. That didn’t stop her from going to prison though. The way she lived wasn’t really the issue.
Chris Tucker was once one of the highest-paid actors in Hollywood. Unfortunately, his frivolous spending led to him owing the IRS $11 million in back taxes. He had to sell three mansions just to pay it back. No reason for him to have so many to begin with.
Dionne Warwick spent 50 years in the music industry, selling 100 million albums worldwide. Not only that, but she’s wrote two children’s books and a bestselling autobiography, as well as creating her own fragrance line. Yet, despite all her successes, she still couldn’t manage her money well enough. She declared Chapter 7 bankruptcy after owing more than $10.7 million to creditors.
Stanley Kirk Burrell, better known by his stage name MC Hammer, is really a good example of what not to do with your hard-earned cash. He bought a $30 million mansion after only grossing $33 million in a fiscal year. Looks like he didn’t consider maintenance or the potential depreciation of that house.
Mike Tyson was a formidable boxer, known to be one of the best. His career helped him earn $400 million. But it seems as though he squandered it all. IN 2003, he filed for bankruptcy, being $50 million. He’s since made several appearance on television and film, toured a one-man show, and had his own cartoon. That helped pull him out of the money pit, as he’s reportedly debt-free now.
David Adkins, best known by his stage name of Sinbad, doesn’t blame wild spending for the loss of his fortune. He blames it on bad investments. Well, those bad investments were on shopping malls and other strange things. It’s not too surprising that he ended up owing more than $8 million in back taxes.
Toni Braxton’s had to file for bankruptcy not once, but twice. The R&B singer has sold 40 million albums worldwide, but her contract was a bit one-sided and forced her to file for the first time in 1998. The second time was even more out of her control. She was diagnosed with lupus and forced to move out of her Las Vegas residency. Things have been looking up for Braxton, though. She was on a reality TV show, released a new album, performed on Broadway, and published her own memoir.
Over his 20-year career, Evander Holyfield became a heavyweight champ with more than $200 million to his name. But that amount of money can’t stand up to a lifestyle of lavish overspending. He had to sell a 109-room mansion for only $7.5 million to help pay off the $14 million he owed JP Morgan Chase.
Lindsay Lohan was once a famous child and teen star. But 2012 was a rough year for her. The IRS froze Lohan’s accounts due to the $234,000 she owed in back taxes. She was struggling even after receiving a loan of $100,000 from Charlie Sheen.
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