Hollywood A-lister, Johnny Depp blames his ex-managers for his financial woes. However, the ex-managers say it was Depp and his lavish lifestyle that caused the issue, not mismanagement on their part.
Depp sued his ex-managers, The Mandel Group (TMG) for $25 million claiming fraud. TMG hit back with a cross-complaint of fraud. TMG’s complaint, which seeks more than $560,000 in unpaid commissions and credit card fees, details Depp’s spending, indicating it was out of sync with his income which then caused him to fall into debt. Meanwhile, Depp says he was kept “ignorant” of his financial condition.
Court documents reveal that Depp was spending $2 million per-month. According to various reports, he was spending extravagantly on wine, private planes, and a failed record label that set him back $4 million. He also spent $450,000 a month on full time security and a 40-person staff.
In their legal filings, Mandel says he told Depp to reduce holiday spending and perhaps fly commercial. Depp responded by email, saying a commercial plane was not an option, as the paparazzi would be a “f–king nightmare of monumental proportions.” He then asked what he could sell to refill his coffers. Depp reportedly wrote:
“What else can I do??? You want me to sell [some] art??? I will. You want me to sell something else??? Sure…what???… Other than that, I got bikes, cars, property, books, paintings, and some semblance of a soul left, where would you like me to start???”
Mandel claims Depp was maintaining 14 homes, costing $75 million, a 150-foot yacht, cultivating collections of fine art and Hollywood memorabilia, and had been utilizing 12 storage facilities to store the items.
TMG contends that it “did everything within its power over the last 17 years to protect Depp from himself and to keep Depp financially solvent.” TMG says its representatives weren’t able to “control Depp’s spending or his numerous other vices, or to force Depp to make wiser financial decisions.”
During a preliminary hearing Monday morning in California, Judge Teresa A. Beaudet ruled that Depp’s spending habits weren’t at issue in the case against Depp’s ex-team. What is in question is whether The Mandel Group mismanaged his finances.
The judge also ruled that the fraud case against Depp will continue, causing both sides to claim victory in the ruling.
An attorney for TMG said it was his team that should be celebrating. “Today’s ruling was a clear victory for [TMG] because the court ruled in favor of our fraud claim,” the lawyer said. “We intend to file an amended cross complaint for declaratory relief. All of the issues regarding Depp’s extravagant spending continue to be fully included in the case.”
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