14 DAY TRIAL // Toni Braxton is one of the biggest selling artists of all times but, at the same time, she is proof of what bad management can do to an artist of her caliber. The bankrupt singer is now dragged to court over claims of fraud.
Back in 2010, Toni filed for bankruptcy amid claims that she was over $50 million (€38.7 million) in debt.
Later on, she said that part of the reason for her dire financial situation was her deteriorating health, which required expensive treatment and which naturally prevented her from keeping an eye on her business.
Her creditors are now saying she transferred money to her ex to avoid paying creditors, which, in her case, constitutes fraud, TMZ reports.
“Toni Braxton fraudulently transferred $53,490 [€41,490] to her estranged husband in order to avoid paying back creditors in her bankruptcy case – so says the trustee of Toni's bankruptcy estate,” the celebrity e-zine notes.
The estate is taking legal action against the star and her ex to get the money back.
“According to new docs filed in Toni's ongoing bankruptcy case, Toni's estranged husband Keri Lewis received the 5-figure sum after Toni's money was already earmarked to repay creditors,” the report notes.
In a statement to the same media outlet, Toni’s publicist denies any wrongdoing in the transfer, saying all transactions were legal and transparent.
“All of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business,” the rep says.
Toni Braxton and her sisters now have their own reality show, but even that isn’t keeping the star afloat financially.
Of course, before the launch, she insisted the decision to shoot a reality series had nothing to do with money, being the right opportunity to “allow [her] fans into [her] world.”