Johnny Depp has only himself to blame for his financial woes, according to his former business managers.
Earlier this month, the Pirates of the Caribbean star sued his former business team at The Management Group (TMG) for $25 million in a fraud lawsuit. On Tuesday, TMG fired back with a cross-complaint, claiming the actor lived an “ultra-extravagant lifestyle that often knowingly cost Depp in excess of $2 million per month to maintain, which he simply could not afford.”
In his lawsuit, Depp’s lawyers claim, “As a result of years of gross mismanagement and sometimes outright fraud, Mr. Depp lost tens of millions of dollars and has been forced to dispose of significant assets to pay for TMG’s self-dealing and gross misconduct.” He is asking for more than $25 million in a jury-seeking suit alleging breach of contract and professional negligence, in addition to fraud.
TMG sees things differently. In its lawsuit, filed today and obtained by PEOPLE, the management firm asks Depp to pay up for more than $560,000 in allegedly unpaid commissions and credit card fees. In addition, TMG is asking for a court declaration that it “complied with all of its fiduciary obligations under the law and that Depp is responsible for his own financial waste.”
In the court papers, his former managers claim they repeatedly warned Depp of his overspending, and even warned him to get a pre-nup before marrying Amber Heard, which ended up costing him a $7 million settlement.
The complaint claims Depp spent:
Over $75 million on 14 residences, including a 45-acre chateau in the South of France, a chain of islands in the Bahamas, multiple houses in Hollywood, several penthouse lofts in downtown Los Angeles and a horse farm in Kentucky. $18 million to “acquire and renovate a 150 foot luxury yacht.” Millions more buying and maintaining 45 luxury vehicles. $30,000 per month on expensive wines flown from all over the world. $3 million to blast the ashes of Hunter S. Thompson out of a custom-made cannon in Aspen, Colorado. Tens of millions on “a massive and extremely expensive art collection,” including “world class jewelry,” about 70 collectible guitars and over 200 works by artists such as Warhol, Klimt, Basquiat, and Modigliani. Millions on collectibles and memorabilia involving icons such as Marilyn Monroe, John Dillinger and Marlon Brando. The collection is so extensive it fills “12 storage facilities” and cost over $1 million just to archive. $300,000 per month on 40 full-time employees. $150,000 per month on full-time security guards that protect him and his family “24/7, 365 days a year” wherever they go. $200,000 per month on private planes. $10 million over the years on supporting various friends and family, including $4 million invested into a failed music label run by a friend.
However, Depp’s lawsuit claims TMG paid itself over $28 million in fees without his consent and failed to pay his taxes on time, resulting in $5.6 million in fees and penalties. Depp also claims the company loaned money to people without Depp’s authorization.
“In essence, TMG treated Mr. Depp’s income as their own, available to either TMG or third parties to draw upon as desired,” reads Depp’s complaint.
In its counter-complaint, TMG says it “filed each and every tax return timely” and “always maintained state-of-the-art accounting records.”
While Depp’s lawsuit claims TMG kept him in the dark about his financial woes, his former managers claim in the court papers that they “and Depp’s other advisors repeatedly warned Depp about his precarious financial situation and often begged Depp to curb his spending and sell assets.”
When he was warned about his overspending, the lawsuit claims, he “often engaged in profanity-laced tirades where he abused the professionals surrounding him and claimed that he would work harder to afford whatever new item he wanted to purchase.”
TMG’s lawsuit claims that when Depp announced his plans to marry Heard, “his advisors — TMG, Jake Bloom, Depp’s family lawyer and Dembrowski — all warned Depp to get a pre-nup. After initially agreeing to do so, however, Depp dropped it and announced he was getting married anyway without a pre-nup.”
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TMG also said in its lawsuit that it has filed a separate and ongoing non-judicial foreclosure pertaining to an alleged $5 million loan to Depp “made to him in 2012 when the actor was facing public financial ruin.” Repeated attempts to recoup the loan failed, according to TMG, and with Depp still owing $4.2 million, TMG began foreclosure proceedings against some of Depp’s properties in October 2016. Depp’s complaint, according to TMG, is a “transparent attempt to derail” the foreclosure efforts.
In his complaint, Depp asked for a temporary restraining order and permanent injunction preventing TMG from foreclosing on his home. He also claims the loan was a result of the firm’s self-dealing.
In a statement, TMG maintains that “Johnny Depp alone was solely responsible for his extravagant spending. Over 17 years, The Management Group (TMG) did everything possible to protect the actor from himself.”