Sounds like Kanye West needs a better financial planner. The musician sent a series of tweets over the weekend noting he was “still 53 million dollars in personal debt.” But TMZ reports the $53 million is actually how much money West has sunk into his spinoff fashion and music companies. According to the site, sources say West has invested about $40 million in his most recent Yeezy fashion line. The cash poor West seemed to take it in stride, reaching out to Facebook’s Mark Zuckerberg and Alphabet’s Larry Page for a $1 billion loan. Forbes contributor Robert Wood posits some scenarios of what structure that kind of largesse may take, and the tax implications of each. As long as it’s a straight loan, West could get the money tax-free (as a loan is not taxable income). But if the deal is structured as a joint venture or a purchase of West’s intellectual property, then taxes would apply. But there is plenty of grey room; what about a loan backed by West's intellectual property as collatoral? A joint venture could maybe get around the taxation issue. Of course, Zuckerberg could always just give West the money without any expectations of return; but the billionaire would likely take a gift tax hit.
Some 950 advisors are heading to Orlando, Fla. this week for Kingdom Advisors’ annual conference for financial professionals of the Christian faith, according to Breaking Israel News. Kingdom Advisors is a non-profit professional association that helps Christian advisors integrate their faith with their practice. Speakers include Dave Ramsey of Ramsey Solutions, Bob Doll, chief equity strategist at Nuveen Asset Management, and Rabbi Daniel Lapin, head of the American Alliance of Jews and Christians. The group has some 2,300 members and offers its Qualified Kingdom Advisor designation for advisors who have trained in biblically wise financial advice for clients. “Kingdom Advisors believes the Bible is the source of Biblical proofs related to every area of life, and certainly related to finance, and these principles work,” Tony Stinson, CEO of the group, told the publication. “They are timeless, in every country and every economy.”
The estate of Bobbi Kristina Brown has filed suit for “breach of trust” against Pat And Cissy Houston, reports Radar Online. According to the suit, filed by administrator Bedelia Hargrove, Pat and Cissy have allegedly failed to allocate funds from Bobbi Kristina’s trust (Pat and Cissy are co-trustees) to pay for the operation of the estate. Since they must sign off on any outlay of funds from the trust, Pat and Cissy have allegedly declined to pay any deal unless they first deem it “reasonable,” which apparently includes any expenditure related to the administration of the estate. According to the complaint, “To date, the respondents have failed and refused to pay any expenses of administration of the estate after proper and repeated demands from the petitioner.”
An Upstate New York financial planner has been sentenced to between 5 1/3 and 16 years in jail for defrauding clients out of $3 million in a Ponzi scheme. Frederick Monroe, of Guilderland, NY, used the money he received from clients to support a lavish lifestyle, including home renovations, according to News10.com. Monroe, 59, was Senior Vice President at Capital Financial Planning in Guiderland when he was arrested in June 2015, but he started stealing from clients while working at Northwestern Mutual Investment Services in 2002, according to New York Attorney General Eric Schneiderman's office. The money he stole was used on airline tickets, credit cards, car and mortgage payments, timeshares and to pay back initial investors to continue the scheme.