Johnny Depp remains defiant after his former business managers filed a motion to foreclose on five of the actor’s Los Angeles properties in order to recoup a $5-million loan that the company, The Management Group, claims it extended to him back in 2012.
In the latest shots fired in the legal battle between the “Murder on the Orient Express” star and TMG, the actor’s former business managers filed a motion to place five of Depp’s L.A.-area properties into foreclosure in order to recoup the money allegedly lent.
Depp is suing TMG, alleging that the company fraudulently squandered millions of his earnings; TMG is countersuing Depp, claiming the firm did nothing wrong and blaming his current financial difficulties on extravagant spending that saw him typically shell out $2 million per month.
According to People, Depp’s attorney has come out swinging, blasting TMG’s foreclosure plan as a “publicity stunt.”
“Today’s improper foreclosure action is the latest of the Mandels’ efforts to intimidate Mr. Depp into dropping his lawsuit,” Depp’s attorney, Adam Waldman, tells People.
Asked whether TMG will actually gain possession of Depp’s properties, Waldman was incredulous. “Of course not, and they know it,” he said. “We will move for sanctions for this latest publicity stunt.”
According to TMG, the company took out the loan to prevent Depp from being forced into bankruptcy, with the five homes serving as collateral for the loan. Depp, TMG alleges, has stopped making payments, so the company is trying to force the properties into foreclosure so they can be sold and the debt paid back.
Depp’s attorneys, however, tell a far different story. According to Depp’s lawsuit against TMG, which he launched in February, Depp claims the company mismanaged $650 million of his earnings, alleging TMG is guilty of “professional negligence, breach of fiduciary duty as trustee, fraud in the inducement, fraudulent concealment, constructive fraud, negligent misrepresentation, unjust enrichment, wrongful foreclosure, declaratory relief and accounting.”
According to Depp’s complaint, “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,” adding: “In essence, TMG treated Mr. Depp’s income as their own, available to either TMG or third parties to draw upon as desired.”