Having all the wealth, fame, and talent in the world can’t make you any wiser when it comes to managing finances. And these celebrities prove this fact. They’ve had more than their fair share of money troubles, often more than us average people, but that hasn’t stopped them from living their lives to the fullest.

You might think that hiring a financial expert could have saved them, but alas, that’s not always the case since not every adviser proves to be loyal. And thus, they’ve fallen prey to frauds, deep debts, and overspending in their time. Check out some famous examples of the phrase, “The rich also cry” in this write-up.

Justin Timberlake Bought the Failing Myspace – $35-Million Loss

For those of you who don’t remember it, Myspace was a large social networking site that reigned from 2005 to 2008. People don’t use it any longer; not in the world of WhatsApp and Instagram. Myspace was like an antecedent to Facebook and Justin Timberlake purchased shares worth $35 million in the company in June 2011.

Though some said buying Myspace was a big mistake, Justin still thought this would be a good investment. Sadly, he had to get rid of his shares in 2015 for $1 million. That’s why they say that when it comes to money matters, listen to the experts!

Toni Braxton Chalked Up Overdraft Fees – $500K Loss

Getting slapped with side charges is something people like to avoid, and that’s why most Americans don’t use banks. Overdraft fees are dreaded by the best of us, particularly if you’re barely making ends meet. Famous singer Toni Braxton was once in a tight situation over overdraft fees.

The Grammy winner chalked up half a million dollars of overdraft fees in 1997. Though she sold hundreds of millions of copies of her albums, she couldn’t keep herself out of her bank trouble. After all, a Grammy can’t save you from poor financial decisions.

Wesley Snipes Failed to File Tax Returns – $7-Million Loss

The name Wesley Snipes would surely ring a bell back in the ’90s. Snipes was a popular action movie actor who had several hits to his credit like the famous Blade series. He made a huge amount of dough from his movies but fell prey to failed financial decisions.

Surprisingly, Snipes didn’t pay government taxes for far too long and had to give up his freedom to go to federal prison. He was guilty of failing to file tax returns for almost $7 million and that caused him to serve prison time for 3 years, a mistake that led to him losing out on a lot of income.

Nicolas Cage bought a Tyrannosaurus skull – $300K Loss

Nicolas Cage is an expert in acting, just like Mr. Snipes. He is an extraordinary actor and he is filthy rich. His movies are huge in the cinemas, and so are his paychecks. If Nicolas is on the set of your movie, you should be getting ready for a blockbuster.

But with big cash comes big spending. Nicolas started spending big as he was receiving big. There was an encounter in which the Ghost Rider actor had allegedly used around $300K to purchase a tyrannosaurus skull. He later returned it since it was originally stolen. Bad investment?

Ryan Lochte Lied About Being Robbed in Rio – Lost His Career & Legacy

Ryan Lochte was an Olympic swimmer but he got caught up in an ugly situation in 2016. He cooked up a lie about a roadside robbery. Along with Jimmy Feigen, he lied that they were robbed somewhere in the city of Rio De Janeiro alongside two other people. The lie had cost him his career.

Now, his art in swimming does not bring him income any longer. He lost his endorsement deals in a blink of an eye, as nobody would employ a liar. And, in the public eye, he is like a brand with a curse. The world forgot him and his legacy was lost.

Michael Vick Took to Dog-fighting – Lost a Major Chunk of Earnings

Riches and fame were always attributed to the name, Michael Vick. But the mystery remains – why would such a man get into dogfighting as a hobby? Vick holds the record for the most career rushing yards by a quarterback, but he took an unusual interest in dogfighting. Why? Well, that needs some serious detective skills to solve.

His dogfighting hobby killed his NFL career. In 2007, Vick pleaded guilty for his involvement in dogfighting. Though he was able to find loopholes within the legal system and return to the league, the cash he had spent on legal fees from his earnings was astounding.

50 Cent Lacked Financial Restraint – Went Bankrupt

At one time, 50 cent was the name on everybody’s lips. Curtis James Jackson III was a star. HE was raking in the huge dough from music, movies, and even had a video game to his credit. He sold over 30 million albums worldwide. He won a Grammy award and several other awards.

But even with all his fine qualities, the Queens boy lacked financial restraint. He declared that he was bankrupt somewhere in 2015. Though the star boy is back in terms of work, he will never forget the ordeals he went through to get back to the top.

Derrick Coleman Was Hit By the 2008 Financial Crisis – $89-Million Loss

The 1990 NBA draft that took place on June 27 produced Derrick D. Coleman. A good player, Coleman had what we could call an averagely successful career. He played until the mid-‘00s after being associated with five different clubs which included the Charlotte Hornets.

When he retired, Coleman decided to invest his finances and time in the property sector of Detroit. But the 2008 monetary crisis had caught up with him. Housing values dropped and Coleman’s investment sank. Eventually, he filed for bankruptcy in 2009 after losing about $89 million.

Mike Tyson Exhausted His Wealth Through Overspending – $300-Million Loss

Sometimes, ash becomes the reason for an uncontrollable fire. In the same way, small mistakes have ruined the career of many stars, and Mike Tyson is one of them. He was a famous boxer and racked up $300 million during his career, but wasted all his cash on buying fancy rides, mansions, etc.

He employed 200 people, including his bodyguard, chef, and driver. The police had caught many vehicles that were registered in Mike’s name, but he didn’t even remember that they were his. He declared himself bankrupt in the early ‘00s and also went to jail for narcotics charges.

Beyoncé Had to Sell Her Expensive Condo – $355K Loss

Beyoncé Knowles-Carter is a famous American singer, songwriter, and actress. But ups and downs are a part of everyone’s life; it doesn’t matter if you’re a celebrity. Beyoncé also faced a major blow in her life when she bought a small condo on a Miami Beach for $465K in 2002.

While she’d planned to sell it for a profit, it wasn’t meant to be. After the 2008 financial crisis when property rates went sinking, she had to sell it for only $110K in 2011. She had to bear a 75% loss on this property which was a massive shortfall from what she had originally spent.

Bono Invested in PalmPilot – $140-Million Loss

When there was still no concept of smartphones, PalmPilots were the “in” thing. Paul David Hewson, nicknamed Bono, decided to invest in the Palm project. He invested an immense amount of cash and owned almost 30% of the vendor’s shares. While he was looking forward to gaining a huge profit, this deal proved unlucky for him.

Smartphones were launched, and the PalmPilot became obsolete. Due to this failed business decision, Bono had to face a huge loss of $140 million. All his dreams were dug into the sand. He lost most of the earnings of his career in this project.

Floyd Mayweather Jr. Owed Money to the IRS – $22.2-Million Debt

If we talk about famous boxers who became the victims of huge losses, how can we forget to discuss Floyd Mayweather Junior? Mayweather is an American professional boxing promoter and also a retired boxer. He was rewarded many titles during his boxing career. He never lost a match in a ring and was given the nickname “Money.”

According to sports news website Deadspin, Mayweather owed IRS close to $22.2 million in debt. The debt continued for over a decade where the boxer failed to pay his company taxes. Rumors suggest that Mayweather is expected to settle his debts soon.

Stephen Baldwin Failed to Pay Mortgage – Went Bankrupt

Stephen Andrew Baldwin is a famous American actor, writer, and producer. He has worked in various films and written many books. Sadly, this amazing actor has also faced many difficulties in his life, like owing the IRS and defaulting on a few mortgages. In 2009, he also filed for bankruptcy.

But his troubles weren’t over yet. Since he failed to pay mortgages for six years, Baldwin’s house was foreclosed in 2017. In the end, he was arrested for not paying taxes for three consecutive years. It’s heart-wrenching to see such a fine actor losing out like that.

MC Hammer Went on a Spending Spree – $13-Million Debt

The tragic case of MC Hammer is quite similar to that of Mike Tyson. Stanley Kirk Burrel, aka MC Hammer, is an American hip-hop recording artist, dancer, and also a choreographer. He gained a lot of acclaim due to his hit record U can’t touch this in the early ‘90s. Because of it, he earned $30 million.

However, his fortune disappeared from his life as quickly as it had appeared. He purchased a cool mansion for $1 million and employed a staff of 200 people. Plus, he went on a spending spree which left him broke, following which he declared insolvency in 1996, while pressed under the debt of $13 million.

Dennis Rodman Wasted His Money – Owed $800K in Child Support

Here comes another basketball player who blasted his money away through a few mistakes. Dennis Keith Rodman is a retired American basketball player. He served various teams like the Los Angeles Lakers, Detroit Pistons, Chicago Bulls, and more in the NBA. During his career, he was getting paid big time for his amazing performance.

In 2012, Rodman’s legal counsel confessed that his client could barely afford living expenses, and couldn’t pay the child support for his two children. Apparently, Rodman owed more than $800K in back child support but tried to escape the obligation by claiming that he was sick and broke.

Curt Schilling’s Business Failed – $2.5-Million Debt

Curtis Schilling is a former Major league right-handed pitcher. He put all efforts into breaking the Red Sox’s World Series. After earning a huge amount of money from his career, he decided to start a video-game business. He invested $50 million into it and set a milestone of $75 million in bonds from the state of Rhode Island.

However, his business failed, and he was asked to pay $2.5 million back to Rhode Island. His company was $120 million in debt. He reached the lowest point in his life in 2016 when all his savings were gone and he was fired from ESPN.

Meat Loaf Got Caught up in Lawsuits – $80-Million Debt

After giving us the hit album, Bat Out of Hell, and also starring in the ‘70s cult classic Rocky Horror Picture Show, Meat Loaf was one of the most recognizable faces in music during the ‘70s. However, the ‘80s were rather heavy on him. He had 45 lawsuits against him, causing a penalty of $80 million.

He further said that every time he was done with one case, another one would be filed shortly after. CBS finally started paying him his royalties in 1997. He soon turned his situation around in the ’90s and also added that having been successful in two out of three decades had not felt bad.

Willie Nelson Evaded Taxes – $16.7-Million Back Taxes & Penalty

The famous country singer, Willie Nelson, was also stuck in money troubles. He’d been evading federal taxes and soon the IRS came after him with a total of $16.7 million which included tax penalties and interest. Though his lawyers managed to cut it down to $6 million, he still didn’t have enough resources to pay off his obligation.

As a last resort, the bank decided to seize his house and most of his instruments and music collections. Nelson, out of desperation, had to record The IRS tapes: Who’ll buy my Memories and then his fans arranged a fundraiser for the star.

Wayne Newton Went Bankrupt – Still Caught Up in Legal Issues Even Today

Despite having a few hits in the ’60s, Wayne Newton was the highest-earning performer in 1983. The singer started making big bucks while being a lounge singer. But luck turned its back on him and by 1992, Wayne was in a debt of $20 million and had formally declared his insolvency.

After he came out of this mess, in 2005, the IRS sued him for not having paid $1.8 million on the sale of a house. And then, his property was seized in 2010 for having failed to pay off his $3.38-million loan. Newton has been amidst financial problems and legal issues for the past 30 years.

Britney Spears Overspent – Ordered to Pay $110K

Britney Spears is known for her lavish lifestyle. At one point, she spent $29,852 on her dogs! Let that sink in for a moment. The pop star was in a pickle after her divorce; she’d been ordered to pay $110K, out of which $100K went straight to her ex-husband’s legal cost and fees.

The artist had been paying $20K for child support, but covering other expenses and the co-curricular activities, the sum was around $35K a month. The divorce filing also indicated that Spears had not saved up any amount from her $737K monthly income. Rather, she had spent it all on entertainment, dining out, and on her houses.

Sarah Ferguson Led an Expensive Lifestyle – Landed in a Severe Money Crisis

After four years of separation, the Duke and Duchess of York finally decided to break things off in 1996. After her divorce, the Duchess was provided with $24K annually as allowance. Sarah became a writer, got involved with many endorsement deals, but the Duchess was still unable to keep her bank balance matched with her lavish lifestyle.

She soon landed herself in deep financial problems. Sarah had been so down that shortly after, she had also been seen selling access to her famous family. The Duchess is now working and rebuilding her life as reported by her Oprah Winfrey Network show Finding Sarah.

Bernie Madoff Looted Celebs Through Ponzi scheme – $65-Billion Loss

The Bernie Madoff saga is no longer breaking news. It’s a tale on every worker’s tongue in Wall Street. Bernie Madoff got involved in a 20-year Ponzi scheme, one of the largest frauds Wall Street has ever experienced. Some of his most notable victims included Kevin Bacon and his wife, Steven Speilberg, and John Malkovich.

Madoff looted over $65 billion by scamming people with his Ponzi scheme. But like how it happened in this case, celebrities were rarely scammed in groups. Sometimes, bad business actions or bad investments on their part also lead to some serious money losses.

Lindsay Lohan Had an Extravagant Lifestyle – $234K Tax Debt

Lindsay Lohan, apart from her drug charges and jail time, has also been known for her huge list of expenses. Michael Lohan told the Huffington Post that he had no clue about what Lindsay had done with the $150K she racked up by promoting an energy drink and the $1 million she had received from Playboy.

Lindsay had reportedly owed $234K to the IRS in unpaid taxes from 2009 and 2010. Despite her financial problem, the star still wanted a lavish lifestyle. She purchased a $30K Rolex and a new Maserati which had set her back by $100K!

Da Brat Got Sued For Hitting Shayla Stevens With a Bottle – $6.4-Million Loss

Popularly known for her 1994 album that went platinum, Funkdafied, Da Brat declared she was in a financial rut in 2018. The artist had a debt of $7 million, and her total assets had been recorded at an amount of $108K. Her bank account suffered a huge hit because of the $6.4 million she had to pay to Shayla Stevens.

Stevens had sued Da Brat for having hit her head with a bottle at a nightclub. Da Brat also owed $1 million to Sony Music, $12K to Ally Bank, and another sum of $2.28K to the Georgia Department of Revenue and her creditors, respectively.

Johnny Depp Lived an Extravagant Life – Spent $2 Million a Month

Johnny Depp is currently enmeshed in a lawsuit where his former business manager has claimed to have loaned him millions of dollars (implying that Depp has yet to pay him). This famous Pirates of the Carribean actor has lived a rather flamboyant life by spending outrageously on houses, divorces, wines, and boats.

Depp’s luxurious lifestyle had finally caught up with him in 2017 when he was estimated to be spending $2 million a month! Shortly after, Depp filed a $25-million lawsuit on his attorneys, Joel, and Robert Mandel along with the Management Group, for negligence and fraud. 

Cyndi Lauper Got Sued by Manager – $80K Loss

Lauper was huge in the ‘80s. Her hit record, She’s So Unusual, had four hits on the Billboard charts and ultimately sold over 22 million copies worldwide. She won Grammy awards, did soundtracks for movies, and started working her way into the pages of history.

Lauper had to declare bankruptcy before she could release her solo album. Before she started making big bucks, Lauper was a front-woman for the Blue Angel. After the band’s debut album flopped, Lauper’s account took a hit, but the financial problem deepened when the manager sued her and her bandmates for $80K.

Larry King Went Bankrupt – Accrued Debt of $350K

Larry King spent time behind bars for having committed grand larceny, which led to bankruptcy and derailing of his career. Larry had been arrested after he took $5K from his business partner to cover his back taxes and even though the charges were dropped a year later, his career had already suffered.

Larry had not been able to stay put at a single job for a long period until 1978 when he was offered a radio show in Washington. However, he realized that he was in a debt of $350K before the show was offered and he had to ultimately declare bankruptcy.

Marvin Gaye Had to Pay Alimony – $600K Loss & Bankruptcy

The legendary singer, Marvin Gaye, had a string of best selling songs in the ‘60s, ‘70s, and ‘80s. Hits, like I heard it through the Grapevine and Let’s Get it On made Marvin a renowned name in the music industry. In 1976, he divorced his first wife, Anna Gordy, which led him to file for bankruptcy shortly after.

To be able to cover the $600K Gaye owed his wife as alimony, he gave her rights to his new album Here, My Dear. Marvin was stuck in drugs and the financial problems only made it worse. Eventually, to evade the pestering IRS, Gaye had to move to Europe in 1981.

Teresa & Joe Giudice Commited Bankruptcy Fraud – Over $10-Million Debt

The stars of the Real Wives of New Jersey, Teresa, and Joe Giudice were sentenced to 15 and 41 months of prison sentence due to their financial crimes in 2014. According to the evidence picked up by the New York Post, Joe and Teresa had filed for bankruptcy. The couple owed more than $10 million to their creditors!

According to the evidence deposited, it was found that the couple owed a sum of $104K in credit cards and $85.6K in house repairs. Among their various frauds was the non-payment of taxes from 2004-2008 to acquire a huge loan.

Drake Bell Went Bankrupt – $1.6-Million Unpaid Mortgage

Popular actor and singer, Drake Bell, purchased a 2,640-square-foot house in Los Feliz for $2.050 million. After the actor filed for bankruptcy in early 2014, the house he bought was under “bankruptcy protection” in 2014. It seems that the rich and famous can’t escape financial troubles for too long.

Bell claimed that he was $600K in debt while he possessed a house worth millions of dollars, with $1.6 million owed on the mortgage. Bell had also said that his income had fallen from a whopping $400K a year to merely $14K. That’s some downfall!

Annie Leibovitz Borrowed Money From Art Capital – Owed $24 Million

Photographer Annie Leibovitz first approached Art Capital for a loan of $5 million, after which she borrowed another $10.5 million in the same year. Typically, Art Capital charges a 6-16% interest rate and this summed up the total amount due to a staggering $24 million!

Annie and Susan Sontag were a popular couple, and in 2004, when Annie inherited Susan’s property, she realized that she would have pay 45% tax. She took another major financial hit when the workers renovating her townhouse damaged the foundations of a house next to hers, and Annie had to purchase it when she was sued for the damage.

 

Kim Basinger Bought a Georgia Town – $19-Million L0ss

Kim Basinger, the famous American model, singer, and actress also had to go through a huge loss in business. Her loss wasn’t as much as some of the other celebrities on this list, but it was still enough to cause a serious blow.

In 1989, Basinger decided to buy a small Georgia town spanning across 1,700 acres. She planned on transforming the place into a tourist spot, but things didn’t go according to her business plan. In 1993, she had to sell the land for only $1 million and lost almost $19 million.

Shaquille O’Neal Sold a House at a Low Price – $3-Million Loss

Shaquille O’Neal is a retired basketball player. He was the fittest player of his team and earned a huge reputation. And because of his extraordinary performance, his name was listed on the top NBA players in history. He earned quite a lot in his basketball career. In his heyday, he purchased an extremely expensive mansion several worth millions.

However, unluckily, when the housing market crashed, his house’s value sank drastically. After making many deals with different people, he decided to sell it for $16 million, incurring a loss of $3 million. Shaquille had initially listed the property at $32 million until the buyer offered him only half of it.