Michael Jackson Sued; Jackson Family Home May Wind Up In Hands Of Creditors In Fraud Suit
Business Wire, May 9, 1996
SANTA BARBARA, Calif.--(BUSINESS WIRE)--May 9, 1996--The Los Angeles County mansion where pop star Michael Jackson grew up and his parents still reside may wind up in the hands of a Korean newspaper after the Jackson family lost a $4 million lawsuit for fraud and theft, according to attorneys for the newspaper.
Attorneys for the Segye Times of Seoul, Korea, late yesterday filed a lawsuit in Santa Barbara County Superior Court against Michael Jackson to take ownership of the home of Joseph and Katherine Jackson. The ownership is legally listed in Michael Jackson's name.
The lawsuit alleges that "Katherine, Joseph and Michael conspired to hinder, delay and defraud the Jackson parents' creditors."
The suit claims that the legal title to the family's mansion at 4641 Hayvenhurst Ave., Encino, was transferred into Michael Jackson's name, while the parents continued to reside there, so that creditors, such as the newspaper, could not collect their debts.
The lawsuit contends the Jackson family mansion actually belongs to Michael Jackson's parents and that the family is playing a "legal shell game" to keep the home from being taken from creditors, according to Edwin Bradley, an attorney for the Segye Times.
In February 1994, the newspaper's attorneys obtained a trial judgment finding that defendants Mr. and Mrs. Jackson, Jermaine Jackson and promoter Kenneth Choi, had wrongly taken concert money advanced by the Segye Times, a major Korean daily newspaper.
The judgment against the defendants was for $2 million in actual damages and $2 million in punitive damages.
The basis of the lawsuit was that the newspaper paid a $5.5 million advance for a concert by Michael Jackson and the Jackson family. The money was placed into what the newspaper believed was an escrow account. However, according to the lawsuit, the defendants took $2 million of the advance to purchase gifts and make cash payments to themselves and extended family and staff; the concert never took place.
The ownership of the Jackson family mansion has exchanged hands within the Jackson family numerous times over the past decade, according to the lawsuit, all in an attempt to keep creditors from collecting debts.
The suit alleges that Mr. and Mrs. Jackson "embarked upon a scheme and course of conduct to divest themselves of legal title of the Hayvenhurst property, while retaining the equitable and beneficial ownership" of the mansion.
In 1983, Mr. and Mrs. Jackson purportedly conveyed to their son Michael a 50 percent interest in the property, retaining the other 50 percent ownership in their name. Then, later that same year, Mr. Jackson purportedly conveyed his remaining 25 percent interest to his son.
In 1987, Mrs. Jackson purportedly deeded her remaining 25 percent interest to daughter LaToya Jackson. In 1990, Mrs. Jackson sued her daughter to return her 25 percent interest because that interest "was in jeopardy as community property and subject to loss in the event of any adverse litigation involving other family members."
In 1993, a deed was recorded in which Mrs. Jackson "who previously conveyed to (and withdraws from) LaToya Jackson, as nominee only, an undivided 25 percent interest" and then purportedly conveyed that interest to her son Michael as "nominee only."
The lawsuit seeking ownership of the Jackson family mansion for the Segye Times newspaper alleges that "in making the transfers... Katherine, Joseph and Michael agreed and knowingly and willfully conspired between themselves to hinder, delay and defraud Katherine and Joseph's creditors, including Segye, in the collection of their claims against Katherine and Joseph."
The lawsuit was filed in Santa Barbara County because that is where Michael jackson now resides. For a copy of the lawsuit or more information, call Kerosky & Bradley at 415-777-4445
CONTACT: Christopher Kerosky or Edwin Bradley, 415/777-4445
Gary Hill, 805/963-1453
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