A bankruptcy watchdog told Curtis James Jackson III, better known by his stage name 50 Cent, that his money is not well protected.
Recent legal troubles caused 50 Cent to declare bankruptcy, but he still has over $7 million in investment accounts with Credit Suisse, Merrill Lynch and Goldman Sachs. Now lawyers from the U.S. Department of Justice have told the rapper that his money is not safe, writes Katy Stech for The Wall Street Journal.
Lawyers warn rapper over security of investment accounts
The rapper has been warned that the $7,019,155.11 is not sufficiently protected, and it constitutes around a quarter of his net worth. Only $567,722.30 of that was protected by the Federal Deposit Insurance Corp. as of July 31, according to court papers.
Money held in those accounts is “subject to risk from market loss and institutional insolvency and are not FDIC-protected or protected by a bond in favor of the United States,” in violation of federal law, according to lawyers working for U.S. Trustee William K. Harrington.
Under federal law a person who files for bankruptcy must ensure that their money is “insured or guaranteed by the United States or by a department, agency or instrumentality of the United States or backed by the full faith and credit of the United States.” It can also be deposited “in an entity that has posted a bond in favor of the United States or has deposited securities with the Federal Reserve Bank in an account maintained by the United States Trustee.”
50 Cent – Entertainer in financial difficulties due to legal troubles
The aim of this rule is to “to protect all creditors of bankrupt entities against the loss of estate funds deposited or invested by a debtor,” according to lawyers. “It’s better to be safe than sorry in bankruptcy,” said Robert S. Thomas II, bankruptcy lawyer at Thomas Trattner & Malone.
50 Cent originally filed for bankruptcy in July, claiming that two multimillion-dollar judgments had left him in financial trouble. He lost $18.4 million in a lawsuit related to a business deal gone bad, while he was also ordered to pay $7 million in damages to a woman who featured in a sex tape that the rapper posted online.
Jackson found fame as a hip hop artist, and has sold 22 million albums. He also appears in the movie “Southpaw,” a boxing drama which is currently showing in theaters.
A bankruptcy watchdog told Curtis James Jackson III, better known by his stage name 50 Cent, that his money is not well protected.
Recent legal troubles caused 50 Cent to declare bankruptcy, but he still has over $7 million in investment accounts with Credit Suisse, Merrill Lynch and Goldman Sachs. Now lawyers from the U.S. Department of Justice have told the rapper that his money is not safe, writes Katy Stech for The Wall Street Journal.
Lawyers warn rapper over security of investment accounts
The rapper has been warned that the $7,019,155.11 is not sufficiently protected, and it constitutes around a quarter of his net worth. Only $567,722.30 of that was protected by the Federal Deposit Insurance Corp. as of July 31, according to court papers.
Money held in those accounts is “subject to risk from market loss and institutional insolvency and are not FDIC-protected or protected by a bond in favor of the United States,” in violation of federal law, according to lawyers working for U.S. Trustee William K. Harrington.
Under federal law a person who files for bankruptcy must ensure that their money is “insured or guaranteed by the United States or by a department, agency or instrumentality of the United States or backed by the full faith and credit of the United States.” It can also be deposited “in an entity that has posted a bond in favor of the United States or has deposited securities with the Federal Reserve Bank in an account maintained by the United States Trustee.”
Entertainer in financial difficulties due to legal troubles
The aim of this rule is to “to protect all creditors of bankrupt entities against the loss of estate funds deposited or invested by a debtor,” according to lawyers. “It’s better to be safe than sorry in bankruptcy,” said Robert S. Thomas II, bankruptcy lawyer at Thomas Trattner & Malone.
50 Cent originally filed for bankruptcy in July, claiming that two multimillion-dollar judgments had left him in financial trouble. He lost $18.4 million in a lawsuit related to a business deal gone bad, while he was also ordered to pay $7 million in damages to a woman who featured in a sex tape that the rapper posted online.
Jackson found fame as a hip hop artist, and has sold 22 million albums. He also appears in the movie “Southpaw,” a boxing drama which is currently showing in theaters.
