Jackson Estate Facing Investors' $4.58M Suit

[ivy]

Jackson Estate Facing Investors' $4.58M Suit
By WILLIAM DOTINGA
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LOS ANGELES (CN) - Investors in a failed bid to refinance Michael Jackson's Neverland ranch sued the King of Pop's estate administrators in state court over an unpaid $4.58 million "finder's fee."
Kevin Kinsey and Genesis Group International sued Jackson's estate administrators John Branca and John McClain in Los Angeles County Superior Court on May 22, over an oral agreement purportedly made with Jackson in 2007 to refinance the singer's Neverland Estate to the tune of $45 million.
While the deal never went through because Jackson didn't sign the necessary papers to close escrow, Genesis says Jackson agreed to pay investors a 10 percent finder's fee - $4.5 million - and escrow costs of $80,000 regardless of whether the refinancing took place or not, according to the lawsuit.
Genesis demanded the money from Jackson in 2008, and filed a claim with the pop star's estate after he passed away in 2009. That claim was denied by Branca and McClain earlier this month, investors claim in the suit.
The investors seek $4.58 million in compensatory damages on claims of breach of contract and common counts of goods and services rendered.
They are represented by Rickey Ivie of the LA firm Ivie, McNeill & Wyatt.

http://www.courthousenews.com/2015/05/26/jackson-estate-facing-investors-4-58m-suit.htm

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Michael Jackson’s estate sued for unpaid Neverland Ranch fees
POSTED BY COLLEEN PARK ON MAY 26, 2015 IN HOLLYWOOD | 205 VIEWS | LEAVE A RESPONSE

Gates to Neverland Ranch of the Estate of Michael Jackson. Photo by Shazari (Neverland Ranch) [CC BY 2.0], via Wikimedia Commons.
Gates to Neverland Ranch of the Estate of Michael Jackson. Photo by Shazari (Neverland Ranch) [CC BY 2.0], via Wikimedia Commons.
A lending company is suing the estate of Michael Jackson for $4.58 million for services connected with the refinancing of the late singer’s Neverland Ranch.
Genesis Group International Inc. and its president and CEO, Kevin Kinsey, filed the breach-of-contract suit Friday in Los Angeles Superior Court.

An attorney for the Jackson estate could not be immediately reached.

The lawsuit states that the King of Pop refinanced Neverland in August 2007 for $45 million. Jackson agreed to pay 10 percent of the loan amount plus fees, totaling $4.58 million.

Genesis paid $46 million into an escrow in January 2008, but the process terminated because the singer did not sign the necessary documents, the suit states.

Jackson did not comply with a demand to pay the fees and escrow costs owed, the suit states. He died in June 2009 at age 50 of acute propofol intoxication.

Genesis filed a creditor’s claim against the estate, but it was rejected this month by John Branca, who along with John McClain is a special administrator of the estate. Both men are also defendants in the lawsuit.

— City News Service

http://mynewsla.com/hollywood/2015/...-estate-sued-for-unpaid-neverland-ranch-fees/

 

[PoP]

Ugh! Not another lawsuit. Will these kinds of lawsuits just stop. Damned leeches.

 

[Soundmind]

dont tell me they also have not heard till recently that he died and have an estate.

 

[Justthefacts]

So they are being sued for a finders fee despite not finding anything? I wonder who their lawyers are?

 

[barbee0715]

dont tell me they also have not heard till recently that he died and have an estate.

Lol. Why did they just submit the claim? Crazy.

 

[Soundmind]

So they are being sued for a finders fee despite not finding anything? I wonder who their lawyers are?

well MJ promised them orally that he would pay them $ 4.8 million regardless whether the refinancing took place or not. So why would they even bother find anything lol

 

[Justthefacts]

Oh I know let's go ask Michael did he promise that... Oh wait, well good luck proven that

 

[Bubs]

dont tell me they also have not heard till recently that he died and have an estate.

They knew and put the claim in time:
"Genesis demanded the money from Jackson in 2008, and filed a claim with the pop star's estate after he passed away in 2009. That claim was denied by Branca and McClain earlier this month, investors claim in the suit."

Executors told him to beat it and they sued.

-------------------------------------
"Genesis Group International Inc. and its president and CEO, Kevin Kinsey, filed the breach-of-contract suit"

I don't know how that is going to work if there is no contract other than their word?


If MJ had these people sorting out his NL issue, why Jermaine went to Tohme to ask him to help Michael with refinancing NL?
-----------------------------------------------------

Genesis says Jackson agreed to pay investors a 10 percent finder's fee - $4.5 million - and escrow costs of $80,000 regardless of whether the refinancing took place or not, according to the lawsuit.

What! I doubt MJ was going to throw out 4.5 million + 80,000 out of the window:scratch:

 

[ivy]

So they are being sued for a finders fee despite not finding anything? I wonder who their lawyers are?

they claim they put $46 Million into an escrow account. so it looks like they found money for refinancing. Lawsuit aside, what is more interesting is why MJ did not go with this refinancing and Colony had to save neverland the last minute. Plus why $46 Million - double the amount of debt on Neverland?

 

[reibish]

they claim they put $46 Million into an escrow account. so it looks like they found money for refinancing. Lawsuit aside, what is more interesting is why MJ did not go with this refinancing and Colony had to save neverland the last minute. Plus why $46 Million - double the amount of debt on Neverland?

The note was for around $28m, which doesn't include maintenance, upkeep, and restoration. Even now Colony has dumped quite a bit of dough into NL to restore it. If this Genesis deal was ever legit, then it makes sense they'd also front that extra $16m, as I'm sure the deal would have been similar to the Colony one so that if they needed to sell, they could.

But as far as I'm concerned, no signature, no nothing.

 

[Tygger]

Lawsuit aside, what is more interesting is why MJ did not go with this refinancing and Colony had to save neverland the last minute. Plus why $46 Million - double the amount of debt on Neverland?

This refinancing offer doubles Michael’s debt and would most likely result in the foreclosure of NL if Michael defaulted.

The Colony deal did not double Michael’s debt, allowed first refusal to Michael before any other purchaser, and does not result in foreclosure if Michael did not exercise his first refusal right. It seems retaining NL was more attractive to Michael than simply doubling cash at hand (which equates to doubling debt) as per Genesis' offer.

Michael’s Estate did not exercise their first refusal right however; NL continues to be an asset to Michael’s beneficiaries until NL is sold. This could not happen with a foreclosure clause in a refinancing offer.

Michael made the right choice in my view. Will be interesting to see if the Estate can show another offer more beneficial to Michael than Colony’s. Michael wisely rejected this offer.

 

[krikzil]

UMichael Jackson Neverland Creditor’s Claim

Originally posted Jun 23rd 2010 10:30 AM PDT by TMZ Staff

TMZ has obtained a new creditor’s claim filed in the Michael Jackson estate case, in which a lending company is asking for $4,580,000 for services connected with the refinancing of Neverland.

Jon Divens, the lawyer for the creditor, tells TMZ … Michael refinanced Neverland in 2007 and got $45,000,000. The lending company — Genesis Group International — claimed Jackson agreed to pay the Group 10% of the loan amount plus fees, totaling $4,580,000.

Genesis claims it made a demand for payment this year but never got paid.

There’s an interesting history with the guy who owns Genesis — Kevin Kinsey. In 2008, there were reports that Kinsey had falsely represented himself as a representative of MJJ Productions in an effort to secure funding to get the re-fi.

A source connected with the estate tells TMZ … without commenting on the merits of the claim, Genesis missed the deadline for filing a creditor’s claim.

________

[excerpt]

Sunday, May 18, 2008
Film Investor/Financier Kevin D. Kinsey on "Inside Urban Hollywood" Monday, May 19th

Film Investor/Financier Kevin D. Kinsey on "Inside Urban Hollywood"
on Monday, May 19th at 8:00 PM PST/11:00 PM EST

Kevin D. Kinsey will appear on "Inside Urban Hollywood" with host Tanya Kersey on Monday, May 19, 2008, at 8pm PST/11pm EST, to discuss creative film financing and distribution for independent filmmakers. Kevin runs Exodus Entertainment Bancorp, Inc. which specializes in production finance and distribution for film and television, and focuses on helping minority independent television producers, film makers, and music artists and members of the Famous "Jackson Family." His firm has represented clients ranging from Coolio, Bone Thugs & Harmony, Eddie Griffin, and members of the Famous Jackson Family and is lead finance advisor to Michael Jackson’s Neverland Estate Financial Restructure and MJJ/Sony Music catalog composite.

 

[barbee0715]

^i agree that this didn't sound like a good deal and just oral to boot. I had the impression from this new story that they had submitted a late claim but I'm surprised it was just now rejected.

I've been looking through the forum for that big list of claims that they either paid early on (Kai, Klein etc) or rejected (Billie Jean jackson etc) but couldn't find it.

 

[Soundmind]

Michael Jackson Neverland Creditor’s Claim

Originally posted Jun 23rd 2010 10:30 AM PDT by TMZ Staff

TMZ has obtained a new creditor’s claim filed in the Michael Jackson estate case, in which a lending company is asking for $4,580,000 for services connected with the refinancing of Neverland.

Jon Divens, the lawyer for the creditor, tells TMZ … Michael refinanced Neverland in 2007 and got $45,000,000. The lending company — Genesis Group International — claimed Jackson agreed to pay the Group 10% of the loan amount plus fees, totaling $4,580,000.

Genesis claims it made a demand for payment this year but never got paid.

There’s an interesting history with the guy who owns Genesis — Kevin Kinsey. In 2008, there were reports that Kinsey had falsely represented himself as a representative of MJJ Productions in an effort to secure funding to get the re-fi.

A source connected with the estate tells TMZ … without commenting on the merits of the claim, Genesis missed the deadline for filing a creditor’s claim.

________

[excerpt]

Sunday, May 18, 2008
Film Investor/Financier Kevin D. Kinsey on "Inside Urban Hollywood" Monday, May 19th

Film Investor/Financier Kevin D. Kinsey on "Inside Urban Hollywood"
on Monday, May 19th at 8:00 PM PST/11:00 PM EST

Kevin D. Kinsey will appear on "Inside Urban Hollywood" with host Tanya Kersey on Monday, May 19, 2008, at 8pm PST/11pm EST, to discuss creative film financing and distribution for independent filmmakers. Kevin runs Exodus Entertainment Bancorp, Inc. which specializes in production finance and distribution for film and television, and focuses on helping minority independent television producers, film makers, and music artists and members of the Famous "Jackson Family." His firm has represented clients ranging from Coolio, Bone Thugs & Harmony, Eddie Griffin, and members of the Famous Jackson Family and is lead finance advisor to Michael Jackson’s Neverland Estate Financial Restructure and MJJ/Sony Music catalog composite.

end of story.

 

[passy001]

The note was for around $28m, which doesn't include maintenance, upkeep, and restoration. Even now Colony has dumped quite a bit of dough into NL to restore it. If this Genesis deal was ever legit, then it makes sense they'd also front that extra $16m, as I'm sure the deal would have been similar to the Colony one so that if they needed to sell, they could.

But as far as I'm concerned, no signature, no nothing.

But the Colony deal was poor by comparison in that it effectively deprived MJ of control, there are other conditions that were not very favorable to MJ. The problem is that MJ never had a real competent manager to find a suitable deal for him. Will be interesting what raymond bain will have to say about this since she mas MJ manager around that time. she'll most likely be deposed by both sides.

 

[reibish]

But the Colony deal was poor by comparison in that it effectively deprived MJ of control, there are other conditions that were not very favorable to MJ. The problem is that MJ never had a real competent manager to find a suitable deal for him. Will be interesting what raymond bain will have to say about this since she mas MJ manager around that time. she'll most likely be deposed by both sides.

Oh I definitely agree it was a crappy deal for Michael all the same. I'm gonna go out on a limb here and say that Michael probably didn't really care what happened with it at the time, so maybe he only just cared about getting it out of default. The optimist in me will always believe that part of the reason he bothered to keep it was because that maybe one day he'd be ready to return, or keep it for the kidlets (and thank goodness he did, as it appears they want to keep it, but that's in the other NL thread)

Raymone Bain is certainly an...interesting character. I wish Michael had fired her sooner. But then it just paved the way for Tohme to step in. Sigh.

Honestly the last competent manager Michael had was Frank Dileo.

 

[Bubs]

^^ Seems like this is Raymone's work

RF wrote this in 2008:
As I told you Wednesday, the auction of Michael Jackson's ranch may be forestalled by a loan extension offered by his loan holder Fortress Investments.

Jackson's attorney L. Londell McMillan told the Associated Press Thursday such a deal was in the works. But it's not done yet. There's still no recording at the Santa Barbara County Assessor's Office. Until that's changed, Jackson remains in foreclosure.

On Wednesday, I told you that Jackson's Neverland Ranch and its $23 million lien are part of a weird sequence of events. This included a California investor's putting $46 million into escrow for Neverland, thinking he was dealing with Jackson’s representatives.

He wasn’t. And the investor just narrowly avoided being bilked for close to $5 million.

How did this all start? It turns out the investor’s rep, Jason Cestaro, got involved based on information sent to him right from the office of Jackson’s former manager, Raymone Bain, in February.

Cestaro, sources say, asked for and received crucial personal financial information about Jackson to make the decision to loan him so much money.

Cestaro, I’ve now learned, depended on a letter he was shown Feb. 13 on stationery that simply read at the top: Michael J. Jackson. It was signed by Diane Simmons Williams, a certified public accountant who not only was the wife of ex-District of Columbia Mayor Anthony Williams, but billed herself as a "Financial Consultant" to Jackson.

What Cestaro didn’t know is Williams also is an employee of Bain, which is how she had access to sensitive information about Jackson.

The notarized letter was presented to Cestaro by Kevin D. Kinsey, a Los Angeles finance rep, as evidence of Jackson’s income.

It was addressed "To whom it may concern" and outlined Jackson’s income as almost $30 million a year, including $5 million royalties from "Sony’s Records" and $11 million from Jackson’s stake in Sony/ATV Music Publishing.

Jackson’s other income, Williams stated in the letter, included between $3 million and $4 million from BMI (airplays) royalties and $10 million to $11 million generated by Jackson’s MiJac Publishing, a separate entity.

Cestaro was thrilled to learn this, I’m told, but concerned that the letter was old. It was dated July 11, 2007. He called Williams, whose phone number was at the bottom of the letter, asking for an updated version. She balked and recommended he speak with one of Bain’s assistants, who put him off to another.

Nevertheless, Cestaro deposited the $46 million in escrow as an act of good faith.

Cestaro would not learn until later that Williams’ letter misrepresented Jackson’s finances: She’d omitted all that Sony income, plus the MiJac was being paid — but not to Jackson. It was going directly to paying off more than $330 million in loans secured by MiJac Publishing. Jackson had no access to it as actual cash, which was implied.

Several phone calls and e-mails to Williams on Wednesday went unreturned to this column, including two to the office of her husband.

In the meantime, despite the insistence of everyone involved, Neverland still is scheduled to be auctioned on March 19 in Santa Barbara, Calif. The Notice of Trustee’s Sale, first posted on the county’s Web site by Fortress Investments on Feb. 25, remains active

 

[Bubs]

and I found this one too:

Fox.com columnist Roger Friedman is reporting that Michael Jackson’s longtime rep Raymone Bain "has been spearheading a drive to refinance Neverland without actually bothering to tell Jackson or his legal representatives."
According to Friedman, Bain has been meeting with a group of financial advisers for the last several months; long after Jackson had dismissed her as his manager.

"The result is that a rock-solid investment group in Los Angeles has been taught the lesson that no good deed goes unpunished," Friedman wrote.



The columnist shared the following account:

According to the story, a Los Angeles investor named Jason Cestero was located by a financial group called Genesis Group, run by Kevin Kinsey. Kinsey, I am told, sent Cestero letters identifying himself as lead adviser to MJJ Neverland Ranch Finance Restruct Project. Kinsey, this source says, told Cestero that he was brought on board by Bain, Jackson’s then-manager.

In correspondence and in conference calls with Kinsey and Cestero, Bain represented herself and her PR assistant Aidean King as a firm called North Star. Based on the letters, e-mails and calls that then began, Cestero and wealthy East Coast investors planned for the refinancing of Neverland.

By last month, based on back-and-forth e-mails and telephone conversations, Cestero — acting on good faith — placed $46 million in escrow with the goal of refinancing the Neverland lien held by Fortress Investments in New York and getting Jackson out of trouble.

But then things started to sound strange to Cestero, sources tell me. The escrow company received a notice from Genesis indicating that $4.6 million of the Cestero money would go to it once escrow on the property closed.

At that point, sources say, Cestero began asking to speak with Jackson directly. When that didn’t happen, Cestero’s suspicions — which already had been brewing — blossomed. He demanded an answer. I’m told that at that point a rep for Bain contacted Cestero saying, suddenly, the deal was off.

Simultaneously: In New York and other parts of Los Angeles, Jackson’s legal representatives knew nothing about these transactions. They had no idea that such a large amount of money was in escrow or that Cestero and his investor existed.

What they did know was that Neverland was in danger of being auctioned off in public on March 19 on the steps of the Santa Barbara County Courthouse. Similarly, unbeknownst to Cestero, Fortress was agreeing, albeit reluctantly, to renegotiate Jackson’s Neverland loan, charge him a hefty fee and extend the default arrangement for one year. The plan was for Fortress to avoid the public embarrassment of evicting Jackson from his home, and in broad daylight.

Ironically, while both sides proceeded, it’s more than likely Jackson also knew nothing of the $46 million placed in escrow for him, or anything of the Cestero deal. Wednesday morning, sources tell me, Jackson’s people feel they may have a deal in place with Fortress. At the same time, Cestero — who did not return calls — is left holding a $46 million bag. He and his investor will get their money back, but not the time, aggravation or fees from dealing with Bain’s people.

Still, a major question lingers: the request for the $4.6 million from Genesis. I’m told Cestero was informed that was for fees for Kinsey, Bain, King and even possibly Michael’s brother, Randy, who was mentioned as being part of the deal to refinance Neverland.

"They were supposedly people who expected to be paid something for putting the financing into motion," a source says.

http://www.hiphop-elements.com/article/read/4/17983/1/

 

[reibish]

Fox.com columnist Roger Friedman is reporting that Michael Jackson’s longtime rep Raymone Bain "has been spearheading a drive to refinance Neverland without actually bothering to tell Jackson or his legal representatives."
According to Friedman, Bain has been meeting with a group of financial advisers for the last several months; long after Jackson had dismissed her as his manager.

Pretty much the story of their entire professional relationship IIRC ha

 

[myosotis]

Still, a major question lingers: the request for the $4.6 million from Genesis. I’m told Cestero was informed that was for fees for Kinsey, Bain, King and even possibly Michael’s brother, Randy, who was mentioned as being part of the deal to refinance Neverland.

"They were supposedly people who expected to be paid something for putting the financing into motion," a source says.

http://www.hiphop-elements.com/article/read/4/17983/1/

Well, KD Kinsey certainly seemed to know the family, as he tweeted that he attended 'MJJ memorial Service and family repast' in July 09

 

[Bubs]

Michael Jackson Neverland Creditor’s Claim

Originally posted Jun 23rd 2010 10:30 AM PDT by TMZ Staff

Oh, I got an impression from the suit that they filed creditor claim on time, but if that timestamp on TMZ is correct, then they are late. Isn't it usually 4 months to file creditor claim?

--------------------------------
On different note, Raymone B is one of three worst of all the managers in MJ's life:doh:
Seemingly, she made more mess than anything else.

She is behind these guys that also sued the estate and it is still ongoing
http://www.mjjcommunity.com/forum/t...Estate-(Broderick-Morris-and-Quadree-El-Amin)

I wonder if Raymone promised them that nearly 2% of MJJ stake without MJ knowing?

Well, KD Kinsey certainly seemed to know the family, as he tweeted that he attended 'MJJ memorial Service and family repast' in July 09

Yes, I saw his tweet.
Wouldn't surprise me as this Kevin claims to have represented most of Jac fam
"His firm has represented performers ranging from artist Coolio, rap sensations Bone Thugs & Harmony, actor/comedian Eddie Griffin, “King of Pop”, Michael Jackson, Jackie Jackson, Randy Jackson and other members of the world-renowned Jackson Family. Kinsey was the lead advisor for Michael Jackson’s Neverland Estate Finance Restructure and the MJJ/Sony Catalog composite."

 

[elusive moonwalker]

"yawn" join the que or go sue raymone instead

 

[ivy]

weitzman statement

An attorney for the Jackson estate denied the allegations today.

“The lawsuit has no merit, these people are not entitled to anything and this is yet another desperate attempt to get money from Michael Jackson’s estate where none is deserved,” lawyer Howard Weitzman said.

 

[Bubs]

weitzman statement

An attorney for the Jackson estate denied the allegations today.

“The lawsuit has no merit, these people are not entitled to anything and this is yet another desperate attempt to get money from Michael Jackson’s estate where none is deserved,” lawyer Howard Weitzman said.

There are way too many desperate people attempting to get money of MJ's estate:no:

It should be quite clear that you cannot get money from the estate by just saying MJ promised them tons of money no matter whether the deal went through and that contract wasn't signed by MJ.

All the same, these lawsuits are nuisance because they cost money to the estate and extend the time the estate is on probate.

 

[barbee0715]

^^It will never be over as long as the estate is raking in this kind of money.
Just like it never stopped with Michael himself.
These are just frivolous lawsuits and just pains and aggravating but not the same as Robson and co.

 

[passy001]

Still, a major question lingers: the request for the $4.6 million from Genesis. I’m told Cestero was informed that was for fees for Kinsey, Bain, King and even possibly Michael’s brother, Randy, who was mentioned as being part of the deal to refinance Neverland.

"They were supposedly people who expected to be paid something for putting the financing into motion," a source says.

http://www.hiphop-elements.com/article/read/4/17983/1/

if it's not randy, it's jermaine. these people are true parasites.

There you have your story. Raymone bain doing stuff in the background without MJ knowledge and these kangaroos come out and say "MJ orally agreed."

 

[passy001]

weitzman statement

An attorney for the Jackson estate denied the allegations today.

“The lawsuit has no merit, these people are not entitled to anything and this is yet another desperate attempt to get money from Michael Jackson’s estate where none is deserved,” lawyer Howard Weitzman said.

I'm sure they did their own investigations. That explains why they could only reject the claim now, 5 years after it was first filed.

 

[passy001]

There are way too many desperate people attempting to get money of MJ's estate:no:

It should be quite clear that you cannot get money from the estate by just saying MJ promised them tons of money no matter whether the deal went through and that contract wasn't signed by MJ.

All the same, these lawsuits are nuisance because they cost money to the estate and extend the time the estate is on probate.

This is a civil suit. so it has no bearing on the probate proceedings.

it's true that these people are desperate and pathetic. notice how they all claim "MJ told us this, orally agreed to this" Tohme, Robon, Safechuck, Bain, and now these monkeys are using this tactic. but it's not working and will never work.

 

[Bubs]

This is a civil suit. so it has no bearing on the probate proceedings.

it's true that these people are desperate and pathetic. notice how they all claim "MJ told us this, orally agreed to this" Tohme, Robon, Safechuck, Bain, and now these monkeys are using this tactic. but it's not working and will never work.

True, and I could add few more names to your list who claim MJ saying this or that, but I won't. Everybody knows who they are

Thanks for info of civil cases have no effect on probate.
So, if civil cases don't affect to probate, then in year or so, the estate should be out of probate and they can start distributing money to children's charity.

 

[Doggone]

They will do anything for money... Michael said this 20 years ago