MJ Estate Second Accounting - Document & Summary & Discussion

[mdiegee210]

Will Michael's estate one day own Neverland 100%?

 

[Vici]

Thanks Windy and Ivy.

I thought Janet bought LV house for Katherine, but Joe is living there now? Shouldn't Janet fork over the money for it upkeep?
Gary home, I thought cousin lives there?

Yeah thanks Ivy and Windy

I have the same question as Bubs and elusive.

She is aksing for an additional $34,700 per month partly becaus to cover the expenses of house in Gary Indiana and a residence in Las Vegas? I also thought they didnt own that house i Gary anylonger. There are other people living there now.

Vegas house, not a place that MJ owned so that must be for Joe.

Katherine is making it clear that the additonal money goes to properties that neither she or the Estate owns so why is it expected that the judge will grant her increase?

 

[elusive moonwalker]

Will Michael's estate one day own Neverland 100%?

if they buy barack out.

i thought the home in gary was sold to the council for the museum project?

 

[ivy]

Please don't forget Windy09 in your thanks, without her we wouldn't be able to get the documents.

Thank you for this Ivy.
The estate mentioned at one point that the children would receive $30million into their trusts every 6 months... maybe I missed it but I don't see that here. The first deposit of $30million was in Sept 2011 and another less than 6 months later if I remember correctly. Does anyone know anything about this?

I think it was a $30 Million distribution for once.

It is crazy that on top of all the money Katherine gets she also has a loan of over 6 mil. How does she repay? Does the estate take a few thousand out of her allowance each month. She is already in her 80s, so they will have to take a large amount to ensure all is paid back.

Honestly I don't think she'll repay it. Calling it a loan might be due that the Estate is in probate and they need to pay the debts first before they can hand out money to beneficiaries. When the Estate is out of probate and can do whatever they want with the money, they'll probably write it off like a payment to a beneficiary.

These professional fees, do they involve the attorneys that she is using to sue AEG? It would be interesting to see what her bills for professional fees were before 09. Why is she the only one covering the expenses of the house in Gary. I thought this was a family house, but it seems only Michael pays for it. The home in Las Vegas, who owns it? Katherine or the family? Here again Michael pays for it, and who is living in the home right now? Here we have the estate asking the judge to allow the increases, and yet the estate is attacked.

The Guardianship legal expenses of Katherine is paid per court order. This other expenses could be Sanders and/or AEG lawyers. I think the Gary house is under the name of a cousin and no idea who owns the Las Vegas house. The document says that it's not Estate owned which means they weren't owned by Michael.

I have a question does the loans all have to be paid off before estate is closed? Is that the reason for needing another year to finish.

For probate to be closed yes. Probate basically means pays debts that the person owes and then transfer the remaining assets to the beneficiaries. Estate still needs time to close all the debts and ongoing creditors claims and lawsuits and such.

Btw the estate is obliged to send the copy of the accounting documents to the beneficiaries- children's guadian ad litem and Katherine. I am sure both of them have seen this already. The executors did a great jobs and I felt sorry for them to deal with those greedy, delusional, irrational, useless Jacksons and their sense of entitlement.

2 lawyers for Katherine, Margaret Lodise and Attorney general were given notices, and as you can see accounting document is public as well. Plus Sanders said that 3 weeks ago (before the Jackson siblings letter) he asked for more details to be able to do a routine audit of MJ Estate.

I want people to be aware of this. Running an Estate isn't something that Executors do whatever they please with no one seeing what they do. They are by law required to file accounting for Judge to oversee them, they are required to give notice to the beneficiaries of the accounting. Beneficiaries can also ask for more detailed information to audit the Estate. So actually any wrongdoing is actually highly unlikely given the fact that everything they do is under supervision and can be looked into.

Will Michael's estate one day own Neverland 100%?

If they buy the share from Colony Capital. However I wouldn't expect them to buy it before resolving the issues with Tohme. The Tohme - MJ agreement -which MJ Estate is trying void / cancel - requires them to pay Tohme a certain fee if they buy Neverland from Colony Capital. I think they'll wait for the time being.

Katherine is making it clear that the additonal money goes to properties that neither she or the Estate owns so why is it expected that the judge will grant her increase?

We don't know what the judge will decide, he can approve, deny, or approve it partially. All we know is that Estate is not against the increase and actually asking the court to approve the increase. We'll see what happens over time.

 

[AliCat]

Joseph Jackson is living at the "Sky Las Vegas Condominiums."
http://www.skylasvegas.com/

Condo payments $15,569 (unless it is the townhouse/condo Alejandro is living in)

Sky Las Vegas is a 45-story luxury condominium located directly on the Las Vegas strip next to the Sahara resort hotel. The homes at Sky range from 870 to 5500 square feet and feature luxurious touches and amazing views. Amenities include valet parking, fitness center, business center, spa, billiard room, concierge services and over an acre of green space including a pool and gardens.
http://www.highrises.com/las-vegas/sky-condos/

 

[Petrarose]

Yeah I think the condo fees is the one Alejandro and co is living in. Maybe these are maintenance fees, but still too much for a one year period, so there must be other costs included in that too.

The estate is doing a wonderful job. The only thing is that they need to stop funneling money to Katherine that they know she is using to send to her children. I cannot forget that story about Jermaine and Randy wanting the estate to pay their child support and the estate gave it through Katherine. That is wrong, wrong, wrong and against Michael's will. Then, they hide the amount in one of her payments. Apart from that they are doing a good job. The estate would have been in serious trouble if you know who were in charge of it.

Also, for her age Katherine is using up a lot of the revenue compared to the 3 children, with house payments, loans, lawyers and accountant fees.......

 

[soulmum]

Thank you also Windy09.

 

[Memefan]

@Ivy Just for your information, I just printed the document and the MJJCommunity watermark doesn't appear on all the pages. But the logo is shown. Don't know if you can fix that to avoid drama with you know who.


Ivy's summary is on point, i think it's important for all to understand that the estate won't be "debt-free" at the end of 2012. The Sony/ATV debt (300M before it was refinanced) is still there...The estate seems to have a payment schedule with Sony that wasn't made public. I am sure it is being paid, we are just not privy to all the information.

We can speculate payments are taken directly from Sony projects' royalties, because I looked over all RECEIPTS, and there is nothing from Sony. That's what led me to believe payments are taken directly to pay off the 300M loan.

Interesting Tidbits:

1) Schedule A (page 3 of 65):
Trust, Bonds & Stocks were undervalued in the first account by $ 144M. Probate referee had originally valued these items at $75M, but their value were adjusted to $219M.

2) Schedule A
MJ / Estate has a 25% interest in GR&F Colfax Partners (I was unable to find much info on the company)

3) Schedule A:
No principal payment on the two smaller loans (250K & 235K) Katherine Jackson had received last year

4) Schedule A:

Last year, and again this year, MJ's 50% interested in Sony/ATV is listed as N/A.

Speculation: if we add the $500M estimated value of MJ's S/A share to his property on hand at the end of December 2011, we get close to $1B (not taking liabilities into consideration). Keep in mind, Jackson International, MJJ Artistic AND Neverland are listed at a nominal value of $1.

5) Schedules A & I (p52 of 65):

The estate dissolved / merged the following companies:

History Tours, History Tours ii, 99 Spanish Gate Drive, Branson Media group, Monte Cristo Employment, Nation Comics, Triumph Multimedia Corporation, MJJ Legacy, MJJ Kingdom,TTC Touring Corporation and MJJ Prodution LLC (not the corporation).
,
6) Schedule J (p55 of 65)

Loan Principal balance of $22M as of December 31st, 2009. At the end of December 2011, they had accrued interest on that loan for $67K.
Speculation: This might be the Mijac loan
Schedule G (p48 of 65) shows loan payment of $34M for the year.

7) I haven't been able to locate the $30M that was transferred to the MJ Family Trust. It might have been done after, I can't recall when the request was submitted to the probate judge.

8) Schedule C-9 (p65 of 65)

Gross revenue in MJ ATV Trust: $17M and $9.5M used to pay debt

9) Schedule K (p56 of 65)

Last year, MJ.com sold 550 copies of the Opus and paid $82.5K in royalty to the estate

Funny: On december 7th 2011, $120K was deposited in estate account. They don't know where/who it's from so the bank is researching.

10) Schedule G (p45 of 65)

Executors compensation appears in Other Business Expenses 2.9M & in Other Disbursements 5.2M for a total of 8.1M

 

[elusive moonwalker]

Joseph Jackson is living at the "Sky Las Vegas Condominiums."
http://www.skylasvegas.com/

Condo payments $15,569 (unless it is the townhouse/condo Alejandro is living in)

Sky Las Vegas is a 45-story luxury condominium located directly on the Las Vegas strip next to the Sahara resort hotel. The homes at Sky range from 870 to 5500 square feet and feature luxurious touches and amazing views. Amenities include valet parking, fitness center, business center, spa, billiard room, concierge services and over an acre of green space including a pool and gardens.
http://www.highrises.com/las-vegas/sky-condos/

so why is the estate going against the will and giving money out to joe etc. what they give kj should be properly monitored. do they want an easier life so just hand it out. jermaine and co have got a cheek

 

[MjsLovelyOne88]

I know this is probably a stupid question. But what will happen to Neverland? what does Michael (and now his Estate) has 87.5% undivided membership in Neverland mean?

Still, thank you for the info, MJJC always keeps us up to date. :clapping:

 

[Memefan]

Joseph Jackson is living at the "Sky Las Vegas Condominiums."
http://www.skylasvegas.com/

Condo payments $15,569 (unless it is the townhouse/condo Alejandro is living in)

Sky Las Vegas is a 45-story luxury condominium located directly on the Las Vegas strip next to the Sahara resort hotel. The homes at Sky range from 870 to 5500 square feet and feature luxurious touches and amazing views. Amenities include valet parking, fitness center, business center, spa, billiard room, concierge services and over an acre of green space including a pool and gardens.
http://www.highrises.com/las-vegas/sky-condos/

Condo payments are probably for MJ's condo. Alejandra & her kids live there.

Nothing to do with Joe..so let's not get carried away.

 

[Memefan]

sure



I think it was always 87.5% share. The media reported that MJ was partners with Colony capital and I guess everyone assumed it was 50-50. Estate accounting has always shown it as a 87.5% share



They make money from sony/ATV - I think it's $82 Million in this accounting (Memefan can correct me if I'm wrong) but remember most of that income is going to pay the loan on it.

They received $16M from Sony/ATV and $9.5M was used to pay the loan.

You can refer to Schedule D (p7 of 65) Ref# 9 or the MJ ATV publishing company Income Statement on schedule C-9 (p65 of 65).

Correct me if i am wrong, but all Sony/ATV payments go to that trust account.

The $84M listed on Schedule I (p53 of 65) is the Ending value of Mijac Trust. But last year, Mijac Trust brought in $37M in revenue.

 

[Xtarlight and Mpenziwe]

I'm reading the Creditor's Filed Claims page and something got my attention: Jackson (sic) Malachi was claiming an unknown amount of money in 8/25/09. The claim was rejected in 4/9/10.

 

[ivy]

Condo payments $15,569 (unless it is the townhouse/condo Alejandro is living in)

Condo payments are probably for MJ's condo. Alejandra & her kids live there.

Nothing to do with Joe..so let's not get carried away.

That Condo payments are for MJ's Lindley condo. so that $15 K has nothing to do with Joe.

The additional $34 K a month Katherine is asking is also for the costs of a residence is Las Vegas but it's hard to say who owns or uses that Las Vegas residence.

They make money from sony/ATV - I think it's $82 Million in this accounting (Memefan can correct me if I'm wrong) but remember most of that income is going to pay the loan on it.

They received $16M from Sony/ATV and $9.5M was used to pay the loan.

You can refer to Schedule D (p7 of 65) Ref# 9 or the MJ ATV publishing company Income Statement on schedule C-9 (p65 of 65).

Correct me if i am wrong, but all Sony/ATV payments go to that trust account.

The $84M listed on Schedule I (p53 of 65) is the Ending value of Mijac Trust. But last year, Mijac Trust brought in $37M in revenue.

Ok we have concluded that I'm wrong and Memefan is right. Sorry I mixed up the trusts that holds the catalogs. What I mentioned - the $82 M is the value of MIJAC , it's not what Sony/ATV brought it. The income of Sony/ ATV is what Memefan wrote above.

 

[Aquarius]

Thanks Ivy, Windy & Memefan.

I'm happy with Branca & Mc Clain for the excellent job they're doing. But I'm also disappointed in the amount of money they're giving to Katherine.

Does Michael will states they have to pay her for atty's & accts fees? If she receives a monthly allowance that is her only income why does she needs accounts?

I'm wondering if once the probate ends her monthly allowance will be greater, like in the hundreds of thousands. That might be legal but unfair.

 

[Memefan]

Also, don't forget a few years ago, Janet had bought a house in Vegas for her mother. so again, might not have anything to do with Joe.

 

[ivy]

I'm reading the Creditor's Filed Claims page and something got my attention: Jackson (sic) Malachi was claiming an unknown amount of money in 8/25/09. The claim was rejected in 4/9/10.

Malachi Jackson - full name Prince Michael Malachi Jet Jackson- was the guy that claimed Michael was his father and asked for paternity test, Estate denied the request.

 

[elusive moonwalker]

Thanks for going through this and explaining things. still beyond me why they are paying for jerms x and kids how longs that gonna last for. it really is a joke when jerm and co have the gaul to accuse branca.

 

[walkingonthemoon]

Thank you so much for the docs, Windy09, and also for the summaries, Ivy and Memefan!

Ivy's summary is on point, i think it's important for all to understand that the estate won't be "debt-free" at the end of 2012. The Sony/ATV debt (300M before it was refinanced) is still there...The estate seems to have a payment schedule with Sony that wasn't made public. I am sure it is being paid, we are just not privy to all the information.

We can speculate payments are taken directly from Sony projects' royalties, because I looked over all RECEIPTS, and there is nothing from Sony. That's what led me to believe payments are taken directly to pay off the 300M loan.
...
8) Schedule C-9 (p65 of 65)

Gross revenue in MJ ATV Trust: $17M and $9.5M used to pay debt

Please help me understand something: there's no way on earth that ATV is making less money than Mijac, so where are they accounting the rest of the money? It all should be part of the estate accounts, right? Is there some indication that this part of the accounting is sealed? Is there any information about if and how much of the ATV debt has been paid off?

Also, wondering about the company they created for Cirque, that company doesn't seem to show up in this accounting either, so I guess I have the same question as above.

 

[Aquarius]

Thanks for going through this and explaining things. still beyond me why they are paying for jerms x and kids how longs that gonna last for. it really is a joke when jerm and co have the gaul to accuse branca.

And I don't think those were Michael's wishes.

It's beyond belief how these brothers think that Michael has to keep supporting them & their kds.

 

[ivy]

Thanks for going through this and explaining things. still beyond me why they are paying for jerms x and kids how longs that gonna last for. it really is a joke when jerm and co have the gaul to accuse branca.

are they paying alejandra? I think they offered the condo to her if she agreed to not writing a book but she declined it.

the main payment of Lindley condo is the mortgage payment. They also pay utilities - gas and water - but it seems to be minimal. Condo might be unoccupied.

 

[elusive moonwalker]

are they paying alejandra? I think they offered the condo to her if she agreed to not writing a book but she declined it.

the main payment of Lindley condo is the mortgage payment. They also pay utilities - gas and water - but it seems to be minimal. Condo might be unoccupied.

i thought they put alex and the kids in the condo?? if theres utilities to be paid there must be some useage of the place imo

 

[StellaJackson]

I haven't had a chance to read this yet but does it take into account earnings from some of the smaller deals that the Estate have done such as Panini trading cards, Bravado merchandise, Playmates dolls etc etc?

 

[marebear]

They are doing a great job and Katherine and the kids are well taken care of as Michael wanted. Anybody that says differently need to look at the numbers and stop the complaining.

They are saying they have made $30 million in the last 6 months? Am I reading that right?

 

[ivy]

I haven't had a chance to read this yet but does it take into account earnings from some of the smaller deals that the Estate have done such as Panini trading cards, Bravado merchandise, Playmates dolls etc etc?

everything is included although it's not itemized in detail in this public filing.

For example Panini is done through Triumph Inc., so it's earning would be in the earnings of Triumph but this document wouldn't list specifically what Panini brought.

Edit : Triumph earned net $11.6 Million between Nov 2010 - Dec 2011

They are saying they have made $30 million in the last 6 months? Am I reading that right?

yes in gross earnings in 5 months Jan 2012 - May 2012.

 

[Bubs]

Probate basically means pays debts that the person owes and then transfer the remaining assets to the beneficiaries. Estate still needs time to close all the debts and ongoing creditors claims and lawsuits and such.


I want people to be aware of this. Running an Estate isn't something that Executors do whatever they please with no one seeing what they do. They are by law required to file accounting for Judge to oversee them, they are required to give notice to the beneficiaries of the accounting. Beneficiaries can also ask for more detailed information to audit the Estate. So actually any wrongdoing is actually highly unlikely given the fact that everything they do is under supervision and can be looked into.

Lets not forget that some lawsuit they still fighting in court are the one that Jackson's created.
Tohme=Jermaine for introducing that crook to Michael
Mann=Katherine
Rouass=Joe etc
That is basically draining money out of beneficiaries.
Somebody needs to explain to Jackson,that they cannot go in business with people that has no right to use Michael image.
Executors have to hire more and more lawyers to fight against these idiots, and there goes money down to toilet again.
Don't they understand id they give rights to everybody to use MJ likeness and expose him, there would be no money going to estate and how they are supposed to pay back the loans against MJ own catalogue, ATV, or that matter pay back anything?
Somebody should really make them to sit down and think, pronto.

Ivy, if it is possible, can you send copy of that last paragraph to that looney Taaj M and Randy?

 

[Boggy]

we have not the EBITDA ?

 

[Xtarlight and Mpenziwe]

Malachi Jackson - full name Prince Michael Malachi Jet Jackson- was the guy that claimed Michael was his father and asked for paternity test, Estate denied the request.

Oh, I remember that guy now. Thank you ivy.

 

[IDRAG4MJ]

Thank you Ivy and memefan for this, interesting how being an MJ fan makes us read documents and things that otherwise we wouldn't come across .

 

[ivy]

7) I haven't been able to locate the $30M that was transferred to the MJ Family Trust. It might have been done after, I can't recall when the request was submitted to the probate judge.

It seems like the $30 Million preliminary distribution might have happened later than December 2011 (end of this accounting period). See the following from the court docket:

Document filed for preliminary distribution request

09/13/2011 Preliminary Distribution

First hearing matter continued

09/28/2011 at 01:30 pm in Department 5, Mitchell L. Beckloff, Presiding
PRELIMINARY DISTRIBUTION (PET FOR ORD INSTR & AUTH EXEC TOMAKE PRELIMINARY DISTR - OK TO SETFOR 09-28-11 IN D-5) - Matter continued

Second hearing judge approves the distribution

10/19/2011 at 10:00 am in Department 5, Mitchell L. Beckloff, Presiding
PRELIMINARY DISTRIBUTION - Granted

Then we see this order being filed with the court


02/22/2012 Order-Preliminary Distribution
Filed by Attorney for Petitioner

It seems like the preliminary distribution process might be ongoing into 2012 and therefore not mentioned in the second accounting which ended in December 2011