Run Me My Money! Toni Braxton Accused Of Bankruptcy Fraud, Husband Sued

October 29, 2012  |  

Source: WENN

I’m going to go out on  limb here and say Toni Braxton’s money hasn’t been right since before she got into the industry. You would think after two bankruptcies, the singer’s bank accounts would start to look better but now that she’s been accused of fraud and her semi-estranged husband Keri Lewis is being dragged into the drama, things are looking a lot worse.

According to TMZ:

Toni Braxton fraudulently transferred $53,490 to her estranged husband in order to avoid paying back creditors in her bankruptcy case — so says the trustee of Toni’s bankruptcy estate.

According to new docs filed in Toni’s ongoing bankruptcy case, Toni’s estranged husband Keri Lewis received the 5-figure sum after Toni’s money was already earmarked to repay creditors.

Now, the bankruptcy trustee is suing Lewis to get the money back — much like John Mayer was sued for $465,000 following a giant Ponzi scheme collapse in Seattle.

When Toni filed for bankruptcy the last time in 2010, she claimed she had between $10 million and $50 million worth of debt stemming from the cancellation of her Vegas shoes due to her health issues. The $50K she allegedly transferred to Keri wouldn’t have even put a dent in that debt but the law is the law. According to Toni’s rep, she followed it though, saying in a statement:

“All of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business.”

Interestingly, on tonight’s VH1 “Behind The Music” special with Toni, she talks about her first bankruptcy in 1998 and the infamous interview with Oprah Winfrey in which the daytime talk show host lightweight went in on her for her financial choices. I believe this was also when Oprah said she signs every last one of her checks. Anyway, Toni didn’t appreciate the “lesson,” telling VH1:

“She was so frickin’ mean to me, I was in shock. I couldn’t believe it because I loved her so much. I looked up to her and she pretty much reprimanded me.

“She says to me, ‘I hear you have Gucci flatware; I’m Oprah Winfrey and I don’t have Gucci flatware’…You didn’t have Gucci flatware because you didn’t wanna buy it; it’s not because you couldn’t afford it. What do you mean? Immediately she made me feel this big. That moment changed my career. It made people look down on me.”

I guess we won’t see her on “Oprah’s Next Chapter.” Check out the sneak peek here.

What do you think bout Toni’s money problems?

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  • stopplayin

    Come ppl WATCH THE SHOW (BEhinf the Music) before you make these comments! You don’t even know what ur talking about and the media is just spinning the story (as they always do). She never said oprah was to blame. And there a lot of aspects to her 2 bankruptcies; like slave-like record contracts and LUPUS. Yea, kinda hard to hold a multi-million dollar contract when you’re laid up in the hospital bed… and then she got sued for millions for being sick. So, have a little compassion ppl plz!

    • Yvette

      You are absolutely right! I saw the show and she did not blame Oprah for her bankruptcy, but she did blame Oprah for how the public viewed her which is a cop out. I truly believe that Oprah was giving her tough love regarding her finances.

  • dbatt001

    Toni, why so messy?

  • blu

    If you buy gucci flatware and then file bankruptcy… You cant afford it! Simple and plain! She made careless purchases and now doesnt want to be responsible for it. I really liked Toni Braxton but they need to make her take a money management course.

  • Guest

    Sometimes Oprah can be harder on black celebrities than white ones. However in this case, I agree with her. You can’t cry about your situation when you’ve made very bad decisions with your money. Reminds me of people who live in the projects, but driving luxury cars and wearing designer clothes from head to toe. You have to decide if what your priorities are and practice discipline!!!!!!!!!!

  • Shaybaby

    Now this chick is being accused of bankruptcy fraud. I guess that’s Oprah’s fault too… SMDH

  • Guest360

    Oprah can be called a lot of things however, when you aren’t making sense, she’s going to let you know. Anyone who buys Gucci flatware and then files for bankruptcy later is obviously buying up things they don’t need and can’t afford to have. Of course you felt small. Your dumb choices were being put out on front street. If you don’t want someone to put you in that position, make better choices. You’ve filed for bankruptcy TWICE now. Either get an accountant or track your money yourself but it makes no sense as to how you can rack up MILLIONS of dollars in debt and then not know how you got there. Either Tony really is committing fraud or she’s being irresponsible with her money. Oprah got it right the first time. You buy what you need and YOU keep control over your finances. It’s the only way to avoid this perpetual problem she’s in.

    • Yvette

      Exactly! I just don’t understand how these celebrities don’t get that. Like I said in my earlier post Toni had no business moving into that house in LA. It is just her and her 2 boys. She could have just as easily gotten a very nice tricked out condo or even a smaller house but just as nice. One day she will learn that keeping up with the Joneses will keep her broke!

  • clove8canela

    I think this a woman who has taken absolutely no responsibility for her financial actions. The first time? Ok. The first bankruptcy was unfortunate but understandable because this often happens to people who come into large sums of money without the proper knowledge.

    But now? I think she’s definitely gaming the system because she really suffered no consequences for her actions. She gets to maintain the lifestyle she’s grown accustomed to without changing a thing.

    How come no one has introduced her to a financial advisor? And if they have, why isn’t she listening?

    • Yvette

      She isn’t listening because she doesn’t think her spending habits is an issue. Case in point, on an episode of BFV when she relocated from Atlanta to Los Angeles she moved into the biggest mansion she could find even after filing bankruptcy for the second time. Toni needs to understand that just because you sold 20 million albums doesn’t mean you have 20 million dollars. Also, when she was temporarily living in NY to star on broadway as Belle in Beauty and the Beast, one of those entertainment shows like Entertainment Tonight or Extra (can’t remember which one) went ham on her for moving into a $30,000 a month apartment and all this right after her first bankruptcy. I know that Toni Braxton has seen mega success, however, when you spend more than you make this is the result.

  • Yvette

    I don’t think Oprah was being mean to Toni. I think Oprah was attempting to teach Toni a lesson about finances which Toni clearly never got, and if Oprah was being so mean to her then why was Toni one of the judges on Oprahs’ show the year she did her own version of a singing competition? When are these celebrities going to stop giving so much trust to there busines managers without asking what is going on and then blame everyone else when they are broke? Toni my dear you are tripping. Take responsibility for what you do.

    • Just saying!!

      I get what you’re saying but I could see Oprah doing that. I couldn’t seem to find the video but she can make people feel bad when she wents. It’s not fair of you to denounce that just because it’s Oprah. Besides…a national television interview in my opinion is not the time to school a superstar on their finances…but rather to hear the story from the celebrity herself.

  • tam

    Tony…don’t blame others for your problems. Lets many times have you filed for bankrupcy? Have you learned any thing? Guess not.

    • Yvette

      No she hasn’t learned anything. That is obvious from how taken aback she was that Oprah asked her about having Gucci flatware. I thought it was a legitimate question. I mean, don’t get me wrong, folks can have whatever type flatware they want, just don’t get all defensive when your behind is broke (and shouldn’t be) when other folks with money and fame call you to the carpet about it.

  • 1Val

    Toni is a narcissist. She tarnished her image but it is Oprah’s fault that others look down upon her. Just an opportunity to generate publicity for herself by disparaging media darling Oprah. SMH.