News: Scott Storch Battles $58K Financial Woes, Debt Records Leak Online
Friday, May 29, 2009 5:10PM
Miami hitmaker Scott Storch's financial records have reportedly leaked online showing the platinum-selling producer owing over $58,000 to multiple creditors.
While Storch has yet to address his monetary losses, bankruptcy papers have displayed his current hardships.
Welcome to Chapter 13 in the Scott Storch-is-broke-again saga -- today we've learned how the once-loaded music producer now has more debt than he has dollars. Storch filed a bunch of papers in U.S. Bankruptcy Court, revealing that Scott owes $58,077.37 to 13 creditors in 7 states. To put this in perspective, dude's net worth was reportedly $70 million in 2006. (TMZ)
The producer was recently ordered to pay a film producer $750,000 who sued him over a breach of contract and civil theft suit last year.
Matt Sinnreich paid Storch $25,000 for 25 percent of the corporation. But Storch, 35, ''failed to form the corporation . . . and failed to return the $25,000." Storch failed to respond to the complaint and Circuit Judge Ronald Friedman granted Sinnreich's motion for default last December. Jurors recently decided the question of damages, rendering the $750,000 verdict, says Sinnreich's attorney Marc Brumer. Sinnreich is trying to collect on the judgment but Storch, once reported to be worth $70 million, has had money woes. He fell behind in child support and owes $722,906.19 in taxes on his $10.5 million mansion on Miami Beach's Palm Island. In March, SunTrust obtained a judgment of foreclosure for $8,484,835.67. The property sale is set for June 26. (Miami Herald)
Storch returned to the hip-hop spotlight last month confessing his recent battles with drug addiction.
"I'm taking it back to square one," he explained in an interview. "I found myself slipping a little bit, got involved in doing drugs and you know, I had to get myself into recovery, realized I was powerless over it and you know, being in the life that I was living, very fast moving, option to do or buy anything you want, go anywhere you wanna go definitely takes its toll on you. And you lose your concept of reality with the drugs and everything, had to get it under control so I'm taking it back to the beginning, back to the Hit Factory where I made a lot of my hits." (MTV)
His vast financial problems emerged online last summer.
Storch is engrossed in debt that spans from failed property tax payments on his $10.5 million mansion and arrest warrants for several failed appearances in the child-support cases of his two sons. Storch's poor decisions have hobbled his music career. In the past the maestro commanded $100,000 per beat. Now, the embattled star has not been able to crack the Top 10 of Billboard Hot 100 since 2005 and has retreated into hiding. (Associated Press)