News: Scott Storch Talks Financial Downfall, "Poor Decisions I Made Caused Me Into This Situation" [Video]
Thursday, Jun 11, 2009 5:14PM
Miami hitmaker Scott Storch recently spoke on his battle with drugs and how he lost over $30 million in six months.
Reflecting on his career's height in 2006, Storch blamed his financial problems on his costly purchases.
"The cost of the drug didn't affect my life," he explained in an interview. "It was the poor decisions I made, that were so poor financially, that caused me to go into this situation where I was forced to change my lifestyle...forced to change a lot of things. [I had] 15 to 20 cars at all times...That's not smart. I would take one of 15 half-million-dollar cars I owned and go to the mall and spend that much money. Stupid, stupid stuff. It's like it didn't make a difference. They were ego investments. I would have been great with three or four cars! I didn't need a 117-foot boat...I watched my own father, he went bankrupt and had problems with the IRS. He was living beyond his means, and I guess I was doing the same thing and not even realizing it." (MTV)
His financial records reportedly leaked online late last month.
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)
His vast financial problems were publicly revealed 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)
Check out a portion of Storch's interview below: