American singer-songwriter and the only child of legendary musician Elvis Presley, Lisa Marie Presley herself has built a career in the music industry with three studio albums to her name though the majority of her net worth and income came from the $100 million trust fund set up for her by Elvis and wife Priscilla Presley.
The trust fund was managed by Provident Financial Management and handled by the company’s senior managing director Barry Siegel who was paid $700,000 annually by Lisa in return for his services.
Little did she know, her fortune was being grossly mismanaged and she was losing money very quickly while her fund managers enriched themselves with outrageous management fees.
The fund was subjected to numerous failed investments, most notable amongst which was the investment in American Idol, a show which eventually went bankrupt.
Provident Financial Management
Lisa has since taken her management to court, citing negligence on their part when making reckless investments that eventually resulted in her $100 million going down to almost nothing.
Upon learning the dire state of her finances, Lisa immediately fired Siegel in 2015- allegedly, Siegel had hidden the true state of the fund’s finances from Lisa, repeatedly reassuring her that her finances were in order and the fund was doing well.
Siegel has since countersued Lisa herself, demanding $800,000 in damages whilst insisting that it was her uncontrollable spending habits that led to the bankruptcy.
From $100 million to $16 million in Debt
According to the lawsuit, Siegel advised Lisa to sell off 85% of her stock in Elvis Presley Enterprises (EPE) which was worth $100 million, but Lisa only ended up receiving $40 million in cash with $25 million paid in the form of shareholder stake in the holding company of American Idol.
Upon realizing his mistake in the acquisition of the TV show, Siegel proceeded to liquidate a number of the fund’s other assets to maintain the family’s lifestyle and expenditure.
Additionally, Lisa’s real estate portfolio was also managed by Provident Financial Management and according to her, the firm mismanaged this portfolio, buying properties in Hawaii and England with her entire trust as collateral for the mortgage of the properties, which the eventually failed to pay, putting the trust and all of its assets at risk due to payment default.
Barry Siegel’s shocking mismanagement coupled with the revelation that he failed to pay the trust’s taxes means that Lisa is not only bankrupt, but she also owes $16 million in unpaid taxes in the U.S and the U.K.