The daughter of the King's former money manager gave himself a salary of more than $700,000, while he was losing her $100 million fortune, Lisa Marie Presley says.
The Daily Mail’s recent article entitled, “Lisa Marie Presley claims her ex-money manager lost $100 million trust fund left to her by Elvis with 'reckless and negligent' investments while paying himself a salary of $700,000,” Presley also alleges that Siegel was “reckless and negligent” with his investments.
Instead of telling Lisa Marie the truth about the investments, Siegel covered up the dire straits of her finances, Presley's lawyers say in court pleadings. Siegel is counter-suing, contending that Presley “squandered” away her fortune, because of her “uncontrollable spending habits.” Siegel wants $800,000 in damages.
Presley’s complaint against Siegel and his company, Provident Financial Management, says that Siegel “enriched himself with exorbitant fees.” She claims that he and his firm ran the $100 million trust fund her father set up for her “into the ground.” What’s now left is just $14,000.
Siegel’s largest investment of the trust funds was in American Idol's holding company, which ended up going bankrupt.
Presley says that despite allowing the trust's assets to be run to ruin, Siegel profited richly from his "service" as trustee. She claims that from 2005 and the time of the American Idol bankruptcy, he billed $4.9 million to "manage" the trust, an average annual salary of $701,000 per year. However, had he disclosed the trust's true financial condition to Presley and restricted spending to the trust's "income," rather than its principal assets, she would have lived comfortably on an annual budget of between $1.5 and $2 million per year, after taxes.
On this budget, Lisa Marie says Siegel's lucrative compensation package would have amounted to between 40 to 50% of Presley's post-tax annual budget—"an amount she undoubtedly would not have agreed to, had she been aware of her true financial condition.”
Instead of telling Presley the truth, Siegel covered up the dire straits of her finances, say her lawyers. Siegel repeatedly told Lisa that she was in "good shape" with her finances, the documents state. Her attorneys cited several emails from Siegel responding to inquiries from Presley about how her trust fund was doing:
“We're in good shape on your finances.”
“Be assured that we are doing everything on our end to maintain both your current lifestyle and the future of you family.”
These were what Siegel allegedly told Presley. She fired him and Provident in 2015, after discovering that he had kept her in the dark about the trust's true financial condition.
With the American Idol bankruptcy, in one week alone the Trust lost $24.5 million of the $25 million in stock that was received in the sale of EPE, court documents say. Presley also says that Siegel even failed to pay the trust's taxes, and the trust owes millions of dollars in back taxes to the U.S. and U.K authorities.
Speak with an experienced Estate planning attorney to make sure you have a strong plan in place to help avoid disasters like this. Call Rowley Law, 847-490-5330, today to set up your appointment.
Reference: Daily Mail (June 19, 2018) “Lisa Marie Presley claims her ex-money manager lost $100 million trust fund left to her by Elvis with 'reckless and negligent' investments while paying himself a salary of $700,000”