Will Smith to Get $1.5M from Sale of Duane Martin's Mansion in Bankruptcy Fraud Lawsuit: Report

Will Smith will finally be repaid for the money he loaned Duane Martin for a house that's been implicated in a fraud lawsuit against the actor. Charges against Martin will also be dismissed as a result of the settlement.

In the heels of the settlement of Duane Martin’s fraud lawsuit, Will Smith will be gaining back the $1.5 million he loaned to the financially troubled actor.

Smith had previously loaned Martin the amount when the latter fell short on his mortgage payments for a home he purchased back in 2006 for $900,000.

The 5-bedroom property was allegedly concealed by Martin when he filed for bankruptcy in 2016.

In 2018, Duane tried to sell the mansion for over $2.6 million, intending to pocket all the proceeds from the sale less what he owed Smith.

This prompted the bankruptcy trustee to file a case against Martin for fraud believing that Martin purposely hid the ownership of the home under the company, Roxe LLC which he founded for that purpose.

It was also through the same company that he allegedly bought back the home from the bank when he defaulted on his loan using the money he borrowed from Smith.

After that, he and his then-wife, Tisha Campbell supposedly leased the home from Roxe LLC for $5,000 a month.

Smith and his wife, Jada Pinkett-Smith who were forced to turn over their financial documents when they were subpoenaed by the trustee were also cleared of any allegations linking them to Martin’s fraud.

In 2018, Duane tried to sell the mansion for over $2.6 million, intending to pocket all the proceeds from the sale less what he owed Smith.

However, due to the lawsuit filed by the bankruptcy trustee, it was established that the lease was bogus and that he and his wife did not make any payments for the home.

As such, Martin was obliged to turn over the property to the bankruptcy estate to be able to pay back his creditors using the $2.45 million derived from its sale.

According to The Blast, as part of the recent settlement, Smith will be gaining back his $1.5 million. The rest of the money earned from the property's sale will pay for Martin’s other debts which include $122k in back rent, $485k owed to various creditors, and $170,560 to Roxe LLC.

Smith and his wife, Jada Pinkett-Smith, who were forced to turn over their financial documents when they were subpoenaed by the trustee, were also cleared of any allegations linking them to Martin’s fraud.

There were emails between Smith and Martin that were also submitted revealing the Smiths’ worries in lending Martin money.

Due to the settlement, the fraud lawsuit against Martin was dismissed.