Celebrity

August 16, 2019

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

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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. 

Will Smith at the Premiere Of Netflix's "Bright" at Regency Village Theatre on December 13, 2017 in Westwood, California. | Source: Getty Images

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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. 

Duane Martin attending the benefit for children with autism at Xen Lounge on April 17, 2016 in Studio City, California. | Source: Getty Images

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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.

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Duane Martin and Tisha Campbell-Martin attending BET's "Real Husbands of Hollywood" Wrap Dinner at Xen Lounge on May 19, 2013 in Los Angeles, California. | Source: Getty

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.

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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. 

Duane Martin and Will Smith at the premiere of Martin's film, "Deliver Us From Eva" in Hollywood on January 29, 2003. | Source: Getty Images

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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. 

Will Smith and wifew Jada Pinkett-Smith attending the 40th NAACP Image Awards held at the Shrine Auditorium on February 12, 2009 in Los Angeles, California. | Source: Getty

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

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