Just days after a report came out in NY Magazine detailing the many ways that the founders of the Kabbalah cult were living large while screwing their congregationalists (metaphorically I guess), comes news that they’re under investigation for tax evasion. Madonna’s Raising Malawi charity, which is closely tied to Kabbalah, recently scrapped plans to build a $15 million school in Malawi and there are rumors of financial misdoing. Raising Malawi, The Kabbalah Centre, and several others Kabbalah-based charities have been named in a subpoena by the IRS as the subject of a grand jury probe.

The Kabbalah Centre, the Los Angeles-based spiritual organization that mingles ancient Jewish mysticism with the glamour of its celebrity devotees, is the focus of a federal tax evasion investigation probing, among other things, the finances of two charities connected to Madonna, the center’s most famous adherent.

Sources familiar with the investigation said the criminal division of the IRS is looking into whether nonprofit funds were used for the personal enrichment of the Berg family, which has controlled the Kabbalah Centre for more than four decades, a period in which it expanded from one school of a little-known strain of Judaism to a global brand with A-list followers like Ashton Kutcher and Gwyneth Paltrow and assets that may top $260 million.

Those cooperating with the IRS include representatives of one of Madonna’s charities, Raising Malawi. The nonprofit is named in subpoenas as a subject of the grand jury probe alongside the Bergs and Kabbalah Centre organizations despite having cut its ties with the center this spring.

“We have tried to provide as much information as we can as quickly as possible to the people who are investigating and are very actively cooperating in every way we can,” said Trevor Neilson of Global Philanthropy Group, a consulting firm now managing Raising Malawi.

In a statement in response to questions about the probe, the Kabbalah Centre acknowledged that it and one of its charities, Spirituality for Kids, “have received subpoenas from the government concerning tax-related issues.”

“The Centre and SFK intend to work closely with the IRS and the government, and are in the process of providing responsive information to the subpoenas,” according to the statement.

The IRS and the U.S. Attorney’s office in New York declined to comment. People with knowledge of the investigation said it began last year and is playing out on two coasts. A federal grand jury in Manhattan, where the Kabbalah Centre has a large branch and real estate holdings, is gathering evidence there, according to the subpoenas. Meanwhile, in Los Angeles, where the center is headquartered on Robertson Boulevard, a team of IRS agents dispatched from the agency’s New York criminal division is interviewing people connected to the organization, said individuals familiar with the agents’ activities.

Among the items that investigators have reviewed, according to one source, is an August 2010 email in which a former chief financial officer of the center complained that he had been fired for pointing out financial improprieties and warned that the center was in danger of “committing suicide.”

Former CFO: Income tax fraud… I have little choice… but to bring down the entire Kabbalah Centre
“I recently uncovered instances of income tax fraud at the Kabbalah Centre — instances which could bankrupt several of the directors involved … this is very serious business,” the former CFO, Nicholas Vakkur, wrote in an email that circulated among high-level officials at the center. “I have little choice but to cooperate with the IRS and bring down the entire Kabbalah Centre,” Vakkur wrote, adding a plea that “someone in authority” try to “reason” with center Chief Executive Karen Berg.

[From The La Times]

The article goes on to say that The Spirituality for Kids Kabbalah-based charity is also being investigated. Madonna was the chairwoman of the board on that charity and donated $600,000 of her own money. She put $11 million into Raising Malawi with hardly any results. Do you think she’ll cut ties with Kabbalah now that they’re under the gun? Madonna throws people under the bus when they make her look bad, so I’m just waiting for some kind of statement from her distancing herself from the organization and stating that she had no idea about any wrongdoing.

This just makes me wonder how Scientology has avoided tax evasion charges in the US up until now, and I believe the answer is intimidation and litigation. Still, this is definitely a start.

Meanwhile, Madonna, 54, and her latest 24 year-old boytoy, Brahim Zaibat (pronounced “Jailbait”) have split up, reportedly over religion. Zaibat is Muslim and Madonna of course belongs to a mystical Jewish-based cult. I would speculate that maybe Zaibat refused to get circumcised for Madonna, but from what I can find male circumcision is common among Muslims. So he had that going for him.

Madonna is shown on 5/2 and 2/27/11. Credit: WENN.com

Countless celebrities have made headlines for their inability (or some would call it a refusal) to pay their debts, whether it’s to the IRS or private creditors. Toni Braxton and her recurring bankruptcy woes immediately spring to mind as well as the reigning King of Excess, Nicolas Cage. Now, Kelly Osbourne has joined the very elite “I Don’t Pay My Taxes” club, and she now owes $35,000 to the IRS:

The name of the show “Dancing with the Stars” has been something of a misnomer since Bristol Palin, best known for her role as former vice presidential candidate Sarah Palin’s hypocritical anti-sex ed teen mother, was on the show. Still, the term “star” clearly went to 2009 third place contestant Kelly Osbourne’s head. Like fellow reality television vet Richard Hatch, Osbourne opted out of paying the taxes on her winnings. According to celebrity website TMZ.com, papers recently filed in Los Angeles County say that she owes $34,763.30 in unpaid tax from that year.

How much did Osbourne make that year from “Dancing with the Stars”? No one knows the answer for sure, but one fan site, run by someone with far too much time on his or her hands, broke down the public agreement signed by Shawn Johnson and a Los Angeles County judge due to Johnson’s minor status. Unless Johnson is due some sort of bonus for age or flexibility as a gymnast, or Osbourne is due one as a wannabe singer and the daughter of Ozzy Osbourne, the pay starts at $125,000 and goes up based on how long they manage to hang in there. For Osbourne the total would be between $250,000 and $350,000, based on her third-place finish.

[From Yahoo]

Oh Kelly, after “DWTS” has done so much for both your figure and career resurrection (did she even have one of those in the first place?), you had to go and screw it up in the eyes of the public by deciding not to pay your taxes. That won’t fly on this side of the pond, missy! As a minor added note in the celebrity-debt department, television and film actress Jasmine Guy has just been sued for not paying off her credit card balance:

Former “A Different World” actress Jasmine Guy has been named as a defendant in a lawsuit by American Express, according to court documents obtained by TheWrap.

Guy, who played spoiled rich girl Whitley Gilbert on the “Cosby Show” spinoff, is accused of breach of contract and unjust enrichment in the suit, which was filed in Los Angeles Superior Court Tuesday.

Specifically, American Express alleges that Guy has blown off the balance on her Delta SkyMiles credit card.

The company is seeking to recoup an outstanding balance of $86,241.03, plus late charges, interest, court costs and attorney’s fees.

Guy, 49, recently had a recurring stint as Sheila Bennett on the CW series “The Vampire Diaries” and, perhaps somewhat ironically, as Judge Nona Daniels on Lifetime’s “Drop Dead Diva.”

Wonder how that character would rule on her case…

[From The Wrap]

I totally get the fact that many people are having difficulty dealing with their debt in this financial climate, and actressing isn’t exactly the most stable profession in the world, but Jasmine Guy has been getting plenty of consistent television work throughout her career. So why blow off a credit card balance, which is likely filled to the brim with luxury purchases and travel-related expenditures? If it were any regular person, Jasmine would lose many further employment possibilities after a prospective employer ran a credit check on her, but she’ll likely continue her career unscathed.

Kelly Osbourne is shown on 3/24/11 launching Material Girl. Jasmine Guy is shown on 4/26/10. Credit: WENN.com

I’ve always had the impression that Marc Anthony and Jennifer Lopez lived way about their means. They’re obviously multimillionaires but you hear a lot about their life of excess with multiple mansions and lavish parties. Anthony owed about $2.5 million in back taxes to New York state in 2007 after he failed to file returns for four years in a row. When these two received a reported $6 million for their first photo spread with the twins (in People) they didn’t seem to donate any of it to charity, because if they did you know we would have heard about it. I assumed back that that Anthony and Lopez used the twin photo money to pay off their tax debt.

Now Anthony is in trouble with the IRS again, and owes a total of $3.4 million in federal and state taxes.

New York authorities filed a demand for $1.8 million in back taxes against Marc Anthony on March 29, 2010 in Nassau County, Long Island. Just three months earlier, a federal tax lien for $1.6 million was placed on the same property owned by the I Need To Know singer.

It’s unclear if Anthony has settled the debt and requests for comment from his lawyer and manager were not returned.

Facing debt in excess of $3.4 million, it’s the latest tax trouble for the mult-millionaire musician, 41, who married J.Lo in 2004.

In 2007, he was ordered to pay $2.5 million in back taxes, after ignoring the tax man for four years.

Anthony claimed it was the fault of his business management company and ultimately paid the fine, however, his financial team plead guilty to a series of tax felonies.

[From Radar]

So if Anthony already got busted in 2007 for failing to pay taxes, you think he would wise up and hire someone decent to manage his money and ensure that his taxes got paid. He can’t just blame other people for it this time.

The Huffington Post points us to a 2008 article in People Magazine that estimated that Jennifer Lopez makes about $20 million a year from her fashion and merchandising deals while Anthony brings home about $11 million. Lopez’s American Idol contract is said to be worth about $12 million.

The Lopez-Anthonys just bought a a new $10 million estate in the Hollywood Hills. It is 17,129 square feet and has nine bedrooms, 12 bathrooms, a media room, recording studio and guest houses. They also own two mansions next to each other in Long Island and a condo in Miami. How can they be bothered to pay taxes when they have so many mansions, staff, cars and luxury goods to maintain?

Okay, Swizz Beatz is officially the trashiest bastard I’ve written about in months! I hesitate to write this, but I think Swizz might even be trashier than Tiger Woods. Sure, Tiger was boning Ho Jo’s waitresses right and left, but he wasn’t getting them pregnant and then acting like he was too good to support his babies, you know? At least as far as we know, and believe me, those ladies have been talking. So Radar reports that Swizz owes “millions in unpaid taxes” over the course of seven years. SEVEN years. Damn. The numbers: 35 tax liens in seven years, $4 million in unpaid taxes in three states. Another number: four babies by four baby-mamas. Just throwing that one out there. Lord, I hope Alicia got a pre-nup with this bitch:

Alicia Keys’ new husband, hip-hop producer Swizz Beatz, owes millions in taxes, RadarOnline.com has learned.

Superstar songbird Keys – who just married Beatz in Corsica before celebrities like Bono and Queen Latifah – is expecting their first child in November.

RadarOnline.com has discovered that Beatz (real name Kasseem Dean) has run up a whopping 35 tax liens in the past seven years alone. Beatz, 33, racked up over $4 million in unpaid taxes in three different states between 2003 and 2010 and still owes around $2.4 million to the tax authorities. RadarOnline.com contacted the various authorities in each state Beatz has outstanding accounts with and they confirmed that the money is still owed.

Keys and Beatz have had to endure nasty comments from hiss ex-wife Mashonda Dean, who blasted the singer via Twitter. While Dean claims she was still married to Beatz when he started dating Keys, the truth is that their relationship was over and they were legally separated.

Beatz and Mashonda (who took him to Manhattan Supreme Court over $334,000 in unpaid child support payments for their son Kasseem Dean Jnr, 4) divorced in May 2009.

Recently, Mashonda and her ex-husband seem to have called a truce after she told VIBE magazine last month that he was up to date with his alimony and child support payments.
She also revealed that she had met with Keys to discuss how they should co-parent her son Kasseem and that she regretted sending her original Twitter message blasting the famous singer.

But the relationship between the two women remains frosty. She told Vibe: “We don’t talk. We don’t have any business talking unless it has something to do with my baby.”

[From Radar]

Do you think Alicia is going to pay those bills? I bet she is. And that makes me sad. Alicia is a really pretty, really talented young woman, and I just think… damn, she must have some self-esteem problems if she thinks this is the best she can do. If she sees that Gonzo nose, the millions in back taxes, the three other baby-mamas and the child support and paternity drama, plus an ex-wife bashing her publicly, and Alicia thinks, “Oh, yes, this is worth it! It’s TRUE LOVE.” Maybe she’s just dumb. Sad.

Two more things about this story: I’m sorry I didn’t see this in a timely manner, but Swizz’s ex-wife Mashonda gave an extensive interview to Vibe Magazine last month, and she goes into detail about Swizz and Alicia and all of that drama. To read the Vibe piece, go here. Here’s a good quote: “When I wrote her that Twitter letter everybody wanted to say things like ‘Oh, what do you need to meet her for? It’s not her problem, it’s Swizz’s.” I’m like, ‘You have a kid, go through what I went through and then talk to me.’ I’m not having my son around anybody I don’t know. I don’t give a shit who you are and how much money you have and what management he’s going to be under when he visits you. I need to see you and I need you to see how serious I am about him. And that’s what happened. We had to sit down, and I told her how I felt. I didn’t mention anything else, it was all about my son and it was fine after that. I’m not going sit and talk to [them] about what happened between the three of us. This is about my son.”

Also: Jezebel ran a piece that originated on the Black Snob blog. It’s a piece called “Why the Media’s Not Talking About Alicia Keys’ Shady Husband” and it was written by Danielle Belton. It’s all about how the tabloid and mainstream media treats African-American celebrities differently than white celebrities, and uses Swizz’s drama as a case study. It’s an excellent, funny, fascinating read. The gist of it is that most tabloids, magazines and blogs don’t think this Swizz story will be interesting to their “mainstream” white audience, and that it wouldn’t be profitable to cover. I’m kind of strangely proud that we’ve done so much coverage of it, and that you, our gentle readers, have been all over it. Thanks for not being racist in how we call out dirtbags, y’all!

Swizz and Alicia in NY on July 24, 2010. Credit: WENN. Also: cover of this week’s Life & Style.

Remember comedian Chris Tucker at all? We haven’t seen much of him lately, and according to IMDB he hasn’t been in anything since 2007′s Rush Hour 3. Tucker hasn’t had much follow-up work in three years and he hasn’t paid his taxes in even longer. He owes over $11.5 million to the US government along with $3.5 million to the state of California:

Chris Tucker’s ongoing tax problems have reached Nicolas Cage proportions. According to new documents, the “Rush Hour” star now owes the IRS more than $11 million in back taxes.

The Internal Revenue Service filed documents with the L.A. County Recorder’s Office yesterday, which show Tucker owes $11,571,909.26 in federal taxes for the years 2001, 2002 and 2004 through 2006.

Here’s how it all breaks down:

2001 — $4,007,794.34

2002 — $5,060,074.23

2004 — $55,544.84

2005 — $660,414.94

2006 — $1,788,080.91

But this isn’t Tucker’s first issue with taxes. As TMZ previously reported, the State of California filed a lien against Tucker for allegedly not paying $3,594,409 in state taxes over the same time span.

Back in 2001, Tucker reportedly took in a $20 million payday for “Rush Hour 2″ and scored $25 million for “Rush Hour 3″ … which hit theaters in 2007.

[From Fox News]

In related “celebrity tax evader” news, Wesley Snipes has lost his appeal on misdemeanor tax charges. Prosecutors want him to begin serving his three year sentence immediately, but Snipes’ lawyers are still trying to argue the case and filed a motion claiming the verdict was invalid due to juror prejudice. We’ll see how Nicolas Cage’s tax liens go, although I think that he’ll squeeze by given how much work he’s getting lately. If the rest of us schmucks have to pay taxes on our earnings, celebrities and millionaires certainly shouldn’t be exempt either.

Update: Here are photos of a mansion in Orlando, Florida that Tucker is trying to offload for $2 million. It includes a pirate-themed theater room and outdoor bar with kitchenette. Tucker paid $6 million for the property in 2007 after taking out a $4.2 million dollar loan. Realestalker has the details of how large Tucker was living, he had “multiple mansions and a fleet of faincee automobiles” and notes that he was paid $20 million for 2001′s Rush Hour 2 and $25 million for Rush Hour 3! [Photos from Realestalker via TMZ]

Chris Tucker is shown on 6/17 at a Lakers game and on 6/14 at an event. Credit: WENN.com

I often wish TMZ would fill in more details in their stories. They usually just list the facts, and when they’re particularly explosive, I want to know more dirt. In this recent story on Joe Francis’ money problems, they just let us know in a matter-of-fact way that the IRS seized $100 million dollars in cash from Francis’ accounts, that they’ve placed a whopping $33 million lien on his assets, and that he’ll probably have to declare bankruptcy.

Francis avoided additional jail time on federal tax evasion charges by copping a plea in September, which reduced his sentence to time already served and ordered him to pay just $250,000 in restitution. (He chose to serve time on tax evasion charges in a relatively cushy county jail in Nevada over a hardcore jail in Florida, where he was being held for contempt of court. He could have easily met bail in Nevada, but that would have meant returning to Florida, where he was being held without bail, and where jail reduced him to a blubbering mess. He eventually copped a plea in Florida.) Now the IRS says he owes $33 million, and Francis is claiming the government is using an antiquated law against him and that it’s retribution, because everything is a conspiracy to this man:

The IRS wants some serious “Girls Gone Wild” money, because they’ve filed a lien against Joe Francis for a whopping $33,819,087.14 … this according to documents obtained by TMZ.

The Federal Tax Lien doc was filed today. The IRS claims Joe owes the money for 3 years of back taxes — 2001, 2002 and 2003. In 2001, the IRS says Joe didn’t pay $17,658,358. In 2002, the delinquency is $11,238,582.14, and in 2003, he owes $4,922,147.

It was less than 2 weeks ago that Joe got out of a sticky federal tax evasion case by copping a plea and avoiding prison.

Joe told TMZ, “I have no idea what it is.” He says he does not owe the money and, “This is total retaliation for me beating them in court.” Joe says the law the IRS is using hasn’t been used against anyone in 20 years.

Joe says yesterday, the feds seized more than $100,000,000 in cash accounts of his.

Joe says the IRS is forcing him to file for personal bankruptcy, which he will do tomorrow.

[From TMZ]

Oh well, Joe Francis has to file for bankruptcy and will have to cut back on his lavish lifestyle to pay Uncle Sam. I can’t say I’m sorry for the woman-beating rapist. If you look at all the charges that have been brought against him, some of them definitely shouldn’t have stuck. I don’t think he should have been held without bail in Florida on measly contempt of court charges. This is a guy who farts, swears, and checks his e-mail in court and makes a living off videotaping drunk barely-legal girls. It’s not like he’s going to get much sympathy even if he’s right and the government is somehow targeting him. I can’t think of a pseudo celebrity more worthy of having all their assets seized by the IRS, although Roman Polanski also comes to mind.

Thanks to Oxa for the tip! Please send tips to info-at-celebitchy.com

Joe Francis is shown out on 11/6/09. Credit: Hellmuth Dominguez, PacificCoastNews.com

Wu Tang Clan’s Method Man recently got his Lincoln Navigator repossessed by the government. He’s owed $52,500 in back taxes to the state since 2002. Method admits he knew about the issue – and assures us he has plenty of money. He just neglected to pay the bill. How is that? Well, he says he’s been high. A lot. And he just plum forgot.

Method Man was going to pay his bills … but then he got high. Despite recent reports that the rapper is so broke that his 2008 Lincoln Navigator was repossessed to pay back taxes, Method Man — whose real name is Clifford Smith — insists his cash flow is just fine. In fact, he says, his penchant for marijuana is to blame for the mishap.

Citing the Wu Tang member for being $52,503 in arrears on his personal income taxes, the state Department of Taxation showed up at the Staten Island native’s home at 6 a.m. March 19 with “four NYPD cops and the repo team,” Meth told us. “I knew why they were there. It wasn’t like ‘Oh my God! Noo!! Don’t take it!’ like it is on that TV show [“Operation Repo”]. I was half-dressed, and it was so early that I just said, ‘Okay, you’re taking the truck. … Aight.’”

The back story, according to the rapper, is simple. “Myself, I’m a pothead,” he said on the set of a video shoot for his new album, “Blackout 2,” with Redman. “It’s no secret. Everyone knows that. I go on the road and forget everything else. Sure, [the tax department] sent letters to my house saying, ‘We need this money.’ They started sending them in 2002. Here it is, 2009, and I never paid this s— because I don’t think like that!”

“I could have easily just written them a check for whatever amount, but no — I waited until they knocked on this door and were like, ‘We got your truck and we outta here,’ ” he laughed. “Now I’m thinking we’ve gotta get our truck back, which means I have to get all my paperwork together,” the rapper continued. “That means days of going through mail, ’cause I got mail like woah.

I’ve found checks from 2005 that have never been opened yet. And we’re talking a significant amount of money! But I never opened [the tax department’s] letters … so this is how the tax man came to Meth’s house and took his truck. Not because I was broke! I got plenty of money!” When we referenced the famous Afroman song “Because I Got High,” Method Man just laughed. “Exactly!” he said. “Because I got high, I forgot to pay. It was stupid. I’m an idiot for that.”

[From the NY Daily News]

Well if nothing else, it sounds like Method Man is pretty relaxed about the situation. That thing about finding checks from 2005 is sorta insane though. Maybe he’ll find enough old checks in his mail to cover his tax debt. That’d work out nicely.

I’m a little surprised that Method Man doesn’t have a professional who looks out for his finances. It seems like if you’ve got money and call yourself a pothead, it’s probably a good idea to make sure someone responsible keeps an eye on your cash. Not only do taxes not get paid, but dollars have a way of going missing when you’ve got enough of them that you might not notice. Just a little suggestion as to Method’s next step. After he gets done opening up all that mail of course.

Here’s Method Man performing at the Rock the Bells festival at the First Midwest Bank Ampitheatre in Chicago in July. Images thanks to WENN .