Nicolas Cage sues his former business manager for mismanagement of funds

"Bad Lieutenant: Port Of Call New Orleans" Screening- 2009 Toronto International Film Festival
Last Friday afternoon the news came out that Nicolas Cage owed $6.3 million in back taxes to the US Government, which had placed liens on most of his luxury properties. Cage owns a 40 acre island in the Bahamas, and homes in Rhode Island, Lousiana, Nevada, and California. He also owns a castle in England and recently sold a castle in Germany. He failed to pay $6 million in taxes starting in 2007, and owes another $350,000 in taxes from 2002 to 2004. To add to his money woes, Cage has defaulted on a $2 million bank loan.

Someone is timing the release of information about Cage’s money problems so that the news comes out later on Fridays when it’s least likely to get repeated. This Friday the news came out that Cage is suing his former business manager for making risky real estate investments and essentially squandering his money on property that lost value. The lawsuit seems to allege that Cage had no idea that he was overextended and that it’s all his accountant’s fault:

Nicolas Cage sued his former business manager for $20 million on Friday, claiming bad advice and mismanagement led him toward financial ruin.
Cage filed the lawsuit against Samuel J. Levin and his firm.

“Instead of protecting and preserving Cage’s wealth during one of the greatest economic periods in the country’s history, Levin placed Cage in numerous highly speculative and risky real estate investments, resulting in Cage suffering catastrophic losses,” the lawsuit states.

Levin served as Cage’s business manager from 2001 to 2008 and collected millions of dollars in management fees, court documents state.

Cage, 45, relied on Levin’s statements and advice and couldn’t have known about the financial trouble he was facing until after he hired new management, according to the lawsuit.

A phone message left for Levin at his firm Levin & Co. Management Inc. was not immediately returned.

Public records show Levin has been a licensed certified public accountant in California for nearly 25 years and has no public record of disciplinary actions.
An Oscar-winning actor, Cage is known for his dramatic roles in films such as “Leaving Las Vegas” and “Adaptation” as well as action turns in “The Rock” and the “National Treasure” films.

[From The Huffington Post]

I might be able to buy this explanation if 2007 was the first time that Cage owed back taxes, but he also owed $350,000 from 2002 to 2004. Did this business manager/accountant hide all that from Cage and continue to buy properties without telling him he couldn’t afford it? I bet that Cage just wanted to own a bunch of properties, his accountant didn’t tell him it wasn’t a wise idea, and he ended up in debt. If this is what happened it is partially the accountant’s fault, but Cage should have been checking up on his money. It’s hard to believe he didn’t sign off on these property acquisitions and that it’s all someone else’s problem, especially since the accountant has never been accused of something like this before.

Bad Lieutenant: Port Of Call New Orleans Premiere - 2009 Toronto International Film Festival

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6 Responses to “Nicolas Cage sues his former business manager for mismanagement of funds”

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  1. lulu says:

    there is no excuse for this, it’s his money he should know how much he’s got and how much he can spend. I know where every penny of my money goes and granted i don’t have millions to keep track of but blaming someone else cause you spent to much, to me is a cop out.

  2. Firestarter says:

    This isn’t something new, a manager misusing funds or stealing. When you entrust someone else to take care of these things, it is easy to not know where it all goes. Many an actor, singer, athlete, have lost fortunes to unscrupulous managers. Sure Cage should have been more aware, but also these crooked managers can dummy up documents to cover their own criminal activity.

    I don’t really even trust banks now days!

  3. nAynAy says:

    A friend of mine keeps his money all over his house. He doesn’t trust the banks either.

  4. Kevin says:

    He sure didn’t spend big money on clothes. That suit looks like it came from Monkey Wards. Looks like he outfitted his adolescent bride with a set of hooters though.

  5. Laney says:

    Celebs are so use to having an entourage of people manage their lives. Managers, accountants, lawyers, agents, publicists, assistants they never have to do anything real like pay a bill, go to a bank and that’s how people like Nic Cage get in trouble they trust the money manager to manage everything. Nobody held a gun to nics head and forced him to make all those bad property deals, he’s just stupid and can’t think for himself.

  6. moshaoqian says:

    Last night my friend told me that my favorite actor Nicolas Cage has come in China.
    I had worked in Beijing China for nearly 3 years. Even though far from my homeland I still hold on my love with Cage because of his skillful acting and the melancholy light in his eyes.
    Since the film named “City of Angles”, I kept my love to him nearly 12 years. In the past years, lots of wonderful movies he acted left me a deep impression such as: “Bringing out The Dead”, “The Family Man”, “Captain Corelli’s Mandolin”, “Ghost Rider”, “Next”, “Knowing”, and the latest named: “The Sorcerer’s Apprentice”.
    I always hope to meet him face to face instead of just in the film.
    I heard from my friend that he went to FANGHUA Pearls in HongQiao Market last night. Actually, I lived near HongQiao. It is really a pity to miss him. I hope I can have another chance to meet him in Beijing .Looking forward to his next film.