In a tax trial the IRS filed against Michael Jackson’s estate on Tuesday, a banker testified that the legend was on the brink of bankruptcy at the time of his death in 2009.
“He was on the edge,” investment banker David Dunn in the Los Angeles-based court.
“He was desperately trying to figure out what he could do to address his financial crisis.”
Dunn also testified that he was hired by the late singer to help him recover from his financial hole after child molestation trial in 2005. Furthermore, he added that the singer often “undermined him at the last minute by signing unfavorable side deals that lured him in with upfront cash.”
Jackson was still in a “very precarious situation” in early 2008, Dunn said, with more than $300 million in debt, his Neverland Ranch nearing foreclosure, and lavish spending habits to boot.
“We talked about his sadness in knowing he was never going to live in Neverland again,” Dunn claimed.
“It was the culmination of the molestation allegations, the culmination of recognizing the financial situation he was in.”
Jackson and Dunn spoke to each other just a month before the legend tragically passed away.
“He talked about his young career and being at his peak. He was struggling with how to make a living and still be with his children, who were of paramount importance,” revealed Dunn during the trial.
When Jackson’s spending habits became uncontrollable, Dunn claimed Rev. Jesse Jackson even sat him down for a “lecture.”
“He just said, ‘Michael, this is you, you’ve got a bucket, and this tap here is your cash flow. . .We’ve got to put a bottom on your bucket, you have to stop spending. [Michael] borrowed a lot of money, he knew he had financial issues. . .but the last thing he wanted to do was tour. He was looking for other things to generate income to avoid doing what he wound up agreeing to do.”
In May of 2009, Dunn allegedly resigned, claiming he didn’t quite know “which way was up, which way was down,” and that Jackson hadn’t paid him in two years.