The Rake's Progress

It seems that Michael Jackson is not the only member of the Jackson clan to be stony broke. The media reports the following:

Joseph Jackson, 79
Tries to promote various girl groups in Las Vegas. He has previously filed for bankruptcy.

Katherine Jackson, 77
She has also previously filed for bankruptcy.

La Toya Jackson, 52
She earns extra cash judging beauty and singing contests.

Rebbie Jackson, 57
The oldest, she's married to successful businessman Nathaniel Brown.

Tito Jackson, 55
Formed a blues band several years ago and plays at small venues for $500 to $1,500 a gig.

Randy Jackson, 46
Does odd jobs like changing tires to support himself. He ran into serious problems with friends after he persuaded three people to take out lines of credits against their homes to help Michael pay his attorney fees.

Marlon Jackson, 51
Lives in San Diego, where he works stocking groceries at a Vons supermarket. He fell on hard times three years ago when he was forced to leave his foreclosed home and move into an Extended Stay America hotel with his wife, Carol.

Jackie Jackson, 56
The oldest son started an Internet clothing business and is trying to produce records by his sons.

Jermaine Jackson, 54
Splits time between the parents' Hayvenhurst mansion and his girlfriend's home in the San Fernando Valley. He has over $5M in federal, state and other liens against him and a 1995 bankruptcy filing, he doesn't work or have a regular income.

The Neverland Saga

Despite protestations by Jermaine Jackson that Neverland will be sold "over my dead body".

Michael Jackson's lawyer, L. Londell McMillan, has a more realistic view of the situation. The auction of Neverland was postponed from the 19th of March until May 14th, by the "mutual agreement" of Jackson and his creditors.

McMillan says:

"That allows us to refinance or sell the property."

Why keep a property that Jackson clearly has no intention of setting foot in again?

Civil Case May Not Happen

The civil case against Michael Jackson and Marian Medical Center may not happen, according to the defendant's lawyer.

The family of Manuela Ruiz (a 74 year old at the time of her death) alleges that she was pushed out of her hospital room, in order to make room for Jackson in 2005. Ruiz later died.

Maria Ortiz, along with Rosa and Marcos Meraz, are suing over what they say was preferential treatment.

However, the plaintiffs did not appear in court on Monday. The hospital's lawyer says that they have not secured a lawyer.

A statement released by the hospital to Action News says:

"Patient care and safety is always our first priority at Marian. We have always been confident the care provided to Mrs Ruiz was exceptional. We continue to express our sympathy to the Ruiz family."

Neverland Update

It seems that Michael Jackson's reprieve from selling Neverland at auction this month, may in fact be only a temporary reprieve rather than a final solution.

Julie Wagner of Financial Title Company of San Francisco, which filed the default papers, said the auction has been postponed until May 14 by "mutual agreement".

Victory Snatched From The Jaws of Defeat?

Michael Jackson has, at the eleventh hour, managed to stop the auction of Neverland by agreeing a deal with Fortress (the holders of a $24M charge over Neverland).

Jackson's lawyer, L. Londell McMillan, told The Associated Press that Jackson has worked out a confidential agreement with Fortress Investment Group LLC allowing him to retain ownership of the estate.

However there are two unaswered, and obvious questions.

• Given that Jackson is in dire financial straits, he hasn't stepped foot in Neverland for some considerable period of time and that the place is shuttered and rotting how long will he keep it?



• More importantly, why does he want to keep it?

Time will tell.

Jackson To Move To Barnstaple?

The media are awash with rumours that Michael Jackson is planning to move to Barnstaple, in Devon UK.

Seemingly Jackson is to move into his brother Tito's new house.

Tito is quoted:

"We hope it will be a family hideaway where my brothers and sisters can escape media attention when we need to.

I can confirm that he [Michael] has been to Barnstaple on private visits in recent years along with my brother Jermaine and a few other Jackson siblings.

My family love North Devon and the wonderful countryside and friendly people. I am looking forward to living in Barnstaple and I hope the Barnstaple public will respect our family's privacy.

Michael likes North Devon, too, as no one bothers him."

Matt Fiddes a friend and celeb bodyguard is also quoted:

"Tito spoke with Michael on the phone the other night and all the family are certain that this is the area where they want to find a UK family hideaway.

Tito is staying with me until the weekend but if everything goes through OK, he will soon be able to use the home as a base from which to develop his career in the UK."

It is alleged that Jackson has made offers on two properties, following several viewings in villages on the outskirts of Barnstaple.

Why, if the Jackson's claim that they want a "hideaway" and privacy from the media etc, do they then embark on a publicity drive about this move?

iTune Story Denied

Sony/ATV Music Publishing, the joint venture owned by Sony and Michael Jackson, the owners of the rights to the majority of The Beatles music catalog has denied newspaper stories that The Beatles catalogue would soon be available on iTunes.

A spokeswoman for Sony/ATV Music Publishing said that the reports are "untrue."

Brit Buyout of Neverland?

The Sun reports that two British property tycoons from Newcastle, Liam Collins and David Bone, have offered to buy Neverland then rent it back to Michael Jackson.

David Bone said:

"We really want to see Jacko back on his feet. He's had a real hard time of it."

Does Jackson have the money, or desire, to rent it back?

NINJA Mortgage

CNN reported a week ago that one of their sources in Michael Jackson's camp is confident that the auction of Neverland will not go ahead, because Jackson will find the money to pay off the $24M debt.

Quote:

"Michael Jackson's ranch is not going to be auctioned off at the courthouse.

The financing is all being worked out.

There are plenty of lenders willing to work with him. The real estate market is very bad right now and Jackson is being affected just like many other Americans."

The credibility of the source's faith in Jackson being able to refinance his debt remains to seen. However, it is fair enough to allude to the shambolic property market.

This has been brought about by the greed an stupidity of the banks lending money to people who could never hope to pay their debts off, colloquially known as NINJA mortgages (no income, job or assets).

A pretty fair description of the situation in which Jackson now finds himself in.

XtraJet Fined

Jeffrey Borer, the owner of XtraJet an air charter service, has been ordered to pay Mark Geragos (a lawyer) and his associate over $20M for ordering the secret videotaping of them as they flew with Michael Jackson to his surrender on molestation charges in 2003.

$18 million should be paid to attorney Mark Geragos, the remainder is to be paid to Geragos' associate, Pat Harris.

Borer said that he would appeal, on the grounds that the tape had no audio therefore it did not violate the attorney-client privilege (the primary reason for the size of the punitive damages).

Taxes

Even if Michael Jackson is successful in selling Neverland, at an auction next month, he may well be liable for tax on the sale.

On the assumption that the property is sold for around $25M, given that he paid around $14M for it, there is a capital gain of $10M on which tax of around $5M will be payable.

Jackson will discover the truth of that old saw:

"There are only two certainties in life, death and taxes."

In Denial

It seems that Michael Jackson is in denial about the dire state of his finances.

Jackson's lawyers are desperately trying to refinance the $25M loan on Neverland, due to go to auction soon, so that he can keep it.

Given that he no longer lives there, why on earth does he want to keep it and waste more money on further loans?