Nearly two years after Duane Martin and estranged wife Tisha Campbell-Martin filed for bankruptcy protection, officials claim the actor has scammed them out of money that he got from his celebrity power couple pals.
Documents obtained by TMZ Sunday, Dec. 2 show Martin used money from a loan given from Jada Pinkett Smith and Will Smith to buy a home and put it up for sale. The $1.4 million was given through the Smith’s company and when the house was sold for a $1 million profit, Duane had “the intention of pocketing the sales.”
The Smith’s entanglement into the Martins’ monetary legal trouble was initially reported in September when The Blast reported Martin defaulted on payments after getting a $1.9 bank loan to remodel a Chatsworth, Calif., mansion in 2006. When that happened, a bankruptcy trustee claimed Martin used his brother’s company, Roxe LLC, to do a short sale and purchase the mansion back using the money he borrowed from the Smiths.
The alleged plan was revealed following Campbell-Martin filing to divorce her husband of 20 years in February. In the documents, the actress said she discovered her spouse “concealed” and “diverted valuable assets” in the bankruptcy proceeding.
Now, officials want “The New Edition Story” star to give up the money he’s hidden and have his discharge of debts, which was something granted in the bankruptcy case, revoked.
In June, Campbell-Martin had accused Martin of hiding an unknown amount of money during their union. However, Martin slammed the allegation as “patently false.”
Apparently, the co-host of the 2018 Soul Train Awards had to reveal the hidden funds to “avoid jail and be there for their two children.”