Will Smith, Jada Pinkett Smith Dragged into Duane Martin's Bankruptcy Battle Over $1.4 Million Loan

Home / News / Will Smith, Jada Pinkett Smith Dragged into Duane Martin's Bankruptcy Battle Over $1.4 Million Loan

By TheBlast Staff on September 17, 2018 at 11:25 PM EDT

Will Smith and Jada Pinkett Smith once loaned their close friend Duane Martin over a million bucks, and now they're being named in his bankruptcy after Duane is accused of hiding millions of dollars.

According to documents obtained by The Blast, the trustee in Duane and Tisha Campbell Martin's bankruptcy believes he is hiding assets of $2.6 million under a company named Roxe LLC.

The trustee alleges Duane set up Roxe LLC to allegedly conceal ownership of a 9,000 sq ft mansion in Chatsworth, California. Duane originally bought the home in 2006 for $900,000. He then borrowed $1.9 million for the purpose of constructing the "Martin family home."

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Duane then defaulted on his loan to negotiate a short sale with the bank, and he used Roxe to buy the home back from the bank using a $1.4 million loan from Will and Jada. Roxe LLC became the owner and Duane and Tisha allegedly entered into a lease with their own company to pay rent of $5,000 per month.

Earlier this year, Duane listed the home for $2,695,000 with the intention of pocketing all of the sales proceeds in excess of the loan given by Will and Jada, meaning he would pocket $1.3 million if sold at asking price.

The trustee says the lease was a sham and Duane and Tisha didn’t make all the payments on the house because of the Will and Jada loan. The suit is demanding Duane be forced to turn over the home to the bankruptcy estate and used to benefit his creditors.

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As we reported, Tisha filed for divorce following 21-years of marriage. They share 2 kids together and she's seeking joint custody and for him to pay spousal support. Duane also wants spousal support.

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