Diddy faces cash crisis as Cassie payout and civil suits drain $400m fortune despite racketeering acquittal, says lawyer

Scottish Sun

20 hours ago

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SEAN 'Diddy' Combs may not have to deal with life in prison after being acquitted on multiple charges, but he could run into financial difficulties when he is released from jail, an expert has claimed.
The controversial music mogul was sitting on a fortune of almost a billion dollars at one point in his career before it imploded.
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Sean 'Diddy' Combs remains behind bars after his bail was denied this week
Credit: Reuters
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Sean Combs with ex-girlfriend Cassie Ventura at the Los Angeles Premiere Of 'Can't Stop Won't Stop' in 20217
Credit: Getty
But his net worth reportedly dwindled to $400 million months before his arrest in 2024.
He has since had to pay a growing mountain of legal fees for his criminal trial, several civil cases, and a $20 million settlement to his ex-girlfriend, Cassie Ventura.
Combs, 55, was acquitted of the most serious charges of racketeering and sex trafficking this week after a weeks-long trial in Manhattan, New York.
But he was found guilty of two counts of transportation to engage in prostitution and remains behind bars ahead of his sentencing hearing.
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Despite each count carrying a maximum sentence of 10 years, he is likely to be a free man in the coming months, according to experts.
But he may struggle to get his career back on track as his business empire has significantly declined due to his legal troubles and the public fallout from the allegations.
Eric Faddis, a former felony prosecutor and founding partner at Varner Faddis Elite Legal, spoke to The U.S. Sun to give his opinion on what is next for Combs.
He said, "One thing that's clear is that his resources have been depleted. He still appears to have some wealth. But there's going to be a collectability issue when it comes to these civil cases.
"If they all get judgments, he's not going to have enough personal assets to make them whole.
"There is no legal mechanism of which I'm aware by which he could try to take back the twenty million or so dollars that he paid to Cassie in a civil judgment. That's over and done with.
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"There are murmurs about ... is he going to try to go after other folks who are involved in this trial for defamation, or malicious prosecution, or something like that?
"Anything is possible, but I think he would be better off kind of letting sleeping dogs lie, moving on with his life, and undertaking this herculean effort of dealing with the other civil cases."
Asked if he believes he could go broke, Faddis claimed, "Oh, 100 per cent. I think there's a substantial chance that his assets are going to be dwindling if they're not already dwindling.
"There's no insurance policy that's going to kick in and pay out these plaintiffs.
"If these plaintiffs prevail in the civil claims, he himself is going to be financially responsible.
"I'm sure he paid gobs and gobs of money to his criminal attorneys for this two-month trial.
"On top of that, a lot of his endorsements and contractual support is likely gone. And so I think he's going to run into financial issues real soon."
There's no insurance policy that's going to kick in and pay out these plaintiffs."
Attorney Eric Faddis told The U.S. Sun
Combs paid off a $18.8 million mortgage on his lavish $48.5 million Star Island mansion in Miami, Florida, before his arrest.
To try and secure bail, his defense team previously proposed a $50 million bond package, which included the property that was raided by the feds.
He also listed his $61.5 million Beverly Hills home for sale, but it remains on the market.
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The star was running multiple businesses before his scandal, including Revolt TV, which he founded, and his fashion brand Sean John, which vanished from Macy's.
Combs relinquished control of his lucrative spirits brands, Ciroc and DeLeón, and also reportedly lost a Hulu reality series deal.
However, his music catalog remains intact for the time being.
Combs kept his label Bad Boy Records relevant before he was arrested and backed the likes of Machine Gun Kelly's 'Mainstream Sellout' in 2022.
In 2023, he also dropped The Love Album: Off the Grid, his first solo album in nearly two decades.
The same year, singer Janelle Monae also released her celebrated record The Age of Pleasure through Bad Boy.
Asked if he thinks he could build his empire back up, Faddis said, "It's not unheard of in America for folks who have, you know, been formerly disgraced to kind of make a comeback.
"I think he's going to try [but] whether America has the stomach for that at this point is an open question.
"I think, legally speaking, it is certainly a victory for Diddy, but I think we [have] to be careful, because there are a lot of sensitive issues at play here, just because the jury found that he was not guilty. That's not the same as finding that he was innocent.
"What the jury found was that the Government couldn't meet its burden with respect to those charges. That's not the same as saying those things didn't happen."
Combs was previously forced to apologize to fans after previously denying physically assaulting ex Ventura when CNN published exclusive hotel surveillance video from 2016.
The footage showed Combs appearing to grab, shove, drag, and kick the singer in a hotel hallway.
'My behavior on that video is inexcusable. I take full responsibility for my actions in that video,' he said in a video statement posted on Instagram.
'I was disgusted then when I did it. I'm disgusted now,' he added. 'I went and I sought out professional help. I got into going to therapy, going to rehab. I had to ask God for his mercy and grace. I'm so sorry. But I'm committed to be a better man each and every day. I'm not asking for forgiveness. I'm truly sorry.'
Combs fell to his knees on Wednesday when the verdict was read out in a Manhattan courtroom, and he was acquitted of the most serious charges in his criminal case.
The U.S. Sun obtained a letter from the prosecution sent to Judge Arun Subramanian regarding the star's sentence for two counts of engaging in prostitution, which is yet to be decided.
They say the guideline sentence for him is just 51 to 63 months [five and a half years maximum], and he has already been behind bars for nine months.
It reads, "The Government notes, however, that the Guidelines applicable at sentencing may be higher than this preliminary calculation.
"The Government has not had adequate time to carefully
consider all potentially applicable Guidelines provisions."
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Sean 'Diddy' Combs reacts after he was convicted of prostitution-related offenses but acquitted of sex trafficking and racketeering charges
Credit: AP