The suit comes after the Martins filed for Chapter 7 bankruptcy in January, the Daily Mail reports while noting the pair’s claims of drowning in more than $15 million in debt owed to creditors, despite having $313,000 in assets.
The assets included $65,000 in real estate, $200 in cash on hand, several luxury vehicles and less than $200 in their bank accounts, while the Martins debt highlights $3 million to Broadway Federal Bank, $9.5 million to the City of Los Angeles, more than $100,000 in back taxes and debts and amounts owed to creditors totaling millions.
READ RELATED STORY: Duane and Tisha Campbell-Martin File for Bankruptcy (Report)
Although they listed their monthly combined income as $7,655, theJasmineBrand pointed out that the Martins spend more than $16,000 for their monthly expenses. On Friday (April 1), the trustee of the bankruptcy went to court and to file a federal lawsuit against the couple, demanding damages and a permanent injunction — for allegedly diverting money they made away from the trustee.
The trustee stated that Duane Martin is a television actor and movie star, while Tisha Campbell-Martin is a television actress and singer.
The bankruptcy petition reveals they duo own 100% interest in a production company named XE Visions. The company is noted for producing music, music videos and “behind-the-scenes’” videos based on Campbell-Martin’s performances. From that, XE Visions contracts with studios regarding Campbell-Marin’s performances and receives payments for the shows.
The lawsuit goes on to highlight that XE and Woodridge Productions – a affiliate of Sony –entered into a contract. Woodbridge produces “Dr. Ken,” for which Campbell-Martin is paid $45,000 per episode.
The trustee goes on to mention that two days after the couple filed for Chapter 7, Campbell-Martin created another company named Won Hundred as a vehicle for rendering her acting services, despite her already running XE Visions, which does exactly the same thing.
The trustee claims the Martins created Won Hundred for the sole purpose of diverting post-petition payments Campbell-Martin was receiving for her work on the “Dr. Ken” TV series on ABC. In addition, he claims Campbell-Martin was paid $47,500 gross and $39,500 after she paid her agency.
READ RELATED STORY: Duane and Tisha Campbell-Martin Explain Reason for Bankruptcy
Adding more fuel to the trustee’s accusations are claims that Woodridge issues four to five more payments to Campbell-Martin totaling $185,000. The payments, according to the trustee, are being held by the former “Martin” star’s talent agency for some reason.
As a result, the trustee accuses the Martins of refusing to hand over the money owed, in light of the fact that the payments should have been made to XE Visions not Won Hundred since the contract Campbell-Martin has with the “Dr. Ken” show states she is to be paid via XE Visions.
With all of this, the trustee is demanding damages for the Martins’ actions as well as the judge granting a permanent injunction enjoining the couple from spending, using, transferring or otherwise dissipating the payments to Won Hundred and any other property or assets of XE until the case has been fully decided.
At this time, there has been no response from the Martins regarding the allegations in the bankruptcy trustee’s complaint. Until the case is decided, the trustee will have full control over the XE Visions and Won Hundred, as ordered by the judge.