In new court documents obtained by The Daily Mail, Presley, 50, alleges that Barry Siegel assured her that her finances were in “good shape” while he whittled her $100 million trust down to just $14,000 in poor investments, including a hefty investment in the “American Idol” holding company, which went bankrupt after the show’s initial run ended in April 2016.
In her filing, Presley alleges that Siegel and Provident Financial Management billed her $4.9 million to manage her $100 million trust, amounting to a salary of just over $700,000 per year for Siegel.
“Had Siegel disclosed the trust’s true financial condition to Presley and restricted spending to the trust’s ‘income’ rather than its principal assets, Presley would have lived comfortably on an annual budget of between $1.5 and $2 million per year, after taxes,” the documents claim. “On this budget, Siegel’s lucrative compensation package would have amounted to between 40 to 50 percent of Presley’s post-tax annual budget — an amount she undoubtedly would not have agreed to had she been aware of her true financial condition.”
She accuses Siegel of liquidating the trust’s assets after the “Idol” investment failed to generate income in order to accommodate her lifestyle, alleging that he recommended she spend twice her annual post-tax income. That spending reportedly includes a $9 million estate in England with a balloon payment of $6.5 million in 2015 that the trust didn’t cover. She also claims that mortgages on her Hidden Hills, Calif., and Hawaii homes were worth more than the properties themselves by 2010.
Siegel and Provident Financial Management scoffed at Presley’s allegations, claiming in a counter suit that her money problems are simply due to her own exorbitant spending. They’re seeking a cool $800,000 in damages and argued that because Presley is going through a difficult time with her divorce from fourth husband Michael Lockwood, she’s pinning her troubles on them.
Lockwood, 57, demanded $40,000 in spousal support from Presley, who claimed she was $16 million in debt, $10 million of which was back taxes alone. A judge ruled that while she doesn’t yet need to shell out monthly spousal support to the unemployed musician, she would have to pay $50,000 to his attorney for court fees.