MONEY SPECIALIST

Can you imagine that even Academy Award winner is suffering from financial woes this recession? Actor Nicolas Cage lost two homes in New Orleans worth a total of $6.8 million in a foreclosure auction. The actor, who is known for his roles in Leaving Las Vegas and National Treasure, has 5 projects slated for 2010. Hopefully with the fat paycheck from the projects, he is able to bounce back.

Hancock Park Real Estate Co, a corporation through which Cage purchased both homes, is listed as the official property owner. Samuel Levin, Cage’s former business manager, set up the corporation so that Cage’s name would not appear on the mortgage documents – a common strategy among celebrities. Levin also was listed on the mortgage document as the agent for service of process. However, Cage is blaming his former business manager for sending him down the path of financial ruin.

Cage owed $5.5 million in mortgage payments and $151,730 to the City of New Orleans in real estate taxes. Cage is now forced to sell major assets and investments at a significant loss and is faced with huge tax liabilities because of Levin’s incompetence, misrepresentations and recklessness. Rather than attaining financial security, Cage has been forced to dispose of significant assets in order to pay for Levin’s gross misconduct.

Moral of the story? Manage your own money more tightly! There is always someone else trying to mess up your finance. There is another point to ponder upon. Two things you cannot escape while you are still alive; death as well as income tax!