50 Cent and his finances do not seem to be getting along this year. Earlier this year, Fif filed for bankruptcy, and in the process, claimed that his entire lifestyle of flashy cars, clothes, and jewelry was all a facade. This was all prompted by a different court case in which 50 was ordered to pay $5 million to a woman whose sex tape he leaked. And that was on top of a different ruling in which he was ordered to pay a headphone company $17 million in breach of contract damages. With all that craziness going on in 50's finances, he probably did not want to hear what a bankruptcy watchdog recently told him regarding his investments.
Earlier this week, 50 Cent (real name Curtis Jackson) was warned by the judge in his bankruptcy case that his money is not well protected. According to records, the 40-year-old rapper has $7 million in investment accounts with Merrill Lynch ($5,105,360.68), Credit Suisse ($1,393,073.56), and Goldman Sachs ($1,326,856.96). That amount accounts for roughly 25 percent of his current net worth. The issue with these investments is that of the $7 million, only $567,722.30 of that amount is insured by the Federal Deposit Insurance Corp., as of July 31. That accounts for only about 12% of his investment capital.
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Not only does this spell trouble for 50 Cent financially, but it also spells trouble for him legally. According to lawyers for U.S. Trustee WIlliam K. Harrington, funds in the accounts that 50 has his money invested in "are subject to risk from market loss and institutional insolvency and are not FDIC-protected or protected by a bond in favor of the United States." The fact that a majority of 50's investment funds are uninsured is illegal, because federal law mandates that a bankrupt person's money must be "insured or guaranteed by the United States or by a department, agency or instrumentality of the United States or backed by the full faith and credit of the United States."
In addition, the money can also be deposited "in an entity that has posted a bond in favor of the United States or has deposited securities with the Federal Reserve Bank in an account maintained by the United States Trustee." The law is in place in order to protect creditors of bankrupt parties against the loss of estate funds deposited or invested by a debtor.
It looks like 50 needs to get his financial act together. With all of that uninsured investment money, he'd better watch out. "50 Cent" might not only be his stage name, it might end up being his net worth!
