Nicolas Cage Broke? Not Really, He Just Owes People Money

How do you define broke?

Image from Flickr.

All kinds of publications, from trashy tabloids to respected newspapers, are reporting that Nicolas Cage is broke. Maybe they are just using “broke” for space reasons, but I don’t think that’s the right word for what Nicolas Cage is.

Nicolas Cage was bilked out of millions by his business manager, and he has a lawsuit to prove it. As a result of his manager, Samuel J. Levin, and his actions, Nicolas Cage ended up owing the government $6 million in back taxes. This amount is the result of a combination of federal income taxes and property taxes.

Trust in a greedy world

Just as it is a risk for payday lenders to trust that borrowers will repay their loans, it was definitely a risk for Nicolas Cage to trust one man with all of his money. Levin apparently managed all of Nicolas Cage’s financial transactions, including investments. People Magazine reports that in his lawsuit, Nicolas Cage says he is facing up to $20 million in losses because of Levin’s actions.

I don’t feel sorry for Cage when I read all the headlines screaming “Nicolas Cage is broke!” because he isn’t broke. I do feel sorry for him because he was betrayed by someone whom he clearly trusted a great deal. He clearly has lost a lot of money, and he is doing what he needs to do to repay his taxes.

Nicolas Cage selling assets

The buzz says that Nicolas Cage has put up his New Orleans mansion for sale at $3.5 million. Also, he is selling his Hollywood mansion, which he bought for $35 million, for half of that. People also says he’s auctioning off a residence in Las Vegas.

I think Cage’s actions are logical and responsible, given that he says in his lawsuit that Levin “lined his [own] pockets with several million dollars in business management fees while sending Cage down a path toward financial ruin.”

Taking responsibility

So many celebrities are irresponsible with money, and instead of recognizing that they can’t maintain the lifestyle they’ve been living, they simply continue to rack up debt. In Cage’s case, he wasn’t irresponsibly, necessarily, except for the fact that he trusted the wrong person with his money. People Magazine says:

In the lawsuit filed against his business manager, Cage says he “relied on Levin to handle his financial affairs to ensure that he and his family would have a financially secure future built on the foundation of the substantial monies Cage earned through years of hard work.”

“He 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,” the lawsuit alleges.

Cage’s actions show that, even though he believes someone else is resposible for his financial situation, he’s taking resposibility for paying off the debts in his name. Though this still does mean Nicolas Cage is broke, he will likely never see back the millions that he’s lost on his property and other investments, even if he does win his lawsuit.