Toni Braxton is bankrupt and the trustee handling her case accuses the singer of fraudulently transferring assets to her ex-husband in order to conceal them from creditors, reported TMZ.
“Toni Braxton fraudulently transferred $53,490 to her estranged husband in order to avoid paying back creditors in her bankruptcy case — so says the trustee of Toni’s bankruptcy estate … According to new documents filed in Toni’s ongoing bankruptcy case, Toni’s estranged husband Keri Lewis received the 5-figure sum after Toni’s money was already earmarked to repay creditors.”
A rep for Toni Braxton commented on the allegation, telling TMZ the bankrupt singer handled all bankruptcy related transactions in an above-board fashion, saying:
“All of the payments made to Lewis prior to Toni’s bankruptcy filing were appropriate transfers for reasonable and necessary personal and business expenses in the ordinary course of her business.”
Toni Braxton’s rep added that the singer was willing to prove to the trustee that the allegation does not bear out.
Braxton filed for bankruptcy protection back in 2010, with an estimated $10 million to $50 million in debts.
The Grammy-winning singer has recently explained that her financial struggles are health-related. Braxton admitted to CBS News, that she suffered from systemic lupus erythematosus (SLE), a potentially life threatening autoimmune disease. Braxton's brother also suffers from the disease, and her uncle died of complications from lupus.
