Celebrity Sightings In Los Angeles - November 09, 2019

Is Gigi and Bella Hadid’s dad broke?

Real estate developer Mohamed Hadid is trying his hardest to keep his “mega-mansion

Gigi Hadid and Bella Hadid 72 year billionaire father Mohamed Hadid has been accused of lying after he claimed he‘s facing a $60 million loss over his controversial Los Angeles, California mega-mansion, according to the Daily Mail. A judge deemed the building unsafe and ordered it to be torn down earlier this year. Hadid was criminally prosecuted over the illegal construction of the huge house and is also being sued by neighbors. However, Hadid is claiming he’s broke and is fighting against paying the $5M demolition fee. So is the real estate tycoon broke?

Mohamed Hadid's mega mansion in LA©Courtesy of Manatt, Phelps & Phillips
Mohamed Hadid‘s mega mansion in LA

According to documents obtained by the Daily Mail, Mohamed claims he owes $15 million in court judgments against him. His declaration was made public before being sealed last Tuesday. Hadid wrote in court papers: ‘I have no present nor presently foreseeable potential to fund the demolition now or ever.’ The father even involved his daughters Bella and Gigi’s eyewear line that uses the Hadid Brand. “There was also a failed attempt to market eyewear under the Hadid name, but that venture was my daughters, and, other than a lot of unsold eyeglasses owned by investors other than me, there are no assets there” he stated. Despite his clams, lawyers called his declaration “blatantly and intentionally deficient.”

Hadid claimed in his declaration: “The stigma of the project and the impact on my life over the past six years that Joe Horacek has harassed me have been personally devastating… The stigma and expense in this matter and the criminal matter have seriously damaged me and, at 72 years of age, it is not as though I can start over.” Horacek is leading the neighbor‘s civil lawsuit. Hadid said he used $30 million of his own money to buy the land at 901 Strada Vecchia, and start building and took a loan from First Credit Bank that ‘is guaranteed by (him) and the balance is well over $20 million with interest.” He also said he owed at least $7 million to other lenders.

The supermodel’s father blamed the notoriety and publicity over the mega-mansion for causing him money problems at several other LA building projects he has. He also used his ‘drastic downsize’ from a 48,000 sq ft home to a ’modest’ ranch-style property as proof. “My financial predicament seems surprising to some, including the plaintiffs (the neighbors suing Hadid), who follow me on social media. I have drastically downsized my lifestyle, moving from a 48,000-square foot home to a modest ranch-style home which was purchased at no money down from an acquaintance.” The maybe billionaire continued, “I also have several (court) judgments against me which total more than $15 million.”

Finishing up his declarations, Hadid added: “In summation, I am 72 years old and do not have the millions of dollars needed for the demolition of Strada Vecchia.” According to the Daily Mail, at Tuesday’s court hearing in Santa Monica, Gary Lindenberg, lead attorney for the legal team in the neighbors’ lawsuit, scoffed at Hadid’s claims that he’s broke and called on Judge Karlan to hold him in contempt and impose cash penalties for ‘making false statements’ and ‘hiding money.’

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