Sean Larkin, former manager of the hip hop music group Black Eyed Peas filed Chapter 7 bankruptcy protection over the weekend in Los Angeles, CA. The Los Angeles Times reports that Larkin acknowledged failing to file tax returns for the music group while managing them as well as other clients.
The petition filed with the U.S. Bankruptcy Court in Los Angeles claims Larkin has debts estimated between $500,000 and $1 million.
Once the Black Eyed Peas learned about Larkin failing to file their tax returns, the music group stopped working with him. Larkin admitted to not filing state and federal returns in behalf of the group for several years. He is also being sued for breach of contract by another client who is a television executive and facing a separate lawsuit against the Black Eyed Peas' guitarist.
The lawsuits against Larkin claim he knew about the back taxes due to the IRS and state authorities by hiding letters that were sent demanding payment.
Larkin had a deposition earlier this year in which he had admitted he failed to file returns for the executive because he got overwhelmed with the work flow generated by the Black Eyed Peas rise in popularity. The music group made a substantial amount of income while Larkin was manager which included music sales, endorsements and touring.
Larkin got a 5 percent cut which should have left him a multimillionaire but his court papers claim he's broke. His documents also claim he has less than $500,000 in assets, owes money on a condo and a Ford minivan. His debt also includes more than $1 million in back taxes.