Kylie Jenner 'freaks out' after Forbes says she lied about being a billionaire, refuses to talk to momager Kris
Kris and Kylie Jenner are secretly “worried” after Forbes claimed that the beauty mogul lied about her billionaire status, sources have revealed. Kylie was declared the youngest self-made billionaire in the US in 2019 by Forbes, however, now the magazine has claimed that she lied about her wealth and profits. On Friday, May 29, the magazine claimed that the 22-year-old "inflated the size and success of her business for years." After these accusations, sources close to the Kardashian-Jenner family have claimed that the mother-daughter duo is “freaking out”.
“Kris and Kylie are freaking out and fear that this is going to hurt their brand, and even worse, they could be in trouble with the government,” a source told The Sun. The insider added that the family is "definitely worried" about their reputation being tarnished. However, despite the scathing allegations by Forbes and sources claiming the family is worried they might face trouble with the government, Kylie said on Twitter: “What am I even waking up to. I thought this was a reputable site. All I see are a number of inaccurate statements and unproven assumptions lol. I've never asked for any title or tried to lie my way there EVER. period."
Continuing further, she said, “Even creating tax returns that were likely forged,' that's your proof? So you just THOUGHT they were forged? Like actually what am I reading." The mother-of-one also insisted that she is "blessed" beyond her years, and is doing "perfectly fine." Besides, when a fan asked her if she was really worried about the Forbes’ accusations, Kylie responded, saying: “This is literally the LAST thing I'm worried about right now."
An investigative report from the magazine earlier said, “Forbes has recalculated Kylie’s net worth and concluded that she is not a billionaire. A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status."
“More than a third of that is the estimated $340 million in post-tax cash she would have pocketed from selling a majority of her company. The rest is made up of revised earnings based on her business’ smaller size and a more conservative estimate of its profitability, plus the value of her remaining share of Kylie Cosmetics—which is not only smaller than the Jenners led us to believe but is also worth less now than it was when the deal was announced in November, given the economic effects of the coronavirus,” the report added.
The magazine also claimed that the Kardashians went to "unusual" lengths to prove how rich the youngest member of the clan was, which included "inviting Forbes into their mansions and CPA’s offices, and even creating tax returns that were likely forged." But, Forbes also admitted, “While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.”
Meanwhile, another report has claimed that Kylie is not taking calls from her 'momager' Kris after Forbes accused her of being a fake billionaire. She is reportedly keeping her distance from the 64-year-old Kardashian-Jenner matriarch amid the highly-publicized scandal. “Kris – who reportedly gets ten percent of Kylie’s deals – is in panic mode. Kylie won’t answer the phone to Kris and is at a loss over who to trust. Kris is petrified Kylie could sack her or cut her off so tensions are at an all-time high,” an insider said.
According to top financial fraud attorney Jan Handzlik, who currently defends celebrities and big companies in financial fraud cases, Kylie could end up facing a criminal investigation over the alleged exaggerations. “My guess is that at a minimum the SEC will begin what they call an informal inquiry and then perhaps elevate that to a formal investigation, which gives them subpoena power," Handzlik said.
He continued, “In this matter, you've got a mixture of things that may lead to both civil and criminal scrutiny early on: obviously the celebrity aspect, the large amount of the alleged exaggeration, and the highly public nature,” adding: “All of this is like catnip to a prosecutor or the SEC, because it will lead to very heavy coverage of what takes place.”