Some people think that those who go bankrupt are those who have an average life or have a low income. However, there are many who rich people and companies who have declared bankruptcy over the years and here are some millionaires and billionaires who went bankrupt:
1. Kim Dotcom
During his successful days, Kim Dotcom used to be worth around $200 million. Because of a raid in his New Zealand compound all his fortune was gone. The court spent years figuring out if he was liable for some of the $500+ million in damages being sought against him.
2. Scott Eyre
Eyre was able to earn up to $17 million in his athlete career but he was left with just $13 after being scammed by Allen Stanford in his infamous scheme that cost investors billions of dollars.
3. Willie Nelson
Nelson had been the recipient of many awards, including eleven from the Grammys and seven from the American Music Awards. However, Willie Nelson got into a huge debt and was nearly $17 million dollars in debt to the IRS.
4. Jordan Belfort
Belfort earned an annual income of over $250 million in his early 20’s because of the smash hit “Wolf of Wall Street”. But because of getting a two-year prison term, every single dollar he earned and every piece of property he had was forfeited.
5. MC Hammer
After earning millions of dollars during his career, he managed to spend it all even faster, and joined the ranks of the many rappers who went broke.
6. Bjorgolfur Gudmundsson
He was originally Iceland’s second wealthiest businessman with a net worth of about $1.1 billion. After a year, he had a net worth which totaled to $0 because of a financial crisis he and his son got into. His debts amounted to almost £500 million.
7. Alberto Vilar
Alberto Vilar co-founded the investment firm, Amerindo, which was worth an estimated $1 billion at its height. In 2008, Vilar was convicted of money laundering, investment advisory fraud, wire fraud, mail fraud and securities fraud.
8. Sean Quinn
In 2008, Sean Quinn was known as the richest person in Ireland, with an estimated net worth of $6 billion. Because the Quinn group took a major hit in the same year, he was replaced by Denis O’Brien, as the wealthiest person in Ireland. Since then, their bad luck continued until he filed for bankruptcy.
9. Eike Batista
In 2012, Batista was worth an estimated $30 billion, making him the seventh richest person in the world and the wealthiest person in Brazil. His economic downfall is due to the collapse of Batista’s OGX and other economic issues and management decisions.
10. Allen Stanford
Stanford, who was a former billionaire, now has a 110-year prison time due to counts of mail fraud, money laundering, conspiracy and obstruction of justice. Stanford’s fraud involved $7 billion of certificate deposits and an $8 billion investment scheme.
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