22-year-old reality star saw dramatic drop in pardon after Forbes magazine excluded her from list of billionaires on Friday – just two years after declaring her the youngest self-taught billionaire of all time .
The magazine alleges that the star of Keeping Up With The Kardashians – who created a cosmetics business called Kylie Cosmetics in 2015 – may have filed false information to exaggerate the success of his cosmetics business after examining the evidence of the accountants of the Kardashian family.
Forbes says accountants’ reports suggest that Kylie Cosmetics has gone from zero to $ 300 (£ 244 million) in the space of a year, which has led the magazine to be wary.
While in November of last year, beauty giant Coty bought 51% of Kylie’s business for an astonishing $ 600 million (£ 487 million), which would have valued Kylie Cosmetics at 1 , $ 2 billion (£ 970 million).
Coty’s share price dropped on Friday following charges by Forbes.
Forbes suggested that it would be unusual for a company with Coty status to embark on a business that could be “fashion” at such a high value.
Now, the best financial fraud lawyer, Jan Handzlik, has suggested that Kylie could potentially be subject to criminal investigation and even jail time, if the tax fiddle allegations prove true, and predicts that the Securities Exchange Commission (SEC) would soon come into action.
Explaining what he predicts will happen next, Jan told MailOnline: “I guess at least the SEC will start what it calls an informal investigation, and then maybe elevate it to a formal investigation, which they gives a power of assignment.
“In this case, you have a mix of things that can lead to a civil and criminal review very early on: obviously the celebrity aspect, the large amount of alleged exaggeration and the highly public nature.
“It’s all like catnip to a prosecutor or the SEC because it will result in very high coverage of what’s going on.”
He then predicted that an SEC investigation could lead to a further investigation by the United States Department of Justice.
He warned: “If the Ministry of Justice decides to make this a criminal matter … if there were to be a conviction, this could include prison terms for anyone responsible. “
Forbes boldly accused that Kylie and her family had lied about their success to boost the appeal of the business.
Their suspicion arose out of Coty’s presentation, which revealed that Kylie’s revenue in 2019 was $ 177 million (£ 144 million), a 40% increase in wealth by $ 125 million in 2018 ( £ 101 million).
The magazine says the values were “far from the $ 360 million the Jenners had made Forbes believe.”
They then suggested that Kylie’s wealth had dropped in a year, or been dishonest from the start.
They said explosively: “Most likely: the business has never been bigger at first, and the Jenners have been lying about it every year since 2016 – including having their accountant write tax returns with false numbers – to help Forbes’ estimates of Kylie’s earnings. and net worth.
“Although we cannot prove that these documents were false (although this is likely), it is clear that Kylie’s camp lied. “
Kylie herself went to social media on Friday to criticize the Forbes report and protest her innocence.
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She tweeted, “What I’m waking up to. I thought it was a reputable site. all i see are a number of inaccurate statements and unproven assumptions lol. I never asked for a title or tried to lie. period.
“Even by creating tax returns that have probably been tampered with, are you proof of that? so you THINK they were forged? as actually what I read. ”
Mirror Online contacted Kylie representatives for comments.