Kylie Jenner could face ‘jail time’ after Forbes alleged she ‘faked’ her billionaire status in a ‘web of lies’.
The publication published a scathing article about the 22-year-old on Friday (29 May), claiming she had been lying about her cosmetic company’s earnings.
They even accused her of ‘creating tax returns that were likely forged’.
Kylie took to social media soon after to respond to the allegations, suggesting there were ‘a number of inaccurate statements and unproven assumptions’ in the piece.
And renowned lawyer Jan Handzlik has now said the accusations from Forbes could land the Lip Kit queen in serious legal trouble.
‘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,’ he said.
The former federal prosecutor explained this could see the US Attorney’s office ‘jumping in’, as well as a criminal investigation by the Department of Justice.
As well as possible time behind bars, Jan said Kylie could also be given eye-watering fines to ‘make Coty whole again’ after the beauty conglomerate bought a 51% stake in her business for $600million (£487m) last November – and valued her company at $1.2billion (£972m).
‘If the Department of Justice decides to make this a criminal case… if there were to be a conviction, that could include jail time for any individuals who were responsible,’ he continued to DailyMail.com.
‘We don’t know if there’s something here that doesn’t meet the eye. But taking the allegations at face value, there is certainly a basis to conduct an investigation and maybe move ahead with an enforcement action or a criminal prosecution.
‘In fact if the court rules that the Jenners or Jenner companies have received ill-gotten gains, profited from a financial statement fraud or financial misdeed, then these rather staggering sums of money that were paid or distributed within the Jenner orbit, the SEC could order those be returned. In other words they would seek to make Coty whole again.’
Forbes named Kylie the ‘youngest self-made billionaire’ at 21 in 2019, heralding her for turning her lip kit line into a massive empire.
However, they have now sensationally accused the mum-of-one, and those around her, of lying about her sizeable wealth and successful business, and ‘creating tax returns that were likely forged’.
In a scathing new piece, Forbes explained they were given stats about her earning from 2016 onwards which saw her impressive wealth rise thanks to the launch of Kylie Cosmetics.
But it was her deal with Coty that raised eyebrows among financial experts, who claimed the beauty conglomerate was ‘paying too much’ for such a new brand.
Sales figures released by the brand imply that Kylie Skin had only generated $25million (£20m) in sales in one year since the 2019 launch – much less than the $100million (£80m) in sales Kylie’s rep allegedly told Forbes they had earned in revenue in the first month-and-a-half.
‘More likely: The business was never that big to begin with, and the Jenners have lied about it every year since 2016—including draft tax returns with false numbers—to help juice Forbes’ estimates of Kylie’s earnings and net worth,’ they wrote.
‘While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying.’
‘But okay… I am blessed beyond my years, I have a beautiful daughter, and a successful business and I’m doing perfectly fine.
‘I can name a list of 100 things more important right now than fixating on how much money I have.’
Metro.co.uk has contacted Kylie Jenner’s reps for a comment.
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