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Toni Braxton:

My Vegas Show Broke Me

10/7/2010 2:00 PM PDT BY TMZ STAFF

A close relative of Toni Braxton tells TMZ ... the singer's financial undoing can be traced back to her show in Las Vegas.

Toni Braxton broke.
The relative tells us Toni took out "show insurance" through Lloyd's of London for her act at the Flamingo Las Vegas Hotel & Casino back in 2006. 

And when Toni's heart condition started to act up  -- in the middle of the show's run -- she had to pull the plug, but she was still on the hook to the hotel for big bucks.  Toni expected Lloyd's to cover the loss but Lloyd's didn't, arguing Toni had an undisclosed, preexisting medical condition, rendering the policy void.

In the end, Toni had to absorb a huge loss, which the relative claims sent her on a downward financial spiral.

Still, it doesn't explain the bill for the Four Seasons and Tiffany & Co., for starters ...


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69 COMMENTS

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46.

Initiate    

*****s can't pay their bills no more how much money they have.

1375 days ago
47.

Fredo    

LOL @ post #2.........get real, playa! If she doesn't disclose all of her medical conditions up front purely for the purpose of lowering her premiums, the insurance company has every right to deny her claims based on the fact that she was not truthful in her application. You have to disclose this info up front so that the insurance company can properly price for that condition. Had she done that, she likely wouldn't be filing for bankruptcy right now apparently. Lloyd's simply would've rated for her condition, and she'd be covered right now, or they would've told her there's nothing they can do for her and to search other carriers, or look into the state risk pool (if one was available).

1375 days ago
48.

noneofyourbusiness    

Um, how is her financial pitfall our business again?

Just like TMZ to kick a person while they are down. The staff would probably run their own mothers over for a story. Very pathetic.

1375 days ago
49.

beth    

Pathetic!

1375 days ago
50.

Fredo    

An insurance company has a few options when an applicant is not truthful on their application. It seems as though Toni was not truthful on her application, so this is what happens:

1. Toni did not disclose all medical conditions on her app
2. Toni had a claim on her heart, which caused Lloyd's to go back and research her medical history
3. As a result of Lloyd's research, they've obviously located information that shows that she actually DID have a heart condition at/before the time that she applied for coverage
4. That gives Lloyd's two options.....initiate a process called reffirmation, which means that they re-rate the case for the condition that she has, and charge her back premiums all the way back to when the plan was initially effective, or they can simply cancel the policy altogether, which is apparently what happened. Lloyd's may have a history of screwing people, because they underwrite all kinds of weird stuff, but in this instance, they were well within their rights.

1375 days ago
51.

Lisa    

Actually that's a good reason. Hope she gets it together.

1375 days ago
52.

shelley    

To those defending her and asking how it's our business...it's our freaking business because this is the second time this irresponsible person has filed bankruptcy for millions! Not just a few thousand that the rest of the world..for millions. and who pays for that?? we do, boneheads. We pay for it in increased bank rates, higher credit card interest..harder to get loans for responsible people becuase she is too foolish to learn from her mistakes and not live within her means like the rest of us. She deserves no sympathy here. She knew the consequence of not paying her bills. She is no different than a squatter who moves into a house, lives there for a year, doesn't pay and waits to be evicted leaving the landlord with nothing. She knows exactly what she is doing and filing bankruptcy is much more her career than singing!!

1375 days ago
53.

Leigh Ann    

This is complete BS! She racks up thousands and thousands of dollars in products & services and then just walks away! She has done this before. She knows damn well how to play the system and is getting away with it. It makes me so angry that she can do this and regular, hard working, responsible, decent people have to pay their own way in life and she is given a high lifestyle free pass. She feels so entitled. Disgusting!

1375 days ago
54.

AngieBaby    

I sorry she had health problems... but didn't she also declare bankruptcy years ago? Only to be followed by a HE-YUGE, fancy wedding with someting like a $100,000 gown? Live large, crash large.

1375 days ago
55.

Gluey    

I'm sorry I have no sympathy for her. All that ridiculous spending on stupid stuff and trying to scam an insurance company. She knew the rules and she broke them. If you only have 1 million dollars why are you going to spend 50 million dollars??

1375 days ago
56.

Jill    

Don't get it twisted. Toni took the Vegas job probably because she needed the money. Remember she was bankrupt before. So she probably never got a leg up on her debt before the heart problem. So add that to the ending of her show and guess what...Bankrupt again. But like most sistas :) shopping first bills later.Maybe she pick up a few acting gigs to cover.

1375 days ago
57.

lgwelsh1    

She has always had financial problems, she was trying to live like a huge star when the facts are she was NEVER a top draw in the likes of Whitney, Maria, Celine....you get the idea. She was simply spending more than she was making. Yes she has health problems, she took that Vegas gig to make some "easy money" when in fact the show was NOT doing that well at all and probably would have folded regardless of her taking time off for her illness. We wish her well BUT she needs to get a grip on her career and get healthy first. Her creditors want her to get well and pay back the debts. She is talented and has the potential to turn it all around, she needs to look in the mirror and make that decision herself. Her song catalog does not warrant some huge show, if she was smart she would hook up with a bigger draw and open for them. She would probably make more money and less stress.

1375 days ago
58.

beau     

Friends went to see her vegas show paid $70.00 a ticket show was awful, she wasent well sat on a stool..they got up left the show..She is done anyway..Jay Z or "Hit man" David Foster cant revive her career...We'll see her on Home shopping channel pushing some JUNK!

1375 days ago
59.

No comment    

I don't understand, why is she on the hook to the hotel? Wouldn't a hotel front the money for shows, and be the ones to get insurance on her. Why would any entertained take a gig where they are resposible for the costs.

1375 days ago
60.

tim    


She's full of ****e. She went bankrupt once before and left a whole bunch of creditors with nothing but their d---s in their hands, and she's going to do it again.
And she'll be back living in a mansion within a year.

1375 days ago
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