DJ AM's older sister
Lara Long -- the woman who created the DJ AM Memorial Fund -- passed away last week after a battle with an extremely rare form of colon cancer ... TMZ has confirmed.

TMZ spoke with Jenni Weinman, a rep for the estate and Lara's family -- who tells us, "It is with unbearable sadness that I can confirm that Lara Long, the sister to DJ AM passed away late Monday night, May 9th after a fierce four month battle with an extremely rare colon cancer."
Weinman continues, "She was just two months shy of turning 41. Lara was responsible for keeping the memory of her brother alive with the creation of the DJ AM Memorial Fund. She was the driving force behind his eBay shoe sale as well as his record sales, working tirelessly to make sure he would not be forgotten.
"Lara was an amazing woman, with a huge personality, a heart of gold and an incredible laugh. There are no words to explain how she will be missed. We ask that you please respect the privacy of the family at this most devastating of times.”
DJ AM allegedly left behind more than just millions of admirers -- according to the State of California, dude also left behind $88,000 in unpaid taxes ... and now they're tightening the screws on his estate.

According to a creditor's claim filed Tuesday in L.A. County Superior Court -- and obtained by TMZ -- DJ AM owes $88,850.60 in back taxes from 2006 and 2007 ... years before the famous disc jockey passed away.
The State of California Franchise Tax Board wants AM's estate to ante up the balance ... stat. Calls to the estate weren't immediately returned.
The organization created to honor
DJ AM is making a serious donation to a cause that was close to his heart -- helping teens who are suffering from addiction -- but the group isn't just writing a fat check ... they're also trying to change lives with state of the art DJ equipment.

TMZ has learned the
DJ AM Memorial Fund is making the donation to the
Phoenix House Academy in L.A. -- a residential treatment program for teens struggling with addiction -- and according to a rep for the DJ AM Fund, the goal is to give kids the chance to find a new passion through music.
According to a rep for the fund, "We wanted to find a way to continue Adam's legacy of giving back that would include music as a key component. Making a donation that includes a DJ station helps Adam's legacy live on."
No word on how much cash they're dropping -- though we're told it's a sizable amount. As for the DJ setup, we're told it includes everything from computers to turntables and everything else DJ AM would use.
DJ AM's former neighbor is suing the deceased star's estate -- claiming AM owned
a piece of property that smelled so bad, it literally made one man sick to his stomach.

In a lawsuit, filed today in L.A. County Superior Court, a man named
Isaac Toveg claims while he lived near AM -- aka
Adam Goldstein -- he often noticed a "gaseous foul odor and/or smell" emitting from AM's property.
Toveg claims when he would go outside, he would "experience problems in breathing and stomach ailments and would become severely ill" and was eventually diagnosed with Helicobacter pylori.
According to the suit, Toveg claims he told AM about the problem, but was ignored. Toveg claims after AM died -- it was discovered that there was a "broken" sewer pipe on the property. Toveg claims he is now "able to relate his illness to the broken sewer pipe."
Toveg is suing for more than $25k in damages.
TMZ spoke to Jenni Weinman -- a rep for AM's estate -- who tells us, "It’s ironic that this suit was filed so close to the year anniversary of Adam's passing."
She continues, "I am sure that any issues regarding the drainage system or sewer pipes in the neighborhood are more of a city maintenance issue as opposed to a DJ AM estate issue.”

Federal officials just announced the tires on the Learjet that hurtled off a South Carolina runway -- causing the crash that killed four people and injured
Travis Barker and
DJ AM -- were underinflated and played a part in the crash.
Officials for the
National Transportation Safety Board -- who are holding a news conference about the crash right now -- said the underinflated tires seriously affected the stopping capability of the aircraft.
The NTSB concluded the probable cause of the accident was the "inadequate maintenance of the airplane's tires ... and the captain's execution of a rejected takeoff."
The NTSB blamed the tire maintenance issue on
Global Exec Aviation.
The jet involved in the horrific, fiery crash that seriously injured
DJ AM and
Travis Barker -- and killed 4 people back in 2008 -- was defective long before the pilots got in the cockpit, so allege the people who owned and operated the aircraft.
Global Exec Aviation and
ITAS Inc. have filed legal papers against the manufacturers --
Learjet and
Bombardier -- claiming the plane had "unreasonably dangerous defects" which caused it to crash and burst into flames on September 19, 2008.
GEA and ITAS have already reached financial settlements with the survivors and families who lost loved ones in the crash -- but now the companies want a judge to make the manufacturers reimburse them for the settlements.
The companies are also looking for more than $1,000,000 in additional damages related to the crash.

The
Burglar Bunch targeted way more celebs than we first thought ... this according to legal docs just obtained by TMZ.

According to a search warrant affidavit, alleged Burglar Bunch member
Nick Prugo says his crew "door-knocked and conducted surveillance on the following celebrity residences:"
- Zac Efron-
Vanessa Hudgens-
Miley Cyrus-
Hilary Duff-
Spencer Pratt-
Channing Tatum-
Brittny Gastineau-
Ashley Tisdale-
Jacqueline Bisset-
Adam Goldstein aka DJ AMThe Burglar Bunch allegedly hit the homes of
Lindsay Lohan,
Paris Hilton,
Audrina Patridge,
Orlando Bloom,
Rachel Bilson,
Brian Austin Green and
Megan Fox.
The affidavit we obtained was filed in support of a search warrant that was executed just yesterday at Nick Prugo's home. According to legal docs, nothing was seized.
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The estate of
Travis Barker's good friend,
Chris Baker -- who died in the 2008 jet crash -- just settled the wrongful death lawsuit for millions of dollars ... TMZ has learned.

According to legal docs obtained by TMZ,
Clay Lacy Aviation,
Goodyear Tire and Rubber,
Learjet and the other defendants kicked in a total of $4,375,000 to settle up with Chris' son, 3-year-old Sebastian. Baker's widow, Otilia Villar Baker, also settled for a total of $7,625,000.

According to the docs, the $4.375 mil for Sebastian will be used to purchase annuities, guaranteed to pay him $17,404,456.40 over the course of his life.

We've learned the estate of
DJ AM has settled its lawsuit against the various companies it sued over the jet crash.
Although DJ -- aka
Adam Goldstein -- survived the crash, the estate claimed the pain he suffered caused him to become re-addicted to drugs which ultimately caused his death.
The settlement, sources say, involve all defendants, including Clay Lacy Aviation, Goodyear Tire & Rubber Company and Learjet.
Terms of the settlement are confidential.

Michael Jackson isn't the only one who left debt behind -- allegedly. A creditor's claim was just filed in the estate of
DJ AM.

Loyal Pennings claims the estate owes him $566,666.66. According to legal docs obtained by TMZ, Pennings and DJ AM (aka
Adam Goldstein) were partners in
LAX nightclub back in 2005.
According to the docs, in 2006, DJ AM entered into a contract with
Pure Management Group in Las Vegas to open an LAX club at the
Luxor.
Pennings says DJ AM told him the contract was worth $1.7 million and Pennings says his deal with DJ was that he would get 1/3 of all sums received.

DJ AM had more shoes than freakin'
Imelda Marcos -- and now his homies have posted a bunch of his sought after sneakers on
Ebay to raise money for the
DJ AM Memorial Fund.

The fund -- dedicated to helping people struggling with addiction -- should pull in some serious dough from the auction ... some of these sneaks are already going for more than a thousand bucks!