Alyssa Milano Files $10 Million Fraud Lawsuit Against Ex-Business Managers

The actress is the latest star to say the people she trusted to manage her money led her to financial ruin.
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David Bugliari and Alyssa Milano

Alyssa Milano says her family is millions of dollars in debt because her former business managers mismanaged her finances and covered it up.

The actress and her CAA talent agent husband David Bugliari claim Kenneth Hellie and his firm failed to pay their bills on time, forged their signatures on financial documents, let their insurance policies lapse and took out high-interest loans from other clients. Hellie, Hoffer and Company and Jamie Williams are also named as defendants. 

Milano says she fired the firm last July after receiving a notice of default on their mortgage and calls from collection agencies, according to a complaint filed in Los Angeles County Superior Court, and the couple's new business manager found "extensive malfeasance."

"Defendants engaged in a shell game with the client money entrusted to their care, by shuffling funds between client accounts in the guise of 'loans,'" writes attorney Ellyn Garofalo. "[T]hese maneuvers were necessary to shore up the liquidity of HHC clients with cash flow problems created by the same mismanagement and lack of internal controls that afflicted Plaintiffs."

While HHC was borrowing money to cover the couple's expenses, it was also lending money from their accounts to other clients, totaling more than $3 million over three years, according to the complaint.

The couple also claims that HHC allowed their home construction expenses to get out of control and didn't inform them about code violations that caused them more than $375,000 in fines but could have been fixed in a day or two had they known. They also say the firm failed to pay their 2013 and 2014 income taxes because of the "home improvement debacle."

"Had Plaintiffs been provided with adequate information, the choice would have been clear — pay the tax man and delay the construction until funds were available," writes Garofalo.

Milano and Bugliari are suing for negligence, breach of fiduciary duty and fraud. They are seeking at least $10 million in damages. Hellie has not yet replied to a request for comment on the complaint, which is posted in full below. 

Alyssa Milano says her family is millions of dollars in debt because her former business managers TK and covered it up.

The actress and her CAA talent agent husband David Bugliari claim Kenneth Hellie and his firm failed to pay their bills on time, forged their signatures on financial documents, let their insurance policies lapse and took out high interest loans from other clients. Hellie, Hoffer and Company and Jamie Williams are also named as defendants. 

Milano fired the firm in July 2016 after receving a notice of default on their mortgage and calls from collection agencies, according to a complaint filed in L.A. County Superior Court, and the couple's new business manager found "extensive malfeasance."

"Defendants engaged in a shell game with the client money entrusted to their care, by shuffling funds between client accounts in the guise of 'loans,'" writes attorney Ellyn Garofalo. "[T]hese manuevers were necessary to shore up the liquidity of HHC clients with cash flow problems created by the same mismanagement and lack of internal controls that afflicted Plaintiffs."

While HHC was borrowing money to cover the couple's expenses it was also lending money from their accounts to other clients, totaling more than $3 million over three years according to the complaint.

The couple also claims that HHC allowed their home construction expenses to get out of control and didn't let them know about code violations that caused them more than $375,000 in fines but could have been fixed in a day or two had they known. They also say the firm failed to pay their 2013 and 2014 taxes because of the "home improvement debacle."

"Had Plaintiffs been provided with adequate informaiton, the choice would have been clear — pay the tax man and delay the construction until funds were available," writes Garofalo.

Milano and Bugliari are suing for negligence, breach of fiduciary duty and fraud. They're seeking at least $10 million in damages. Hellie has not yet replied to a request for comment on the complaint, which is posted in full below. 

 

Milano v. Hellie by ashley6cullins on Scribd

Alyssa Milano says her family is millions of dollars in debt because her former business managers TK and covered it up.

The actress and her CAA talent agent husband David Bugliari claim Kenneth Hellie and his firm failed to pay their bills on time, forged their signatures on financial documents, let their insurance policies lapse and took out high interest loans from other clients. Hellie, Hoffer and Company and Jamie Williams are also named as defendants. 

Milano fired the firm in July 2016 after receving a notice of default on their mortgage and calls from collection agencies, according to a complaint filed in L.A. County Superior Court, and the couple's new business manager found "extensive malfeasance."

"Defendants engaged in a shell game with the client money entrusted to their care, by shuffling funds between client accounts in the guise of 'loans,'" writes attorney Ellyn Garofalo. "[T]hese manuevers were necessary to shore up the liquidity of HHC clients with cash flow problems created by the same mismanagement and lack of internal controls that afflicted Plaintiffs."

While HHC was borrowing money to cover the couple's expenses it was also lending money from their accounts to other clients, totaling more than $3 million over three years according to the complaint.

The couple also claims that HHC allowed their home construction expenses to get out of control and didn't let them know about code violations that caused them more than $375,000 in fines but could have been fixed in a day or two had they known. They also say the firm failed to pay their 2013 and 2014 taxes because of the "home improvement debacle."

"Had Plaintiffs been provided with adequate informaiton, the choice would have been clear — pay the tax man and delay the construction until funds were available," writes Garofalo.

Milano and Bugliari are suing for negligence, breach of fiduciary duty and fraud. They're seeking at least $10 million in damages. Hellie has not yet replied to a request for comment on the complaint, which is posted in full below. 

 

Mil

Alyssa Milano says her family is millions of dollars in debt because her former business managers TK and covered it up.

The actress and her CAA talent agent husband David Bugliari claim Kenneth Hellie and his firm failed to pay their bills on time, forged their signatures on financial documents, let their insurance policies lapse and took out high interest loans from other clients. Hellie, Hoffer and Company and Jamie Williams are also named as defendants. 

Milano fired the firm in July 2016 after receving a notice of default on their mortgage and calls from collection agencies, according to a complaint filed in L.A. County Superior Court, and the couple's new business manager found "extensive malfeasance."

"Defendants engaged in a shell game with the client money entrusted to their care, by shuffling funds between client accounts in the guise of 'loans,'" writes attorney Ellyn Garofalo. "[T]hese manuevers were necessary to shore up the liquidity of HHC clients with cash flow problems created by the same mismanagement and lack of internal controls that afflicted Plaintiffs."

While HHC was borrowing money to cover the couple's expenses it was also lending money from their accounts to other clients, totaling more than $3 million over three years according to the complaint.

The couple also claims that HHC allowed their home construction expenses to get out of control and didn't let them know about code violations that caused them more than $375,000 in fines but could have been fixed in a day or two had they known. They also say the firm failed to pay their 2013 and 2014 taxes because of the "home improvement debacle."

"Had Plaintiffs been provided with adequate informaiton, the choice would have been clear — pay the tax man and delay the construction until funds were available," writes Garofalo.

Milano and Bugliari are suing for negligence, breach of fiduciary duty and fraud. They're seeking at least $10 million in damages. Hellie has not yet replied to a request for comment on the complaint, which is posted in full below. 

 

Milano v. Hellie by ashley6cullins on Scribd

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