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How Does Hollywood Celebrity Affect You?

By John Dietz - Email Editor

Date: May 02, 2006

“We like to read about rich people in the newspapers; the papers know it, and they do their best to keep this appetite liberally fed.”
- Mark Twain

In many cities across America the status symbol of celebrity takes on many shapes. In some cities, just having a nice car can get you preferential treatment; but in most cities, if you are perceived as having wealth or status in your community, generally you get a fair amount of perks to launch you into celebrity status. I would even go so far as to say that the celebrities in smaller cities in the U.S. get better perks and more advantages than the celebrities in Hollywood. Unfortunately, with all the upside, the potential for the pendulum swing in the other direction is ever present.

Fast Forward To Hollywood

The gap between the "have and the have nots" in Hollywood has always been the driving force for the plots and schemes of many opportunists and extortionists. The money crimes committed by only these clever thieves are generally never reported. People were paid-off, and life went on. The new age extortionist is armed with a much different weapon: the media. The media and many other outlets are manipulated to get the story out, which is part of the formula that can boost a mundane payday into the mother load. Just look at this way, it's their job.

It seems now that Hollywood has turned in on itself. Shows like the Emmy Award winning CSI with its 30 million viewers are quickly becoming the most watched show in history. Law enforcement is trying to figure out if this television programming is teaching the crooks how to do a better job. And what about the latest VH1 special Hollywood Blackmail ? This show was a simple reality check for those that have wealth. It's as though the drug of choice for the underworld of society is not methamphetamines, but pure 100 percent U.S. cash.

The good news is the show Hollywood Blackmail captured on film extortionists plotting and scheming to get a payday. Unfortunately, any celebrity chaser has now been put on notice as to what can happen if they don't cover their tracks. At least it's good to see that celebrities are fighting back with high-priced private eyes and a little luck. The net end result was jail time for the extortionists.

Interesting and sad as it may be, most celebrities are forced into courtrooms by the very people that they employ. It's a perfect formula. Find someone close to you that knows a little more than they should; and, then somehow magically watch as they become a disgruntled employee, which now turns into a mission for the soon to be professional taker.

Are we talking about celebrities or is this re-alignment of assets coming to a home near you? Every city, town or village in the world has celebrities. In fact, your status in your community may be more prime time than you think. The local gossip around you and your community is as big as anything in Tinseltown.

Most cities have their own celebrity magazine that highlights someone in the community that is doing well. Think about it, when someone in your town gets caught with their hands in the cookie jar, it's bigger news than something in the Hollywood Reporter . Is it possible that there are unscrupulous people living near you that read the local paper or see who is on the cover of the local magazine? Hmmm.

So the questions are:

• Could you be a target?
• Is your wealth in your own name?
• Are your entities set up propertly?
• Do you co-mingle funds?
• Are your operating agreements in place?

If you answer “no” to any of these questions, then it's time to re-evaluate.

Many steps you take in the course of your business and personal affairs should be set up to separate you from being a target. Asset Protection properly implemented seperates ownership from control. The mindset that is needed is to insulate you from being a target by controlling your everyday actions and adding a couple of small details like privacy and autonomy.

My motivation for telling this story comes from the clients I speak to on a daily basis. Some are unfamiliar with Asset Protection, some are well informed long-time readers; but, many of them have one thing in common: They think they are not at risk. Case in point, when I ask how is your brokerage account titled, most often the answer is always the same: “It's in my own name.”

Untill next time,

John

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