(AllHipHop News) Will Smith will finally be paid back the $1.5 million he loaned pal Duane Martin for a home tied up in a bankruptcy fraud case.
Duane and his estranged wife Tisha Campbell-Martin filed for bankruptcy in 2016 after revealing they were $15 million in debt.
Tisha then sought a divorce in February 2018, after 22 years of marriage, and in June she filed legal documents alleging her estranged husband hid and misused funds during their union.
The trustee in the bankruptcy case sued Duane for fraud after also reportedly believing that Martin hid $2.6 million in assets under a company named Roxe LLC, which he allegedly started to hide the ownership of a mansion in Chatsworth, California that was purchased for $900,000 in 2006.
Will then stepped in to lend Duane $1.5 million, so his embattled friend could repurchase the five-bedroom, six-bathroom home after defaulting on the mortgage, and now the debt will be repaid thanks to a new buyer for the property.
According to reports, the trustee has settled with Duane this week in the fraud lawsuit after finding someone to purchase the house for $2.45 million, just under the original $2.7 million asking price.
When the home sale is complete, $1.5 million of the purchase price will go to Will's company, TB Properties LLC, while another $122,000 will cover back rent, and $485,000 is headed to the bankruptcy estate to pay off creditors, leaving Duane with $170,560 for his Roxe LLC company.
Will Smith was forced to turn over his financial records in Duane's fraud case, which has now been dismissed since settling.