Kanye West took out a $2.27 million bond on his former Malibu mansion in his wife’s name to cover the possible payout from a lawsuit brought by a disgruntled contractor.
The insurance policy, called a surety bond, was personally signed by Bianca Censori so that Kanye could offload the “rotting” beachfront home, which had been gutted and left empty.
5
5
It means the bond total of $2,274,982 will cover the legal action by former security guard and project manager Tony Saxon, who had a mechanical lien placed on the property.
Saxon sued last September, claiming he was forced to sleep in “freezing conditions outside” during the grueling 24-hour, seven-days-a-week job.
According to court documents, he’s looking for $1,819,986 in damages and lost income after injuries sustained while working, which will be covered by Platte River Insurance Company’s bond.
Kanye may also be liable for Saxon’s attorney fees and costs.
A mechanial lien is a hold on the sale of a property until a person who remains unpaid for their work on a home has been properly compensated for their labor.
It’s used by laborers and contractors to ensure a home isn’t sold – and the money that should be used to pay them back spent – before they get their payday.
If a worker stays unpaid, it can also be used to force the sale of a home to cover their wage.
But in this case, Kanye was able to force to sale by using the bond as a backup option to cover the fees Saxon is demanding.
The rapper finally sold the crumbling pad for $21 million last month – taking a staggering $36 million hit – but had to pay for the bond, otherwise the sale wouldn’t have gone through.
It now appears Kanye, now known as Ye, has saddled his wife to deal with matters relating to the pad.
Kanye reportedly wanted to turn the house into a “bomb shelter” with no electricity or windows, according to the complaint.
Saxton alleged that Kanye fired him for refusing to do various demolition projects that he felt were unsafe.
‘WRONGFUL TERMINATION’
Saxton worked for Kanye for two months, with the rapper allegedly promising to pay him $20,000 a week.
According to the lawsuit, he also regularly worked 16-hour days and often more, and Kanye still owes him money.
Saxton is suing Kanye for multiple labor code violations, unpaid wages, and wrongful retaliatory termination.
Bianca is the sole representative for Shore Drive Holdings, which was the LLC set up for the house purchase.
She is also named as the co-manager for his other business, Oxpaha.
Kanye managed to finally offload the Malibu house after gutting it and leaving it to rot.
The home sold for about $36.3 million less than what Kanye paid for it in 2021.
Kanye, 47, first listed his beachfront home for sale in December 2023.
In January, Ron Zambrano, a partner at the West Coast Employment Lawyers, filed a mechanics lien on the property on behalf of Saxton.
“We just want to make sure he has enough money to pay the more than $1 million he still owes our client before he goes completely broke,” Ron told the Hollywood Reporter.
“So in this case, if someone wants to buy Kanye’s Malibu home, they’ll have to deal with us first. That sale cannot happen without Tony being paid.”
The mystery new buyer was revealed to be a California-based real estate crowdfunding firm Belwood Investments.
Kanye West’s homes
Kanye West owns multiple homes across California and Wyoming, two of which have fallen into disrepair.
The firm reportedly plans to spend millions of dollars restoring the home, which could take more than a year.
Selling Sunset star Jason Oppenheim, co-owner of The Oppenheim Group, represented the sale.
The U.S. Sun can also reveal that Kanye’s company, Yeezy Enterprises, has been stung with a $883,197.33 tax lien from the State of California for unpaid taxes from January 2021 through September 2022.
This includes a $247,737 penalty and $93,635 interest.
The firm was initially set up in Cody, Wyoming, in 2020, but its registered office has since moved to La Palma, California.
BUSINESSES IN TROUBLE
Kanye’s other businesses are also in a bad state.
Yeezy Record Label is not in “good standing” after its agent and only representative, Jeannette Jones, resigned on October 7 – and the annual statement is late.
It’s the same for Ox Paha Inc., from which Jones has also resigned.
Meanwhile, Yeezy Construction has been suspended by the State of California and has a $12,425 tax lien against it.
In July, The U.S. Sun revealed that Kanye’s firms already owe just over $1 million from tax liens and property tax lapses.
Despite his financial problems, it seems the star won’t be running out of money any time soon as he continues to tour and book gigs in China.
5
5