Squandered millions of Philadelphia media heirs: How family spent fortune on Diana's dresses and flying DOGS to the Caribbean as son is found guilty of $3million fraud
A court in Philadelphia has heard
details of how a family with a fortune from their inherited media
company squandered away millions by buying dresses owned by Princess
Diana, enough marijuana to supply a daily drug habit, and funding the
college education of a porn star.
Michael Scripps, 36, was found guilty for depleting his mother Melissa and autistic uncle David's fortunes with his lavish spending.
Before she could point the finger at him, however, she had to admit that she spent millions on her own whims, paying to have her dogs flown to their second home in the Caribbean by private plane and treating relatives to world cruises.
She also indulged on treats for herself, including two of Princess Diana's glamorous dresses, a Napoleonic tiara and teddy bears that cost thousands of dollars.
Adding to her spending was her daily marijuana habit and the various legal bills that came from her four marriages.
Her spending decisions are just the tip of the iceberg, however, as her son Michael allegedly tricked her into handing over control of the $11million she made when the Scripps media conglomerate was sold in the 1980s for more than $700million.
James E. Scripps had founded The Detroit News and built the Evening News Association.
After the sale, Melissa had control of both her $11million share and her older brother David's lot, which was undisclosed but was said to be more than hers. Melissa was granted control of David's finances because he is mildly autistic.
Her son's defense attorney
alleges that Melissa and David's combined wealth was significantly
closer to $100million than she claims it is.
The tensions arose in the family around 2002, when the prosecution alleges that Michael became concerned about his mother's spending habits.
'Michael thought his mom was spending too much money, she was spending his inheritance,' Assistant U.S. Attorney Linwood C. Wright said in court on Wednesday.
The Philadelphia Inquirer says that throughout the ordeal, he was not left with nothing, as he had always had his own six-figure trust fund and received a $3,900 monthly stipend.
At one point in 2002, Michael, Melissa, David and a friend had a champagne-filled night at an Atlanta strip club that ended up costing $90,000.
Melissa was later questioned by her financial advisers about the bill, and Michael showed a picture of his mother in a compromising position with one of the exotic dancers at the club.
The
Inquirer says that out of embarrassment about the incident, she agreed
to Michael's request that he take over the control of her and David's
finances.
Michael then placed the reins in the hands of his college buddy, financial advisor Richard ‘Duke’ Gleeson, who was so eager to please Michael that he agreed to all of his demands when it came to spending the money in ways he wanted.
Those ways included keeping his romantic interests happy.
At first, it was a stripper named Anna who he met in the 1990s when she was stripping while going to college in New Orleans. She went on to marry him, and she told the Pennsylvania court how he gave her piles of jewels.
More than a decade later, he began dating porn star Jenna Bearden, whose stage name is Kiki Daire.
During his courtship of Ms Bearden, Michael flew her to Las Vegas and the Kentucky Derby. He gave her diamond earrings and a matching bracelet. He also paid for her college tuition, her breast enhancement surgery and her apartment in Memphis.
All told, he had Mr Gleeson make 500 transfers of Melissa and David’s funds into Michael’s accounts.
Things came to a head in 2006 when Michael, stressed after his mother found out about the fund transfers, held a gun up to Ms Bearden’s head and told her to call Melissa.
It is unclear what happened at
the end of the incident, but two years later, Melissa and David were
forced to pay Merrill Lynch $5.8million in a settlement deal and tell
the FBI that Michael had defrauded them.
Michael never testified in the trial but his lawyer argued that the only reason they did so was in order to protect their stash of the fortune.
‘They had to make a criminal out of somebody to protect themselves,’ attorney Michael Dezsi said.
The judge urged the jurors not to assign guilt based on the lavish lifestyles of those involved, but to focus on the legality of Michael Scripp’s handling of his mother and uncle’s money.
Michael was found guilty and will be sentenced on July 15. He faces more than seven years in prison.
Michael Scripps, 36, was found guilty for depleting his mother Melissa and autistic uncle David's fortunes with his lavish spending.
Before she could point the finger at him, however, she had to admit that she spent millions on her own whims, paying to have her dogs flown to their second home in the Caribbean by private plane and treating relatives to world cruises.
She also indulged on treats for herself, including two of Princess Diana's glamorous dresses, a Napoleonic tiara and teddy bears that cost thousands of dollars.
Adding to her spending was her daily marijuana habit and the various legal bills that came from her four marriages.
Her spending decisions are just the tip of the iceberg, however, as her son Michael allegedly tricked her into handing over control of the $11million she made when the Scripps media conglomerate was sold in the 1980s for more than $700million.
James E. Scripps had founded The Detroit News and built the Evening News Association.
After the sale, Melissa had control of both her $11million share and her older brother David's lot, which was undisclosed but was said to be more than hers. Melissa was granted control of David's finances because he is mildly autistic.
Big spender: Melissa Scripps, Michael's mother,
admitted that before he took control of her finances in 2002, she spent
more than $1million on international trips, two of Princess Diana's
dresses and a Napoleonic tiara
Lavish: Melissa admitted that she flew her dogs
to the family's second home in St Maarten (pictured) by private jet, but
she eventually gave her son control of her fortune because he
embarrassed her with compromising pictures of her with an exotic dancer
at an Atlanta strip club where they blew $90,000 in one night
The tensions arose in the family around 2002, when the prosecution alleges that Michael became concerned about his mother's spending habits.
'Michael thought his mom was spending too much money, she was spending his inheritance,' Assistant U.S. Attorney Linwood C. Wright said in court on Wednesday.
The Philadelphia Inquirer says that throughout the ordeal, he was not left with nothing, as he had always had his own six-figure trust fund and received a $3,900 monthly stipend.
At one point in 2002, Michael, Melissa, David and a friend had a champagne-filled night at an Atlanta strip club that ended up costing $90,000.
Melissa was later questioned by her financial advisers about the bill, and Michael showed a picture of his mother in a compromising position with one of the exotic dancers at the club.
Expensive taste: Michael's first wife Anna, who
he met while she was a college student working as a stripper, testified
that he lavished her with jewelry throughout their marriage (stock
image)
Michael then placed the reins in the hands of his college buddy, financial advisor Richard ‘Duke’ Gleeson, who was so eager to please Michael that he agreed to all of his demands when it came to spending the money in ways he wanted.
Those ways included keeping his romantic interests happy.
At first, it was a stripper named Anna who he met in the 1990s when she was stripping while going to college in New Orleans. She went on to marry him, and she told the Pennsylvania court how he gave her piles of jewels.
Recipient: In 2003, Michael began dating porn star Jenna Bearden, whose stage name is Kiki Daire
Testimony: In court, Ms Bearden said that
Michael paid for her college education, her apartment in Memphis, her
breast enhancement surgery, a pair of diamond earrings and a matching
bracelet
During his courtship of Ms Bearden, Michael flew her to Las Vegas and the Kentucky Derby. He gave her diamond earrings and a matching bracelet. He also paid for her college tuition, her breast enhancement surgery and her apartment in Memphis.
All told, he had Mr Gleeson make 500 transfers of Melissa and David’s funds into Michael’s accounts.
Things came to a head in 2006 when Michael, stressed after his mother found out about the fund transfers, held a gun up to Ms Bearden’s head and told her to call Melissa.
The high life: He also paid for trips for Ms
Bearden, including Caribbean cruises, a wild time in Las Vegas and a
trip to the Kentucky Derby (pictured here in 2012)
Michael never testified in the trial but his lawyer argued that the only reason they did so was in order to protect their stash of the fortune.
‘They had to make a criminal out of somebody to protect themselves,’ attorney Michael Dezsi said.
The judge urged the jurors not to assign guilt based on the lavish lifestyles of those involved, but to focus on the legality of Michael Scripp’s handling of his mother and uncle’s money.
Michael was found guilty and will be sentenced on July 15. He faces more than seven years in prison.