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Wednesday, Feb. 17, 2010 | 2:05 a.m.
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Sun Coverage
Las Vegas Motor Speedway executive O. Bruton Smith is suing singer Wayne Newton, charging Newton is delinquent on a $3.35 million loan and seeking to foreclose on Newton’s Casa de Shenandoah ranch in Las Vegas.
The lawsuit was filed in Clark County District in Las Vegas Feb. 9 by Smith, chairman and chief executive of Speedway Motorsports Inc., against Newton, his wife, Kathleen McCrone Newton, Newton company Desert Eagle LLC and a Newton Living Trust dated Dec. 19, 2001.
The lawsuit was filed by attorneys Mark Ferrario and Brandon Roos of the Las Vegas office of the law firm Greenberg Traurig on behalf of Smith, whose company based in Concord, N.C., owns tracks around the country for NASCAR and other races.
Smith is also the chairman and chief executive of automotive retailer Sonic Automotive Inc. of Charlotte, N.C.
The suit says that in March 2006, when Wayne Newton and Smith were friends, the Newtons approached Smith and asked him to assist the Newtons and Desert Eagle in obtaining a $3.75 million loan from Bank of America by providing a personal guarantee.
The suit says Wayne Newton planned to refinance existing debt with B of A and that the loan would be secured by Newton’s 38-acre residence in Las Vegas at Pecos and Sunset roads and by a private jet valued at more than $2 million.
“Defendant Newton informed plaintiff Smith that he considered Smith’s personal guaranty of the loan as a formality and that the Newtons and Desert Eagle would sell personal assets to pay off the loan before allowing B of A to pursue Smith for repayment of the loan,” the lawsuit says.
The suit says Smith later guaranteed the loan, which initially was for $3.75 million in 2006 but was modified in 2007 to $3.35 million and was secured by Newton’s residence and associated Las Vegas land, as well as an aircraft described as a Fokker F.28 MK 1000.
The loan was to be repaid by May 30, 2009, but the Newtons failed to pay back all that was due and the loan has been delinquent since then, the lawsuit says.
Smith says in the lawsuit that in October he purchased the loan from B of A and that in November he sent a notice of assignment of the loan and demand for repayment to Desert Eagle, but that the defendants “refused to acknowledge or accept receipt of the demands for repayment.”
The lawsuit asks the court for permission for Smith to foreclose on Newton’s property and asserts allegations of intentional fraud and negligent misrepresentation against the defendants.
“Defendants Newtons and Desert Eagle never had any intention of selling personal assets to pay off the loan, and in fact, allowed the loan to go into default,” the lawsuit said.
“At the time defendant Newton made the...representations, defendant Newton knew or should have known that the Newtons and Desert Eagle did not have sufficient income and assets to pay off the loan and therefore the representations were false,” the suit charges.
A spokeswoman for Newton, who performs at the Tropicana hotel-casino in Las Vegas, said Tuesday she was unaware of the lawsuit and said Newton’s management team typically doesn’t comment on litigation.
Financial problems have dogged Newton in recent years, especially since he lost a 2006 lawsuit filed by former Newton pilot Monty Ward over past-due wages.
Ward eventually obtained a judgment against Newton for $455,250 and has been garnishing the wages of Newton ever since.
Last July, Newton was sued twice in Las Vegas by creditors claiming to be owed tens of thousands of dollars.
In one lawsuit, Newton was accused of failing to pay $32,384 for hay delivered to his Las Vegas ranch, presumably for consumption by his horses at the ranch.
In the other suit, he was accused of owing GMAC $36,999 for a lease on a Cadillac.
The Cadillac suit was dropped, but the lawsuit over the hay remains pending in Clark County District Court, with Newton and his attorneys having filed no response in court to the allegations.
Most recently, officials at a Detroit-area airport in Waterford, Mich., said Newton owes the airport more than $60,000 after abandoning a $2 million plane there more than three years ago and leaving it to gather mold.
It wasn’t clear if the plane in Michigan was the same aircraft used to secure the B of A loan, but it’s known both are $2 million Fokkers.
I think it's time for the Waynester to do another movie with Clark and Ellen Griswold eating more pasta.
Wayne is no different then the Tyson's, Holyfields, movie stars, and celebrities of the world --- DEADBEATS when it comes to owing people $.
"they" often think that things are entitled to them, and that others should foot the bill!
sad reality! yet VERY true.... i hope he loses the house and property. he has been down BK road before...
O. Bruton Smith should have sprinted for the hills the minute Wayne Newton asked him to cosign for that loan.
Let's be kind and remember the good that Wayne has been for Las Vegas for such a long period of time. He's just another citizen with financial problems in todays economy and let's hope things improve for Wayne, for Las Vegas and for the nation.
What does Wayne Newton's Management Team do ? Many talented people have business managers and people that take care of their finances, be that as it is I don't know if Mr. Newton's Management Team mismanaged his finances. Many people have found that it doesn't matter if you let family or some financial experts manage your money because the end result is the same when others control your money you usually wind up with little or no money. When people tell you they can make you money just ask yourself if it is so easy for them to make money why do they need my money ? Or When you run onto an investment that never has never lost money just ask your self so why does anyone want to sell this gold mine ?
Smith is a billionare..he will win against ol' wayne..sad but true
It is not surprising that even the stars got burned in the 2005 to 2007 housing bubble.
Many years ago I worked at the LV Hilton, and of all the celebrities who played at the showroom, only Wayne would go out of his way to aknowledge all of us ordinary hotel workers. He's a classy guy and a true friend to Las Vegas. Sad to hear that he has, once again, fallen upon hard times. I, for one, wish him well.
I also happen to live near "Casa" and constantly see people parking along Pecos to view the horses. It's a beautiful property and perhaps Wayne could generate a little extra coin by charging for tours.
Newton's problem is that ever since he blew out a few coronaries trying to compete on the "Dancing With The Stars" program, he's had to give up work.
I'm curious as to how much his new contract at the Tropicana is worth.
Why shouldn't Newton be responsible to repay HIS debt?
Poor Wayne. If only he lived his life like a real person he wouldn't be in this mess. When you become a star first you pay cash for a home, then cash for a car and then live like everyone does,paycheck to paycheck. Come on Wayne you dug the hole by being a bigshot so pay up and learn from this like i did back in 1970. I was a bigshot went broke but learned from it. NEVER FORGET EVERYONE YOU MEET GOING UP> someday you will see them on the way down. We will all pray for Mr.Smith he's going to need it if he thinks he will ever see his money.
Way to go, Burton! 38 acres on the hard corner of Pecos and Sunset. I see new development coming! You made a killing on purchasing the Speedway, developing and then selling the warehouse section. Hey! Would you sell the loan to me?
Bruton Smith did not become a billionaire by lending his friends money. I am sure in the back of his mind he knew he could steal the property if things fell through. I can't get my friends to lend me .75 for a soda.
What is there to feel sorry for? He has a clearly established pattern of financial mismanagement and overspending...fairly typical, just scaled up a bit. The only 'special consideration' he should receive is an expedient resolution for his creditors.
I am sad for Wayne Newton and family. The foreclosing lender has hired, as its lawyers, Greenberg & Traurig, a "national law firm" cobbled together with real btard lawyers gathered from each state where the firm has an office. Greenberg & Traurig disciplined my ex-secretary because she was a conservative Christian who wouldn't work on Sunday. Then they fired her for slipping and falling on their lobby floor, saying that because she was "too fat" she presented a liability risk.
And then, of course, Greenberg & Traurig's Miami office has, as its claim to fame, that they were the lead Florida lawyers for George W. Bush in the Bush v. Gore litigation which stole Florida's electoral votes.
This case isn't going to be pretty.
That is a lot of hay at $200 a ton and the large round bales weigh one and a half tons we are talking about 120 round bales of hay that weigh one and half tons per bale so the ranch has a total amount of land of five to seven acres. I do believe that with 120 round bales of hay that weigh a ton and half a piece that the MGM Big Room would be adequate to store the overflow of round bales of hay or perhaps some of the western stars could house some of their horses in the MGM art collection rooms and Wayne could charge for foder fees.
What the hell is wrong with Newton? Why can't he manage the money he makes any better?
Sorry Las Vegas does not "owe" Newton anything.
He has been very well compensated for whatever he has done.
Doesn't he fall into this type of mess every few years? Who's going to get the kangaroos?
I thought Wayne married this lawer gal who was personally managing their finances to keep him out of the crapper again..hmmm looks like they took a ride together. Now when will we hear the big D rumors...
White Trash, It appears that they think they do not have to pay their bills because of who they are. Bruton Smith is not someone I would want to cross. Looks like here comes the trailer park for Wayne and co.
WDM :
Show some respect man! This is the great Wayne Newton we are talkin 'bout here. I bet you have been late on a few bills in your lifetime..Don't presume to judge..
The "great Wayne Newton" is a deliquent financially like so many other Americans. Pay your bills, live within your means, don't ever think you are bigger than the little guy who struggles to avoid "being late on a few bills". No wonder the economy is in the crapper if everyone is willing to overlook other people's financial ineptitude.
so are the horses going hungry now?
I enjoyed Wayne Newtons' appearance on Roseanne.
All you haters can put your greater than thou comments where the sun don't shine...
Funny how most people cannot wait to knock people that have done well once they fall into a bit of trouble.
I would love to go over the Credit Reports of all the people knocking Mr. Newton in the comments above.
Life is a &^%$# and most people have up's and downs. Hope all works out well for Mr. Newton as he is a class act.
Wayne Newton must have gone to the Ed McMahon school of financial management. For Wayne Newton to be tapped out-at this stage of his life & with all the money he has earned over the years- is stunningly unbelievable. This guy never learned the concept of spending less than you earn.
Wayne Newton is a classic, iconic, entertainer-He never claimed to be perfect. What he did for Dana Plato back in the day will not be forgotten, hes a nice guy. A lot of people are struggling to keep up with property taxes, and medical expenses. Wayne is no different. Go see his show, to support our local economy.
Hell you can go to mine and I dont really care what it is... I dont act like I have money that is not really mine..Friendship is friendship,, business is business,, and its not good to get the two confused as being the same.. If he couldnt pay it,, he should have tried to sell it before it went this far..I only buy what I can afford,, the rest of it goes towards my kids.. If I could sell them I would be a millionaire from the money I would save...LOL...
I just can't believe some of the bad comments about a man that has given his whole life to entertaining millions of people in Las Vegas for 50 years now, not to mention the many out of state tours and the USO tours he has done for all of these years.
Wayne, is one of the kindest gentlemen you would ever want to meet. I know how very hard he has worked to have all of the things he has, and when a person is down and out you don't kick them down further, you jump in and try to be supportive of that person. He is a phenomanal talent and a wonderful man. If I know this man like I think I do, he will go down fighting. He has enough assets to pay this debt, and I am sure that he will take care of it as soon as he can. When he filed Chapter 13, back years ago, he paid everybody back early, and they got everything they were owed.
Wayne Newton, is and always will be "Mr. Las Vegas", and he is a man of his word!!!
He could not forsee what was going to happen with the economy anymore than we could. I know, we are struggling right now due to my husband being laid off work, but we are working on paying our debt just as Wayne will do. The people of Las Vegas are very fortunate to have Wayne living in their town. Please support him, don't hope that he goes under!!!
that shanendoah place is a dump. everything that can be seen from the street is completely unmaintained. that whole area is a dump for that matter...but it is close to the airport. smith gets it, tears it down and builds a monster "something".
jalopy cars, girdles, hair systems and facelifts can start to add up.
BobbyG 804 score is not that great.Your Debt to income is a factor also.I have seen 820 scores get declined in my industry. 804 is good enough to get a car or a house but 804 is right on the line for unsecured loans So do not toote your horn to load homey.Wayne Newton is a great performer and does deserve a little relief Yes he owes the money and i am sure if all these haters had a chance to meet him they would fell different about him Mr Newton is a very caring and giving person
who is wayne newton?
And you people whine about Obama saying to not blow their money in Vegas? Wait until this baby hits CNN and USAtoday.
I understand the homeless shelters are open.
Check out the site: waynenewtonsadfacts.info. Of course you will want to precede that with www.
First off, I'm sure Wayne is a nice guy, I'd like to meet him someday.
That being said, those of us who live a lot lower on the income scale (under 100k.....way under) have to pay our bills. If I'm 5 minutes late on a payment, it's interest rate increases, penalties, etc.
I imagine Wayne could play a few private parties here and there for rich people and raise 3 million in appearance fees in short order (well, maybe 5 mil to cover taxes).
Like the rest of us, If you don't make the payments, it's repo time.
Wonder what went wrong with his friendship with Smith? Oh yeah, MONEY. I also wonder how much of a discount he got on the paper from B of A? He may stand to make a million.
I rarely lend money to anyone and if I do (to a relative), I do so knowing I may or may not get it back and "lend" accordingly without letting that strain a relationship. Of course, mostly I just say NO.
BobbyG :
We could care less about your stupid FICO score Mr. "Former" Bank Risk Mgmt employee. You on unemployment now? Doesn't look like your industry managed it's risk very well. Leave Wayne alone, he's achieved ten lifetimes more than you could ever dream of..
all i can say is this: Wayne Newton many years ago had problems in New Haven CT - dont know the details - but when he came to CT at the foxwoods - some people yelled out New Haven and he kinda just laughed - think he had to testify against some shady characters. Soooo looks to me that he has been dealing with this a long time. Smith who owns the race track - probably has enough trouble trying to sell the seats for the race in a few weeks and is sick of Wayne trying to avoid paying him.
Wayne if you read these comments : Start on a payment plan like us middle class folks do. - and you cant even sing anymore. OH they have room on boulder highway at the suites - you can rent there each month.
Sorry - but he isnt any better than the rest of us.
As a Wayne fan,it pains me to see this . But,on the other hand,if Wayne needs $,I would be glad to take his black Ferrari Daytona Spider off his hands cheap.
Sadly, Wayne Newton has lived "fat" for years, gotten in financial messes, gone bankrupt and then he magically surfaces again. You would think after all this bs he has gone through, he'd learn. But no...so, time to unload the horses and do whatever needs to be done to "make it right". Wayne Newton goes out of his way to do many charitable things for kids, soldiers and plain old folks like me. Yes, it's sad, but the haters are unhappy little cretins who love to see celebs crash and burn. What unselfish, charitable acts have you haters done? I daresay NOTHING! Why kick someone when they're down? Or maybe that's it, the haters keep getting kicked and feel better after posting their anonymous bs. And by the way, NO ONE gives a crap about anyone's FICO score - it means nothing these days!
BobbyG :
804. congratulations, you are obviously very proud of it. please impress the hell out of us all some more, big shot.
I'm not sure if it's the same jet, but one of Newton's jets sits less that 2mi from here in Michigan. Newton contracted some work it be done, than has not paid the bill in ages. The plane has rotted to the ground and is no longer air worthy. Newton's people have been contacted many times, yet it still sits.
Guess it's time to name a new "Mr Vegas"?
an "ordinary guy" who brags about an 804 fico? please.
Hey does anyone know what his Ranch at Pecos & Sunset is worth? One would think he could sell that place and get out of debt no problem but if thats not enough then I guess he can drop kick everything in Bank. Court. Assuming he can get by living on less than 38 acres.
Maybe he can get a job working for the Clark County Fire Dept, or run for state Senate. He would make a great Mayor for Las Vegas.
People! EVERYBODY is experiencing difficulties and Wayne is no exception. We are a Debtor nation and fortunes are gained and lost and most by a simple handshake doing business with "friends". The beauty of our country is our legal system as flawed as it may seem sometimes beats the heck out of anything else in the world.
Bruton Smith will get his money one way or the other and Wayne will never have to stand out on a street corner asking for a handout! Let's focus on what makes this country great, our freedom to reach the top and fall, only to rise again....God bless!
Newton has been a 'grifter' for years. A couple of years ago he wouldnt pay his muscians for rehearsals.
I hope he takes his tacky horse statues with him, when his is booted out.
bobby,
who's angry? you? i was just making fun of a geek who actually brags about his fico. that's hilarious. and dude, i don't care if you're gay and all, but please stop blowing me kisses, i'm just not interested.
He is a Bush lover, and one of these support the troops hollywood conservative types. He should go live with Rush Limbaugh.
Shame,Shame,Shame....Do I feel sorry for him? NA....get in line there are far more people ahead of you requiring a tear or two and more.
Wayne sucks....he is responsible for global warming and where EXACTLY was he when Kennedy was shot....hmmm
Why in the hell do so many stars, who make more money in a month than average joe in a lifetime, and yet rather than pay their bills and/or taxes feel they can just spend spend spend without fear of consequences when the well runs dry? I have no sympathy for Newton - he's made a boatload of money - should paid his mortgage BEFORE fueling the helicopter, boat or jet....
Sorry dsteele- no 'aw, poor Wayne' here..... when people make the kind of money he has made and choose to live high off the hog BEFORE paying their bills they wind up getting what they deserve, regardless of however much 'good' one may feel he's done for others.... pay up Wayne or hit the road - just like the rest of us poor slobs would have to do - no special dispensation for you, Wayne. BTW, maybe some of those botox injections could have paid a hefty part of what you owe - as a matter fact I'm SURE it could have . Learn to grow old gracefully, plastic man.
Didn't whoopie goldberg already call out Wayne Newton a few years ago when he lost his _ss before? I just tried to find the clip on youtube, but couldn't. I did however, find an old pic of Wayne in 1963..he looks like the HOFF. No old farts (environprotector)...I mean David Hasselhoff...not Jimmy Hoffa.
I think Bruton would like to be compensated either in cash or takeover the Shanendoah property and make an open wheel dirt track complex out of the place....
Wayne always had that lavished overspending lifestyle that keeps him in financial trouble, sure he is a nice guy and all, however you dont stiff your collegues, and you dont stiff your friends that loan you dough...
As they say, once a deadbeat, always a deadbeat...three more notorious famous deadbeat names to add in the mix : OJ Simpson, Michael Jackson, and former LA Dodger Steve Garvey (Pretty sad when Steve made over $2 million a year from a business while having the electricity disconnected as repo personnel were waiting in line to take back those pride possessions that were purchased thru credit).
Also funny when the IRS sends these deadbeats a levy notice, they always seem to finally pay up, with penalty and interest accured.
This reminds me of another deadbeat, Steve Garvey, the former baseball player. A few years ago the LA times reported that he owed a lot of money to different people. I wonder how he's doing now. I've only seen him in the Bosley hair restoration ads.
I can see it now.....
From being a top performer that has entertained at virtually every famous place in Las Vegas over a 50 year span, to now standing on the corner of Sahara and Las Vegas Blvd. holding up a homeless vereran sign and a monkey cup while wearing a USO cap.
Directions to the Wayne Newton Museum...glad you asked - just follow any road in any direction til you see the turquoise and brown building with the yellow and white lettering that says : SUPER PAWN.
veteran too
Dear Wayne,
Pay your bills like the rest of us have to do. You still owe me $100 for the crappiest show I've ever seen in 1975. I still want my money back.