SANTA MONICA (CN) – Actor Ken Wahl says his former business manager, Henry Levine, embezzled from him and was secretly working for Wahl’s ex-wife when Levine persuaded him to transfer most of his community property to her when they divorced 1991.
Wahl, the star of the “Wiseguy” television series, claimed he is now destitute as a result of mismanagement by accountant Henry Levine. Wahl’s acting career effectively ended after a 1992 motorcycle accident but, according to the suit, Levine diverted a $500,000 insurance settlement and tried to force Wahl back to work despite being disabled.
“Defendant tried to make plaintiff believe that he was fabricating or hallucinating his injuries, the money, and the settlement,” the suit said.
As a result, Wahl tried to work on a film after surgery but had to be rushed to a hospital after suffering a seizure during filming.
Levine allegedly secretly also represented actress Corinne Alphen and convinced Wahl, during the couple’s divorce, to give her a mansion in Malibu, an estate in Boston, and the contents of both homes. This represented about 80% of the actor’s net worth at the time, but he said he agreed because Levine told him his net worth was much greater and that he would make back the amounts he gave up in a short time.
Levine also allegedly picked Wahl’s divorce lawyer and handled communications with him.
Last year, Wahl said the IRS told him he owed $250,000 in back taxes as a result of a risky tax shelter investment made by Levine. The government also may be taxing Wahl’s disability pension because Levine may have improperly made contributions to a Screen Actors Guild pension fund.
Documents recently recovered by Wahl’s representatives also allegedly show that millions of dollars were withdrawn from Wahl retirement accounts when Levine was fired in 1998 “for the unauthorized person use of the defendant Levine or his ex wife.”
The suit says the actor is now “living quietly and modestly. He is married and his wife is his primary caretaker. They own no real estate, (and) have no monetary assets.”
The complaint was filed by Susan Balistocky. Screen Actors Guild is also named a defendant.