Kathy Ireland is speaking out about her lawsuit against multiple former business partners, alleging she was defrauded of more than $100 million over several decades, leaving her in a rocky financial situation.
Ireland is Sueing
The lawsuit was filed on March 9th in Santa Barbara.
It alleges Ireland’s business partners engaged in fraud, financial abuse, theft, and misrepresentation, breaching fiduciary duties and contractual obligations while concealing and improperly taking funds over decades.
She spoke out about the lawsuit in an interview with ABC News’ Nightline. She shared the personal toll the alleged scheme had on her.
“My old job description long ago was ‘Shut up and pose.’ And I reject that, and I’m not going to idly stand by and allow anyone to lie, to abuse, to hurt my family, and to hurt others.”
The Defendants
Defendants listed in the lawsuit include five names. Gay couple Jason Winters and Erik Sterling, couple Stephen Roseberry and Jon Carrasco, and Brittany Duncan.
Winters and Sterling managed Ireland’s affairs for more than 35 years, Roseberry and Carrasco held roles at kathy ireland Worldwide, and Duncan, who is the current CEO of kathy ireland Worldwide.
The complaint also notes that Roseberry and Carrasco were adopted as adults by Winters and Sterling.
Ireland’s Past Success
Ireland first rose to fame in the 1980s and 1990s as a Sports Illustrated Swimsuit Issue cover model.
After her stint in modeling, Kathy Ireland switched to business. She created a licensing company called kathy ireland Worldwide, which quickly became a massive licensing empire.
Through her company, she put her name on a Kmart clothing line, home furnishings, and countless other products.
Forbes once named Ireland one of the most successful self-made women in America, worth an estimated $420 million.
The Lawsuit
The lawsuit filed by Ireland and her husband, Greg Olsen, claimed their family was “betrayed on a staggering and unconscionable scale,” with losses possibly exceeding $100 million.
It says the defendants were given power of attorney and “complete control” over finances, in which they promise to “take care of everything.” Ireland was never paid a salary; instead, the money was allegedly being invested.
However, the lawsuit claims Ireland’s business partners “took it,” treating Ireland and her husband like “work horses and piggy banks.”
The defendants allegedly opened multiple credit cards in Ireland’s name, ran up debt, and paid minimum balances. Plus, they opened cards in other people’s names, too, including a housekeeper.
According to the complaint, more than $8 million was taken from Olsen’s earnings, a $400,000 inheritance was taken, and a $150,000 SBA loan was taken out in Olsen’s name by one of the managers.
Ireland noted that the personal financial fallout forced her to sell her home, and are now left without substantial savings.
The lawsuit states, “There is no wealth securing their retirement and their children’s futures, as they were led to believe. Instead, in the wake of Defendants’ misconduct, there was staggering debt, misused credit, secret loans, and missing funds.”
Ireland shared with ABC, “My focus was on the work we were doing, was on our customers.”
Red Flags
During her interview, Ireland noted the first time red flags appeared.
“Our son and his wife purchased a house on their own, and we wanted to help them out. And our son said, ‘If you and dad could co-sign, that would be great.’ And when we denied the right to co-sign because our credit had been destroyed, that was a big red flag.”
Ireland touched upon this in the complaint, stating they “still do not know the whole story” of the “staggering debt, misused credit, secret loans, and missing funds.”
Ireland added to ABC, “We believe our bills were being paid, and they were not.”
Jill Basinger, Ireland’s attorney, also made a statement about the misconduct.
“What we have uncovered so far is just the tip of the iceberg. Kathy’s managers used their position of trust to enrich themselves while constantly misleading Kathy about the state of her and her family’s financial health. The bill has come due. Sterling and Winters are going to have to answer for their actions.”
Defendants Speak Out
Some of the defendants have spoken out about the lawsuit.
Duncan shared a statement online, calling Ireland’s lawsuit “a publicity-seeking effort” tied to an ongoing $25 million dispute involving Ireland and her husband, and that the allegations are “knowingly false, baseless, deceptive, slanderous and disingenuous.”
Duncan added that “at no time” did the shareholders act as business managers and instead “supported Kathy Ireland in every possible way.”
Other defendants spoke to ABC News, claiming that “all loans in question bear Kathy Ireland’s signature,” and that those involved “have been partners and equal shareholders from the outset, not business managers.”
Ireland’s Parting Message
While she has made allegations about the company, Ireland is now “in full control” with a new executive team.
Looking back at her past, Ireland has acknowledged some of her decisions may have been “naive.” However, she hopes others use her as a learning experience.
Her message to her former business partners?
“I hope the best for them. You don’t get to hide behind me and do things that I would never approve of; that I would never say are okay. Do the right thing and tomorrow will be better than today.”