Despite all that’s happening, the Kempers have managed to maintain an upbeat facade. Ross, a businessman based in Beverly Hills, and his wife Linda, who inherited her father Kirk Kerkorian’s massive fortune, were among those attending the U.S. premiere of a Colombian director’s magical realist film at TCL Chinese Theatre. At the same time, their eldest daughter, Tess, aged 25, a former international socialite who is growing her presence as an influencer in lifestyle trends, has been actively engaging with her over 22,000 Instagram followers by sharing her daily outfits.
This affluent family, recognized both among friends and acquaintances as descendants of the renowned Hollywood mogul Kerkorian, who previously owned MGM, are prominent figures in the city’s high society. They have schooled their three children at one of the area’s top private institutions, Harvard-Westlake, spent summers in the French Riviera, donated to Children’s Hospital Los Angeles and lived in a luxurious Beverly Hills mansion overlooking Sunset Boulevard (not counting their beachfront home in Malibu Colony). A decade ago, they attracted media attention with reports of spending approximately $450,000 on an elaborate James Bond-themed bar mitzvah celebration for their son. This event took place at The Beverly Hills Hotel and boasted performances by Nick Jonas as well as Iggy Azalea, whose rendition of her collaboration with Jennifer Lopez, “Booty,” included such energetic twerking that Azalea’s pants actually tore apart. (It’s worth noting that the James Bond franchise has long been a valuable asset for MGM.)
Currently, there are indications suggesting potential troubles hidden from public view regarding Ross’s residences. Both properties have fallen behind on payments, leading to American Express, Ferrari, and other creditors pursuing Ross for outstanding debts. Additionally, the parents have resolved one lawsuit that accused them of exploiting a financially vulnerable elderly woman, a client of their business manager. Since then, they’ve been defending themselves against various legal claims alleging fraud or contractual breaches concerning Doll Face, a beauty brand focused on youth, which the family owns and Tess claimed was given to her as a gift during her teenage years.
In a recently filed lawsuit over a Doll Face-related issue, a Hong Kong lender claims Ross is using a strategy to accumulate large debts, often through family members and intermediaries, with no intention of repaying the loans. This tactic, the lawsuit alleges, involves forcing creditors to take legal action as a means of negotiating for a reduced payment. The suit also mentions that Ross had agreed not to use any loan proceeds for personal or household expenses, such as mortgage payments. However, the leader of the lending firm asserts in a sworn court affidavit that Ross’ associate, Tess, assured them the funds would be used appropriately.
Why does it seem that the heirs of a man once considered Los Angeles’ wealthiest are now facing financial difficulties? What events have led so many disgruntled people and organizations to take legal action against them all of a sudden?
The family chose not to discuss the matter with The Hollywood Reporter. Instead, they issued a statement through their representative: “The Kempers are unable to comment on the issues The Hollywood Reporter has brought up because of confidentiality agreements that are part of settlements. It’s possible for anyone to make claims in a lawsuit, regardless of their truth. Sadly, this is the reality we live in today. The Kempers are proud of their professional, philanthropic, and social accomplishments. The instances mentioned by The Hollywood Reporter are exceptions in their 33-year marriage. All but one of the issues have been resolved, and their lawyer is currently negotiating a settlement for the remaining matter. The Kempers value their privacy. This story exists only because Linda’s father was well-known.
***
Linda, aged 58, is the daughter of Kerkorian who was married to Jean Maree Hardy, a Las Vegas showgirl. The name of his Tracinda business conglomerate and Lincy charitable foundation were both chosen in honor of Linda and her sister, Tracy. This self-made tycoon, an Armenian American with vast investments spanning industries such as aviation, automobiles, gambling, and hospitality (with many top Las Vegas casino resorts under his management), once boasted a net worth of $16 billion, according to Forbes. However, following the 2008 economic downturn, his wealth significantly declined. He was previously recognized as the wealthiest resident of Los Angeles.
As a devoted admirer, let me share that I’ve always been intrigued by Kerkorian’s unique approach towards media. To shield himself from the glare of the press, he enlisted the help of Mike Sitrick, a renowned crisis management expert. This seasoned professional has navigated court-of-public-opinion challenges for high-profile figures such as Vince McMahon, Paris Hilton, ICM, and even the Grammy Awards. When an attorney who had previously worked with Kerkorian failed to suppress a particular story, Sitrick was called in to assist the Kempers in their response.
In 2008, one of Kirkorian’s numerous lawyers, Terry Christensen, was found guilty of collaborating with infamous private investigator Anthony Pellicano to illegally tap Kirkorian’s third wife, Lisa Bonder, during a child custody dispute. However, it was later confirmed that this alleged daughter was actually the biological child of the late film financier Steve Bing. Despite this, she received $8.5 million from Kirkorian’s estate following his demise.
Upon Kerkorian’s passing in 2015 at the age of 98, his estate was valued at approximately $2 billion. A significant portion of this wealth was donated to various charitable causes without specifying the details. However, a trust had been set up earlier for Linda’s benefit. The specifics of this trust are kept confidential, but it is presumed that the amount allocated to her was significantly greater than what was given to Bonder and Bing’s daughter.
The troubles for the Kempers seem to have begun when they were accused of financial elder abuse by Lisette Ackerberg, an 85-year-old widow with advanced Parkinson’s disease, Bell’s palsy, and multiple health issues, in 2022. She claimed that the couple, along with a business management firm they all shared, unlawfully took money from her bank account – a sequence of over a dozen unauthorized withdrawals amounting to $355,000. She argued that the Kempers were aware or should have been aware that they were receiving large and inappropriate sums from her because “they did not sign any promissory notes or other documentation as would be expected if these amounts were legitimate loans.”
In the Ackerberg case, a fellow defendant alongside the Kempers was money manager Ken Hellie. In 2019, he resolved a different lawsuit filed by his ex-clients, Alyssa Milano and her husband David Bugliari, who claimed that Hellie had mismanaged their finances and forged Alyssa’s signature on checks. A set of Limited Liability Companies linked to Ross (aged 67) are associated with Hellie, but he did not provide a comment in response to The Hollywood Reporter’s request.
In January 2023, the Kempers resolved the Ackerberg issue under confidential conditions. Since then, they’ve managed to keep lenders at bay for both their properties. Notably, Ross, who has a history in commercial real estate (his ventures range from retail spaces in downtown San Francisco and Chicago’s iconic Palmolive tower to East Hampton), is currently facing a bank that claims he missed monthly payments on a large loan for a Streamline Moderne-style apartment building he owns near Soho House West Hollywood. Additionally, the Kempers have been pursued by a different business management firm in court over compensation.
Beyond the loan from the Hong Kong lender, others argue that Ross has not fulfilled his obligations regarding loans and other financial commitments. One of the disappointed investors, who stated in court that they lost over $1 million, mentioned they had been personal friends of the couple for years before the deal turned sour. This individual was friendly with the couple prior to the transaction’s downfall.
Multiple parties, in their lawsuits concerning Doll Face, claim that the Kempers stated they needed additional capital to buy stock for meeting supplier deadlines. However, as the Hong Kong bank asserted in its September 2024 fraud accusation, Ross allegedly misrepresented the loan’s purpose for Doll Face, instead using the funds to cover personal expenses and pay off previous debts.
***
About 10 years back, Ross teamed up with Tom Winarick, an experienced professional in the skincare industry, to purchase Doll Face – a classic beauty brand known for its ’40s-inspired product design. They later modernized the packaging to appeal to millennials and unveiled their revamped collection at Henri Bendel, a high-end retailer in Manhattan.
Tess, who had previously studied at Harvard-Westlake, revealed in 2012 to her school’s newspaper that her parents gifted her the makeup brand “Doll Face” for her 15th birthday, knowing her passion for cosmetics. She mentioned that her father purchased the brand as a future venture for her upon graduating college. (Subsequently, she attended Cornell, where Ross is part of the business school’s Dean’s Advisory Board.) Tess stated at the time that her father intended to buy an established company to avoid the hassle of creating a new one. She also shared that she was involved in the design process for the packaging.
Over the years, Doll Face has earned a reputation for being environmentally conscious (using 100% recyclable packaging), compassionate (testing products on celebrities instead of animals), and fair trade (striving to do so whenever possible). A glimpse into Tess’ product marketing endeavors can be found on Doll Face’s Instagram, where they regularly share behind-the-scenes videos.
2017 saw Tess participating at the prestigious Bal des Débutantes held in Paris. This event, steeped in history, has seen the introduction of young women from prominent families such as Lady Kitty Spencer, Delphine Arnault, and Barbara Berlusconi, alongside various political figures, and numerous celebrities including Lily Collins, Margaret Qualley, Billie Lourd, and this year’s addition, Apple Martin. Prior to the event, Tess shared her thoughts on Doll Face in an interview with beauty magazine Coveteur, stating, “We’ve been revamping it for quite some time.
Winarick had been leading the operations at Doll Face since its acquisition in 2011, but he left in February 2023 without disclosing the reason, due to a confidentiality clause. A month later, Tess assumed the position of Creative Director within the company. She has also been identified as the company’s president. Her connection with Gen Z influencer Sofia Richie Grainge, which has sparked global tabloid news and numerous Reddit discussions, adds an exciting element to the brand. (Tess deactivated her social media accounts following contact from THR.)
It’s uncertain if Doll Face continues to operate, as there has been no response from the Kempers regarding its current status. Despite this, their products are still being offered for sale at various European cosmetics and drug stores, as well as locally at Rite-Aid. However, Rite-Aid’s spokesperson mentioned that they are currently facing a shortage of Doll Face stock. Employees from several Rite-Aid branches have separately informed THR that they haven’t received a Doll Face shipment for months.
Regardless of whether it’s simple accounting mistakes, temporary financial struggles, or something more questionable, the Kempers are choosing to remain silent about their current situation. Following in the footsteps of the secretive businessman Kerkorian, they believe that keeping quiet is the wisest course of action. With Kerkorian’s trusted legal and PR advisors now guiding them, they are sticking to this approach.
The article you’re reading was published in the January 3rd edition of The Hollywood Reporter magazine. If you’d like to receive more such content, consider subscribing.
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2025-01-07 18:55