The Keeping Up with the Kardashians starlet has been touted as the youngest self-made billionaire for some time. However, at the end of May, that all came crumbling down. In a scathing expose, titled “Inside Kylie Jenner’s Web Of Lies — And Why She’s No Longer a Billionaire” Forbes says that Jenner and her mother/manager Kris Jenner faked the makeup mogul’s billionaire status. Though Jenner hopped on Twitter to clap back at Forbes, things aren’t looking too great.
All of this has reportedly caused a rift between Jenner and her mother, and now, her beauty brand is under investigation. In a lengthy and rather scathing report, Forbes lays out how Jenner and her mother seemingly created the illusion that she is a billionaire, even though the numbers ultimately don’t add up. “Kylie’s business is significantly smaller, and less profitable than the family has spent years leading the cosmetics industry and media outlets,” Forbes reported.
They went on to say that the KarJenners have been obsessed with welcoming Forbes into their family homes and CPA’s offices where they presented false reports and statements about Kylie Cosmetics. “If Kylie Cosmetics did $125 million in sales in 2018, how could it have done $307 million in 2016 (as the company’s supposed tax returns state) or $330 million in 2017?” they asked. The fact that Forbes claims Jenner’s camp has fabricated tax documents and financials is the most damning.
Jenner, who has spent quarantine in her new $36.5 million home is reportedly beside herself about this ordeal. “What am i even waking up to,” she tweeted. “i thought this was a reputable site…all i see are a number of inaccurate statements and unproven assumptions lol.
i’ve never asked for any title or tried to lie my way there EVER. period. even creating tax returns that were likely forged’ that’s your proof? so you just THOUGHT they were forged? like actually what am i reading. but okay. i am blessed beyond my years, i have a beautiful daughter and a successful business and i’m doing perfectly fine.”
Though she tried to appear nonchalant about the entire thing on her social media accounts, the makeup mogul is reportedly furious with her mother. “Kris—who reportedly gets ten percent of Kylie’s deals–is in panic mode,” a source told The Sun.
“Kylie won’t answer the phone for Kris and is at a loss over who to trust. Kris is petrified Kylie could sack her or cut her off so tensions are at an all-time high. Kris and Kylie are freaking out and fear that this is going to hurt their brand, and even worse, they could be in trouble with the government.”
Now, all eyes are on Jenner’s lavish spending. According to Page Six, the mother of one has burned through $130 million in the last year alone. Coty, the brand that owns Kylie Cosmetics is also under investigation by three law firms regarding possible violations of federal securities laws.
The cosmetics brand got 51% state of Kylie Cosmetics on November 18, 2019, for $600 million. Then in January 2020, the company purchased 51% of Kylie Cosmetics for $1.2 billion. Forbes says that that Coty paid way too much money for what the brand is actually worth.