Rapper Hammer was hit with a lawsuit earlier this
month due to allegations that he placed his residence in a trust fund to avoid
collection of a debt.
A lawsuit filed by Newstyle Media, based in Anaheim
Hills, California, claims that hammer used his Stanley Burrell Irrevocable Children’s
Trust fund to hide ownership of his Tracy, California home.
According to local records Hammer has lived in
the house since 1997, but between 1997 and 2002, the title was in another mans
name.
The issues started when Hammer allegedly agreed
to pay Newstyle Media over $250,000 to produce and distribute a CD.
Newstyle claimed it shipped almost 600,000 CD’s
in November of 2001, when Hammer dropped another album, Active Duty, on his
own label.
Newstyle claims Hammer transferred the house
into his trust’s name, so it couldn’t be listed as an asset during the debt
collection process.
Hammer said that accusations were ridiculous
and that he didn’t remember doing business with the company.