Kylie Jenner is reportedly refusing to answer calls from her ‘momager’ Kris after Forbes declared she faked her way to her billionaire status.
According to The Sun, the beauty mogul, 22, is believed to be keeping her distance from the Kardashian/Jenner matriarch, 64, amid the highly-publicised scandal.
Earlier this week, the same media company that named her ‘the youngest self-made billionaire’ in 2018 alleged the reality star fabricated financial documents to support the false claim that she was – a report she has since vehemently denied.
Drama: Kylie Jenner is reportedly refusing to answer calls from her ‘momager’ Kris after Forbes declared she faked her way to her billionaire status (pictured together last year)
A source said: ‘Kris – who reportedly gets ten per cent of Kylie’s deals – is in panic mode.
‘Kylie won’t answer the phone to 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.’
The publication also said the mother-and-daughter duo are ‘freaking out’ and ‘fear’ the recent report will ‘hurt their brand, and even worse, they could be in trouble with the government’.
MailOnline has contacted Kris and Kylie’s representatives for further comment.
Claims: According to new reports, the beauty mogul, 22, is believed to be keeping her distance from the Kardashian/Jenner matriarch, 64, amid the highly-publicised scandal
Earlier this week, the same media company that named her ‘the youngest self-made billionaire’ last year alleged the reality star fabricated financial documents to support the false claim that she was – a report she has since vehemently denied.
Top financial fraud attorney Jan Handzlik told DailyMail.com on Friday that Kylie could face a criminal investigation over the alleged exaggerations.
‘My guess is that at a minimum the SEC (Securities Exchange Commission) will begin what they call an informal inquiry and then perhaps elevate that to a formal investigation, which gives them subpoena power,’ Handzlik said.
He added: ‘In this matter you’ve got a mixture of things that may lead to both civil and criminal scrutiny early on: obviously the celebrity aspect, the large amount of the alleged exaggeration, and the highly public nature.
‘All of this is like catnip to a prosecutor or the SEC, because it will lead to very heavy coverage of what takes place.’
Scandal: The same media company that named her ‘the youngest self-made billionaire’ in 2018 (pictured) alleged she fabricated documents to support the false claim that she was
After the bombshell report emerged, Kylie, who shares daughter Stormi, two, with ex Travis Scott, took to Twitter to slam Forbes.
Jan Handzlik, who served five years as a federal prosecutor in LA and now defends celebrities and big companies in financial fraud cases, said the alleged exaggerations could land Kylie in a world of legal trouble
The KUWTK star penned: ‘What am i even waking up to. 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.'[sic]
She followed up with a quote from the Forbes report that accused the Jenners and their accountant of producing false tax returns: ‘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,’ [sic] the media personality added.
‘but okay i am blessed beyond my years, i have a beautiful daughter, and a successful business and i’m doing perfectly fine.’ [sic]
Forbes put Kylie on the cover of its women billionaires in 2018, named her the world’s youngest self-made billionaire in 2019 and again earlier this year.
The TV star, the youngest sibling of the Kardashian/Jenner family, started her make up line with lipstick kits in 2015.
Kylie Cosmetics signed a deal with Ulta Beauty Inc to put her products in all of the retailer’s 1,163 U.S. stores.
Hitting back: After the bombshell report emerged, the KUWTK star, who shares daughter Stormi, two, with ex Travis Scott, took to Twitter to slam Forbes
Impressive: Kylie, the youngest sibling of the Kardashian family, started her make-up line with lipstick kits in 2015 (launch of her brand in Houston’s Ulta Beauty pictured in 2018)
The controversy has exploded around a $1.2 billion deal for the brand, in which Kylie sold a 51 percent stake to makeup giant Coty for $600 million in January.
At the time, Wall Street suspected Coty may have overpaid for the majority stake. The worries were fueled by new financial disclosures made by the publicly listed company, which revealed earnings for Kylie Cosmetics were far lower than Kylie previously claimed.
As part of a relentless campaign to get Forbes to rank Kardashian-Jenner family members at the top of their richest list, the celebrity family had told the magazine Kylie Cosmetics made $360 million in revenue for 2018.
Reports: The controversy has exploded around a $1.2 billion deal for Kylie Cosmetics, in which Kylie sold a 51 percent stake to makeup giant Coty for $600 million in January
But Coty’s SEC documents revealed the figure was in fact about $125 million – less than a third of their claims.
The magazine reported that Kylie’s representatives told them her new skin care line, which launched in May 2019, made $100 million in revenue in its first month and a half.
But Coty’s figures show the product line ‘on track’ to make only $25 million in sales for the year.
In Forbes’ bombshell article that downgraded Kylie’s net worth from more than $1 billion to just under $900 million, the magazine claimed the family likely showed them tax returns with ‘false numbers’.
‘While we can’t prove that those documents were fake (though it’s likely), it’s clear that Kylie’s camp has been lying,’ the report said.
All change: Coty, which has been struggling with falling sales, saw a share increase of 5 percent following the announcement last year. The share price was at $12.32
Decline: Shares have slightly dipped to $3.60 (pictured on Friday)