Jackson trial: Pop star was 'tapped out,' millions in debt

Despite receiving millions of dollars annually from his song catalogs, Michael Jackson year after year spent more than he earned, including $30 million in annual debt payments, a forensic accountant testified Monday, according to the New York Times.

William R. Ackerman, testifying as a defense witness on behalf of AEG Live in the wrongful-death trial, offered a detailed look at the singer's finances, telling jurors that Jackson spent money on donations to charity, gifts, travel, art and furniture.

"He spent a lot of money on jewelry," Ackerman said with a chuckle.

Neverland Ranch \- which Ackerman called "a mini-theme park," with its maintenance staff, zoo and train that traveled around the property - was also a huge drain on his income, the certified public accountant testified.

Still, he said, “consistently, his largest expenditure was interest expense. He spent a ton of money on interest.”

Jackson's biggest expense was $30 million in annual payments on his debt when he died in 2009.

Interest on the loans grew over the years, ranging from a little less than 7% to 16.8% annually, Ackerman said in a downtown Los Angeles courtroom.

As early as 1993, Jackson owed $30 million, a figure that grew to $140 million by 1998. From June 2001 through June 2009, Jackson's debt increased by about $170 million. When he died, Jackson owed $400 million to $500 million, Ackerman testified.

Ackerman said Jackson received no loans after 2007, and at the time of his death, he was three to four months behind on payments for the San Fernando Valley home where his mother lived.

"He was tapped out," Ackerman said.

The CPA is the latest high-priced expert to testify in the trial. Ackerman said his company has received $825,000 for its work on the trial. Concert promoter AEG Live has spent around $1.5 million on experts to testify about Jackson's financial condition, which could be a key factor in how much damages the firm could owe Jackson's mother and three children.