Kathy Ireland alleges decades-long fraud in lawsuit against business partners
Kathy Ireland is speaking out after accusing multiple business partners of orchestrating what she describes as a decades-long scheme that devastated her finances, according to a lawsuit.
In a sit-down interview with ABC News' Juju Chang on "Good Morning America," the model-turned-mogul alleged the management of her business empire was "a sham," claiming her family was "betrayed on a staggering and unconscionable scale" to the tune of more than $100 million over three decades.
"My old, long-ago job description was, 'Shut up and pose.' And I reject that," Ireland told "GMA" in the interview, which aired Friday. "And I'm not going to idly stand by and allow anyone to lie, to abuse, to hurt my family and to hurt others."
Ireland rose to fame in the 1980s and 1990s as a "Sports Illustrated" Swimsuit Issue cover model.
She later pivoted from modeling to business, with Forbes naming her one of the most successful self-made women in America, with an estimated net worth of $420 million.
Through her company, she has promoted countless products bearing her name, sold in stores nationwide and on HSN.
Ireland said one of the red flags that raised concerns about her family's finances came when she and her husband were denied the ability to co-sign for their son and daughter-in-law's home because their credit had been destroyed.
"Our son and his wife purchased a house on their own. They had to move ... and we wanted to help 'em out," she recalled. "Our son said, 'if you and dad can co-sign, that would be great.' And when we were denied the right to co-sign because our credit had been destroyed, that was a big red flag."
When asked what caused the damage to her credit, Ireland said, "I don't know all of it. But we believed our bills were being paid, and they were not."
She said her reaction to discovering the situation was "shock."
Ireland and her attorney, Jill Basinger, told ABC News they are still trying to determine where the money may have gone.
"We suspect they took out a mortgage on the house," Basinger said. "We suspect that, even though there was a life insurance policy purchased, that they somehow took the equity."
Ireland also described the emotional toll, including concerns about her financial future after learning they may not have a retirement fund.
"We're discovering and we're learning. I'm really grateful. Our kids are amazing," she said.
She says the situation has forced her to make difficult financial decisions, including selling her home.
"You've had to make some tough financial decisions, including selling your home,” Chang noted.
"Right," Ireland responded.
Chang also pressed Ireland on how her public image as a highly successful businesswoman aligned with her claims about lacking insight into the company's management.
"Yeah. My focus was on the work we were doing. It was on our customers," Ireland said.
In a statement to ABC News, the defendants disputed Ireland's claims, saying the matter stems from an alleged $25 million fraud claim brought against her last year.
They called her allegations "false, defamatory, and unsupported by any documentation," adding that all loans in question bear Ireland's signature and that those involved were "partners and equal shareholders from the outset, not business managers."
Basinger pushed back on that defense.
"I guess my answer is so what? Let's say they were business partners. Does that make stealing OK? Does that make not being truthful with Kathy okay? Does that make hiding things OK?" Basinger said.
Ireland also shared a message for her former partners.
"I hope the best for them. I do not and that does not include continuing in this," she said. "You don't get to hide behind me and do things that I would never approve of, that I would never say were OK...Do the right thing, and tomorrow will be better than today."
