Financial woes at Neverland Valley Ranch could be over by Monday

Jackson scrambles to fix Neverland problems By Scott Steepleton March 10, 2006 12:19 PM Financial woes at Neverland Valley Ranch could be over by Monday. Michael Jackson's business office is scrambling to reinstate workers compensation insurance for the 69 employees at his Los Olivos ranch, and that policy should be in effect today or Monday, the News-Press has learned. "I have no doubt that it will be worked out very soon," Jackson spokeswoman Raymone Bain told the News-Press. A state investigation allegedly shows Mr. Jackson has not paid some employees since late December, and the required workers comp policy lapsed in January, authorities said. He is being asked to pay about $470,000 in back wages and fines. Dean Fryer, spokesman with the state Department of Industrial Relations, tells the News-Press today: "We're still in contact with his representatives at the ranch, and they're still attempting to secure workers compensation insurance." State to sue if Michael Jackson doesn't pay workers by Tuesday Associated Press LOS OLIVOS, Calif. - State regulators said Friday they will go after Michael Jackson in court if he fails to meet a Tuesday deadline to pay $100,000 in penalties and $306,000 in back pay owed to nearly 50 workers at his Neverland Ranch. "If they don't comply then we file suit to get a judgment," said Dean Fryer, a spokesman for the California Department of Industrial Relations. The ranch operators have until the close of business Tuesday to pay up. "It's pretty clear that they owe this money," he said. "We've got all these wage claims. People are telling me they haven't been paid from Dec. 19." Jackson spokeswoman Raymone K. Bain said the entertainer was on a plane from London to the Persian Gulf nation of Bahrain most of the day on Thursday after traveling in Europe. She said he learned of the situation at Neverland when he arrived in Bahrain late in the day, but she had been unable to discuss it with him because of the time difference. "He's been made aware," Bain said. "I'm sure this will be resolved." Jackson, who has been living in Bahrain since being acquitted of child molestation charges last year, has been rumored for some time to be in financial trouble. Forensic accountant John Duross O'Bryan testified at Jackson's trial that the entertainer had an "ongoing cash crisis" and was spending $20 million to $30 million more per year than he earned. There have been rumors - repeatedly denied - that Jackson might sell some of his assets, which include the ranch, several homes and a stake in the Beatles record catalog. Thomas Mesereau Jr., a former Jackson lawyer, said he had been "in touch with people involved with Michael" and "I'm not aware of any plans to sell the ranch." On Thursday the state barred scores of Jackson employees from working at Neverland after learning that workers compensation coverage had lapsed in January. Some workers who live on the 2,600-acre estate can remain, but no work can be done until the ranch either obtains coverage or hires an outside company that has it, Fryer said. The state gave ranch operators five days to appeal the decision and 30 days to appeal a $69,000 fine - $1,000 for each worker - but in the meantime all work must stop, Fryaer said. An accounting firm that handles ranch finances for Jackson "assured us that they are trying to comply" and had informed employees that they had to stop work, Fryer said. "To our knowledge at this point they are complying and we will follow up to ensure they are complying," he said. The ranch includes several amusement park rides and has been home over the years to elephants, giraffes, snakes, orangutans, tigers and a crocodile. Fryer said local animal welfare agencies were notified of the shutdown so they could make arrangements to feed and care for the animals The animal activist group People for the Ethical Treatment of Animals called Friday for Jackson's menagerie to be removed from the ranch and placed in sanctuaries. "Mr. Jackson is universally known for his love of animals. We hope that he will accept PETA's offer to help ensure that none of the animals at Neverland end up at shabby roadside zoos or exotic-animal auctions or in the hands of exotic animal brokers, breeders, or dealers," PETA said in a letter faxed to Bain.