- The ACE Family, a channel run by Austin and Catherine McBroom, has faced numerous legal challenges.
- A cosmetics company sued Catherine. Austin and one of his companies were sued after a boxing event.
- They could be ejected from their mansion if the legal beneficiary decides to file an eviction suit.
The ACE Family is a vlog-style YouTube account with over 19 million subscribers. Launched in 2016, the channel revolves around the lives and antics of parents Austin and Catherine McBroom and their three young children. Individually, Austin and Catherine McBroom are successful social media influencers, with 6.5 and 7.5 million Instagram followers, respectively.
Most of the action in the family’s videos takes place in their house, a glamorous $US10.1 ($AU14) mansion in Los Angeles that they moved into in 2019.
But on Tuesday, ownership of the ACE Family’s house was transferred to a beneficiary after no one bid on the property at a public foreclosure auction, which came months after the family received a notice of default, as Insider previously reported. Now, the family could be evicted from their home if the beneficiary, a private mortgage lending company called 5 Arch Funding Corporation, files an eviction lawsuit against the McBrooms.
Ahead of the foreclosure news, the family has spent the last year mired in other financial and legal issues.
A cosmetics company sued Catherine, accusing her of staging a ‘coup’
The family’s legal trouble dates back to at least April when the cosmetics start-up TBL Cosmetics filed a lawsuit against Catherine who, according to TBL Cosmetics, had signed a contract with the company to jointly found 1212 Gateway, a “premium skin care line” with ethically sourced ingredients, Insider reported.
According to TBLs complaint, Catherine was supposed to be the face of the company and promote it on social media while TBL would perform managerial operations and other behind-the-scenes work, but TBL alleged the YouTuber “conspired with her family, friends, and other under-utilized members or idle of her entourage to stage a takeover of 1212 Gateway’s management,” or effectively enact a “coup” against TBL.
TBL accused Catherine in a court filing of threatening to unilaterally dissolve 1212 Gateway in April after she allegedly changed the passwords to all of 1212 Gateway’s accounts (email, website, social media, Shopify) in March.
Catherine denied all the allegations in a court filing she submitted in July, Insider reported.
Austin’s company was sued after the ‘Social Gloves’ boxing event
Catherine’s husband, Austin, has also faced litigation. He and one of his companies, Simply Greatest Productions (SGP), were sued by the media company LiveXLive after they said their celebrity boxing event went awry.
Held on June 12, “Social Gloves: Battle of the Platforms” pitted TikTokers like Bryce Hall and Vinnie Hacker against YouTubers such as Tanner Fox and Austin himself. Investors expected the boxing extravaganza to reel in $US200 ($AU268) to $US500 ($AU670) million in profit, Insider reported. But Jeffrey Katz, a senior partner at Watkins & Letofsky, LLP, the lead attorney representing LiveXLive, told Insider that the losses on the event ended up being substantial.
An ongoing legal battle has ensued between SGP and LiveXLive, whom Austin hired to help produce the event. SGP sued LiveXLive on July 21, alleging breach of contract and fraud and accusing the company of spending money that would not be returned and selling endorsements without informing SGP, Insider reported.
That same day, LiveXLive filed a return suit against the McBrooms for $US100 ($AU134) million in damages.
Katz previously told Insider that the McBrooms and SGP “sold people a bag of lies” with the boxing event.
The McBrooms’ umbrella company is also dealing with legal issues
Ace Hat Collection Inc., an umbrella company for the family run by Austin, has petitioned two separate construction businesses in the Los Angeles County Supreme Court to try to release mechanic’s liens, Insider reported, citing Los Angeles court documents.
Mechanic’s liens are legal documents often filed by contract construction workers who have not received payment for projects they completed. A judge denied one of Ace Hat Collection’s petitions while the other is still awaiting a decision, Insider reported.
An attorney for Ace Hat Collection previously confirmed to Insider that he filed a notice of appeal on October 5 for a petition against a heavy-machinery business that currently has a mechanic’s lien against the McBrooms’ company.
The McBrooms lost ownership of their mansion
The current saga with their house, dates back to May 2021, when a debt-collection company served them a notice of default which stipulated that they had 90 days to pay back $US8.7 ($AU12) million to a lender to whom the family owed money, Insider reported.
At that point, their house went into the legal state of “pre-foreclosure,” which often comes when a homeowner hasn’t made a certain amount of payments, according to the financial website Investopedia. Pre-foreclosure is the first stage in a process that can end with the house being taken away from the entity that’s failing to make the payments.
An online sales listing shows that the house was put on auction at a starting bid of just over $US9 ($AU12) million on Tuesday, as Insider previously reported. After no one purchased the property at the sale, ownership was transferred to the beneficiary, 5 Arch Funding Corporation, property records show, Insider reported.
Although the house is currently now owned by that company, due to California’s nonjudicial foreclosure law, 5 Arch Funding Corporation has to file and win an eviction lawsuit against the McBrooms if they want to force them to leave the property, Insider reported. The McBrooms can evade eviction by voluntarily leaving or resolving their debt to the company, Insider reported.
When Insider previously reached a lawyer for Ace Hat Collection by phone, they declined to comment on the status of the house or the foreclosure auction.
Rumors about the foreclosure had swirled online previously
Rumors about the McBrooms facing eviction and other financial trouble began to spread earlier this year after property records related to the foreclosure surfaced on the gossip forum Lipstick Alley, Insider reported.
Austin and Catherine have denied rumors circulating that they could be evicted from their house.
“Ain’t nobody getting evicted, ain’t nobody moving,” Austin wrote on Instagram in July.
Catherine wrote on Snapchat later that month that the foreclosure rumors “made me appreciate how blessed I am.”
The two have not commented on the situation since their house was auctioned on Tuesday.
They have continued to post YouTube videos on The ACE Family channel showing them playing with their pet dog, celebrating their three-year-old daughter’s birthday, and driving upscale cars throughout the last few months of legal and financial tumult.
Representatives for the McBrooms have not responded to a request for comment.
Kat Tenbarge contributed reporting.