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Ian Somerhalder Says Fraud and Personal Guarantees Left Him, Nikki Reed in Eight-Figure Debt

The disclosure highlights the hazard of backing a business with large personal guarantees.

Overview

  • Somerhalder, in an E! News interview Wednesday, said fraud tied to a failed venture put the couple in an eight-figure hole.
  • He said he invested heavily and signed large personal guarantees to banks after leaving acting about seven years ago.
  • The pair sold homes, art, cars, and watches to repay obligations, and Reed led talks that unwound the deal.
  • He did not name the company involved and said the push to pay debts led to four hospital stays in two years.
  • They have since built new consumer brands, including Brothers Bond Bourbon and 2024’s The Absorption Company, and he is now training as a pilot.