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

His account highlights how personal guarantees can turn a business failure into life-changing debt.

Overview

  • Ian Somerhalder detailed the ordeal in an E! News interview, crediting Nikki Reed for negotiating their way out after they sold houses, art, cars, and watches.
  • He traced the collapse to large personal guarantees he made to banks for an unnamed clean‑energy company after leaving acting seven years ago.
  • He said they spent years trying to repay what was owed, and the strain sent him to the hospital four times in two years.
  • Somerhalder says they have recovered and now run consumer ventures, including Brothers Bond Bourbon with Paul Wesley and The Absorption Company co‑founded with Reed in 2024.
  • He urged would‑be founders to avoid personal guarantees and noted he did not name the company, banks, or any legal actions tied to the alleged fraud.