Kylie Jenner had a catastrophic week after being stripped off the title of "World's Youngest Self-Made Billionaire."
The esteemed business magazine, Forbes, claimed that the 22-year-old had inflated the size and success of her business for years.
On Friday, they released a report reevaluation of the Kylie Cosmetics mogul's alleged worth and had determined that she is not a billionaire.
Reporters Chase Peterson-Whithorn and Madeline Berg claimed, "Forbes has recalculated Kylie's net worth and concluded that she is not a billionaire."
"A more realistic accounting of her personal fortune puts it at just under $900 million, despite the headlines surrounding the Coty deal that seemed to confirm her billionaire status."
Kylie Jenner was labeled the youngest self-made billionaire in 2019 and was able to retain the title by 2020, after selling 51% of her makeup company to the beauty empire, Coty, in a deal that was valued at $1.2 billion.
The writers further claim that the "Keeping Up With the Kardashians" star's business is "significantly smaller and less profitable than the family has spent years leading the cosmetics industry and media outlets, including Forbes, to believe."
The magazine further claim that the Kardashian-Jenner clan went to unusual lengths just to prove how wealthy the mother-of-one is, which even included inviting members of the magazine into their mansions and accountant's offices, and also creating "tax returns that were likely forged."
After the bombshell revelations emerged, Kylie and her mom are worried that she'll be axed off the rich-list and are reportedly "freaking out" as they are scared about ruining their brand.
An insider told The Sun, "Kris and Kylie Jenner are freaking out that this is going to hurt their brand, and even worse, they could be in trouble with the government."
A top financial fraud attorney, Jan Handzlik, spoke to the Daily Mail on Friday, saying that the Kylie Skin CEO could face a criminal investigation over the alleged exaggerations.
"My guess is that at a minimum, the Securities Exchange Commission will begin what they call an informal inquiry and then perhaps elevate that to a formal investigation, which gives them subpoena power."
With the possible interrogation by the SEC, Handzlik further thinks that Kylie Jenner could face a criminal investigation by the Department of Justice.
He said, "those things may very well lead to the US Attorney's office and the Southern District of New York in particular, jumping sooner than they might otherwise."
Not only that, but Kylie Jenner and those who helped her, including her mom, Kris, may also face jail time for the fraud.
"If the Department of Justice decides to make this a criminal case.. if there were to be a conviction, that could include jail time for any individuals who were responsible."
Kylie Jenner responded to the "disgusting" claims of Forbes, saying that all she sees are "a number of inaccurate statements and unproven assumptions."
She took to her Twitter, calling out the "tax returns that were likely forged," to be untrue as there is no proof.
"I've never asked for any title or tried to lie my way there EVER. Period."
However, she insisted that no matter what, she's still "blessed" and is "doing perfectly fine."