Legendary Funk Singer Sly Stone Homeless and Living Out of Van, Report Says

Formerly Homeless Stars

Willie Aames and Sly Stone went from zillions to zero, but other stars did it the other way around.

Over the years, Sly Stone has dropped tens of thousands of dollars on his other hobby: automobiles. In his early days, he drove a Jaguar XKE he painted purple. There were Hummers, a London taxi and a beloved Studebaker, which Stone asked to have painted in exchange for an interview. (The Post declined.) A few years ago, he would cruise around LA on a bright-yellow, custom three-wheel chopper. He was known to give cars to friends.

By 1980, the group’s popularity had declined enormously from its heyday. Stone appeared on an episode of “The Mike Douglas Show” and promised, “I’m going to do one more album real quick, and if it’s not instantly platinum, bye-bye.” Sly & the Family Stone’s 10th and final album, 1982’s “Ain’t But the One Way,” flopped.

Today, Sly is disheveled, paranoid -- the FBI is after him; his enemies have hired hit men. He refuses to let The Post into his camper, but, ever the showman, poses flamboyantly with a silver military helmet and a Taser in front of his Studebaker.

The singer claims his money troubles escalated in 2009, when his royalty payments stopped flowing after Stone accused his manager, Jerry Goldstein, of fraud. Stone says he was tricked into signing a rotten contract with Goldstein in 1989, giving the manager control of his finances in exchange for a weekly paycheck.

Last year, Stone sued Goldstein for $50 million, alleging fraud and 20 years of stolen royalty payments. (Contributing to the singer’s dire financial situation, he foolishly sold his valuable music-publishing rights to Michael Jackson for a reported $1 million in 1984.)

Goldstein did not return calls seeking comment.

The performer’s cash-flow problems forced him out of his Napa Valley house that he rented with money from a 2007 European tour and into cheap hotels and the van in 2009. Stone hopes to soon put the lawsuit and his other woes behind him

Click here to read the full report from the New York Post.