Well this is sad… and a scary wake-up call for those who don’t really have full control over their finances. Sly Stone, once one of the biggest names in soul music, is now homeless and living in a white van in a Los Angeles neighborhood. Get the full story after the jump…

Wendy L.


Over the years, 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 this 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.

Stone kept his word and mostly vanished. He was arrested a few times in the 1980s for cocaine possession and performed sporadically, but his days of sold-out shows and magazine covers were gone. A 1987 performance would prove to be his last for 19 years.

He finally reappeared during a 2006 Grammy tribute, shuffling on stage, his posture hunched and his neck bent as a result of a fall he suffered at his home. He arrived midway through a medley of his classic hits, played the keyboard and sang for a few bars, waved, then inexplicably left the stage before the song concluded.

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.

“My music is a format that will encourage you to have a song you won’t forget. That’s why I got so much money, that there are so many people around, and that’s why I am in court. Millions of dollars!” Stone says. “But now please tell everybody, please, to give me a job, play my music. I’m tired of all this s–t, man.”

Earlier this year, Stone released an album of his hits re-recorded with other artists. Stone has new songs, but he no longer trusts record companies or managers and is wary about making a deal to release another album. He works constantly on new music, often staying up for two days straight, then sleeping for the next two. (In a nice piece of symmetry, some of his 1971 album, “There’s a Riot Goin’ On,” was recorded in a Winnebago.) He has hundreds of new tracks recorded in his van that he keeps for himself. For now, at least.

“But, with new energy, it will feel good to step on stage,” he says. “I see all the guys playing those old songs. Let these guys know, like Lady Gaga, let me come in, just let me come in and pay me if you like it.”