Diddy paid off $19 million mortgage in Miami before arrest

Sean “Diddy” Combs saw the writing on the wall and didn’t want to take any risks.

Just before the hammer came down on his federal sex trafficking indictment, the hip-hop heavyweight quietly paid off the $18.8 million mortgage on his lavish $48.5 million mansion on Star Island.

The payment, made ahead of upcoming criminal charges, emerged during a dramatic bail hearing last week in which prosecutors alleged that one of the rap stars ran an underground gang called the “Freak Offs,” which held wild, drug-fueled parties involving female victims and male sex workers.

Federal agents raided Combs’ Star Island home in March and allegedly found drugs, baby oil and lubricants used at the meetings. A grand jury quickly indicted him on charges of sex trafficking, racketeering conspiracy and unlawful transportation of sex.

Combs pleaded not guilty.

Combs’ defense team, led by attorney Marc Agnifilo, proposed a $50 million bail package to secure bail. At the center of the proposal was the palatial Star Island home — Combs’ and his family’s — backed by six passports to show the rapper wasn’t going anywhere.

“We paid the mortgage because that’s what building trust means,” Agnifilo argued in court. But the judge argued Combs could still flee, become violent or interfere with the investigation. Bail? Denied.

A legal source told The Post that Combs had paid off the mortgage on his Miami home before his arrest, likely taking advantage of Florida’s Homestead Act, which prevents homeowners from losing value on their primary residences, regardless of circumstances.

This law protects assets like home equity and retirement income from creditors. This is the same loophole that allowed OJ Simpson to live comfortably in his Florida mansion without being affected by the $100 million judgment the Goldman family filed against him. By paying off his home, Diddy ensured that this important asset would be protected regardless of potential legal issues.

But the bond details have pulled back the curtain on Combs’ extravagant lifestyle, providing a glimpse into the life of luxury he’s built over decades of hits and high-profile ventures. The crown jewel? The Star Island spread, which was appraised at $48.5 million but the county property assessor lowered it to $44.3 million.

Combs purchased the seven-bedroom beachfront mansion for $14.5 million in 2003. Fast-forward two decades and it has become a full-fledged mega-mansion: 14,800 square feet, multiple pools, a spa, and even cabana-style pool houses.

Combs, anticipating the legal storm, cleared the mansion’s massive mortgage last August. “It was a terrible business decision,” Agnifilo admitted, but the defense relied on it to establish good faith. “Nobody makes bad financial decisions just for show,” Agnifilo insisted, making clear they were trying to gain the court’s trust.

Star Island, the elite enclave where billionaires and celebrities like Combs live, is no ordinary neighborhood. It’s a 55-acre slice of paradise home to no less than 50 spacious lots.

Hedge fund giant Ken Griffin paid $75 million for his own place in 2022, and former Yankee Alex Rodriguez bought a property for $45.5 million and then resold it.

Not content with just one home on the island, Combs also purchased the mansion next door at 1 Star Island Drive for $35 million in 2021. However, that mansion was not included in the bond package.