By 2006, Storch was worth more than $70 million. His son was born April 16, 2006, with his part-time girlfriend of seven years Dalene "Daedreams" Daniel. Storch became addicted to cocaine. In August 2006, he "took a month off", with friend and manager Derek Jackson saying, "It was just a wonderful year, but I think it was defined by the magic month of August. He ran into the Hollywood class – and when he went to Hollywood, all things changed." He withdrew from producing and focused on partying with friends at his $10 million mansion in Palm Island, Florida. He also purchased a private jet, a 117-foot yacht, and nearly 20 luxury cars, about half of which he estimated he purchased while high on cocaine. Storch squandered $30 million in less than six months, and was in dire financial straits by January 2007.
In 2008, Storch hit legal trouble after allegedly falling behind on child-support payments and property taxes. In early 2009, he was arrested for motor vehicle theft for allegedly failing to return a Bentley leased three years prior. In April 2009, Storch checked into an intensive inpatient rehab program in Hollywood, Florida, before filing for bankruptcy that May. In February 2012, Storch was arrested in Las Vegas, Nevada, for possession of cocaine and was released on bail. On June 24, 2015, Storch officially filed for bankruptcy.