*TMZ tracked down a “close relative” of Toni Braxton who says her financial problems are rooted in her show on the Las Vegas strip.

The relative says Toni took out “show insurance” through Lloyd’s of London for her act at the Flamingo Las Vegas Hotel & Casino back in 2006.

When her heart condition became a problem in the middle of the show’s run, she was forced to pull the plug, but she was still on the hook to the hotel for lots of money. Toni expected Lloyd’s to cover the loss but Lloyd’s didn’t, arguing Toni had an undisclosed, preexisting medical condition, rendering the policy void.

In the end, Toni had to absorb a huge loss, which the relative claims sent her on a downward financial spiral.