SEAN "Diddy" Combs quietly paid off the mortgage on his $48 million Star Island mansion before his arrest. The disgraced music mogul settled the outstanding $18.8 million as sex trafficking charges loomed.

Combs , 54, remains in custody after being charged with sex trafficking, as well as racketeering and transportation to engage in prostitution. But before his arrest on September 16, Combs is understood to have anticipated a legal firestorm and paid off the mortgage on his swanky 14,800 square foot Star Island pad in Miami. Cops raided the seven-bedroom waterfront estate back in March - and reportedly discovered a stash of drugs, baby oil and lubricants.

Prosecutors allege the shamed rap star ran an underground ring of drug-fueled parties he called "Freak Offs" at the site - which boasts multiple pools and a spa. More on Sean 'Diddy' Combs At these so-called parties Combs allegedly forced victims to have sex with hired sex workers while it was filmed on camera. Freak Offs often involved drug usage to keep participants "obedient and compliant," followed by IV fluids to help them recover afterward, prosecutors allege.

Combs would then use the "sensitive, embarrassing, and incriminating" footage "as collateral to ensure the continued obedience and silence of the victims," it is claimed. The embattled hip-hop tycoon has denied the allegations of running a sex-crime empire, which stem from a months-long investigation. Most read in Celebrity But last week Combs had his bail bid de.