TaxMasters Leaves Several Media Companies With Big Bills
April 4, 2012 at 3:56 AM (PT)
When TAXMASTERS, the "tax resolution" company filed for bankruptcy last month, the company left several big media companies, as well as its clients and law firms, with unpaid bills. A couple of radio-related companies are on that list, with WESTWOOD ONE (since sold to DIAL GLOBAL) owed $676,000, YAHOO (owed $196,475), THE WEATHER CHANNEL (repped by DIAL GLOBAL) owed $172,233 and ESPN (owed $94,265).
TAXMASTERS listed CNN as its largest unsecured creditor, owed $2.6 million. Its second largest creditor is the PHILADELPHIA-based law firm of BLANK ROME, owed $2.3 million.
FORBES reports "TAXMASTERS' unsecured creditors are unlikely to see much, if any, cash. In its new filing, TAXMASTERS listed just $1.7 million in assets. Moreover, according to the TEXAS Attorney General, last FRIDAY a TRAVIS COUNTY TEXAS jury returned a $195 million verdict against TAXMASTERS and PATRICK COX, its founder and CEO, for 110,383 violations of the TEXAS Deceptive Trade Violations Act. Some $113 million of that total is a refund of client fees, and another $81 million is civil penalties."