Former QC Communications Exec Must Return $700K In Possible Pay-For Play Money

Tony Quartarone

A DELAWARE court has ruled that former QC COMMUNICATIONS Urban AC WJKS (KISS 101.7)/WILMINGTON, DE Partial Owner/GM TONY QUARTARONE must return $701,686 to the company.

DELAWARE Court of Chancery's Chancellor SAM GLASSCOCK explained that QUARTARONE's Q MEDIA -- a record promotion consulting business --  added songs to WJKS' playlist in exchange for money from record promoters. QUARTARONE's partners removed him from his position in OCTOBER 2012 when they discovered his side business.

GLASSCOCK wrote, "The Defendant in this matter was a corporate officer and director of the Plaintiff corporation, which owns the radio station at which the Defendant was also employed. The Defendant set up his own corporation on the side. According to the Plaintiff, the Defendant officer sold assets belonging to the Plaintiff, and used his position as a corporate fiduciary to hide the fact that he diverted the proceeds thereof to himself via his own corporation. The Defendant officer maintains strenuously that this is untrue, and testified that he sold only consulting services unrelated to his duties to the Plaintiff through his own corporation. The record evidence convinces me that the Defendant’s testimony is untrue, and that he did enrich himself through breaches of fiduciary duty. The Defendant, therefore, must account for those sums wrongfully diverted."

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