Trustee sought to manage Vick’s finances

Michael Vick’s finances are in such disarray that a bankruptcy judge has been asked to appoint a trustee to oversee the fallen quarterback’s dwindling estate.

W. Clarkson McDow Jr., the U.S. trustee for region four (which includes Newport News, Va.), noted in court documents filed in Virginia that by Vick’s own admission, he “has limited ability to arrange his finances and limited ability to participate in the bankruptcy case on an in-person basis.”

Vick, the suspended and imprisoned Falcons quarterback, originally sought to have David Talbot serve as his trustee in the case. He was called a “trusted adviser” in the original Chapter 11 filing on July 7. However Talbot was charged with securities fraud by the state of New Jersey last Friday. He is accused of swindling $500,000 from church members. Vick has since sought to have him dismissed as an adviser.

Vick is serving a 23-month sentence on felony charges related in dogfighting at Leavenworth Federal Penitentiary in Kansas.

Vick’s attorney, Peter R. Ginsberg, said that the trustee’s motion was premature.

“We are going to vigorously oppose it,” said Ginsberg, who visited Vick on Thursday. “The creditors committee has taken no position on it so far. … Our position is that the appointment of a U.S. trustee would cost the estate significantly more by being in place.”

Vick’s list of creditors include the Falcons. He stated that he had assets and debts in the range of $10-50 million.

“It has become clear since the filing of this case that Mr. Vick has very limited knowledge of the state of his finances. … It appears that Mr. Vick has routinely relied upon others to make financial decisions for him, giving them discretionary control over large sums of money,” McDow wrote in his motion “to appoint a Chapter 11 trustee.”

Ginsberg admits that he was unaware of the allegations against Talbot, but said that Vick now had financial advisors in place. He refused to identify them, but said they’d be revealed in subsequent court filings.

“I think the U.S. Trustee jumped the gun,” Ginsberg said. “I think that now Michael has professionals who are efficiently and honestly doing the work that’s necessary.”

The bankruptcy court can step in when it determines that a debtor has grossly mismanaged his assets or if it’s in the best interest of the creditors and debtors.

McDow contends that Vick meets those federal requirements.

“Mr. Vick has selected personal advisors, including agents and financial advisors, an unknown number of whom have taken advantage of Mr. Vick’s trust,” McDow wrote in his motion. “Notably, both Ms. (Mary) Wong and Mr. Talbot obtained broad written authority from Mr. Vick to act as his attorney-in-fact over all of his financial affairs.”

In court documents, Vick’s attorneys noted that Wong had been barred by the New York Stock Exchange’s hearing board for misappropriation of customer funds and other questionable activity.

“We are well on the way to having a clearer picture of what happened to Michael’s assets,” Ginsberg said. “We have put together a strategy for recovering those assets.”

According to court documents, Vick retained Wong, of Omaha, Neb., in 2007 to serve as his business manager. He gave her a broad power of attorney over his financial affairs and $550,000. Vick’s attorneys have sought to have Wong account for the funds and have accused her, in court documents, of having “removed additional substantial funds … without his authorization.”

“We’re very concerned about Wong,” Ginsberg said. “There are other people that we are concerned about as well.”

According to court documents, Talbot received $35,000 and a 2008 Mercedes-Benz S550 (valued at between $80,000 and $85,000) from Vick to serve as his financial advisor. He was also to receive a salary and expenses.

McDow’s motion noted that in 2005 Forbes Magazine listed Vick, who has been suspended indefinitely from the NFL, as the 19th most highly paid celebrity in the world. The magazine estimated his total income for the prior year at $37.5 million.

A court-appointed trustee would attempt to unravel the finances of Vick. The trustee would conduct an investigation to find and recover funds from third parties for the benefit of Vick’s creditors and possibly Vick.

U.S. Bankruptcy Judge Frank Santoro has ordered a hearing for Sept. 5. Vick’s attorneys and Talbot have been ordered to appear in person.

“I’m sure the judge has questions on whether if we knew, or when we knew, about the allegations against Talbot,” Ginsberg said. “The fact of the matter is that we were one of the last to know, unfortunately.”

The Federal Bureau of Prisons lists Vick’s projected release date as July 20, 2009.