DEL.ICIO.USVick to testify today at bankruptcy hearing
The Atlanta Journal-Constitution
Thursday, April 02, 2009
Newport News, Va. — Former Falcons quarterback Michael Vick was scheduled to testify in court Friday about his efforts to pay off creditors and emerge from bankruptcy after he gets out of federal prison.
The suspended NFL star was to take the stand about 9 a.m. and is expected to testify for several hours, responding to questions from both his own attorneys and those for a key creditor that objects to his bankruptcy exit plan.
Ben Gray/bgray@ajc.com
Michael Vick at the 2007 press conference where he apologized for his role in dogfighting.
MORE ON MICHAEL VICK
Attorneys for that creditor, Joel Enterprises, also plan to call Vick’s mother, Brenda Boddie, and fiancee, Kijafa Frink, as witnesses Friday.
On Thursday, Vick’s attorneys testified Thursday that he has agreed to star in a documentary for $600,000 once he gets out of prison. They said he has also lined up a $10-an-hour job as a construction worker when he is released to home confinement in a house he owns in Hampton, Va.
His agent testified that Vick is truly remorseful for the actions that landed him prison on federal dogfighting charges — actions that prompted his suspension from the NFL and helped wreck his finances.
In a 2007 plea deal, Vick admitted bankrolling a business called Bad Newz Kennels to raise and train pit bulls for dogfights on his property in Virginia and in other states. He said he provided most of the money to operate the business and bet on the fights. He admitted being involved in killing several pit bulls that did not make the grade as fighters.
Vick’s contrition, agent Joel Segal said Thursday, could help him be reinstated by the NFL as soon as September, in time for the 2009 season. NFL Commissioner Roger Goodell has said he wants to see true remorse from Vick before considering lifting his suspension.
“Sometimes back then Mike didn’t listen to the right people,” Segal testified. But Segal added Vick is now “absolutely, completely different” and shows “true remorse” for his actions. “I expect him to play in the National Football League.”
Vick’s attorneys put Segal on the stand because Vick’s plan to climb out of bankruptcy partly depends on him rejoining the league.
Vick, nearing the end of a 23-month federal prison sentence for his role in the dogfighting conspiracy, hopesto earn as much as $10 million a year or more, according to court filings in his bankruptcy case.
Under the plan he submitted to the court, Vick would keep the first $750,000 of his annual income over the next five years. After that, a percentage would go to his creditors based on a sliding scale.
But the plan faces opposition from some creditors, including Joel Enterprises, whose attorneys wheeled 11 boxes of documents into the courtroom Thursday morning as dozens of journalists and more than 10 Newport News police officers looked on.
Joel Enterprises says Vick owes about $4.5 million. Andrew Joel, a Richmond sports agent, filed a lawsuit against Vick in 2006 claiming he reneged on an endorsement deal.
In a complaint last month, Joel Enterprises alleges Vick transferred property and cash to relatives and friends in the year before he filed for bankruptcy to defraud his creditors. The complaint also alleges that Vick misrepresented his assets.
As Vick quietly watched in court Thursday, his team of bankruptcy attorneys made substantial progress in settling objections filed by other creditors.
Michael Blumenthal, one of Vick’s attorneys, outlined proposed settlements with the Internal Revenue Service and the Virginia Department of Taxation. The two taxing agencies, which filed objections to Vick’s bankruptcy plan, have said Vick owes $696,930 combined in back federal and state taxes, penalties and interest.
Blumenthal also highlighted a proposed agreement with the U.S. Labor Department, which has accused Vick of illegally spending about $1.3 million in pension plan funds for his own benefit, including paying his bankruptcy attorney and restitution ordered as part of his conviction on federal dogfighting charges. Vick’s attorneys said they are also working with the regional office of the U.S. trustee to settle its objections to Vick’s plan.
As of December, Vick had $16 million in assets and $20.4 million in debts, court records show.
Federal authorities transported Vick to the courtroom from his prison in Leavenworth, Kan., last week. He is expected to return to Leavenworth after his bankruptcy trial ends today.
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