Tax Watchdog

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Posted by Robert Snell (The Detroit News) on Tue, Feb 9, 2010 at 12:18 PM

'Iron Man' star tarnished by tax lien

Actor Terrence Howard is finding it's not only "Hard Out Here for a Pimp," but hard to pay federal income taxes. The A-lister, who was nominated for an Academy Award for his pimp role in 2005's "Hustle & Flow," owes more than $1.1 million to the IRS, according to public records.

The 40-year-old Pennsylvania resident, who has appeared in a string of hits including "Mr. Holland's Opus," "Ray" and "Iron Man," stars in the upcoming "Little Murder," the first full-length feature film made entirely in Michigan. The film shoot made headlines last summer when police say teens robbed the movie crew in Detroit.

Howard rapped "Hard Out Here for a Pimp" in "Hustle & Flow" and released his debut album "Shine Through It" in 2008.

What's owed:

  • The IRS filed a $1,129,219 lien against Howard on Jan. 25 with the Montgomery County (Pa.) Prothonotary. According to the lien, which you can see here, he owes income taxes from 2007 and 2008.

The address on the lien is this house in Plymouth Meeting, Pa.


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His side:

Howard could not be reached for comment. His publicist also did not respond to e-mails seeking comment.

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Posted by Robert Snell (The Detroit News) on Thu, Feb 4, 2010 at 6:14 AM

State lottery host addresses debt

Emmy Award-winning broadcaster Darryl Wood, a host of the Michigan Lottery daily drawings on WDIV, owes more than $80,000 in delinquent state and federal taxes, according to public records.

Wood, who has worked for the state lottery since at least the 1980s, hosted the show "American Black Journal" on Detroit Public Television (WTVS) from 1988 to 1998. The show featured interviews with movers and shakers, including African-American businessmen, politicians and entertainers such as Motown Records founder Berry Gordy, Jesse Jackson and musician Wynton Marsalis.

In 2001, Wood left the station as Channel 56 laid off 10 percent of its work force due to the failure of contributions to keep pace with rising production costs.

His West Bloomfield Township home was sold at sheriff's auction in October 2007, according to public records.

What's owed:

  • The state of Michigan filed an $11,025 lien against Wood on Jan. 4 with the Oakland County Register of Deeds. According to the lien, which you can see here, he owes income taxes assessed last year.
  • The IRS filed a $17,588 lien against Wood and his wife on Sept. 8, 2009, in Oakland County. According to the lien, they owe income taxes from 2008.
  • The IRS filed a $51,868 lien against the couple on April 20, 2009, in Oakland County. They owe income taxes from 1999, 2000, 2002, 2005, 2006 and 2007, according to the lien.

Their side:

Wood said he has arranged payment plans with the state and IRS and has paid off a significant amount already.

Losing his job in 2001 and a bad economy contributed to the tax debt, Wood said. He said the tax debt is all his, not his wife's, though she is listed on the two federal liens.

"I am not interested in airing my financial difficulties for my potential creditors, business partners, or family members to see," he wrote in an e-mail. "We have had enough stress and heartache based on the financial down turn (sic) we've experienced as a result of lost income.

"Reversals of fortune are no surprise for working people in Michigan and we have not been exempt from such problems," he added. "We, however, have been working to re-establish ourselves financially ..."

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Posted by Robert Snell (The Detroit News) on Mon, Feb 1, 2010 at 3:59 PM

Tax man bucks Broncos legend John Elway

Super Bowl's this weekend, can't believe it's been 11 years since John Elway won his second ring and MVP honors. Well, the state of Oklahoma can't believe he hasn't paid his taxes. The state's tax commission claims Elway owes more than $5,800 in delinquent taxes.

Elway, 49, retired in 1999 and was inducted into the Pro Football Hall of Fame five years later alongside Detroit Lions legend Barry Sanders. In retirement, he lorded over a car dealership empire and is a promiscuous peddler of consumer products, from sports memorabilia to fishing tackle to puke-orange recliners.

What's owed:

  • The Oklahoma Tax Commission filed a $5,886 lien against Elway on June 20, 2007, with the Oklahoma County Clerk. The address listed on the lien is this house in Englewood, Colo.


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His side:

Elway's agent, Jeff Sperbeck, did not return a phone call seeking comment today.

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Posted by Robert Snell (The Detroit News) on Thu, Jan 28, 2010 at 8:05 AM

'Mr. Clean' Steve Garvey dirtied by mound of debt

Steve Garvey, the perennial pitchman and former Los Angeles Dodgers and San Diego Padres star, and his wife owe more than $490,000 in delinquent state and federal taxes, records show.

The 10-time All Star and 1974 National League MVP, who played at Michigan State University in the late 1960s, was once nicknamed "Mr. Clean," but his sterling public image was tarnished by an affair and other personal problems.

What's owed:

  • The state of California filed an $80,533 lien against the couple on Nov. 18, 2009, with the Riverside County (Calif.) Recorder of Deeds.
  • The state of California filed a $98,837 lien against the couple on Nov. 16, 2009, with the Los Angeles County Recorder of Deeds.
  • The IRS filed a $155,867 lien against them on June 26, 2008, in Riverside.
  • The state of California filed a $20,945 lien against the couple on Jan. 16, 2008, in Riverside.
  • The IRS filed a $122,362 lien against them on Aug. 2, 2007, in Riverside.
  • The state of Utah filed a $13,961 lien against them on May 8, 2006, with the Salt Lake District Court.

Their side:

Garvey and his wife could not be reached for comment. His management company's lawyer also did not return an e-mail seeking comment.

The address listed on the liens is this house in Palm Desert, Calif.


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Posted by Robert Snell (The Detroit News) on Mon, Jan 25, 2010 at 4:16 PM

Tax man nibbles on Evander Holyfield's wallet

Mike Tyson took a bite out of boxing legend Evander Holyfield several years ago. Now it's the tax man's turn.

The four-time heavyweight champion, who recently asked a judge to lower child-support payments due to declining income, owes the IRS more than $145,000, according to public records.

What's owed:

  • The IRS filed a $145,469 lien against Holyfield on Aug. 14, 2009, in Fayette County (Ga.) Superior Court. According to the lien, which you can see here, he owes taxes from 2000, 2005 and 2007-08.

His side:

Holyfield could not be reached for comment. A message was left with his management company.

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Posted by Robert Snell (The Detroit News) on Fri, Jan 22, 2010 at 11:32 AM

Kilpatrick crony caught in tax man's crosshairs

If former mayoral aide DeDan Milton pocketed close to $20,000 in kickbacks -- the feds say he did -- we know what the indicted Kwame Kilpatrick crony didn't spend the money on: taxes. The state of Michigan claims Milton owes almost $2,600 in delinquent state taxes, according to public records.

A federal grand jury indictment unsealed Wednesday claims Milton, 37, received kickbacks on the city's sale of Camp Brighton and two additional real estate deals. The Camp Brighton sale also ensnared brother Kandia Milton, whose titles included chief of staff and deputy mayor. Kandia Milton is cooperating with investigators after pleading guilty to bribery in December.

What's owed:

  • The state of Michigan filed a $2,596 lien against Milton on April 29, 2009, with the Wayne County Register of Deeds.

His side:

Milton lawyer Otis Culpepper could not be reached for comment today.

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Posted by Robert Snell (The Detroit News) on Thu, Jan 21, 2010 at 7:17 AM

Debt deepens for ex-Piston Derrick Coleman

Retired NBA star and Detroit Piston Derrick Coleman has defaulted on the mortgage for his New Center condominium and faces a foreclosure sale Feb. 18, plus one of his companies owes delinquent property taxes, records show. Coleman owes more than $116,000 to a division of PNC Bank NA, according to a notice published Tuesday in The Detroit Legal News.

The revelation comes one month after news surfaced that the Detroit Economic Growth Corp. was suing Coleman after he defaulted on a $200,000 loan for a retail development called Coleman Corners.

Another Coleman business -- restaurant Sweet Georgia Brown -- closed in February because of $78,000 in unpaid rent.

Two other Coleman properties in the area were sold at sheriff's auction last year, including a multi-million dollar spread overlooking White Lake in Highland Township, according to public records.

Here's the Highland Township estate:


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Here's the Detroit condo facing foreclosure:


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What's owed:

  • PNC Mortgage claims Coleman owes $116,428 on the defaulted mortgage, plus 6.25 percent interest. If the condominium is foreclosed, Coleman, who was paid more than $91 million during his career, would have six months in which to redeem the property, according to the legal notice.

  • In addition to the mortgage default, Coleman's business DC Investments LLC owes $65.28 in delinquent 2008 property taxes, according to the Wayne County Treasurer's office.

His side:

Coleman did not respond to an e-mail seeking comment Wednesday. Mort Meisner, a former spokesman, said he no longer represents Coleman.

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Posted by Robert Snell (The Detroit News) on Mon, Jan 18, 2010 at 10:56 PM

Financial woes overtake ex-Lion Elliss

Retired Detroit Lions defensive lineman Luther Elliss is preparing to abandon his million-dollar Oakland Township home, the latest move in a financial collapse that has forced him to file bankruptcy amid a string of failed investments and debt.

Elliss, 36, who was paid almost $11.6 million from 2000-04, is relying on area churches and friends to pay bills, his savings depleted. He lost one home in Utah to foreclosure and now the married father of 11 plans on walking away from his Oakland Township home due to lack of income and high mortgage payments.

"We can't afford it," Elliss said in an interview with The Detroit News.

The financial problems hit one of the Lions' most popular players in recent years, a first-round draft pick who clicked with fans due to his exuberant Pro Bowl-caliber play and willingness to donate time and money to area charities, including The United Way. In 2004, the devout Elliss won a Humanitarian Award during the Detroit Sports Fans Choice Awards banquet.

Elliss said he hopes his financial problems serve as a cautionary tale for others, especially athletes who are faced with sudden riches.

"The Lions did a good job, they put on financial programs that we had to attend talking about investing and saving money, gave statistics on how many of us would be broke," Elliss said. "Guys were saying, 'It's not going to be me, I'm too smart for that.' And here I am, one of those guys."

Elliss is the most recent Detroit athlete to run into financial problems, a roster that includes retired NBA star Derrick Coleman, former Detroit Red Wings stars Sergei Fedorov and Darren McCarty, and Pittsburgh Steelers quarterback and former Detroit Lion Charlie Batch.

"My faith has helped carry us through this," Elliss said. "If my story can help change somebody's destiny or future, I pray that it does."

Elliss and his wife filed Chapter 7 bankruptcy in June one month after the U.S. Bank National Association won a $524,058 civil judgment against them tied to the Utah foreclosure.

"That was the tipping point," Elliss said. "They were going to start garnishing what little money we were making and I didn't know how to pay that."

The couple listed $1.38 million in assets and $4.4 million in liabilities, including more than $37,500 in delinquent state and local taxes, according to the bankruptcy court filing.

The filing came 14 years after the Lions picked Elliss in the first-round of the 1995 draft. He reached the Pro Bowl in 1999 and 2000 before being released in March 2004. He retired after playing one season with the Denver Broncos.

Elliss invested in several business ventures in retirement, including a manufacturing company called Trinity Armor, which closed a year ago. When they filed bankruptcy, Elliss was working for a Southfield insurance company, netting $1,799 a month, and selling environmentally friendly cleaning products.

Among their assets: a $347,410 NFL pension, a $198,000 annuity retirement plan, a $2,800 woman's Rolex watch, and a 2003 GMC Savana with 122,000 miles on it, according to bankruptcy court records.

The couple's liabilities were mostly mortgage debt on their home and an office building in Harper Woods and the civil judgment, according to bankruptcy records.

They took out a $1.6 million mortgage on the Oakland Township home, but estimate a sale would only fetch $800,000 given current market conditions, according to bankruptcy court records. The couple also owes $27,027 in delinquent taxes from 2007, according to the Oakland County Treasurer's office.

The Elliss family home in Oakland Township:

Photobucket

The couple also owed thousands in credit card charges, legal fees, tuition at a Christian school and garden-variety debt for items such as flooring, window treatments and utilities.

The bankruptcy case was discharged last month and a minor hearing scheduled for last week in U.S. Bankruptcy Court in Detroit was adjourned.

Sports Illustrated, citing anecdotal evidence, reported last year that within two years after retirement 78 percent of former NFL players have either filed bankruptcy or experienced financial stress due to joblessness or divorce.

"I'm one of those statistics," Elliss said. "It's hard and it's frustrating."

Professional athletes are inundated with investment pitches from friends and strangers, said Rob Konrad, a retired NFL fullback who runs a wealth management firm in Florida catering to a large number of professional athletes. Combine that pressure with a lack of financial discipline and exorbitant salaries can disappear.

"I've been around some guys who live fast, take chances and that's why they're great athletes, but they handle their money the same way," said Konrad, who played from 1999-2004 with the Miami Dolphins, who was speaking in general and not about Elliss. "It's a misconception these guys are just filthy rich. Some can throw a million or two around and not really care about it. The vast majority? That hurts a lot and is tough to make up."

Elliss attributed his collapse to failed investments, ignoring financial advice, greed and overspending.

He invested in real estate, Internet companies and owned expensive homes in Michigan and Utah. When the business ventures failed, he was left paying the debt because he had personally guaranteed the loans. Those expenses drained his savings.

"The biggest demise was investing in a lot of different companies -- friends' companies -- that went south," he said. "I was selfish. I made bad choices, bought things I shouldn't have, spent money like I shouldn't have, invested in things I shouldn't have.

"The majority of these companies were in Michigan. I was trying to be part of the community. (The bankruptcy) wasn't anything to do with drugs, gambling, alcohol, women or anything else."

Elliss spent money and invested in companies despite his wife's and adviser's objections.

"I was determined to show God, show my wife, that I knew what I was doing," Elliss said. "But I didn't know these businesses, I didn't have a real reason to jump into them other than to help out a friend. I thought if I made more money, I could give more. If an investment made X amount of money, I could give back to the community, to the people."

Instead, he has sought aid from the community, area churches -- including Kensington Church in Troy -- and friends.

"They have stepped in big time to help us, bringing food, helping with different bills or anything that needed to be done right away," he said. "It's humbling. If you question if there is a God, my story shows there is."

Elliss is unsure how he will support his wife, five biological children and six adopted children, or where he might live. He might move West, or stay somewhere in Michigan.

He also might start selling insurance again and is mulling other job opportunities beyond the occasional speaking engagement and personal appearance.

The job search is made difficult because he is five classes and an internship short of a college degree.

"If you've ever met a man who does all the right stuff Christians say they do, it's Luther and his wife," lawyer Darryl Chimko said. "If you walked up to his house and needed $5, he'd give it to you and then find a way to feed his family. They don't deserve their fate."

Elliss is interested in coaching in the pros or college, but college jobs require a degree, he said.

"I have 11 beautiful children and a wife to take care of," he said. "Right now, we're struggling."

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Posted by Robert Snell (The Detroit News) on Wed, Jan 13, 2010 at 12:27 PM

Mistress Amber Frey misses tax payments

Amber Frey, who became notorious a few years back as the mistress of wife-killing fertilizer salesman Scott Peterson, owes almost $225,000 in delinquent state and federal taxes, public records show.

Peterson was convicted and sentenced to death row in 2004 for killing his wife Laci. Frey eventually wrote a book "Witness" chronicling her affair.

The tax debt is the latest financial problem for Frey, who ran into a foreclosure problem a few years ago.

What's owed:

  • The IRS filed a $183,109 lien against Frey on Nov. 23, 2009, with the Fresno County Recorder.
  • The state of California filed a $41,888 lien on Feb. 2, 2009, in Fresno County.

Her side:

Frey could not be reached for comment.

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Posted by Robert Snell (The Detroit News) on Fri, Jan 8, 2010 at 3:50 PM

Comedian Eddie Griffin really goes for broke

Bankrupt comedian Eddie Griffin, who made light of his financial problems in the VH1 show "Going for Broke" last fall, has fresh money woes. The state of California claims he owes $147,841 in delinquent taxes, records show.

The Kansas City native performed at Detroit's Chene Park in 2007 and is scheduled to give two performances next month at MotorCity Casino. He is best known for wrecking a $1.5 million Ferrari, the flicks "The Last Boy Scout" and "Norbit" and for popularizing the term "man pimp" in "Deuce Bigalow: Male Gigolo."

What's owed:

  • The state of California filed a $147,841 lien against Griffin on Nov. 23, 2009, with the Los Angeles County Recorder of Deeds office.

His side:

Griffin's manager could not be reached immediately for comment today.

Update:

Manager Erik Kritzer said Griffin is disputing the tax debt.

Bonus clip:

As Griffin says, "Brother can't drive."

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About this Weblog

Robert Snell of The Detroit News

Who owes taxes in Metro Detroit

Robert Snell is a Detroit News business reporter. He focuses on state and federal tax liens and, based on public records, interviews and Detroit News archives, identifies those who don't pay income, business and property taxes. He can be reached at rsnell@detnews.com or (313) 222-2028.

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Why we focus on unpaid taxes

Every year, about $345 billion in federal taxes are either late or unpaid, according to the IRS, ripping open holes in budgets and shortchanging schools and public safety. That forces taxpayers to cough up more than their fair share, tax experts say. About $2.5 billion went uncollected in Michigan between 2000 and 2006.

Liens are filed when taxpayers ignore government pleas for payment. Tax liens are like tar. They stick to everything - homes, cars and income. According to the IRS, liens give the government a legal claim to a person's or company's property. Liens serve as security or payment for the tax debt and a red flag to creditors.

There are a variety of reasons people don't pay. Some can't afford to and some refuse while others miscalculate or receive bad advice. Unpaid taxes can lead to prison - just ask actor Wesley Snipes.

This blog will focus on state and federal liens and identify those who don't pay income, business and property taxes. We will gather our information from public records, interviews and Detroit News archives.