[Boxing] Bob Arum/Top Rank hiding money from Pacquaio?

Angkor Wat · Sep 22, 2011

Always felt Bob Arum is a scumbag and the main culprit (not Floyd or manny) to why the megafight has yet to happen.

http://www.examiner.com/boxing-in-n...y-pacquaio-gets-paid-the-dark-shoebox-records

Fired accounting firm: Manny Pacquaio gets paid in the dark, shoebox records

***PRESS RELEASE FROM FIRED PACQUIAO ACCOUNTING FIRM, VISIONQWEST

Glendale, CA, September 20, 2011: Prior to 2010, Manny Pacquiao (“Manny”) and MP Promotions, USA, Inc. (“MP”) never had a full time accountant or a bookkeeper, and did not have a full time accounting firm. Michael Koncz is the business advisor of both Manny and MP and he has no accounting degrees or training, yet he is in charge of their finances. For every year before Manny an MP hired VQ for their accounting needs, they would hire different accountants who simply plugged in numbers supplied by Michael Koncz into the taxation forms and filed them with the IRS, without any backup or reconciliation. Due to this mode of operation on the part of Michael Koncz, Manny and MP had audits issued against them for at least two prior years (2006, 2007).

In 2010, Koncz and Team Pacquiao reached out to VQ, desperately needing their help. VQ has several businesses including accounting and tax services. VQ services cover at least two continents and have gained a lot of notoriety amongst its clients and the public as well. Many well known Filipinos have used VQ’s accounting and business advisory services because the staff are honest, focused, licensed and get the job done in a timely and professional manner.

VQ’s management accepted the representation of Manny and MP. Contracts where entered into for the following issues:

1.Personal income and Corporate Tax returns needed to be filed.

2.Tax Audits had been issued as well as tax levies which needed immediate attention.

3.A complete overhaul of Manny and MP’s financial records and bookkeeping needed to be implemented because there were no records other than six boxes of receipts, hand written notes, and e-mails which were not kept in any order with no designations.

4.Manny and MP did not have any important documents in their possession like bout contracts, bank statements, bout proceed distributions, endorsement contracts, promoter contracts, co-promoter contracts, property ownership records and many other important documents which would enable VQ’s staff to perform their duties.

The parties entered into two (2) accounting service contracts which detailed the work and fees related to the services to be performed. VQ has licenses and is accredited for any service offered or provided to Manny and MP under the contracts. Manny signed a Power of attorney on behalf of VQ because it was absolutely necessary to enable VQ’s staff to obtain the necessary documents as outlined above. All accounting contracts and Power of Attorneys were in accordance to accounting requirements to represent the client(s) and bank needs to gather and respond to documentation. At all times Manny and MP were well protected via the legal instruments entered into. You have to understand; Manny is never available and was almost non-existent during the time that VQ was representing both him and his company. It would have been impossible for VQ to conduct accounting and tax audit work without the power of attorney nor would the banks have given VQ any of the documents that where needed. Bank statements are needed to reconcile the in and out of funds for accounting (to record income and expenses) and to reconcile to the bout contracts. Again, Manny would not be bothered and Koncz was generally not available and mostly useless. Manny also signed a power of attorney for use with the IRS, which again was absolutely necessary for the audits and required by the IRS. Finally, with regards to the contracts, Manny and MP signed a contingency agreement with VQ which authorized VQ to pursue any monies which were missing or owed to them. VQ would not have been able to perform this specific task without the power of attorneys issued to VQ. The main reason why VQ was hired to look into the missing money was because Manny believed that his fight promoter was not paying him his fair share. During the course of his contractual relationship with Top Rank, Manny had never had anyone review the bout Income Statements generated by Top Rank. The contracts gave Manny the right to review these income statements and he had chosen not to do so prior to hiring VQ. MANNY AND MP HAVE BUSINESS ADVISORS, AND ATTORNEYS WHO REVIEW EVERYTHING THEY SIGN, ESPECIALLY CONTRACTS, THEY ALL ACKNOWLEDGED AND APPROVED THE CONTRACTS AND POWER OF ATTORNEYS THAT WHERE SIGNED BY MANNY.

Manny and Mike Koncz both requested VQ not to charge him upfront for our fees and costs because they claimed that there was a lack of funds. We agreed that VQ would be paid from the funds from any tax refund or fight advances that Manny may receive, any available funds. Please understand, Manny was being audited and levies had been instituted against him and MP. VQ and its staff knew that Manny may not have been entitled to a refund or that it may take a very long time due to ongoing tax audits and significant tax issues; however Manny and MP needed our help so we agreed to be paid once a tax refund was received or from bout advances received.

We started compiling records and building files for Manny and MP. We were able to get the audits under control and to stop the seizure and levies taking place before we took over. However, to be able to completely do our job, we needed for Manny’s boxing promoter, Top Rank, Inc. to provide a lot of documents that where in their possession. From the beginning of the review and examination in late 2010 of Top Rank Bout income statements, Top Rank, Inc. and its majority owner Bob Arum provided us with minor documentation, then in 2011 became very hard to work with and would not respond to requests for documentation and answers to questions. From the documents that where furnished, VQ and its staff where able to decipher various accounting issues and we were very concerned that there were considerable un-answered questions regarding the recording of revenue (through a verification processes with outside companies) and their expenses. We were also able to indentify ridiculous amounts of money being paid to Michael Koncz and the fact that Michael Koncz not only worked for Manny and MP but Top Rank, Inc. as well.

In the last months of our representation of Manny and MP, we continuously requested documents from Top Rank, Inc. and we were denied at every instance. At a certain point, Top Rank, Inc. was no longer responding to our requests. We were able to obtain some documents from the Nevada Athletic Commission to verify inconsistencies in reporting and documentation.

At this point of time, roughly in mid 2011, our relationship with Top Rank, Inc. and Michael Koncz was non-existent. The IRS issued a refund check dated June 24, 2011. VQ’s senior staff flew to and met with Manny in the Philippines and delivered to him the tax refund check and they discussed their findings pertaining to Top Rank, Inc. and Michael Koncz. Manny was distraught and after reviewing the documentation, Manny agreed to pursue Top Rank, Inc. as well as Michael Koncz. However, Manny requested that no legal action take place until Manny received his advance for his upcoming fight in November 2011 from Top Rank, Inc. and to take no action until September 1, 2011. VQ’s staff requested payment and again presented Manny with billing for their services that had been performed on his behalf and Manny stated that he would deposit the check and then wire the funds.

Since the last meeting with Manny where he received his check, VQ has not received any payment for any of their accounting and tax audit work performed, nor has Manny even paid back money he and Mike Koncz borrowed from VQ to help purchase a home for Mike Koncz in Orange County, California. VisionQwest has always remained in compliance with their contracts to Manny and MP and performed their work professionally.
Click to expand...

King1 · Sep 22, 2011

In before Cowboy_Bebop embarrasses himself

Xerobull · Sep 22, 2011

In before IBTL

Angkor Wat · Sep 22, 2011

Xerobull said: ↑

In before IBTL
Click to expand...

Was this already posted?

Dei · Sep 22, 2011

Floyd was right?

Cowboy_Bebop · Sep 22, 2011

King1 said: ↑

In before Cowboy_Bebop embarrasses himself
Click to expand...

Oh look Gayweather fangirl finally spoken. Why so quiet after the sucker punches? What does this have to do with Manny and his fighting if he's been run by idiots advisor and promoter? Not like a give a damn about his finance. All I want to see is the fight.

Dei · Sep 22, 2011

^Just like clockwork.

King1 · Sep 22, 2011

Cowboy_Bebop said: ↑

Oh look Gayweather fangirl finally spoken. Why so quiet after the sucker punches? What does this have to do with Manny and his fighting if he's been run by idiots advisor and promoter? Not like a give a damn about his finance. All I want to see is the fight.
Click to expand...

Walk it off, chump...champ...I mean champ. You'd give your life savings to hump Manny's leg. I told you to jump and you said "how high"? Dance little fella

gambingo · Sep 22, 2011

If this is true and Manny ends up leaving Top Rank Promotion, we might get to see him fight Mayweather after all. But we all know Mayweather will continue to make excuses lol

Air Langhi · Sep 22, 2011

I don't understand why anyone would sign top rank.

Dairy Ashford · Sep 22, 2011

When the agent, manager, publicist and promoter are all with the same company (standard practice I believe); yeah, money's being hidden.

Mr. Space City · Sep 22, 2011

It's common knowledge that Bob Arum is a scumbag. His own trainer said Pacquiao was broke. Damn shame they're doing Manny like this.

That's why maywetaher left Top Rank.

and yet anothr excuse from Arum

RocketDonut · Sep 23, 2011

People are still watching boxing? I thought boxing was over after the last fight...

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[Boxing] Bob Arum/Top Rank hiding money from Pacquaio?

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[Boxing] Bob Arum/Top Rank hiding money from Pacquaio?

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