mincooper's Blog

Vick files for Chapter 11 bankruptcy protection

RICHMOND, Va. (AP) — Imprisoned quarterback Michael Vick filed for bankruptcy protection while serving time for federal dogfighting charges, saying he owes between $10 million and $50 million to creditors.

Vick filed Chapter 11 papers in U.S. Bankruptcy Court in Newport News on Monday. The seven largest creditors listed in the court papers are owed a total of about $12.8 million.

Vick is serving a 23-month prison sentence at the U.S. Penitentiary in Leavenworth, Kan., after pleading guilty last year to bankrolling a dogfighting ring. He was subsequently suspended indefinitely without pay and lost all his major sponsors, including Nike. He also faces state charges related to dogfighting.

The suspended Atlanta Falcons quarterback "will seek to rebuild his life and career" upon his release, according to the filings.

The debt includes part of a signing bonus that the Falcons are seeking to recover.

After the plea on dogfighting charges, the Falcons tried to recover about $20 million in bonuses Vick earned from 2004 to 2007. But a federal judge held that Vick is entitled to keep all but $3.75 million of the money paid to him for playing football through the 2014 season.

According to the filings, Vick's other debts include $4.5 million owed to Richmond-based Joel Enterprises Inc., and $550,0000 owed to Radtke Sports Inc. for breach of contract.

In May, a federal judge ordered Vick to repay about $2.5 million to a Canadian bank for defaulting on a loan. The Royal Bank of Canada had sued Vick in September, arguing his guilty plea to a federal dogfighting charge — and the resulting impact on his career — prevented him from repaying the loan.

A default judgment for $1.08 million also was entered in January against Vick and a business partner in a lawsuit brought by Wachovia Bank over a loan for an Atlanta-area wine shop and restaurant.

Atlanta Falcons quarterback Michael Vick faces criminal charges and a possible prison sentence for allegedly participating in an enterprise that trained pit bulls for death matches in which spectators bet on the outcome, federal prosecutors announced Tuesday. Vick, 27, and three associates were indicted by a federal grand jury in Richmond, Virginia, on a conspiracy count alleging they bought and sponsored dogs in an animal fighting venture and traveled across state lines to participate in illegal activity, including gambling. According to the indictment, dogs that didn't show enough fighting spirit, or that lost matches, were put to death by a variety of methods, including shooting, drowning, hanging and electrocution. Prosecutors allege that on one occasion earlier this year, Vick participated in killing eight dogs. A National Football League spokesman said the allegations against Vick would be reviewed under the NFL's personal conduct policy. "We are disappointed that Michael Vick has put himself in a position where a federal grand jury has returned an indictment against him," said spokesman Brian McCarthy. "We will continue to closely monitor developments in this case and to cooperate with law enforcement authorities." If convicted of both portions of the conspiracy charge, Vick could face six years in prison and a $350,000 fine, according to a statement from the U.S. Attorney's Office for the Eastern District of Virginia. No arrest warrants have been issued, and Vick and the other defendants -- Purnell Peace, 35, of Virginia Beach, Virginia; Quanis Phillips, 28, of Atlanta, Georgia; and Tony Taylor, 34, of Hampton, Virginia -- have not been taken into custody, said Jim Rybicki, a spokesman for U.S. Attorney Chuck Rosenberg. A judge is expected to inform Vick and the others of the charges against them Wednesday and make arrangements for them to turn themselves in, Rybicki said. Vick, a standout at Virginia Tech who was the first player chosen in the 2001 NFL draft, is one of pro football's highest-profile and highest paid players. In 2004, he signed a 10-year, $130 million contract with the Falcons. The dogfighting investigation began in April, when authorities found 54 pit bulls on property Vick owns in Smithfield, Virginia, about 30 miles west of the Norfolk area where he grew up. There was no immediate comment from Vick on the indictment. He had previously said that while he had a kennel operation on the property, he had no involvement in, or knowledge of, a dogfighting ring. But the indictment issued Tuesday charges Vick was intimately involved in the operation, known as "Bad Newz Kennels," and that he bought the Smithfield property for $34,000 for the purpose of going into business with Peace, Phillips and Taylor. Between 2001 and April 2007, Vick and his associates bought and trained pit bulls and hosted dogfights at the property, and dogs were also taken to locations in at least six other states to participate in fights, prosecutors said. The owners of the winning dogs collected purses that ran into the thousands of dollars, and spectators also placed side bets on the outcome, prosecutors said. After one of the "Bad Newz" dogs lost a fight in March 2003, Vick personally paid $23,000 to the winning dog's owner, who is now a cooperating witness for the prosecution, the indictment said. According to the indictment, an unidentified associate from Bad Newz Kennels admonished another participant at a dogfight who yelled out Vick's name during an event in the fall of 2003 -- a participant who is also now cooperating with prosecutors. The indictment also alleges that Vick and his associates "rolled" some of their dogs -- testing them in short fights to determine how well they might fight. Dogs that failed the test were killed, prosecutors said. While most of the dog killings noted in the indictment were allegedly carried out by the other defendants, Vick himself participated in the killings of eight dogs in April, according to the indictment. The animals were killed "by various methods, including hanging, drowning and slamming at least one dog's body t the ground," the indictment said