From Yahoo news:
“The Trustee of Axium International, Inc., formerly a $1.8 billion payroll processing operation servicing prominent entertainment studios and Fortune 1000 clients, filed suit today against John Visconti, former Chairman/CEO and Ronald Garber, former Vice-Chairman/COO, for tens of millions of dollars in damages caused by years of mismanagement and misappropriation of corporate assets. Axium filed for bankruptcy protection in January 2008.
Howard Ehrenberg, the court appointed Chapter 7 bankruptcy Trustee for Axium International, Inc., Diversity MSP, Inc. and their related entities, said that under the direction of Visconti and Garber, Axium suffered from profound financial and corporate mismanagement, punctuated by wasteful spending that was ‘perhaps the worst I have seen in my experience.’
Axium’s books and records outline a pattern of reckless corporate spending that supported lavish lifestyles for Visconti and Garber including luxury cars, corporate jets, travel and entertainment, and other forms of corporate waste, all of which caused significant financial injury to the company.
Company documents also appear to show that Axium underpaid federal payroll taxes. According to claims filed by the IRS in the bankruptcy cases, Axium still owes more than $80 million in unpaid taxes.
There was also a real cost to Axium’s stakeholders which includes the more than 1,000 employees worldwide who lost their jobs and creditors who are owed more than $500 million because of the bankruptcy.
‘John Visconti and Ronald Garber simply did not know how to operate a global, multi-billion-dollar payroll operation,” Ehrenberg said. “They should be held accountable by the Courts for their actions which resulted in so many people losing their jobs and for the debt they owe Axium’s creditors.’
The Complaint, filed in the United States Bankruptcy Court in Los Angeles today, seeks damages from Visconti, Garber and various shell companies they controlled, as well as from Axium’s tax consultants. The Complaint also seeks return/repayment of property and other assets improperly funneled out of the companies.”
