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Former hedge fund manager and former billionaire Phil Falcone is having some money problems. There are the unpaid tax bills, unrepaid loans and unpaid legal bills. To this litany must, apparently, be added unpaid private-school tuition bills, unpaid limo drivers, unpaid rent, unpaid credit card bills and unpaid employees. On the other side of this ledger of woe are the unpaid bonuses and salaries to Falcone from jobs he no longer has, and the unrealized riches from all of the revolutionary business plans that have so far proven anything but revolutionary, such as this one.

Madison Technologies is a recent name of the penny-stock company, now called Go.TV Inc., which says it will revolutionize broadcast television. The company plans to buy up low-price local TV stations and build out a nationwide platform for people who use antennas…. Mr. Falcone’s name is misspelled in a company pitch deck to investors, and his biography is filled with dummy copy beginning “Lorem ipsum dolor sit amet.” The company is backed by more than $16 million from New York firm Arena Investors LP. “Arena is a lender secured by certain of the TV stations/franchises of the public company…not a lender directly to Mr. Falcone,” a spokesman said.

That’s probably a good idea, because not only was Falcone more than $100 million in debt at some point this year, but he has neither the ability to nor intention of paying it.

“Mr. Falcone has made it his mission not to pay this money,” New York State Supreme Court Justice Arthur Engoron, who oversees a number of the creditors’ cases, said during a hearing this year in a case filed by New York state…. Justice Engoron said at the hearing in the state case that the move [to put Falcone’s Go.TV shares into trusts out of the reach of creditors] constituted fraud, and that he was “tempted to throw Mr. Falcone in jail immediately.”

To which Falcone has what might seem a strange response: Sure, he’s drowning in debt, but less of it, and also he’s not as poor as he’s told the courts, which seems like something Engoron might want to know about. Hopefully for Phil’s sake he doesn’t read The Wall Street Journal.

Mr. Falcone said in emails that the information about his debts in public records was months out of date and that they now stand at around $45 million. He said asset sales helped him to pay down the debt…. He also questioned The Wall Street Journal’s accounting of his financial situation. “Does it include my offshore acct or Madison Technologies ?” he asked in an email. He didn’t provide further details on any offshore account, including how much money it might hold.

It must be a lot, because in spite of having lost his New York City homes, his St. Bart’s property and even his $375,000 share of his family’s Minnesota lakefront compound, Phil couldn’t be happier.

“Yesterday is already in the rearview mirror,” he said in a text message. “I’m looking forward and I like what I see, in fact, I love what I see.”

How to Lose $2 Billion in 10 Years: Unpaid Bills Pile Up for Former Hedge-Fund Star [WSJ]

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