Manny Pacquiao allegedly hired accounting firm because he "believed that his fight promoter was not paying him his fair share"

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According to a statement from VisionQwest: "The main reason why VQ was hired to look into the missing money was because Manny [Pacquiao] believed that his fight promoter was not paying him his fair share. During the course of his contractual relationship with Top Rank, Manny never had anyone review the bout Income Statements generated by Top Rank."


Mahaba ang sagot ng VisionQwest Resource Group sa balita tungkol sa termination ng kanilang kompanya bilang accountant ng mga business at personal interests ni Congressman Manny Pacquiao.


Kinumpirma ni Michael Lodge (VisionQwest Resource Group president and CEO) noong August 2011 na nakatanggap sila ng termination letter mula kay Manny sa pamamagitan ng fax.

Sinabi ni Lodge na may pressure sa Filipino boxing champ na bitawan nito ang accounting firm, sa kabila ng pagkakaroon nila ng kontrata.


Mabilis na itinanggi ni Michael Konz (chief adviser ni Manny) na may kinalaman siya o si Bob Arum ng Top Rank sa desisyon ni Manny na i-terminate ang serbisyo ng VisionQwest.


Nangako si Lodge na haharapin nila ang isyu sa maayos at wastong paraan kaya tumagal ng isang buwan bago sila naglabas noong September 20 ng mahaba at detalyadong sagot.


Matindi ang mga rebelasyon ng VisionQwest dahil nagpahiwatig sila na hindi naging tapat kay Manny ang chief adviser nito at ang Top Rank Inc.

MISSING MONEY. Isang dahilan daw kung bakit kinuha ni Manny Pacquiao ang serbisyo ng accounting firm ay para hanapin ang diumanong "missing money."

Ayon sa pahayag ng VisionQwest, "Manny believed his fight promoter was not paying him his fair share. During the course of his contractual relationship with Top Rank, Manny never had anyone review the bout Income Statements generated by Top Rank."

Dagdag pa ng kompanya: "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.

"We were also able to identify 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...

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"We were able to obtain some documents from the Nevada Athletic Commission to verify inconsistencies in reporting and documentation."

At nang sinisingil na daw ng VisionQwest si Manny for their services, sinabi daw ni Manny that "he would deposit the check and then wire the funds."

Pero, sabi ng VisionQwest, "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."

ANG BUONG PAHAYAG NG VISIONQWEST (VQ):

"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 and 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 among its clients and the public as well.

"Many well-known Filipinos have used VQ's accounting and business advisory services because the staff members are honest, focused, licensed and they get the job done in a timely and professional manner.

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"VQ's management accepted the representation of Manny and MP. Contracts were 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.

"Manny and MP did not have any important documents in their possession like bout contracts, bank statements, bout proceeds 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."

POWER OF ATTORNEY. Sa pagpapatuloy ng statement ng VisionQwest: "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.

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"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."

MANNY NOT GETTING FAIR SHARE. Parte pa rin ng statement ng VisionQwest: "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 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 fees and costs because they claimed 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.

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"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 identify 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."

IRS REFUND. Ito pa ang dagday ng VisionQwest: "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.

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"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."


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