Trustee to oversee Vick's finances

ATLANTA — Michael Vick's finances are in such disarray that a bankruptcy judge will appoint a trustee to oversee the former Atlanta Falcon quarterback's dwindling estate.

U.S. Bankruptcy Judge Frank Santoro has ordered a hearing for Sept. 5, according to court documents filed in Virginia..

"It has become clear since the filing of this case that Mr. Vick has very limited knowledge of the state of his finances. ... It appears that Mr. Vick has routinely relied upon others to make financial decisions for him, giving them discretionary control over large sums of money," Santoro wrote in his order on Wednesday. Vick filed for bankruptcy protection from his creditors, including the Falcons, on July 7. He stated that he had assets and debts in the range of $10-50 million.

Vick originally sought to have David Talbot serve as his trustee in the case. He was called a "trusted advisor" in the original filing. However Talbot was charged with securities fraud by the State of New Jersey last Friday in Bergen County. He is accused of swindling $500,000 from church members. Vick has sought to have him dismissed as an adviser.

Also, according to court documents, Vick retained Mary Wong, of Omaha, Neb., in 2007 to serve as his business manager. He gave her a broad power of attorney over his financial affairs and $550,000. Vick's attorneys have sought to have Wong account for the funds and have accused her, in court documents, of having "removed additional substantial funds ... without his authorization."

Phone calls to Vick's lead attorney, Peter R. Ginsberg, of the New York firm of Crowell & Moring, were not returned.

A court-appointed trustee would attempt to unravel the finances of Vick, who is serving a 23-month sentence on felony charges related in dogfighting at Leavenworth Federal Penitentiary in Kansas. The trustee would conduct an investigation to find and recover funds from third parties for the benefit of Vick's creditors and possibly Vick.

W. Clarkson McDow Jr., the U.S. trustee for region four (which includes Newport News, Va.), noted that by Vick's own admission, he "has limited ability to arrange his finances and limited ability to participate in the bankruptcy case on an in-person basis."

The court noted that in 2005 Forbes Magazine listed Vick, who has been suspended indefinitely from the NFL, as the 19th most highly paid celebrity in the world. The magazine estimated his total income for the prior year at $37.5 million.

The bankruptcy court can step in when it determines that a debtor has grossly mismanaged his assets or if it's in the best interest of the creditors and debtors.

McDow concluded that Vick meets those federal requirements.

"Mr. Vick has selected personal advisors, including agents and financial advisors, an unknown number of whom have taken advantage of Mr. Vick's trust," McDow wrote in his motion. "Notably, both Ms. Wong and Mr. Talbot obtained broad written authority from Mr. Vick to act as his attorney-in-fact over all of his financial affairs."

In court documents, Vick's attorneys noted that Wong had been barred by the New York Stock Exchange's hearing board for misappropriation of customer funds and other questionable activity.

According to court documents, Talbot received $35,000 and a 2008 Mercedes-Benz S550 (valued at between $80,000 and $85,000) from Vick to serve as his financial adviser. He was also to receive a salary and expenses.

Santoro wrote that Vick's financial issues pre-date his sentencing.

"Even before his incarceration, Mr. Vick had given Ms. Wong the same degree of control," Santoro wrote. "Mr. Vick selected these 'financial advisors,' and both are suspected of transferring Mr. Vick's assets for their own benefit."

The Federal Bureau of Prisons lists Vick's projected release date as July 20.

D. Orlando Ledbetter writes for The Atlanta Journal-Constitution.