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addition, video game manufacturers notified Mr. Poulos that his
corporations were not fulfilling their service obligations, and
therefore, contracts with his companies would be canceled if he
could not rectify this problem. Payments from the ANB escrow
account to Liberty's and Galaxy's creditors could not be made
without a court order, and Mr. Poulos had no other funds with
which to make these payments. As a result, Mr. Poulos filed a
motion with the court to order such payments.
In November of 1991, the court issued an order giving Mr.
Poulos possession of Liberty and Galaxy. Mr. Poulos and his
attorneys continued their attempts to regain possession of the
corporate assets that had been taken by Mrs. Poulos and her
boyfriend. In addition, they also represented Mr. Poulos in his
divorce action with Mrs. Poulos.
The following table delineates legal expenses paid by Galaxy
in 1991 and Mr. Poulos in 1992:
1991 1992
Greenburg $35,000 $3,000
Schiller 25,000 22,000
Mr. Ritsos 5,000 2,000
65,000 27,000
Approximately 60 percent of Schiller's and 70 percent of
Greenburg's fees related to the services performed on behalf of
Galaxy.
On their respective income tax returns, Liberty deducted
legal fees of $15,150 for 1991 and $25,000 for 1993, and Galaxy
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Last modified: May 25, 2011