Hide Article Text (OCR)
The Brownsville HeraldFriday, October 29,Page 1BDeanwantsChannelforcedintoBy GREG FIEG Herald Staff WriterPeter W. Dean, a former top-ranking executive of KVEO-TV Channel 23, has asked that the television station be forced into bankruptcy.At the same time KVEO accuses Dean of defrauding the station of “tens of thousands of dollars” in a kick-back scheme, and vows to fight the bankruptcy petition.KVEO will continue broadcasting, a statement from the station said Thursday.Dean, the former chief executive officer and chairman of the board of Channel 23’s Tierra del Sol Broadcasting Corp., claims the television station owes him at least $607,000, and is broke.Late Wednesday he asked federal bankrupcty court Judge Bill Peden in Houston to turn the station over to an “interim trustee” under Chapter 11 bankruptcy law, in order to pay off the debt.Dean, with several other creditors, charges that the $4.7 million station is in jeopardy of losing its license and its contract with NBC.He said he and his wife, Paulette, who owns 10 percent of the corporation’s stock, were forced to resign from the board of directors in August after board members Vincent Crixell, Richard Jaross, Ed Gomez, A.L. Martinez and Darrell Davis suspected he was planning a corporate takeover.Davis, corporation president, labeled Dean’s bankruptcy“maliciousness.”petition firm.“Mr. Dean has done us and the Valley wrong, and he is in for the most interesting time of his life,” he said.Davis, who had been the station’s news anchor until its evening new-casts were cancelled last month, accused Dean of “mishandling of station finances, in particular a kickback scheme in connection with station accounts.”Dean and Davis are attorneys.The corporation last week filedsuit against Dean in State 103rd District Judge George W. Storter’s court, accusing Dean of fraud by selling the station’s uncollected advertising revenue for 93 cents on the dollar in order to get cash for operating expenses.The accounts were purchased by Central Texas Factors, which Dean helped to organize, the suit contends. Further, Dean’s law partner, Lawrence M. Ludka, is the firm’s registered agent and attorney, and shares the same address with theThe suit says the accounts are worth “hundreds of thousands of dollars,” and that the 7 cents per dollar lost to the station in the sale of the accounts are worth “tens of thousands of dollars.”The suit says the money was split between Dean and Ludka and others.Orin Shaid Jr. of Flint, Jean Moon of Melvin, Ranchlander National Bank of Melvin, and Summit Financial Services Inc. of Brownsville areconspiracy, and are also named as defendants along with Dean and Ludka.Davis said the total value of the transaction is unknown at this time, because the accounts are being audited. The corporation asks for recovery of the money, plus additional damages equal to the total.In Dean’s bankruptcy petition, Central Texas Factors is listed as a plaintiff, asking for damages of at least $100,000 owed under a contract drawn by Dean, which the corporation now claims to be invalid because of the alleged fraud.Other plaintiffs are Dean, Ludka and Harrison, Dean’s law firm, which claims to be owed $136,000, and Paulette Dean, claming to be owed $5,600.A hearing on the bankruptcy petition has been scheduled for 9 a.m. Nov. 9 in Houston.Dean denies the fraud allegations. He said the companies named in the alleged conspiracy are independent and that he owns none of themlisted as parties to the alleged except his law firm.“The station was burdened by the peso devaluation,” Dean said. “I devised some financial solutions to get us out of this troubled time, and some of the members of the board did not like my solution and perceived that I was trying to take over the corporation for my own good and benefit.”He denied the suspicions.He cited his attempt to sell 40 percent of the corporation’s stock — 180,000 shares in new issues at $7 per share — to another new partner in order to raise money. A majority board coalition was threatened by the maneuver, he said.“For the first month I was a pretty mad Indian, but this type of thing has happened to me in business before and will probably happen again. I feel I have to remove my emotions from it,” Dean said.Dean said he plans to leave town. He complained that Davis locked him out of his office after he agreed to resign.Dean’s problems “are the only real problems the station has,”bankruptcyDavis counters.“We assure you there is no basis for this bankruptcy petition,” Davis said. “Dean claims that we owe him ... money he put into the company. We have an audit under way to check out where we stand in connection with various questions that have arisen from Dean’s handling our books ... without the knowledgeof the rest of the board of directors.”Davis said the station's revenues are higher than anticipated and that operations are approaching a “break-even” point, although he would not disclose figures.“Our ratings and our revenues have been growing, and we are proud to be serving the Valley.” Davis said. “Channel 23 will continue to do so. The station is in good hands.”No trial dates have been set in Davis’ action.District Attorney Rey Cantu saidno criminal investigation into thefraud charges is under consideration.
Newspaper Details
Brownsville Herald
Brownsville, Texas, US
Fri, Oct 29, 1982
Page 9
Full Page
Clipped by
Sammi B.
NA 19 Mar 2023
Other Publications Near Brownsville, Texas
Whalen Furniture News
Valley Star Monitor Herald
Brownsville Sentinel
Brownsville Herald
Brownsville Daily Herald
