Glendale, CA, September 20, 2011: 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 an 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 amongst its clients and the public as well. Many well known Filipinos have used VQ?s accounting and business advisory services because the staff are honest, focused, licensed and get the job done in a timely and professional manner.
VQ?s management accepted the representation of Manny and MP. Contracts where entered into for the following issues:
Personal income and Corporate Tax returns needed to be filed.
Tax Audits had been issued as well as tax levies which needed immediate attention.
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 proceed 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. 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. 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. 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 had 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.
