Burstein ready to fly here, show evidence

Three-time world boxing champion Manny Pacquiao’s high-powered New York lawyer Judd Burstein, known as a defender of the oppressed, said recently he’s willing to fly to Manila and share with Philippine authorities the evidence of shenanigans he uncovered in the course of a case filed against New Jersey promoter Murad Muhammad.

Burstein, 52, has won cases over several boxing promoters, including Don King, in defending the rights of fighters. In 2002, he represented world heavyweight titlist Lennox Lewis in a suit against promoter Panos Eliades on grounds of fraud and racketeering and secured a multi-million dollar federal court judgment.

Among Manhattan litigators, Burstein is considered top of the line. He is a summa cum laude graduate from Brandeis University in 1975, earned a Master’s degree at McGill and finished law at New York University in 1981. His law office is on the 15th floor of a building on Broadway Avenue off 57th Street in Manhattan.

"I have learned over time that no single case has an impact on boxing although I would hope that this case might lead the Philippine authorities to take action against Rod Nazario," said Burstein who was Pacquiao’s lead counsel in the suit that was settled out of court by Muhammad in New York last week.

"I believe that the Games and Amusement Board should revoke (Nazario’s) license and he should be banned from the sport of boxing. I would be pleased to come to Manila and lay out all of my evidence for the authorities. I can tell you that in his summation, even Murad’s lawyer

(Julian Friedman) conceded that Manny had, in essence, been cheated by Nazario. I can also tell you that Rod’s statements to the Philippine press that all of Manny’s taxes had been paid was demonstrated in court to be an out-and-out lie."

In a letter to The Philippine Star, Nazario insisted that contrary to Burstein’s claim, "all of the tax obligations arising from Mr. Pacquiao’s fights in the US have been duly paid."

In Pacquiao’s legal complaint which is accessible via the internet in the website braggingrightscorner.com, it was argued that "Muhammad and M&M Sports (were in violation) of 26 USC No. 1441 which required M&M to withhold and pay to the Internal Revenue Service an amount equal to 30 percent of Pacquiao’s purses . Instead, M&M paid those monies and more to a shell limited liability company controlled by Pacquiao’s business manager on the fiction, not even permitted by law, that the shell corporation would pay Pacquiao’s taxes. No such taxes were ever paid, however."

Nazario clarified there was no irregularity in creating the limited liability company called Philippine Boxing.

"Philippine Boxing Limited Liability was created pursuant to the advice given by a lawyer and an accountant in the US to allow the easy remittance of the shares, including that of Mr. Pacquiao’s, in the purses of Mr. Pacquiao’s fights in the US and to pay the tax obligations arising from Mr. Pacquiao’s fights," said Nazario.

"Mr. Muhammad would pay Philippine Boxing Limited Liability Pacquiao’s purses which would then be distributed by Philippine Boxing which shall also pay the tax obligations, not on behalf of Mr. Pacquiao, but in its own capacity as the receiver of the checks from Mr. Muhammad. The practice was cleared as legal by our lawyer and accountant in the US."

Nazario explained that Philippine Boxing is not a corporation but a partnership. "No stock could be owned by any of the partners," he went on. "Originally, it was only I and my son Roberto who were partners of Philippine Boxing but when Mr. Pacquiao’s purses started getting bigger, I encouraged Mr. Pacquiao to become a partner. Mr. Pacquiao signed an addendum to the documents organizing Philippine Boxing, making him one of its partners."

Regarding Pacquiao’s claim that he was not paid his purses from US fights in full by Muhammad, Nazario said he has receipts showing otherwise.

Nazario particularly pointed to Pacquiao’s claim that he was paid only $650,000 for fighting Juan Manuel Marquez last year and $1,052,296 was deposited in Philippine Boxing.

"Mr. Pacquiao’s purse for this fight with Marquez was $750,000 which was a result of negotiations made by myself, Mr. Muhammad and Mr. Pacquiao with HBO in New York," said Nazario. "It was the biggest (purse) that a boxer from the Orient ever received for a US fight."

Pacquiao’s written complaint contended that "since M&M and Muhammad had facilitated a scheme that permitted Pacquiao’s business managers to retain as much as 50 percent or more of Pacquiao’s earnings, Pacquiao’s business management had a vested interest in not risking his exposure of their scheme by antagonizing Muhammad through hard negotiation for the highest possible purses instead, M&M and Muhammad had facilitated a situation where the business managers stood to earn far more through the shell corporation as opposed to simply taking their agreed-upon 10 percent of Pacquiao’s purses."

In a previous agreement, Nazario as business manager was entitled to receive 10 percent of Pacquiao’s purses. It was alleged in Pacquiao’s complaint that Nazario earned half of Muhammad’s promotional profit from the fighter’s six US bouts in 2001-04 over and above his 10 percent share.

Pacquiao is due to fly in from the US this morning.