A federal judge has directed the U.S. Marshals to collect more than $2 million in unpaid legal fees and interest from a broadcaster who was sued after his radio stations failed to pay royalties to record labels.
Last week, District Court Judge Jesus Bernal enforced a $2.1 million award to Fox Rothschild and broker Larry Patrick, who are brokering a series of deals to satisfy a judgment against Ed Stolz and Royce International Broadcasting brought by record labels last year.
The royalty case was settled last August, with a judge ordering Royce to sell off three FM radio stations to satisfy a financial debt owed to Warner Records and others. Stolz agreed to sell three of his radio stations to Christian broadcaster VCY America for around $6 million.
But the sale was halted by a bankruptcy judge in Nevada after Stolz filed for Chapter 11 protection there. The judge overseeing the bankruptcy case said those stations had to be considered as part of an overall plan to satisfy Stolz’s creditors.
While the bankruptcy case continues, Stolz owes brokers in California their fees plus interest related to the sale to VCY America that never went through. That amount has now eclipsed $2.1 million, and a federal judge has ordered the U.S. Marshals to collect that sum from Stolz.
If Stolz doesn’t pay the full amount owed, collection enforcement proceedings could move forward against his other assets, including his home and related property. The U.S. Marshals would be directed to seize whatever assets they can to satisfy the judgment as much as possible.