Huge Lawsuit - Legal Problems; Castillo and Top Rank being Sued

Huge Lawsuit - Legal Problems; Castillo and Top Rank being Sued

DHB (June 13, 2006)

Kevin Iole of the Las Vegas Review Journal is reporting that Top Rank and Jose Luis Castillo have bee hit with a multi-million dollar lawsuit in a New York state court Monday. The lawsuit is the result of Castillo's not making the 135-pound lightweight limit for his bout against Diego Corrales.

In the lawsuit, Corrales seeks payment of his $1.2 million purse and $10 million in punitive damages. His promoter Gary Shaw, is seeking $750,000 in damages and $10 million in punitive damages.

Iole also reports the Lawyer for Shaw and Corrales, Judd Burstein has sent a letter to the Nevada Athletic Commission. The letter asks the Commission to investigate and see if Top Rank committed income tax fraud by funneling some of Castillo's purse money through Fernando Beltran in Mexico.

As quoted in Kevin Iole's article, Burnstien wrote: "This commission should wonder: Why would Mr. Castillo agree to be paid ... less than Mr. Corrales when Mr. Castillo's promoter (Top Rank) was making more money on the fight than was Mr. Corrales' promoter (Shaw)?"

Adding: "Top Rank and Beltran have been taking advantage of a fighter who does not speak English and is represented by a manager (Beltran) who has been corrupted by Top Rank" or because "Top Rank, Beltran and Castillo are engaged in a scheme to defraud the Internal Revenue Service by paying monies to Beltran in Mexico that are really due to Castillo in the United States as fight purses subject to United States taxation."

The suit further claims "this scheme would then permit Castillo to receive a higher net purse by avoiding United States taxation on a substantial portion of the money he was paid

All quotes and source of this information: Kevin Iole, LVRJ