Tag: Chapter 7 Bankruptcy

Super powers could not save well-known Scientologist, Matt Feshbach and his wife Kathy from $3.8 million dollars in tax debt owed.  Florida federal bankruptcy Judge Catherine Peek McEwen had this to say in her ruling:

“The Feshbachs made poor spending decisions, continually leading a life of excess in the face of serious, known financial obstacles. At all times, their primary concern should have been reducing their substantial tax debt. But as their immoderate spending choices show, they were far more focused on living in the lap of luxury. They would have been wise to heed the proverb which cautions that enough is better than too much. As it is, however, the Feshbachs misjudgment ultimately cost them complete relief. Having concluded that the Feshbachs willfully attempted to evade their tax debt within the meaning of 11 U.S.C. § 523(a)(1)(C), the Court rules that such debt is nondischargeable. Accordingly, the Court will enter a separate final judgment in favor of the United States in this proceeding.”

The couple, who is considered Scientology royalty, had accumulated $13 million in revenue since getting into trouble with their taxes, but refused to make good on their $3.8 million tax debt.  As legal documents prove, the couple did not attempt to slow down their spending as the case was going through court:

“$722,000 was spent on personal travel (including $233,000 for a rental home in Aspen), a half-million on clothing, another $370,000 on groceries, (plus another $78,000 eating out) and $147,000 plus on entertainment…$360,000 on their children, including a private education for their son. But more important than their children was the private chef, who cost more than $610,000 over eight years.”

What is most shocking is that during the same time the Feshbach’s knew they were being investigated by government agencies and as they were trying to low-ball and delay payment to the IRS, they continued spending at an excessive rate, assuming the court would discharge their IRS debt anyway.

A couple of examples that were found in IRS documents that were part of the bankruptcy court file include:  In 2011, IRS investigators found the couple’s claim to being “penniless” was “hardly credible” when they discovered that the couple was spending thousands of dollars a month to send their 14-year-old son to Scientology’s pricey “Delphi Academy” private school in Oregon.  One of the largest credit card charges they found in that period was nearly $10,000 for “Scientology publications.”

Matt Feshbach was the first Scientologist in the world to go through “Super Power” processing because in the 1990s he had made a $1 million donation to the Super Power project, which eventually resulted in the “Flag Building” being opened in November 2013.

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