Pellicano feared he might lose his business after he received $2 million from Michael Jackson (as well as a Mercedes) for spearheading his defense against that molestation charge in the early 90s. After Pellicano reported only $1 million of the payment to the I.R.S. as a loan, he received a notice from the government. An employee tells Vanity Fair: “I remember one morning when he opened his mail with the letter from the I.R.S., he jumped on his desk and started screaming, ‘Abandon ship! Abandon ship! We’re out of business!’ Women were crying and screaming in the office. Fortunately, Rich DiSabatino was in the office and pulled him aside and calmed him down. I understand it took him a few years to pay off the I.R.S.”
VF: IRS Debt Almost Shut Down Pellicano
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