Harveys Say Bradbury Should Pay IRS Bill

by Arkansas Business Staff  on Monday, Jan. 16, 2012 12:00 am  

You knew this was coming.

Ed and Bonnie Harvey, the former owners of Continental Express Inc. of Little Rock, say the Internal Revenue Service was correct to bill their former employee, Ralph Bradbury, for $750,000 in taxes that the trucking company failed to pay in 2008.

The Harveys responded to a civil suit that Bradbury filed in Pulaski County Circuit Court arguing that the Harveys and their financial adviser, Marvin Jones, should be liable for the unpaid taxes.

“As president of Continental, it was Ralph Bradbury’s responsibility to withhold and remit any funds owed for taxes or similar obligations owed to the United States or the IRS or other governmental entities,” the Harveys said in their answer. “Ralph Bradbury was in operational control of Continental. Ralph Bradbury failed to remit those funds, failed to withhold those funds, failed to see that those funds were properly paid by Continental, and that any liability resulting from that failure of Ralph Bradbury is solely a liability of Ralph Bradbury as president of the company.”

The Harveys also said that a lawsuit against them should be put on hold until the conclusion of a lawsuit Bradbury filed against the IRS in federal court. The revenuers haven’t filed an answer in that case yet.

Bradbury alleges in his circuit court complaint that, instead of remitting payroll taxes, the Harveys and Jones “diverted funds from Continental for their personal gain and to” five unnamed people

Bradbury said in the lawsuit that Jones and Bonnie Harvey had no intention of paying the tax bill, even though Bradbury told them it needed to be paid.

On Dec. 4, 2008, Continental’s assets were sold to Celadon Trucking Services Inc.

“I’m ready to tee it up,” Bradbury said last week in an email to Whispers. “It has been a grueling two years. We are ready to get the facts out there and let this case be decided on its own merit.”

 

 

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