Last updated: July 18. 2013 7:26PM - 402 Views
Jack Latta
Staff Writer

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PRESTONSBURG — An order to freeze former David School director Danny Greene’s credit card was issued in Floyd Circuit Court, after the school alleged questionable expenses charged to the account.

On Wednesday, The Times reported on a motion filed Dec. 14 by the David School’s attorney, Michael Endicott, which noted an existing credit card account with a bill of over $2,000. Prestonsburg attorney Ned Pillersdorf, who serves as vice chairman of the school’s board, said in an affidavit that the charges appear to be mostly unrelated to school functions, and included charges in at least five different states. At least one of the charges listed on the account was a single charge of $32.35 to Adult World Factory Outlet, in Widener, Ark.

During the court hearing Friday, Judge Johnny Ray Harris said the credit card charges were troubling and issued a court order freezing the account.

The motion also called into question some tax liability with which the David School had been saddled. According to Pillersdorf, Greene subjected the school to a tax bill of $33,919.33 by failing to pay withholding tax to the government, even after it had been deducted from employee paychecks, and failing to file required forms.

“I have no hesitancy in representing to the court, that he (Greene) caused these charges,” Pillersdorf siad.

Pillersdorf was accompanied in court by attorneys from the state Attorney General’s Office, who indicated they would refer the matter of the tax liabilities to the prosecutorial division to address criminal aspects of the case. They also said they would try to help the David School with resolve the matter with the Internal Revenue Service.

A final item of the motion was addressed in court, concerning a piece of property the school bought from Greene in 2005, at a price of $157,000, consisting of two tracts of land. Pillersdorf says that a clerical error only accounted for one tract in the actual deed.

Pillersdorf said that school is currently in negotiations to sell the property and asked that a quitclaim deed be issued to establish both tracts as being part of the property to be sold. Greene and his wife only signed one of the deeds, leaving ownership of the other piece of land in question. The motion asks for Greene and his wife to sign a quitclaim deed for the other piece of land so that the sale could move forward. Judge Harris agreed that the deed in question was for both tracts of land, and entered an order for the Greenes to sign a quitclaim deed.

Pillersdorf added that with the sale of the property, and a resolution to the tax liability issue, the school could be financially on solid footing again.

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