A San Francisco judge has rejected Trip Hawkins’ plea to use personal bankruptcy to cancel $20m of tax obligations.
According to a Forbes blog, US District Court judge Jeffrey S White has upheld an earlier bankruptcy court ruling related to tax shelters Hawkins used to shield the personal wealth he gained from founding Electronic Arts in the 80s.
The judge said Hawkins knew he was insolvent after the IRS disallowed his tax shelters and that he planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed.”
Hawkins is now CEO of Digital Chocolate, but made his fortune as founder of EA. It was the demise of a subsequent business, 3DO, that caused his financial problems.
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