ION Media Networks Headed to Trial in Tax Fraud Case (1)

ION Media Networks Inc. will have to defend itself against accusations of tax fraud, discrimination, and retaliation at trial.

Important factual issues still need to be worked out on each of the claims, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York said in her July 29 order.

Gordon Lavalette, ION’s former chief financial officer, argued that ION and its CEO, R. Brandon Burgess, retaliated against him after he alleged tax fraud by Burgess.

Lavalette said there appeared to be improper tax withholding for multiple ION employees. ...