It’s more than well-known that reality TV owes most of its popularity to drama and suspiciously avoidable situations. However, what happens when the drama you’re known for on TV is only matched by your off-screen issues? That’s something which Paul Teutul Sr. from the hit show “American Chopper“ knows well.
Paul Sr. is easily remembered by the never-ending feud between him and his son Paul Jr., to the point when the two couldn’t stand to see each other in the same building, let alone in the same show. They parted ways, but that wasn’t the end of trouble for Paul Sr., who has seen himself caught-up in several legal scandals in the last decade, including being hit by fraud allegations, even as he dealt with an already-troubling bankruptcy case.
So what have Paul Sr’s legal issues been about? Is he still in trouble? Has he previously been sued for fraud? Keep with us to find out!
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Fraud Allegations
Before getting to why Paul Sr. filed for bankruptcy, let’s go to the time when fraud allegations hit him amid his already complicated financial troubles. In early 2017, Paul Sr. was sued for alleged fraudulent behavior toward one of his former associates, producer Thomas Derbyshire.
According to the documents filed by Derbyshire, he and Teutul had agreed on working in an “American Chopper” revival series entitled “Orange County Choppers: American Made” to be aired on A&E. However, the producer alleged that Paul Sr. switched their deal to benefit each part of 50%, which went against the initial agreement of Derbyshire getting 51% of the earnings in return for the $3 million he invested in the project.
Derbyshire also accused Paul Sr. of unauthorizedly providing his son Michael Teutul with a salary, interrupting the filming to go on vacation, and refusing to film with Rusty Coones from the TV show “Sons of Anarchy”. On top of that, the Teutul patriarch was also accused of making brand deals without the permission of Derbyshire, breaching their contract and thus sabotaging the TV show, according to the plaintiff.
Although the case was filed in April 2017, it wasn’t made public until Paul Sr. filed for bankruptcy a year later; it’s unclear what the case’s resolution was, though.
Why Did Paul Sr. Go Bankrupt?
In February 2018, Paul Sr. filed for Chapter 13 bankruptcy, a plan available to wage earners and self-employed people to let them pay their creditors when common payment alternatives don’t provide them with enough financial relief, which was something which Paul Sr. highly needed at that time.
According to reports, Paul Sr. owed over $1 million by the time he filed for bankruptcy, but his earnings were far lower than that. His monthly income was $16,530,81, but his monthly expenses and debts were $20.,129,17, without counting the hundreds of thousands he owed in taxes for his home located in Montgomery, New York State. Some medical expenses and over $30,000 in a judgment against him were included in the case.
Some of the properties listed by Paul Sr include three cars and four dogs. His 38-acre Montgomery property stands out of all of his assets, as he reportedly owned $1.8 million of its fee interest.
While everything seemed to be going well in the bankruptcy process, in 2019 Paul Sr. was accused of neglecting the case by failing to provide some important documentation to his trustee, but all of these issues were seemingly fixed in the end. The case attracted lots of media attention though, making sense why the fraud allegations against Paul Sr. were publicized in the middle of it.
What Happened To His House?
One of the most talked-about topics during Paul Sr’s bankruptcy case was regarding his house at the time, as he’d faced several issues while trying to sell it. The Montgomery house was initially listed for $2.89 million, staying in the market for a couple of months before Paul Sr. filed for bankruptcy.
Great day fishing with my son Mikey pic.twitter.com/O7SaB4K3lP
— Paul Teutul Sr (@paulteutulsr) October 1, 2015
The property’s price wasn’t that convincing for buyers, leaving the TV star no other option than to lower its price twice before listing it for $1.65 million in 2019. According to a Page Six report, the 32-acre property had lots of charming points including its location and ample space, but most buyers weren’t exactly ecstatic about the extra documentation they needed to go through if they wanted to buy it, due to the house being in foreclosure.
Another not-so-positive aspect about Paul Sr’s house was its price, which despite being lowered 42%, was still too high to compete with other properties in the area which were listed around $300,000 at the time. Paul Sr’s was bigger in comparison to those, but was still a tough ask for potential buyers.
In July 2019, Paul Sr. finally sold his Montgomery house for $1.5 million, allowing him to pay off all his debts for good, and put an end to this complex episode of his life.
Another Lawsuit
It wasn’t enough that Paul Teutul Sr. filed for bankruptcy while the fraud allegations against him were made public, as in the meantime he was also hit by a second lawsuit. This new development in the case was known in April 2019, when the auto shop JTM Motorsports accused him of not paying his debt to the business for a car on which he’d commissioned some work.
As reported by The Blast, Paul Sr. agreed to pay the auto shop with screen time in “American Chopper”, which aired a couple of months before he commissioned the shop to work on his 2009 Chevrolet Corvette in August 2018. Paul Sr’s payment never came, thus leading the business to file documents on Teutul’s Chapter 13 bankruptcy case, seeking payment for the $30,000 he owed.
However, Paul Sr. allegedly failed to comply with the agreed payment once again, leading the shop to hold him in civil contempt. It’s fair to assume that this issue was fixed once Paul Sr. sold his house and paid his creditors, including JTM, but the incident is yet another unfortunate turn of events associated with his highly publicized bankruptcy case.
Was Paul Sr Accused Of Fraud Before?
It was very bad for Paul Sr. to be accused of fraud for allegedly sabotaging his TV show, but that wasn’t his first rodeo at a fraud court. Back in 2007, Paul Sr and his two sons Paul Jr and Daniel were taken to court when a bankruptcy trustee named Tom Genova accused them of fraud for moving the assets from one family company to another, before filing for Chapter Seven bankruptcy in 2005.
As reported, Paul Jr. owned O.C. Iron Works Inc., which his father established in the 1970s before leaving the business for good in the early 2000s. As his father took care of Orange County Choppers, Paul Jr. managed the steelwork company for a couple of years, until selling all of its assets to his brother Daniel, who had just recently founded Orange County Ironworks LLC. Six months later, the old company filed for bankruptcy while facing a lawsuit for breach of contract by a company named Turner Construction.
In 2008, the case was settled for $500,000 and everyone moved on. However, this incident only adds to the already long list of negative encounters with the law which Paul Sr. and the rest of the Teutuls have faced so far. You may hold your breath awaiting Paul Sr.’s further legal problems, as he certainly doesn’t appear very smart in such matters!
