Eaglecard Assets Will Be Returned

Eaglecard Inc. will get its assets back when President C.E. “Ed” Franklin writes the Internal Revenue Service a check for $5,000, U.S. Bankruptcy Court Judge John Klobucher ruled Wednesday.

Eaglecard was shut down by the IRS April 4, the same day another company in which Franklin has an interest - Cube Enterprises Inc. - filed for bankruptcy in Las Vegas.

Cube owed the IRS about $140,000, according to Spokane attorney Barry Davidson.

He said the IRS considered Eaglecard liable for Cube’s tax obligations because the company had purchased some Cube assets.

Franklin paid the IRS $50,000 Tuesday, Davidson said, with the understanding that the agency would release Eaglecard’s assets for an additional $5,000, plus company operating statements for the next three months.

Klobucher set a May 10 hearing for determining what, if any, tax obligation falls on Eaglecard, which itself filed bankruptcy two weeks after the IRS seizure.

, DataTimes