PledgeMusic board member David Walsh pled guilty to second-degree criminal tax fraud, a felony, in Albany, NY County Court last month in an unrelated case. Walsh is one of the state’s largest tax debtors, according to a spokesperson for the New York tax department.
Walsh was an active board member of crowdfunder PledgeMusic when it filed for bankruptcy in the UK earlier this year, leaving stunned artists and record labels owed as much as $10 million.
Another PledgeMusic board member, Joshua Sason, is currently being sued by U.S. Securities and Exchange Commission for fraud. Sason was reported to be the biggest investor in PledgeMusic and was listed as having a ‘significant influence of control’ over the company.
Walsh Owed $2.8 Million In Taxes
David Walsh filed his New York state personal income tax returns but failed to pay for 2010, 2011 and 2014. He will now pay all penalties and interest, which currently totals $573,259, in addition to the more than $2.24 million he has already paid.
Walsh and his wife Gia are scheduled be sentenced on December 6th.
Former CEO Accused
Meanwhile, former PledgeMusic CEO Domenic Pandiscia was publically accused this week of financial mismanagement by musician and producer Ken Andrews who says his band is owed $75,000.
Pandiscia has vehemently denied the claim and threatened to take legal action.
