A process issued by the court directing the U.S. Marshal to enforce and satisfy a judgment for payment of money has been issued by federal District Court Judge Jesus Bernal, putting embattled former radio station licensee Ed Stolz on alert that he must pay upward of $2 million to satisfy funds owned to Bernal’s court-appointed trustee — esteemed broker Larry Patrick.
Bernal’s writ of execution, dated May 9 and filed May 11 into the case docket, affirm that Patrick — through his legal counsel at San Francisco-based Fox Rothschild — must be paid by Stolz’s Royce International Broadcasting the principal amount of $2,078,076.95, plus $4,782.59 in interest.
Costs and attorneys fees are not included in the writ of execution, which put into motion a summons served to Stolz at an addresses associated with his attorney, Donald C. Schwartz. However, the summons ended up at a mailbox for Schwartz at a UPS Store in an Aptos, Calif., strip mall just south of Santa Cruz, Calif.
The writs of execution are the latest twist in a long, winding legal battle that dates to April 1, 2016. That’s when WB Music Corp. and a group of music industry entities, sued Royce International for nonpayment of royalties for songs the company aired on its KRCK-FM in Palm Springs and KREV-FM in San Francisco, Calif.; and at KFRH-FM in Las Vegas.
On August 31, 2022, Bernal closed the case, holding Royce, and Stolz, liable for repaying the music industry groups. To do so, a court-appointed receiver, Patrick, was directed to sell the three FMs. This was completed, with VCY America agreeing to buy the stations for $6 millions.
However, Stolz thwarted that effort by having already declared bankruptcy in Nevada. And the Bankruptcy Court, overseen by Judge August Landis, put a stop to Bernal’s ordered sale of the FMs so all of Stolz’s assets could be considered by his court.
Today, all of Stolz’s stations — including KBET-AM in Las Vegas — are in the hands of a receiver appointed by Landis. And, Stolz stands to get less money than if Patrick were to have carried out the VCY deal, despite assurances that his stations were valued perhaps three to four times the $6 million VCY was paying.
News of Bernal’s writ of execution follows RBR+TVBR‘s May 9 report that entrepreneur Kurt Nilson, who operates KYLZ-FM 101.3 in New Mexico’s largest market as “The Hustle” and sibling KOAZ-FM 103.7 as “The Oasis,” is working with Michael W. Carmel, the trustee in possession all Royce International stations, on assuming control via a signing of programming agreements between the two parties.
Meanwhile, Patrick told RBR+TVBR late Monday that his take is far less than $2.1 million. “I wish that I were owed $2.1 million, but the truth is substantially lower,” he said via e-mail. “Most of the funds, about $1.7 million plus, go to three law firms that have accrued fees and expense owed to them. I would have their funds for moments before sending it along to each firm.”
The important thing, however, “is we can collect from the companies and Stolz personally.”
This makes any homes, land and any Trust proceeds “all fair game,” Patrick says.
