In 1991, a judge found Paul Bilzerian liable of securities fraud. In 1993, he was ordered to pay $62 million. A court appointed receiver collected around $3.7 million out the civil judgment against him. In other words, he still owes taxpayers a lot of money.
Questions of Paul Bilzerian’s role at Ignite add yet another problem to an already struggling company. Currently, the company is being sued by former-president Paul Heffernan for wrongful termination, defamation, and violation of California’s whistleblower protection laws.
Heffernan’s suit alleges that Dan Bilzerian used company funds to fund his globetrotting lifestyle which includes models, big-ticket dinners, private planes, and yachts. Not to mention a $2.4 million home in the Hollywood Hills.
When Heffernan attempted to call Dan Bilzerian out on his spending habits, he was reportedly fired for using drugs during a company meeting, which he vehemently denies.
In a statement to TMZ in July, Dan Bilzerian denied Heffernan’s allegations. He said Ignite fired Heffernam because of his “incompetence and negligence.” He added that his company “will be bringing suit” against Heffernan and stated his claim “is not only frivolous; it is ridiculous.”