Dr. Phil accused of deleting incriminating texts amid bankruptcy filing – Reports
- - Dr. Phil accused of deleting incriminating texts amid bankruptcy filing – Reports
Anthony Robledo, USA TODAY October 30, 2025 at 4:17 AM
0
Dr. Phil accused of deleting incriminating texts amid bankruptcy filing – Reports
Dr. Phil's bankruptcy proceeding has not gone as planned.
A northern Texas judge ruled that Dr. Phil McGraw's Merit Street Media company assets will undergo a Chapter 7 liquidation instead of a Chapter 11 reorganization due to concerns of alleged wrongdoing, according to Variety and The Hollywood Reporter.
U.S. Bankruptcy Judge Scott Everett explained in his Tuesday, Oct. 28, ruling that this is largely due to suspicion about McGraw improperly filing for bankruptcy following alleged incriminating text messages. McGraw has denied several accusations regarding the bankruptcy, including that he allegedly filed for bankruptcy to jumpstart a new company.
The court cited evidence showing McGraw deleted an "unflattering" text message regarding a "gangster move" that allegedly incriminated him of trying to avoid paying certain creditors through the Chapter 11 route, Variety reported.
USA TODAY has reached out to McGraw's legal representatives for comment.
At Tuesday's hearing, the judge said he has "never seen a case" like this, referring to it as an "anomaly," according to the outlets.
What is the litigation about?
Merit Street Media is the famous psychologist's TV network, intended to replace CBS as the home of the "Dr. Phil" talk show. In 2023, Merit Street Media was formed as a joint venture 70% owned by Christian group Trinity Broadcasting Network and 30% by McGraw's production company Peteski Productions.
Everett said McGraw intended to pay his own company, Peteski Productions, while opting out of paying "unfavored creditors" like Trinity and sports group Professional Bull Riders.
Merit Street, of which McGraw is the sole director, filed for bankruptcy on July 2, just a day after McGraw and Peteski created a new company called Envoy Media.
Dr. Phil McGraw participates in the White House Religious Liberties Commission meeting at the Museum of the Bible Sept. 8, 2025 in Washington, DC.What was Dr. Phil's 'gangster move'?
In private messages, McGraw described a "gangster move" to make Trinity a "passive minority investor" through a Chapter 11 bankruptcy, according to court docs obtained by USA TODAY. Court records state McGraw planned on "taking the money and running instead of following through on his end of the bargain."
Trinity and Peteski became partners under a purported 10-year agreement worth $500 million. Under the agreement, Trinity would offer production and distribution services while Peteski would produce new content, including 160 episodes of the talk show over five to six months, according to court records.
However, Trinity alleges McGraw failed to deliver the viewership numbers, advertising revenues and product integrations that were promised, court records show.
The network sued Trinity, alleging breach of contract and abuse of power as a controlling shareholder. In response to the litigation, Trinity countersued McGraw, alleging fraud and a month later, Professional Bull Riders filed an emergency motion seeking documents to determine whether Merit filed the bankruptcy case "in bad faith."
The Christian broadcaster said it spent over $100 million through its own services as well as offering loans to Merit Street by the end of June, according to The Hollywood Reporter. Eventually, it spent $13 million monthly on production efforts despite McGraw not delivering a single episode.
A spokesperson for McGraw challenged that claim, Variety reported, adding that it aired 214 new episodes on Merit; however, whether those episodes were considered part of the Trinity deal has been disputed.
What has Dr. Phil said?
The TV star has denied allegations he improperly filed for bankruptcy, adding he did everything he could to keep Merit Street afloat, THR reported.
"I'm doing everything I can to keep Merit up and running. This theory, that this was all a ploy to set up Envoy Media, is absurd," he said.
Peteski said an appeal to Everett's decision will likely be filed, telling Variety and THR in a statement that "We respectfully disagree with the court's ruling and take issue with its comments concerning Dr. Phil McGraw."
The judge indicated "McGraw believed he was calling the shots." But, Everett said, "Candor to the court is critical."
This article originally appeared on USA TODAY: Dr Phil bankruptcy case filing has accusations of deleting texts
Source: “AOL Entertainment”
