Suzanne Paul, who doubles as NZ Woman's Weekly's 'Debt Doctor' is now in the embarrassing position of being sued for non-performance of her contractual obligations by As Seen on TV. This has reawakened claims that Suzanne Paul has not made good on her promises to repay creditors.
In today's Sunday Star Times it is revealed that As Seen on TV (ASOTV), paid Suzanne Paul, her lawyers and creditors, $331,000 to endorse its products. However, Suzanne Paul pulled out of the deal nearly 12 months ago (November 2006) stating that she no longer wanted her image associated with the product. Although no reason has been given we presume it is because Suzanne Paul has plans to launch her own range of infomercial based products.
ASOTV are now suing Suzanne Paul for recovery of the $331,000 that they paid on her behalf plus interest and legal costs. This could bring the total claim to more than $400,000. In addition Suzanne's own legal bill is likely to be substantial, if this claim isn't settled out of court.
Suzanne Paul refutes the claim, however on the facts presented it does appear that she is liable to repay ASOTV at least part of the money she has received from them.
The statement says ASOTV gave Paul several cash advances of $10,000, paid $46,000 to the lawyers representing her during her bankruptcy and paid for a $3500 holiday and a $9000 trip to the UK to visit her sick father. It says in April last year it also paid $233,000 to pay creditors 25 cents in the dollar.
ASOTV's lawyer Ben Langdon says the company had a good faith agreement with Paul which she had not honoured.
However, proving you can not believe everything you read,
Sunday Star Times states:
In 1996 Paul pocketed $39m from the sale of Prestige Marketing, a company that owed its success to her tireless promotion of Natural Glow make-up and other products in TV infomercials.
This is incorrect. Suzanne Paul was a shareholder of Prestige Marketing and the
proceeds of the sale were shared with the other shareholders including her ex-lover and business partner Paul Meier. Suzanne has publicly stated that she received about $3m as her share of the sale proceeds.
Paul Meier continues to hawk products by way of infomercial, and those of you who watch TVNZ's Good Morning show may have seen him selling ladders and other products.
As Seen on TV is the trading name of the company that purchased Prestige Marketing from Suzanne Paul and Paul Meier, so Suzanne was in effect contracting back to the company that purchased the infomercial business that she fronted.
This isn't the first time that
Suzanne Paul's repayment claims have been questioned. We have always thought it was strange that Suzanne Paul should be listed as one of
NZ Woman's Weekly's most loved women (20 August 2007, 75th Anniversary edition), given the animosity that her creditors have towards her. Presumably they will be even less enamoured of her having read that ASOTV paid for her to have a $3,500 holiday, and a rather extravagant $9,000 trip to the UK to visit her sick father (we doubt the creditors will begrudge her visiting her father but $9,000 sounds a bit rich for a couple of tickets to the UK)
"It's just crap. Everyone thinks she's paid everything but she hasn't."
Shelley Keene, credit manager at Southern Hospitality, says she does not expect any more money from Paul after receiving 25% of $54,000 owed. "Basically we have written it off, and lesson learned. She's made her good intentions known but she still hasn't followed through."
This might put a crimp in
Suzanne's plans to be NZ's richest woman within five years.
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