This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Records: Detroit Emergency Manager Had Tax Liens

DETROIT (AP) â¿¿ The auto-industry turnaround expert picked to steer Detroit back from the brink of financial ruin had tax liens on his Maryland home, records show.

Kevyn Orr, Detroit's new emergency financial manager, had two outstanding liens on his $1 million home in Chevy Chase, Md., for $16,000 in unemployment taxes in 2010 and 2011, The Detroit News reported Saturday. The Maryland state records also show that two other liens of more than $16,000 in unemployment and income taxes were satisfied in 2010 and 2011.

Orr, a partner in the Cleveland-based law firm of Jones Day who represented Chrysler during its successful restructuring, was appointed Detroit's financial manager by Michigan Gov. Rick Snyder on Thursday.

Orr said Friday he didn't know anything about the liens when shown the records by the News. On Saturday, the Washington, D.C., bankruptcy attorney said he now is paid up on state liens.

"It's on me â¿¿ it's something that fell through the cracks," Orr told the Detroit Free Press.

Orr, 54, apologized for the oversight, saying he always tries to be attentive to such matters and wasn't aware of the liens until he was notified about them on Friday.

"It's remarkably embarrassing," Orr said. "I called and paid it up Friday. I wanted to make sure I addressed it as soon as I could."

Sara Wurfel, a spokeswoman for Snyder, said the governor's office wasn't aware of the liens until the News asked about them.

"It did not come up in any of the vetting," she said.

Critics of the emergency manager said the liens are troubling, because one of Orr's jobs will be to improve Detroit's tax-collecting operations.

Detroit is saddled with a $327 million budget deficit and more than $14 billion in long-term debt. City records estimate that Detroit collected $32 million less in income taxes than it was owed in 2011.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs