Tax Debts Follow Drug-Dealing Thompson Fundraiser

Nov. 5, 2007— -- The former drug-dealing bookie friend of GOP presidential candidate Fred Thompson, who serves in a key fundraising role, has another issue to explain to his longtime friend: why he and his former companies have a record of unpaid taxes.

Thompson said yesterday he has just learned that Philip Martin, his "longtime friend," chairman of the group "First Day Founders" and close campaign adviser, had been convicted of several felonies including drug dealing and illegal gambling. A review of public records shows that the IRS and the state of Tennessee have filed liens for outstanding tax debts against Martin and his former businesses.

In fact, businesses he helped to found and run currently carry nearly $1 million in old tax debts, according to Tennessee property tax records.

Martin, who lives in a multi-million-dollar home on a secluded Alabama island, could not be reached for comment. Messages to his lawyer, John P. Konvalinka, were not returned.

A Thompson spokeswoman yesterday declined to discuss the candidate's relationship with Martin, but said Thompson was unaware of any tax debts related to Martin.

Martin helped secure more than $6 million in pledges for Thompson's campaign as head of a group dubbed the "First Day Founders." He has also provided dozens of charter flights to Thompson, his aides and family, charging a fraction of normal charter prices for the trips, according to the Washington Post.

In a television appearance yesterday, Thompson defended Martin.

"I know Phil is a good man. He is my friend. He is going to remain my friend," said Thompson. Referring to Martin's criminal past, Thompson said he would not "throw my friend under the bus for something he did 25 years ago if he's okay now."

"On the other hand, I'm running for president," Thompson said. "I've gotto do the right thing. Problems occur. I'll just have to figure it out."

Records show Martin had one IRS lien filed against him in 1995, and the state of Tennessee filed three against him in 2002. A clerk confirmed that those state tax liens have been satisfied. An IRS spokesman said privacy laws prohibited him from discussing whether Martin had repaid his debt to the federal government.