Behind the fall of Dr. Phil's media empire

The fortunes of America's celebrity therapist faded along with the market for syndicated TV

- By Stacy Perman

It was not a good day for Dr. Phil.

Phillip McGraw, the genial celebrity psychologist who spent a career calling out the behavior of others and doling out zingers, found himself upbraided by a bankruptcy judge.

Merit Street Media, McGraw's new network, had filed for bankruptcy protection in July, a little more than a year after he launched the media startup, and then sued its distribution partner, Trinity Broadcasting Network.

During a nearly three-hour hearing in Dallas last month, U.S. Bankruptcy Judge Scott Everett said that he'd "never seen a case" like the Chapter 11 filing McGraw's company was attempting.

Everett cited evidence indicating McGraw had "violated" a court order by deleting "unflattering" text messages that allegedly described his plan to use the bankruptcy to "wipe out" creditor claims.

"What makes this case unique, unfortunately, is that it has been plagued with the attempted destruction of relevant evidence and less than truthful testimony by some of the key players," said Everett, alluding to McGraw and his associates in the case.

Everett ruled that Merit Street be liquidated.

Following the hearing, a spokesperson for McGraw's production company vigorously denied the [See Dr. Phil, A10]

The family of Britney Spears criticized him after he visited the troubled pop star when she was hospitalized on a psychiatric hold and issued a news release saying she was “in dire need of both medical and psychological intervention.

”A spokesperson for the Spears family said, “Rather than helping the family’s situation, the celebrity psychologist caused additional damage.”

McGraw later told viewers on his show that “I definitely think if I had it to do over again, I probably wouldn't make any statement at all. Period.”

Claims of conflict