Dr. Phil Accused of Multi-Million Dollar Cover-up in Bankruptcy Case Over Failed Media Company... as Judge Rules TV Doc Destroyed Crucial Evidence and Text Messages
Dr. Phil was scolded by the judge during his trial.
Oct. 28 2025, Published 7:55 p.m. ET
Dr. Phil McGraw has taken a huge loss in court, with a judge accusing the star of destroying evidence to get the upper hand, RadarOnline.com can reveal.
On Tuesday, October 28, U.S. Bankruptcy Judge Scott Everett ordered Dr. Phil's failed television startup Merit Street Media into liquidation under Chapter 7, and declared creditors would be better off if an independent trustee sells off its assets.
Dr. Phil Called Out By Judge in Wild Trial
Dr. Phil was accused of deleting vital evidence in his bankruptcy trial.
"Candor to the court is critical," Judge Everett raged in the just-completed hearing, and pointed to court evidence indicating President Trump's pal deleted incriminating text messages, and that he’d try to game the bankruptcy by paying certain favored creditors over others.
The judge then stressed Dr. Phil's "business was as dead as a doornail when the bankruptcy was filed... Mr. McGraw believed he was calling the shots."
However, the 75-year-old's fight is not done, according to a spokesperson for his production banner, Peteski.
"We respectfully disagree with the court's ruling and take issue with its comments concerning Dr. Phil McGraw," the statement read. "Dr. Phil is a leader of the highest integrity whose actions reflect honesty, ethics, and a life-long commitment to helping people... We are reviewing all of our options regarding an appeal, which is likely."
Dr. Phil was tangled up in a $500million with a faith-based network.
The verdict came after the trial over the fallout from the $500million deal between Dr. Phil and Trinity Broadcasting Network (TBN). Dr. Phil's joint venture, Merit Street Media, filed for Chapter 11 bankruptcy protection earlier this summer. Just one month later, the faith-based TBN countersued and accused Dr. Phil of "reprehensible conduct," claiming he attempted to get out of the deal.
According to court documents, Dr. Phil had referred to his strategy as a "gangster move" intended to reduce TBN to a minority stake. However, the judge said the star later deleted a text about wiping out claims by TBN and another creditor, Professional Bull Riders, to keep it from being revealed.
Dr. Phil took the stand last month and hit back against the accusations he improperly filed for bankruptcy, while declaring that he went above and beyond to keep Merit Street's doors open.
Dr. Phil Took the Stand to Defend Himself
The TV host was accused of trying to get out of his massive deal with the network.
"I'm like the little engine that could," Dr. Phil said at the time. "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."
Recently, Dr. Phil signed a deal with Charter for his just-launched Envoy TV.
"I'm thrilled to be putting on the Charter team jersey and launching our new flagship Envoy TV network with my friends at the nation’s leading cable and broadband provider," Dr. Phil wrote on October 6 of the new deal and 24/7 network McGraw "created and curated."
Dr. Phil Forces Himself Into Immigration Chaos
The 75-year-old is looking to appeal the decision.
Before landing in court, Dr. Phil pushed himself into the middle of a hot topic by tagging along with Immigration and Customs Enforcement (ICE) and Trump's border czar, Tom Homan, in Chicago.
The team reeled in and arrested undocumented migrants, as Dr. Phil later took to X to reveal the moment he confronted a man, identified as Sam Seda from Thailand, during his arrest. During the interview, Seda confirmed he is not an American citizen; however, he claimed his mother was born in the United States.
Homan then informed Seda is an "illegal alien convicted of sex crimes involving children."
"Great work by Tom Homan and law enforcement taking down a convicted sex offender," Dr. Phil boasted on the platform. "This is exactly what we need more of, keeping our communities safe from predators."
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He later added: "Time to take our country back!"
