Georges Marciano Ordered to Pay $55 Million to Former Accountant in Libel Lawsuit

LOS ANGELES, CA, Aug 27 (MARKET WIRE) --
A Los Angeles judge ruled yesterday that Georges Marciano, co-founder of
Guess Jeans, tried to ruin the reputation of his former accountant, Gary
Iskowitz, and must pay $55 million in libel damages to Iskowitz, his
business partner and his wife. The ruling comes on the heels of a
multimillion-dollar verdict against Marciano last month in a defamation
suit filed by five former employees.

"Gary Iskowitz has established that Marciano's conduct in repeatedly
libeling him was not only intentional and in reckless disregard of the
probability that Iskowitz would suffer emotional distress, but was also
despicable, malicious and oppressive," wrote Los Angeles County Superior
Court Judge Elizabeth Allen White in her order.

The case centered on a libelous campaign Marciano began in August 2006
against Iskowitz, during which Marciano undertook numerous actions to
damage Iskowitz's reputation, including filing a complaint against him
with the California Board of Accountancy, submitting IRS 1099 Forms
falsely claiming Iskowitz was paid $460,000, and accusing Iskowitz of
numerous crimes in correspondence to local and federal officials. The
judge found the allegations were "all completely and utterly false."

According to Iskowitz's attorneys, Stephen J. Tully, Efren A. Compean and
Tatiana Wallace of Garrett & Tully, Marciano initiated his campaign after
Iskowitz investigated and found no basis for claims by Marciano that his
employees were stealing from him. Those former employees were awarded $370
million in July by a jury in a defamation suit against Marciano.

"Marciano set out on a premeditated plan to ruin Gary Iskowitz. The court
found that he used threats, intimidation and accusations he knew were
completely false in more than 30 letters and e-mails that were sent to
public agencies, banks and business associates of Gary Iskowitz," Tully
said. "While this judgment exposes Marciano for what he is, the sad truth
is that no amount of money can repair the enormous damage to my client's
reputation."

Iskowitz is the founder of Gary Iskowitz & Company LLP, an accounting firm
serving businesses and high-wealth individuals and families. He began his
career at the Internal Revenue Service, where he worked for 12 years. He
founded his current firm in 1981 and is a respected expert in dealing with
Internal Revenue Service matters and complex tax issues, giving numerous
speeches at national conferences and previously appearing on KABC-TV as a
commentator.

Judge White ruled that Marciano must pay $45 million to Gary Iskowitz, CPA
for libel and intentional infliction of emotional distress, as well as $5
million each to his wife, Theresa Iskowitz, CPA and his business partner,
Carolyn Malkus, CPA for libel.

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