Armstrong Bonus Payer Sends Letter Seeking Return of $12 Million

Oct. 31 (Bloomberg) -- Lance Armstrong was asked to repay $12 million given to him by SCA Promotions Inc., which guaranteed bonuses for his wins in the Tour de France from 2002 to 2004 that have been stripped because of doping.

A letter, sent yesterday by SCA, also put the American cyclist “on notice that we may seek legal sanctions and penalties against Mr. Armstrong in connection with the false testimony given by him in 2005-2006 arbitration proceeding,” Jeff Dorough, an attorney for Dallas-based SCA, said in an e-mail.

Armstrong, 41, was given until 5 p.m. Dallas time on Nov. 2 to respond, Dorough said. An e-mail sent to Jeffrey Tillotson, SCA’s outside counsel, wasn’t immediately returned.

Asked in an e-mail if he had any response, Tim Herman, Armstrong’s attorney, said: “I would if I had received a letter.”

Armstrong and U.S. Postal Service team owner Tailwind Sports sued SCA in 2004 for failing to pay a $5 million bonus to the cyclist for his sixth Tour de France victory, which came amid allegations of doping.

It settled the suit in 2006, agreeing to pay the $5 million and $2.5 million in interest and legal fees. SCA also is seeking to recover another $4.5 million in bonuses paid to Armstrong for his 2002 and 2003 wins.

Armstrong was stripped of all seven of his Tour de France victories and banned for life from competing in sanctioned events by the U.S. Anti-Doping Agency, which cited a career “fueled from start to finish by doping” when it released a 202-page summary of its investigation into Armstrong and the U.S. Postal Service pro cycling team on Oct. 10.

The International Cycling Union opted not to appeal USADA’s ruling. Armstrong, who has denied doping and said he never failed a drug test, declined to take the USADA case to arbitration.

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