June 28, 2000
U.S. Bankruptcy Court in Washington, DC, today again rejected all arguments by attorneys for Liberty Lobby and Willis Carto aimed at delaying or avoiding payments to Legion for the Survival of Freedom (parent corporation of the IHR), to which they had previously agreed.
This new motion in many ways echoed the curious mixture of misrepresentations, omissions, irrelevancies, venue-shopping, and barratry that were put forward eight days earlier in the same court, with similar results.
Today’s hearing, not coincidentally, comes one day before the deadline for Liberty Lobby and the Cartos to pay LSF/IHR an additional $100,000, as per the terms of the Settlement Agreement. These are the same terms to which Carto himself finally agreed less than two months ago on May 8, 2000.
Under the terms of the Agreement, the debtors (Liberty Lobby, the Cartos, and Lewis and LaVonne Furr) are jointly and severally liable to LSF/IHR for millions of dollars. (notes 2, 3) Until now, Liberty Lobby has been the only party to pay any money to LSF/IHR: the Cartos and the Furrs have yet to put in a penny. Now, Carto is hoping that attorneys being paid by Liberty Lobby, working on his personal behalf, can prevent the seizure of the Cartos' sumptuous estate in southern California, and derail the on-going criminal investigation of the Cartos and their cronies in Switzerland.
Attorneys for Liberty Lobby now say that the DC-based organization is broke. Liberty Lobby insiders, however, report that in the last few months Catherine Dall, widow of ex-Liberty Lobby executive Colonel Dall, has loaned the corporation $300,000, and that Carto has raised in excess of $600,000 through an early-renewal promotion. This income is in addition to the normal income of Liberty Lobby, which is nearly $4 million annually.