In a July 1994 lawsuit filed in California Superior Court, IHR charges Carto with embezzling $7 million from the revisionist research and publishing center. In response, Carto has taken the Fifth Amendment, refusing to answer questions about the missing funds on the grounds that his answers might tend to incriminate him.
(In contrast, IHR staff members, in depositions taken under oath, were grilled by Carto and his attorneys for more than 60 hours. Although abundant testimony and documents came to light supporting IHR’s claim of Carto malfeasance, no evidence suggesting corruption at IHR, as claimed repeatedly by Carto, was discovered.)
Because he faces a possible judgment compelling him to return the funds, with interest, Carto can either come clean, or continue to broadcast outrageous lies in a desperate effort to undermine IHR’s support enough to drive it into bankruptcy. Carto reckons that he can escape accountability for the missing funds only if he can destroy the Institute before the case goes to trial. He’s still counting on that to happen.
-- Tom Marcellus