May 14, 1998
Although details are yet to come, we have just received word that Liberty Lobby, publisher of the weekly tabloid The Spotlight, has filed a petition commencing a bankruptcy case under Title 11, in the United States Bankruptcy Court for the District of Columbia (case number 98-1046).
This filing comes just days after Liberty Lobby’s failure on Monday, May 11, in DC Federal Distruct court, in front of Judge Kennedy, to gain a temporary restraining order halting the seizure of Liberty Lobby’s mail. Liberty Lobby has been in receivership for weeks now, arising out of the multi-million dollar judgment against them in California Superior Court in favor of Legion for the Survival of Freedom (LSF), the parent corporation of the Institute for Historical Review (IHR). Liberty Lobby currently owes LSF/IHR in excess of $2.6 million for its role in the conversion of LSF/IHR assets.
While Liberty Lobby’s bankruptcy filing will cause some delay in collection efforts by LSF/IHR against Liberty Lobby, it should have no effect on the scheduled Tuesday, May 19, examinations of Willis Carto, CEO of Liberty Lobby, and his wife Elisabeth Carto, in open court in Vista, California (Depertment D, Judge Maino) as to the whereabouts of their personal assets. The Cartos currently owe LSF/IHR in excess of $11.4 million for their role in the conversion of LSF/IHR assets. The Cartos are also in receivership.
Although Carto has for years claimed that the ADL, Mossad, and other dark forces were secretly behind the litigation brought by LSF/IHR to recover the converted assets, in reality Carto has brought these problems upon himself and Liberty Lobby. His own actions have resulted in these devastating events. At each turn, when offered the choice of meeting with representatives from LSF/IHR to settle this and other disputes peacefully, Carto has refused both cooperation and compromise, and has continued down the path of shady deals, phony fundraisers, and personal attacks on his perceived enemies. This is readily seen in the fact that readers of The Spotlight have never been told the real reasons why Liberty Lobby was even named in litigation by LSF/IHR in the first place.
Even though Liberty Lobby grosses millions each year, and even though in 1991 the Cartos received more than $7.5 million intended for LSF/IHR, Carto has long contended that Liberty Lobby is broke, and that the money is all gone. Supporters of Carto, Liberty Lobby, the Foundation to Defend the First Amendment (FDFA), Committee to Defend Liberty Lobby (CDLL), and a host of other Carto paper-front organizations, are justified in wondering where all this money has gone, and why there is nothing to show for it. Although Liberty Lobby publishes The Spotlight, it has done little to advance the populist or right-wing agenda. Despite its name, Liberty Lobby itself conducts no visible lobbying efforts, instead urging its supporters to send money to Liberty Lobby, while simultaneously exhorting readers to use their own
influence on lawmakers.