June 19, 2000
Willis and Elisabeth Carto, after delaying matters for months in their personal bankruptcy in San Diego, California, have finally provided the signed documents necessary to invoke their settlement agreement with Legion for the Survival of Freedom, the parent corporation of IHR.
On February 8, 2000, after receiving no reply to repeated demands on the Cartos for the signed documents, Legion was granted a summary judgment by bankruptcy court Judge John Hargrove, on the basis that the Cartos had embezzled $6.43 million from LSF/IHR. Because of the embezzlement, Hargrove held that the Cartos owed LSF/IHR more than $12 million (principal plus interest), despite their attempt to purge themselves of the debt by filing bankruptcy.
After being notified of the granting of the summary judgment, the Cartos needed only a few weeks to submit the signed documents to attorneys for LSF/IHR. Consequently, Judge Hargrove vacated his February 8 ruling, replacing it with a stipulated judgment dated May 8, 2000, wherein the Cartos voluntarily agree that they owe LSF/IHR more than $12 million dollars.