Posted on 12/10/2024 9:38:18 PM PST by CFW
A federal judge on Tuesday night rejected the sale of the conspiracy platform Infowars to The Onion satirical news outlet after Alex Jones claimed that a recent bankruptcy auction was fraught with illegal collusion.
The Onion was named the winning bidder on Nov. 14 over a company affiliated with Jones.
US Bankruptcy Judge Christopher Lopez’s decision means Jones can stay at Infowars in Austin, Texas. The Onion had planned to kick Jones out and relaunch Infowars in January as a parody.
At the end of a lengthy two-day hearing in a Texas courtroom, Lopez criticized the auction process as flawed and said the outcome “left a lot of money on the table” for families of victims of the 2012 Sandy Hook Elementary School shooting.
(Excerpt) Read more at nypost.com ...
The Law is an @$$.
That Trustee works for the DOJ. Guess who is going to control that in a little over a month. The DOJ themselves can prosecute the Trustee and any one involved in any criminal activity(including their own employees). But will they?
In bankruptcy cases, the “Bankruptcy Trustee” is not there to protect or defend the debtor (the person or business filing for bankruptcy). Instead, the trustee’s job is to enforce the bankruptcy agreement and ensure that the creditors (those owed money) receive as much of their owed amounts as possible, based on the assets and financial situation of the debtor.
The trustee’s primary duty is to maximize the financial return for creditors, not to help the debtor get a “better deal.”
If The Onion’s bid (or any other bid in a bankruptcy case) is not in the best interest of the creditors, it would be considered a violation of the bankruptcy agreement or order. The creditors (those owed money) should receive the highest possible return on their claims, and any actions that fail to prioritize this can be seen as breaching the bankruptcy process.
In essence, while the debtor may hope for a fair outcome, the trustee’s duty is solely to execute the bankruptcy process efficiently and in the creditors’ best interest.
A Bankruptcy Trustee has a fiduciary duty to act in the best interests of the creditors, ensuring that the bankruptcy process is fair and that assets are distributed according to the law. If a trustee fails to do this (for example, by accepting an undervalued bid for assets or showing favoritism), they can be accused of breaching their fiduciary duty.
If a trustee’s failure is discovered, creditors or other interested parties can file complaints with the court. The court may take various actions, including:
Removal of the Trustee: If the court determines that the trustee has acted improperly or unethically, the trustee can be removed from the case.
Investigation and Sanctions: The court or an oversight body (such as the U.S. Trustee’s office) may launch an investigation into the trustee’s conduct. If the trustee is found to have acted dishonestly or negligently, they could face penalties, such as fines or disbarment from serving as a trustee in future bankruptcy cases.
Civil Liability: If the trustee’s actions caused financial harm to creditors, the trustee could be sued for damages by those affected parties.
While the debtor is generally not the focus of the trustee’s actions (as they are primarily serving the creditors), if the trustee mishandles the case, it can create complications for the debtor as well. For instance:
Debt Discharge Delays: If the trustee doesn’t efficiently liquidate assets or follow the proper steps, it could delay the debtor’s discharge of remaining debts.
Reputation Damage: If the trustee’s mishandling of the case is public, it could harm the debtor’s reputation, especially if they are a business or high-profile individual.
If a trustee’s failure is flagged by any party (creditors, debtors, or even the trustee themselves), the court can step in to address the issue. The court can:
Order the Trustee to Correct the Issue: If a mistake or negligence is identified, the court might order the trustee to rectify it.
Appoint a New Trustee: If the failure is severe, the court can appoint a new trustee to take over the case.
Review and Approve Actions: In some situations, the court may take a more active role in reviewing the trustee’s decisions to ensure they align with the law and the bankruptcy plan.
In extreme cases, if a trustee’s actions constitute fraud or other criminal behavior (such as embezzlement, fraud, or self-dealing), the trustee could face criminal charges, which may lead to fines or imprisonment.
Thank you for the detailed explanation.
As one can see, there’s a lot of ‘red flags’ in the Alex Jone’s case. At this point nothing Jones does is going to ‘stop’ the sale of his perceived assets or company at some point.
I don’t know where Jones is in the ‘appeals process’ from the convicting court? Or if he has any chance at appeal.
We will see a similar situation playout with Rudy Giuliani too.
In all events a good lawyer will tell the assigned ‘trustee’ is not your friend/defender if one is the debtor. The trustee is there for the creditors.
Alex will lose everything unless a Judge orders a change in the bankruptcy plan.
Ask the January Attorney General Pam Bondi.
Thanks for your explanation. It’s great to have factual, informative information.
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