Ashcroft Fires Bankruptcy Trustee

AP ^ | s6/26/02 | AP

[anniegetyourgun]

SAN FRANCISCO- Attorney General John Ashcroft has fired a federal bankruptcy trustee who has had a prominent role on behalf of consumers affected by California's power crisis last year.

U.S. Trustee Linda Stanley, the public watchdog for more than 70,000 bankruptcy cases in Northern California and Nevada, said Tuesday she was notified of her dismissal last week. Her last day is July 2.

Stanley said she does not know why she lost the job she has held for eight years. She was appointed by former Attorney General Janet Reno and is in the middle of her second five-year term.

"I really liked the job and I really think I made a difference," said Stanley, who plans to continue teaching bankruptcy law in San Francisco.

Dana Perino, a Justice Department spokeswoman, said it's the normal course of business for a new presidential administration to review U.S. trustees and occasionally replace them.

Perino said other appointments had been made this year, though she was not sure whether they were the result of dismissals. She did not know who would succeed Stanley, but she said business would continue as usual.

Stanley and her office have been active participants in Pacific Gas and Electric Co.'s bankruptcy. She drew praise from consumer advocates for her efforts to persuade U.S. Bankruptcy Judge Dennis Montali to create a committee through which ratepayers could speak to the future of California's largest utility.

"Linda Stanley went out on a limb to insist that consumers had a right to representation in the bankruptcy proceeding and to question the outrageous legal costs PG&E is racking up," said Mindy Spatt, a spokeswoman for The Utility Reform Network, a consumer advocacy group. "We hope this isn't payback for her standing up for ratepayers."

PG&E spokesman Ron Low said the utility had no comment about the firing.

Ivan Kallick, a Southern California bankruptcy attorney, said it's rare for a trustee to be replaced midterm.

"I would say that it is somewhat unique and surprising, particularly when she is very actively involved in such a high-profile case as PG&E," he said.

There are 21 U.S. trustees across the country. Congress created the posts in 1978 to promote and "secure the just, speedy and economical resolution of bankruptcy cases" as well as ensure parties comply with applicable laws and procedures. Trustees also investigate bankruptcy fraud and abuse.

[Bigg Red]

Stanley said she does not know why she lost the job she has held for eight years.

Get over it! A Reno appointment should not have been given this long.

[LouD]

Stanley said does not know why she lost the job she has held for eight years

Here's a clue, Linda: She was appointed by former Attorney General Janet Reno and is in the middle of her second five-year term.

"I really liked the job and I really think I made a difference"

Yup. So did the staff of the White House Travel Office, and every single U.S. Attorney. Suck it up, cupcake. Your boy Bill decided to change the rules, now you have to live by them...

[Clara Lou]

From the tone of this little report, I'm guessing that there shuld be weeping and wailing and gnashing of teeth over Ashcroft's actions. Linda Stanley already has the whine. Somebody give her the cheese.

[Donald Stone]

KUDOS to John Ashcroft !!!!!!

The corrupt U.S. Federal Bankruptcy Trustee progarm has produced windfall profits for the criminal elite in the U.S. namely those with strong political and personal ties to our elected and appointed officials.

The bankruptcy courts have become a haven for U.S. white collar criminals !!!!!!!!

[Fred Mertz]

Bump!