In documents filed Feb. 24 in federal bankruptcy court, the lawyer for former Evergreen and Amber co-owner Diane Pine asked that her former partner Peggy Newton's bankruptcy be delayed until the criminal case against Mrs. Newton is finished.
A federal grand jury indicted Mrs. Newton on 25 counts of fraud and forgery, alleging that she stole hundreds of thousands from Ms. Pine and the business.
The debtor obviously has an interest in getting a bankruptcy discharge and having a fresh start. A stay order from this Court will delay this. However, Debtor has voluntarily filed her bankruptcy case and as such, has availed
herself of federal bankruptcy laws and the jurisdiction of this Court. A discharge and fresh start are not given a rubber stamp. Additionally, the Debtor has engaged in conduct that resulted in a grand jury filing a 25-Count Federal Indictment. This misconduct by Debtor offsets her interest in getting a bankruptcy discharge. It is conceivable that Debtor won't have any fresh start until her criminal case has reached disposition.
A telephone conference on the request to delay the bankruptcy proceedings has been scheduled for 11 a.m. April 12.
Previous Turner Report posts on Peggy Newton can be found at this link.