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Bankruptcy trustee reviewing candidate's (Padgett) family land transfer
|Contributor||Thomas Walker |
|Last Edited||Thomas Walker Oct 30, 2006 11:27am|
|News Date||Monday, October 30, 2006 05:00:00 PM UTC0:0|
|Description||WASHINGTON - A federal bankruptcy trustee is scrutinizing whether an eastern Ohio congressional candidate gave property to her family last year to keep it away from her creditors. |
Court files show state Sen. Joy Padgett transferred her one-third share of her family farm last year, less than a month before she and her husband sought bankruptcy protection for their failing office supply company. She also lists different dates for the transfer on different official forms.
"I am looking into it within the office," John Kennedy, lawyer for U.S. Bankruptcy Trustee Frank Pees, told The Associated Press on Thursday. "We would be investigating any transfer that might have an impact on a debtor's ability to pay creditors."
Padgett is in a close U.S. House campaign against Democrat Zack Space. She has had to explain her personal and business bankruptcy cases since last month, when she replaced Rep. Bob Ney as the Republican on the ballot after he withdrew from the race and later pleaded guilty to corruption charges.
Initially, Space attacked her for defaulting on a taxpayer-backed loan worth more than $700,000, but in the final weeks of the campaign, questions have arisen about whether Padgett tried to protect her part of the 170-acre eastern Ohio farm from creditors.