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Official Committee for Boy Scout Sexual Abuse Victims Argue Local Tennessee Council Shielded Funds from Bankruptcy Filing

August 20, 2020  ·  By HM&M


Back in March 2020, the Office of the U.S. Trustee formed two official committees to represent sexual abuse victims as part of the Boy Scouts of America (BSA) Chapter 11 bankruptcy filing.

BSA intends to create a trust that would compensate victims. The committee, which Hurley McKenna & Mertz sits on, has a voice in how to structure the trust, among other matters that influence victims.

Last week, the official committee asked a Delaware judge to void property transfers by a local council in Tennessee, saying BSA improperly moved millions of dollars in assets to a protective trust.

According to committee attorneys, such trusts shield assets from creditors, which could impact monetary distributions for victims.

To date, the Middle Tennessee Council is the subject of at least 35 sexual abuse claims.

The court filing came nearly a month after the committee sent a letter to the council demanding that it stop the transfer. The request went unanswered.

Since then, one committee member wrote, “Instead, the BSA, acting on behalf of the Middle Tennessee Council, asserted that the transfer was proper—while simultaneously admitting that the BSA has an interest in the property.”

The committee believes this violates court restrictions on sales and transfers of BSA assets included in the Chapter 11 bankruptcy proceedings.

Following a consent order, the council is now required to disclose any action regarding the marketing, selling, or transferring of real estate property valued at $25,000 or more. In response, a hearing on the motion is scheduled for September 9, 2020.

Are you a victim of scouting abuse?

At Hurley McKenna & Mertz, we represent more than 1,400 former Boy Scouts who are victims of sexual abuse. We understand taking action isn’t always easy, but we can help you get the compensation and closure you deserve.

Contact us immediately. It’s only after we secure a settlement for you that we receive any form of compensation.

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Several victims of childhood sexual abuse fear too much time has passed to seek justice against the Boy Scouts of America (BSA). How long ago did your abuse occur? Was it 10, 15, or 20 years ago? Regardless of how long ago it took place, it’s not too late to come forward. In fact, there’s... Read More

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