Judge Scott Clarkson Refers Matter to Office of the Inspector General and Executive Office of the US Trustee

Judge Scott Clarkson has entered an Order entitled (in part)  ORDER (1) REFERRING MATTER TO (a) THE OFFICE OF THE INSPECTOR GENERAL FOR THE DEPARTMENT OF JUSTICE AND (b) THE EXECUTIVE OFFICE OF THE UNITED STATES TRUSTEE in the matter of In re Cherrett, Case No. 6:13-bk-24792-SC.  The Order states (in part) as follows:

“In the end, the process of administration of this estate, and the delay of consideration of closing of this estate by the Court, may have been improperly inhibited.  It was not the role of the U.S. Trustee, which is not a party to the appeal, to provide a de facto stay pending appeal.  By its affirmative actions, the U.S. Trustee may have intentionally favored one party to the possible detriment of another party, which if true, this Court finds unjustified and offensive.

Based upon the record as a whole and for the reasons set forth on the record,

IT IS ORDERED AS FOLLOWS:

1. The Court hereby refers this matter to the Office of the Inspector General for the Department of Justice (“OIG”) for the purpose of investigating any and all matters discussed at length during the September 13, 2016 hearing and as set forth in the Court’s Order. This referral includes a request that the OIG investigate and determine whether the U.S. Trustee behaved improperly or engaged in any impropriety with respect to the U.S. Trustee’s influence with the Chapter 7 Trustee resulting in the withdrawal of the Trustee’s Final Report. The Court refers this matter to the OIG for any appropriate actions, as deemed appropriate by the OIG after a full review. The Court further refers this matter to the Executive Office of the United States Trustee for whatever internal actions it may desire to take.
2. The bankruptcy court shall request and pay for a hearing transcript of the September 13, 2016 hearing, which is to be prepared on a non-expedited basis.

Download Clarkson’s Cherrett Order

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