SEATTLE — The country Attorney General’s office is gambling felony hardball with initiative promoter Tim Eyman in U.S. Bankruptcy Court.

The country’s lawyers, in a filing, say Eyman need to now not be allowed to withdraw his Chapter 11 financial ruin submitting, however as an alternative have it converted to a harder Chapter 7 case.

The country has filed a $2.1 million civil in shape against Eyman and enterprise buddies. Washington kingdom Attorney General Bob Ferguson has alleged that extra than $300,000 in initiative cash become kicked back to Eyman for private use and that donations to 1 initiative campaign had been improperly transferred to another.

The movement in Bankruptcy Court has given a have a look at how Eyman continues to spend good sized quantities of money.

“Based on the beyond behavior of Mr. Eyman, it’s far within the nice hobby of the creditors and the country to disclaim the movement to disregard and to transform this example to Chapter 7, specifically in view that Debtor’s estate remains depleted and his suggest infers he plans to refile as soon as the kingdom moves are finished,” the nation stated in a submitting.

Eyman filed for financial disaster in past due November, citing the burdens of preventing the kingdom’s litigation and his legal prices. He sought to have the Chapter eleven filing disregarded earlier this month.


The kingdom, in searching for a Chapter 7 movement, described how Eyman has been spending cash as he maintains to sell initiatives and assault pay hikes for public officials.

“Based upon the monthly financial reports submitted by way of Debtor Eyman as part of the financial ruin, Mr. Eyman spent $32,404 all through November 28-December 31, 2018, and $17,842 throughout January 2019, almost it all for private costs.

“During December, Mr. Eyman had restaurant purchases 20 of the 33 days, movie purchases on 12 days, and inn accommodations purchases on three days. During January, Mr. Eyman had eating place purchases 19 of 31 days, film purchases on 5 days and motel accommodations purchases on days.

“There are also more than one withdrawals totaling $18,217 in December and January from Mr. Eyman’s debts for unknown purchases.”

Eyman totaled an additional $14,910 in spending all through February, such as a Florida holiday over Presidents Day.

He listed belongings of $465,615 in checking accounts with three banks, $207,671 in retirement money owed, $3,755 in savings, and personal belongings of $573,281, in addition to valuing at $900,000 his Harbor Pointe domestic in Mukilteo.

Eyman was asked Thursday for his response to the kingdom’s name for a Chapter 7 financial disaster movement.

He responded by means of sending alongside a every day electronic mail broadside to his “thousands of supporters,” headlined: “Tell the Legislature: Raising taxes on us = no salary bonuses for you.”

Eyman’s Chapter 11 financial ruin filing had anticipated that the Attorney General could win a seven-determine judgment against it. Under Chapter 7, there is no reorganization or charge plan. The state would take his assets.

As the U.S. Bankruptcy Court explains: “The Bankruptcy Code will permit the debtor to preserve certain ‘exempt’ assets however a trustee will liquidate the debtor’s last assets. Accordingly, ability debtors must recognize that the filing of a petition underneath Chapter 7 may also bring about lack of belongings.”

The travails of Tim Eyman do not prevent with financial ruin courtroom.

He goes on trial subsequent month for allegedly stealing a chair from an Office Depot in Lacey. An office digital camera recording of Eyman taking the chair has gone viral.

On March four, the financial ruin court docket reinstated a contempt order in opposition to Eyman for failure to answer discovery on his assets of earnings, bills, and dealings with a signature-collecting company he hired.

“Mr. Eyman is still not being coming near about his monetary situation,” the AG’s office stated in its Bankruptcy Court filing.

“Additionally, because the state cases involve allegations of campaign finance violations, the misuse of funds and misleading and inaccurate reporting through Mr. Eyman, the very nature of the underlying country moves call into question Mr. Eyman’s monetary judgments and his ability to shield his assets.”

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