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In another black eye for Newt Gingrich, the flagship of what's known in Washington as "Newt Inc." has filed for bankruptcy.
In a Chapter 7 filing in the U.S. Bankruptcy Court, Northern District of Georgia, The Gingrich Group LLC, doing business as the Center for Health Transformation, filed for bankruptcy Wednesday. (Chapter 7 is "the chapter of the Bankruptcy Code providing for 'liquidation,' that is, the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors," as defined by the federal courts.)
The vast majority of Gingrich's net worth is tied up in the Gingrich Group. Gingrich is worth overall between $7.1 million and $31 million, according to his financial disclosure. He lists a promissory note from Gingrich Group as being worth between $5 million and $25 million.
Rogelio Solis / AP
Republican presidential candidate Newt Gingrich speaks at the Gulf Coast Energy Summit in Biloxi, Miss.
Gingrich was chairman of the group until May of last year, when he announced he was running for president. Since the candidate turned focus toward his presidential run, the Gingrich Group has struggled to raise money, leading to its eventual collapse.
The bankruptcy comes at a time when Gingrich's campaign is struggling to regain any momentum. He has won only two states during his run for president -- South Carolina and Georgia, his home state -- and he lags far behind front-runner Mitt Romney in the delegate count, in third place with just 137 out of the 1,144 needed to become the nominee.
Mitt Romney has half the delegates he'll need to secure the GOP nomination, but Newt Gingrich refuses to leave the race. The Washington Post's Karen Tumulty discusses.
Though he continues to pledge that he's "going to Tampa," the site of the Republican National Convention this summer, Gingrich is sounding increasingly like a candidate fighting for relevance rather than the presidency.
(Here are the bankruptcy filings - Part 1, Part 2.)
The news of the bankruptcy was first reported by the Atlanta Business Chronicle and confirmed by NBC News with the court in Atlanta and a federal court database search.
Gingrich pulled in $2.5 million -- the bulk of his income -- from January 2010 to August 2011 from sister organizations Gingrich Productions and Gingrich Communications.
On the campaign trail, Gingrich has touted ideas coming from his health think tank. And it has been a source of controversy, as questions were raised -- and other campaigns questioned - whether Gingrich acted as a lobbyist on behalf of the group in Georgia.
The Washington Post wrote: “[H]is time there exemplifies the former Georgia congressman’s post-legislative career as a well-paid consultant and policy guru, a role that earned him and his companies tens of millions of dollars over the past decade.”
NBC's Kathy Johnson and Marcie Rickun contributed to this report.
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The republicans booted him out of their party a few years ago, then bring him back to run for the Presidency. That is like letting Charlie Manson out of prison, giving him a badge and gun and making him top cop of LA.
Reagan is laughing his bones off,,, He never liked Newt in the 1st place
Oh the irony. Couldn't manage a business that exist to think up idea to fix our healthcare system because it ran out of money. That's like a triple bankruptcy - experience bankruptcy, ideas bankruptcy, and fiscal bankruptcy. And why should be trust the Republicans again? I thought he touted himself as the one with experience.
newt is not in control of this think tank any more read the whole story befors you call him stupid or what ever
I'm sure that will be his defense. Wasn't Me!!!!
I would like to know how much of the campain money he raised is in his pocket for personal use. He should be investigated. Just another Right Wing (D_B)
GINGnotsoRICH is a joke, what little faith was left in him he drove it into the dumper. Obviously his 'think tank' didn't put a lot of thought into financial matters!!
Newt is a perfect example of Corporate Greed take his money and run.He has gone off to a new venture and lets the other go to hell. It is a good thing he will not become president of mis-management of our tax payer funds. He will just walk away leaving the next president holding the bag. Then all the republicans can say its the democrats fault and all the democrats will say it is the republicans fault. All this finger point ends up bad for the common folk because we get to pay their salaries for finger pointing instead of developing policies to correct it all. So nothing ever gets done and its all paid for by us.
Poor Newt, Don't worry he'll think of someway to steal money from the teabaggers. This genius had a $250,000.00 revolving credit account at Tiffany for goodness sake. If you were that ugly and fat you would prbably do the same to seep a wife like Calista. Ughh! Could you imagine that on top of you? I'm not sure $250,000.00 is enough.
If that S.O.B ever had a thought it would die of lonelyness. None of these basturdz ever actually had a job where they had to get up go to work, be responsible and answer to someone else. None of them. Fakes, Phonies. My Gawd why do people vote for such trash as this. Step on some toes now. It's not just the Newt here its also Pelosi, and Barney Frank, and Mitch McConnell, and Boner you get my drift. None of these parasites in either party are worth a flying f--k. We gotta do something to get this chit out of DC and get some damn common sense up there.
EVERY PENNY Newt had, was EVERY PENNY he RIPPED OFF from us Taxpayer's! This is TRUE among the TOP 1% of the 1% of Taxpayer's whose trying to get EVERY Taxpayer Dollar into their off shore bank accounts, and on Wall Street!
If Romney becomes President, you can BANK on he dismantling the Federal Government, taking most, if not ALL of Taxpayer's funds off-shore, and giving Wall St the remainder! After that, he can well afford to BUY anything his heart desires!
I will wait, with BATED BREATH to see how the 45 MILLION Americans, whom are totally RACIST, VOTE! I will observe if they are as EVIL & hateful as they've been since Obama been President, and trying to SAVE their Racist Dumb azzes!
Lord Jesus, I pray they remain as Racist as they are, so they can finish licking their stuck on stupid butts, therefore, America is NO MORE!
i believe these Racist are just this EVIL, that they WILL DESTROY America before they give any Person of Color, an Opportunity! THIS IS HOW DANGEROUS these Dumber than Dumb, these Racists are!
If that tub has a real idea for lowering commodity prices immediately including oil/gas he should ask for a meeting with the President and lay it out for the good of the country. Actually the threats he and other Republicans make re: the Mideast, cause higher prices because worry about more instability in the region. And BTW, Chevron, Exxon, Shell etc. set gas prices and are not under the control of the President. They make profits each and every quarter so if you buy their shares you will favor higher prices (up to a point) and closing less efficient, less profitable refineries.
lol, i was having a bad day until i read all these comments...ty all
Sorry Newt. We aren't laughing at you...we are just laughing about you ;P
muahahahaha..
Ginwho? At what point was this "Newt" character relevant? I don't seem to remember him.
So the think tank is both financially and intellectually bankrupt.
Gingrich should cut a deal to drop out and get the money from Romney.
Leroy is just another casualty in the GOP's long list of snake oil salesmen
Only a select few manage to maintain their wealth, while most slink back under the rocks or the cess pools from where they came
What a maroon! Way to go Fluffy the Philanderer.....and I thought he was smart! heh heh. Extra cheese anyone?
Newt makes news again........................yawn.
And this guy wants to be our President? If he can't manage his own budget or lead a successful company....DROP OUT NEWT!......you ain't the guy.
He is not quitting he will live the good life on some ones dime as long as he gets away with it.
Should be investigated on how much campaign money he took for personal use.
Just another Right Wing ( D_B).
For some reason or other I cant stop laughing!!
But will Tiffany's get paid?
Watch the Koch Brothers & Bain Capital give him a "bail out"
The one who will give him a bailout is your lame brain leader Obama!!!
I seriously can't wait until November until we end this mess. I think it will be the nail in the republicans way of thinking. I sure hope so. I believe in a 2-party system...otherwise this country would be China.
But the republicans are so far out of touch with reality, it scares me that ppl honestly think along those lines. They say one thing, and then do another and are very hypocritical.
I don't think any of our politicians are perfect, and most of them are robbing us because they can...but if you don't vote for Obama come November, our country is doomed.
We are have wait for another party to emerge after that...and it may not be possible...but voting for republicans is almost certain instant death of the US
Conservatives & independents surrendered their principles & so has the Tea Party to support Romney...
Both republicans & libertarians are doomed with not enough paint to cover up their record of failures & attacks on women, minorities, children, families, workers, voters & the Middle Class