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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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Maybe now we can forget this dishonest, creepy bureaucrat (who was bounced out of congress on ethics charges) and get on with deciding who will be the next POTUS. Gingrich has just been a sideshow distraction the whole time.
We are the loser not Newt. Do you think Sheldon Adelson will just leave him homeless after he thrown out 16M check on his campaign? Another few millions is just a lose change for this individual. Who is next the Santorum probably Mitt wouldn't he have more millions that anybody else.
The smarta$$ in me is considering sending Newt the $50 for the signed photo, that way he sticks around and continues to stick his foot in his mouth when he's not applying a swift kick in Romney's back side. And I get a memento that may be worth twice what I pay for it down the road. Sounds like a win win win for Me and Obama and America.
bye bye newt and good ridence, and oh, please dont ever run again, america cant stand you
Guess the book & DVD sales aren't what they used to be... even when he forces a campaign staffer to don an elephant costume! lol
You think Newt can hit Willard up for a contribution or two?
Breaking News: Upon hearing this devastating news, Callista was spotted at Tiffany's & her credit card was 'smoking'...
Notice how the Republicans can't defend fat little Newtie on this topic so their responses are not about the topic of this story which is Little Newtie's bankruptcy but instead start in on Obama and other unrelated topics. Nice try, boys and girls but now let's get back to Newt and what a crook he is.
Where does Ga. ran in education? I'm sure glad I was educated in another state....up NORTH!
Newt is soooooooooo................ There just aren't words for what he is or thinks he is other than a fat blow hard! Wonder how long C will stick around now? Think she is looking for greener pastures yet?
He's filed so he can pay himself before creditors 25 million note to himself and screw everyone else. That's the GOP way.
A New Charge For America - A New Hill to Take.
Everyone hates ObamaCare that much is certain.
I have recently sent President Obama an email outlining a new attack against the rise of gas prices.
If President Obama were to take the portion out of his healthcare plan that involves making people pay money for abortions and add to his plan that no president in the future will make such a law for healthcare would America come to his aid in getting the gas prices lowered to $2.50 a gallon.
If America wants the gas prices lowered we must side with Obama 100% in his fight against getting the gas prices lowered to $2.50 a gallon. If America sides with Obama in his fight against the increase in gas prices 100% then president Obama will concede on the portion of his healthcare that maintains certain health insurors make people for abortions.
Well America?
What is so irritating about this is that while they preach about fiscal responsibility, they are ripping off people and then use the legal tools available to them to get out of paying their debts. Typical GOP approach to everything they do. Take from everyone and when it comes time to pay for their play, they stick it those who trusted them because they legally can get away with it. Anyone who thinks that the greed and mismanagement of the Bush years was an accident, are wrong. Greed and more greed and then the rest of us have to clean up their mess. Gingrich is a true dyed in the wool Republican.
Pathetic liberal losers!
Hey, RR...did you ever buy any of Newtie Tootie's books or DVDs?
Did you ever help finance Calista's lifestyle?
Please...we all wanna know. Kindly expound on this, b/c I wanna "LAFF"!
crickets...crickets...crickets...crickets...
RogerRoger
Hit a nerve? Your side spends all your time, when you are not taking to give the rich, blaming all the woes of this country on the poor, the working class and the working poor. Newt and Helmet Hair just showed all of how the country really got into the mess we are in. Some can't handle the truth.
RogerRoger the dodger...HELLOoooo?
...crickets....crickets...crickets...crickets...
(aaahh...republiturd scum.)
Newt's almost as bad as Obama, To Newt's credit, he hasn't blamed Bush for his financial failure yet. But he can't even run a successful campaign let alone a nation. We already have a leader that doesn't know what the hell he's doing we don't need another one.
Say it ain't so....!
Republicans don't borrow more than they can pay back. They don't buy homes that they can't pay the mortgage on, they don't borrow money when they don't have a job or any prospects on the horizon to get a job. They don't stiff their creditors.
Republican Presidential Candidates.... do not file for bankruptcy - doesn't Gingrich realize that Stock holders and investors are risking their money to make this a better place?
Its unfair to take the money - even if its offered. The creditor has a personal obligation to "just say No" when he is over-leveraged.
If he can't keep his own finances in order - you seriously want to put him up as the next President?
Here's the kicker...
When did Newt realize he was broke? and was just burning through money with no chance of getting into Office, or paying it back?
The 1st time he ran out of cash, the 2nd time he ran out of cash, the time he was even able to get on the ballot?
What changed today - which wasn't obvious back in January or for sure in February?
"Center for Health Transformation" ......health transformed into WHAT? That name is just plain creepy sounding.....
With my "sciency" oriented mind, I am envisioning a center where people go to get their "health" transformed into robotics. Stepford style!
Or maybe it should have been "Center for Wealth Transformation" where your money gets "transformed" into Newt's pocket....
How can we miss him if he won't go away?
As a democrat, I hope that all four candidates are still in the race for a brokered convention in Florida. What a circus that would be, purely entertaining.
Guess the book & DVD sales aren't what they used to be... even when he forces a campaign staffer to don an elephant costume! lol
You think Newt can hit Willard up for a contribution or two?
Breaking News: Upon hearing this devastating news, Callista was spotted at Tiffany's & her credit card was 'smoking'...
the same man who didn't know how much he owed Tiffany's -- his company files for bankruptcy and he wants to run America.... lmao --
but he'll stay in the race as long as possible to keep fleecing the sheep....
Everyone reads what others have written and reply to the rhetoric like it's so important to add their comments to the articles. People wake up and smell the trash of your comments. People this is the future of our country and you voters are the people that will elect the President of the United States. Vote by knowledge, not what he looks like, what he's doing in his spare time, but look at his background in knowledge and education. Do not repeat the past and put someone in there that knows nothing of what it is like to be knowledgeable. Gingrich was one of the most knowledgeable legislators in Govt and has all the ability to get the country in order, yet YOU people want to throw down on him and his ability. We need leaders not beautiful people that are only powerful for their wealth and looks. Brains and education with the ability to work in Goverment along with the other branches of Govt. Please think about your country and not your dreams of elation. Re-read all the dumb comments you have written. This is not a vote of jocks in school. We need a leader of wisdom and how to get it done. All our great leaders have had governement knowledge and our failed leaders, well you figure that one out. They never gave money to the rich to make them richer. They created jobs. We will never pay off what was given to the rich to support them from failure. They are the few, but the many are jobless. Think, not jokes.
Intelligence and knowledge do not always lead to wisdom. Example, Bill Clinton. Do we need the most knowledgeable or the most wise? Newt Gingrich was all you say, but he failed us, too.
Newt is more responsible than anyone for the partisan nastiness and gridlock we have now. It all started when he was speaker. It's time for him to get back under his rock.
So you want to get in to office a man or woman that knows not how to get it done. Keep your taxes high and still there are no jobs. Current one is closing the country down with the lost of jobs and paying out to all the wealth. Newt was working to get jobs and bring back the employers to the States. Today if we went to war, we have no industries to support our ability to grow. All our industrial plants are gone and in other countries, thanks to a Democrat. Where is everything now made. Not in the USA. Other countries say we have a plant in whatever state, but no they only put them together, they are shipped to the states. Comment on fact not feelings. Govt is partisan, but its for the people. Our factoris and steel plants are gone. In addition: Our oil fees are from Stocks and not what its being sold for from other countries. They call them Futures. We bid on them making the cost higher. The president can sign a bill getting them out of futures. Gas will go back to under a dollar. How about that!!!!!
George W Bush had more wisdom with his limited knowledge and questionable intelligence than Clinton or Obama with their vast intelligence and limitless knowledge.
lowboy
Just where did that wisdom make itself known?
Back to report of how many federal workers were added under Obama. The total of new added federal jobs that I remember seeing in the local paper was 234,000 over the past 3 years. This is after the census workers were discharged and this number probably increased the deficit by almost $25 billion, not a lot compared to the total; but, still an increase.
Not to worry. Obama will bail you out, pay for your house, and place you on food stamps. Thank you China!
So the Newt G Think Tank was running on empty! Did we need to have that reported? It wasn't obvious enough from his decisions to continue the show? And we thought the price of gas to fill our car tanks was expensive! Now we can watch him twist in the wind financially. At least Mitch R can afford the campaign, even if he may not be able to win it.
Guess the book & DVD sales aren't what they used to be... even when he forces a campaign staffer to don an elephant costume! lol
You think Newt can hit Willard up for a contribution or two?
Breaking News: Upon hearing this devastating news, Callista was spotted at Tiffany's & her credit card was 'smoking'...
Really Newt, just give up the ghost. Like him or not his chances are LESS than zero.
By the way, is my high school the only one in the country to teach to NEVER start sentences with the word AND??? AND is a conjucttion word, joining two thoughts together! See paragraph 9.