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Date: Tue, 03 Sep 1996 11:23:38 -0800
From: Greg Raven 
Organization: Institute for Historical Review
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Subject: IHR wins again
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P.O. Box 2739      Newport Beach, CA 92659
Tel. 714 - 631 1490    Fax: 714 - 631 0981

NEWS RELEASE    Friday, August 30, 1996
Contact: Mark Weber or Greg Raven



In another victory for the Institute for Historical Review in its
drawn-out legal battle with former associate Willis Carto, a California
Appeals Court decisively ruled August 28 in favor of the IHR and its
parent corporation (LSF), dismissing Carto's appeal of the ruling in a
crucial 1993 case, "Kerr, Carto vs. LSF." "Because appellants do not
have standing to complain of the appointments, we dismiss the appeal,"
declared the California Court of Appeals, Fourth District, Division
Three (case G016137).

The two appellants in this matter were Carto's wife, Elisabeth, and an
elderly gentleman named Tom Kerr. (Typically, Carto prefers to act
through others.) The Appeals Court found that, contrary to Carto's
claims, his wife Elisabeth "is not, and never was, a director" of LSF
and "has no standing of any nature to challenge the appointments" of
corporate directors. 

This ruling upholds the judgment in the "Kerr, Carto" lawsuit brought in
1993 by Tom Kerr and Elisabeth Carto (case 720973). At the conclusion of
the two-day hearing in that case, California Superior Court Judge Robert
Polis ruled on December 31, 1993, that declarations and other evidence
submitted by Carto in the case "are untrustworthy as evidence and
disbelieved by this court." In effect the court called Carto a liar. "In
fact," Judge Polis went on to note, "Willis Carto was exercising
substantial control over the Legion [LSF] without any apparent legal

Willis Carto is founder and head of Liberty Lobby, a "populist"
organization in Washington, DC, that publishes the weekly tabloid, The
Spotlight. Until the spring of 1994, Carto repeatedly stated, under
oath, that he had no legal ties with the IHR/LSF, insisting that he was
merely an "unpaid consultant" or occasional "agent." In the spring of
1994, though -- three months after losing the "Kerr, Carto" case --
Carto suddenly "discovered" that he actually controlled IHR/LSF on the
basis of a private agreement he supposedly made in 1966 with the
daughter of one of the LSF original incorporators. Stymied in
California, Carto has been trying to "sell" this bizarre argument to a
court in Texas, where the LSF was chartered in 1952. 

In all this legal wrangling, Carto has sought to wrest control of
IHR/LSF as part of a desperate effort to avoid being called to account
for his embezzlement of millions of dollars from the IHR/LSF. Costa Mesa
city police have confirmed that Carto, together with associate Henry
Fischer, illegally took millions of dollars meant to further the work of
the Institute for Historical Review. As part of its criminal
investigation, Costa Mesa and San Diego police seized numerous documents
during their search of the Carto and Fischer residences on March 22,

                      +  +  +  +  +  

Greg Raven (
PO Box 10545, Costa Mesa, CA 92627

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