Bowne Report: INFOWARS Attacked By Auction Rigging

A new court date of November 25, 2024 has been set to settle the flagrant misuse of the Bankruptcy Auction system by backers of the Onion that attempted to buy INFOWARS or Free Speech Systems.

First United American Companies (FUAC) and The Onion both submitted initial bids for the assets of Free Speech Systems (FSS), with FUAC bidding $1,200,000 and The Onion at $1,000,000, both deemed qualifying by the Trustee. Initially, an online live auction was scheduled for November 13, 2024, but this was unexpectedly changed to a secret final and best bid process by the Trustee without court approval, violating the Sale Order which stipulated changes must be announced at the auction. FUAC's final bid increased to $3.5 million, while The Onion's was $1,750,000, yet the Trustee accepted The Onion's bid as the winning one, despite the procedural discrepancies.

The controversy deepens with the introduction of a "Distributable Proceeds Waiver" (DPW) by the Connecticut Families, which was meant to enhance The Onion's bid. This DPW, however, does not contribute any actual financial value to the bankruptcy estate, functioning only on the assumption that the Connecticut Families could dictate the asset's distribution as if they owned FSS. The DPW's value was contingent and based on the assumption of what the Families might receive from FUAC's bid, essentially reshuffling potential distributions rather than adding to the estate's assets. The Trustee's acceptance of this non-cash, conditional element as part of The Onion's bid raises significant questions about not only the auction process's fairness but the actual existence of fraud utilized during the process.

An email from the Auction company Tranzon stated that the initial bids were so complex that they necessitated a complete unauthorized change in the auction process, they sent a new bid form with instructions. The new bid procedure and instructions were not announced at the live auction, as required by the Sale Order.

the change in the sale order was never communicated to FUAC's counsel or the court until after the fact. A clear violation of the Auction rules. Instead the process was cloaked in secrecy and sabotage. Again, a new court date of November 25, 2024.

One final note, the INFOWARS crew were rushed out of the building following the auction. When the Court document clearly states that there would be a wind down process and another auction in December. The Trustee had lead most of the staff to believe that we had until the end of December to prepare for being unemployed.