State College, PA - Centre County - Central Pennsylvania - Home of Penn State University

Sandusky's Victims 3, 5 and 7 File to Block The Second Mile From Transferring Assets

by on June 26, 2012 5:41 PM

Three of Jerry Sandusky's victims have filed for the court to block The Second Mile from transferring nearly $2 million in assets to a Houston-based charity. 

The Second Mile, which recently put its State College property up for sale, is in the process of transferring its millions of dollars in assets to Arrow Child & Family Ministry, a Houston-based charity founded by a survivor of child sexual abuse, so some of the programs can continue in Pennsylvania. 

On Tuesday, lawyers for Victims 3, 5 and 7 filed a petition in Centre County Orphans' Court to block that transfer. A fourth man, identified in court documents as 'John Doe' is also filing to block the transfer. 'John Doe' is a Philadelphia man who, while not a part of the original grand jury presentment, has filed a civil suit in Philadelphia against Sandusky, according to court documents. 

When The Second Mile announced the transfer on May 25, it said the $2 million would help Arrow Child & Family Ministries continue to run The Second Mile programs for a year. In a statement on The Second Mile website, CEO David Woodle said court approval of the transfer could take months. 

According to court documents, transferring $2 million would constitute 40 percent of The Second Mile's holdings.

Attorneys for the victims and 'John Doe' want The Second Mile to put first its responsibilities to pay off the liabilities it has incurred from the Sandusky trial, which would be hampered by a transfer of funds, according to the 72-page document.

"However, the fundamental question is whether the court should permit (The Second Mile) to transfer nearly $2.5 million where there is ample reason to believe that (The Second Mile) will incur liabilities well beyond its ability to pay even if the transfer does not take place.

As (The Second Mile) pursues dissolution, the Court's first priority must be to preserve (The Second Mile's) assets to maximize (The Second Mile's) ability to pay its current and future liabilities."

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Laura Nichols is a news reporter and @LC_Nichols on Twitter.
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