Cases of sex abuse threatens one of America's largest youth group

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A looming wave of sexual abuse settlements has pressured the finances of Boy Scouts of America – one of the oldest and largest private youth organizations in the U.S. – to the point where it is exploring "all available options," including Chapter 11 bankruptcy.

Several states have been moving in recent months to adjust their statute-of-limitations laws so that victims of long-ago sexual abuse can sue for damages. New York state has passed a law that will allow such lawsuits starting in August. A similar bill in New Jersey has reached the governor's desk. Bills also are pending in Pennsylvania and California.

In New York and elsewhere, lawyers are hard at work recruiting clients to sue the Boy Scouts, alleging they were molested as youths by scoutmasters or other volunteers.

Plaintiffs' lawyers "recognize that this is a very unique and lucrative opportunity," said attorney Karen Bitar, who formerly handled sex-crime cases as a prosecutor in Brooklyn before going into private practice.

Attorney Tim Kosnoff, a veteran of major sexual abuse lawsuits against the Roman Catholic Church, said Tuesday that he and his team have signed up 186 clients from dozens of states in just the past few weeks who want to be part of litigation against the Boy Scouts. Kosnoff said 166 of them identified alleged abusers who have not been named in any of the Boy Scout files made public in past years.

Boy Scouts spokeswoman Effie Delimarkos said the organization continues to evaluate its financial situation, and she defended its current abuse-prevention policies. The organization serves more than 2.2 million youths.

A bankruptcy by the Boy Scouts could be unprecedented in its complexity, potentially involving plaintiffs in virtually every state, according to several lawyers. It would be national in scope, unlike the various Catholic Church bankruptcy cases in the U.S., which have unfolded diocese by diocese.

"A Boy Scout bankruptcy would be bigger in scale than any other sex abuse bankruptcy," said Seattle-based attorney Mike Pfau, whose firm is representing more than 300 victims in New York state.

Jeffrey Schwartz, a New York-based bankruptcy expert with the firm McKool Smith, said the Boy Scouts don't have a particularly large flow of cash and might be forced to sell off property in bankruptcy. The Boy Scouts have extensive land holdings, including camping and hiking terrain.

"When you cloak people in badges of respect, you create the perfect opportunity for bad people to get access to children," said Chris Hurley, whose Chicago law firm is representing 11 former scouts in sex abuse trials scheduled on a monthly basis this year.

The intensifying pressures on the Boy Scouts coincide with the mounting threats to the U.S. Catholic Church in regard to its own long-running sex abuse scandal. Catholic bishops will be meeting in Baltimore in June to discuss the next steps.

Both the church and the Boy Scouts are iconic, historically well-respected institutions now known as having been magnets for pedophiles trying to exploit the trust of boys and their parents.

(Top image: Boy Scouts salute as they recite the Pledge of Allegiance during the Boy Scout Jamboree in Bowling Green, Virginia, July 31, 2005. /AP Photo)

Source(s): AP