SPRINGFIELD — A bankruptcy judge froze Thursday more money from 4Run3 Racing held now by the St. Patrick’s Parade Committee of Holyoke, money claimed by other philanthropies never paid the proceeds of their charity runs.
Now the court will continue a search for 4Run3′s remaining assets.
The St. Patrick’s Parade road race — drawing about 6,000 runners each March — repeatedly demanded in April and May that failing 4Run3 pay it $176,924 collected in race registrations and donations collected through a website. 4Run3 paid, court records say, relying on two loans to raise the cash.
But lawyers working pro bono for smaller charities are in bankruptcy court saying it was wrong to pay St. Patrick’s first because the other philanthropies were also owed money and they should all share in whatever money is available according to what they are owed, not according to who pressured 4Run3 and its former owners, husband-and-wife Timothy D. Murphy and Jill M. Murphy, the hardest.
Following a hearing at the U.S. Courthouse, Bankruptcy Judge Elizabeth D. Katz gave a bankruptcy trustee the ability to attach a new total of $117,585 in the St. Patrick’s Parade Committee of Holyoke Inc.’s account. But only to the extent to that much money in the account.
That includes addition to $31,000 Katz froze Oct. 23, said Jonathan R. Goldsmith, one of the attorneys representing the smaller charities.
The St. Patrick’s Committee’s attorney has argued that it’s a hardship to have tied up because the parade needs to meet expenses year-around.
But Goldsmith says all the charities are out money that they expected to have in their coffers to fulfill their missions.
In their petition to the bankruptcy court, the charities said that 4Run3 owners Timothy and Jill Murphy set up registration pages through a New Jersey technology company called runsignup. That company collected race fees and donations and sent the proceeds to accounts controlled by 4Run3 that were not accessible to the charities
The Murphys have left the region and closed their running shop in East Longmeadow. The remaining stock was sold at auction in August.
The Murphys didn’t file for bankruptcy either for themselves or for their businesses. They were forced into bankruptcy by the charities.
4Run3 owes more than $52,000 to 16 philanthropies. Those groups represent charities and causes ranging from outdoor education and animal welfare to the Junior League, Holyoke Pride and the Knights of Columbus.
