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The Miss America Competition LLC, operator of the iconic pageant, has filed for bankruptcy amidst a $500 million racketeering lawsuit against Florida developer Glenn Straub. The lawsuit, filed Thursday in federal court in West Palm Beach, accuses Straub of orchestrating a fraudulent scheme to wrest control of the organization’s assets.

Allegations of Fraud and Misconduct

Miss America CEO Robin Fleming, who purchased the company in December 2022, claims Straub and his attorney, Craig Galle, engaged in a "fraud monstrous in scope and harm" to unlawfully assert ownership over Miss America. Fleming alleges Straub encouraged her to bid for the organization, knowing she would be a more acceptable buyer due to his own controversial history, including prior charges of battery.

Straub allegedly agreed to finance the deal with $4.1 million, but only provided a loan of $525,000 with an accelerated one-year repayment period instead of the initially promised three years. Fleming asserts that she repaid the loan in full but later faced threats and fraudulent documents from Straub claiming he was the rightful owner.

Ownership Dispute Intensifies

In March 2024, after Fleming refused to act as a proxy plaintiff in litigation Straub wanted to pursue, tensions escalated. Fleming alleges Straub verbally threatened her and sent letters asserting her termination from a non-existent employment relationship. According to the lawsuit, Straub then presented fraudulent documents to bolster his claim of ownership over the organization.

The dispute is now playing out in bankruptcy court, where Straub asserts that he, not Fleming, purchased the Miss America assets in 2022. His attorney, C. Craig Eller, argued that Fleming never had managerial or ownership authority, and that the bankruptcy filing was necessary due to her refusal to grant Straub access to financial records.

Pageant Future in Limbo

U.S. Bankruptcy Judge Erik P. Kimball has scheduled an evidentiary hearing for January to determine the legitimacy of the bankruptcy case and ownership claims. The hearing was set to allow the annual Miss America pageant, scheduled for Jan. 5 in Orlando, to proceed as planned and to facilitate discovery between the parties.

Legal Representation

Fleming is represented by attorneys from Carlton Fields PA, including Bruce J. Berman, Gene Rossi, and Justin L. Chretien, as well as Sheppard Mullin Richter & Hampton LLP, including Benjamin G. Chew, Jessica N. Meyers, and Camille M. Vasquez.

Counsel for Straub in the racketeering suit was not immediately available.

Implications of the Lawsuit

This case highlights the high-stakes legal battles surrounding the storied Miss America pageant, which has faced challenges in recent years. Fleming’s lawsuit not only seeks damages but also aims to secure her rightful ownership of the organization amid allegations of deceit and coercion.