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P.M. BRIEFING : Mustang Ranch in IRS Hands

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From Times Staff and Wire Service Reports

A judge today removed the federal government from the brothel business by lifting a stay order that would have obliged a bankruptcy trustee to operate the infamous Mustang Ranch brothel.

U.S. Bankruptcy Judge James Thompson lifted the stay in a brief hearing, opening the way for the Internal Revenue Service to foreclose on the brothel.

Bankruptcy trustee Jeri Coppa told Thompson that without the court’s permission to operate this weekend, she would be unable to assume responsibility for the property. She asked that the IRS be allowed to foreclose.

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