Robert G. Flanders Jr., the receiver appointed by Rhode Island to fix the finances of the town of Central Falls, warned the bankruptcy judge presiding over its chapter 9 bankruptcy case that the federal court would violate the state's sovereignty if it removes Flanders from power, Dow Jones DBR Small Cap reported today. Under attack from city councilors who recently asked Judge Frank Bailey to give them back control of the city's finances, Flanders argued that a federal court does not have the power to undo the state action that put him in charge of the Providence suburb of 19,000.
