When those that are paid to protect and serve, seek to abuse that esteemed position of power and trust for the benefit of cronies you have not a measure of law and civility, you have the recipe of disaster that begins as anarchy that ultimately has to foster deep civil unrest!
Hopefully anarchy will not find itself halted in its tracks due to the one entity that is questioned from time to time, but the American public still believes is true blue.
The FBI!
It is not in contention that false affidavits, by sophisticated bankruptcy counsels were supplied to the Federal Court. For they have confessed to the fact. Both the MNAT and TBF law firm have confessed to filing multiple false affidavits.
Upon the discovery of the fraud and perjury issues, Lawrence Friedman the Director of the US Trustee program in Washington DC did remove Roberta DeAngelis as Region 3 Trustee over Philadelphia and Delaware (please see the press release of Kelly B Stapleton here
What is neglected in the confessions to the multiple (and some admitted as intentionally left false) affidavits, is the documentation that they have admitted to more than 34 false affidavits.
Additionally, TBF and Barry Gold have confessed to drafting the egregious, Hiring Letter that gave Mr. Gold illegal authority to Circumvent the Code and the Court by his own volition. While MNAT states that they cannot remember who participated in the drafting of the letter at their firm.
Either MNAT did not draft the letter and has a fiduciary duty to its client (the eToys bankrupt estate) to report the item to the court.
OR
MNAT did participate in the drafting of the Hiring Letter and has to explain how in the world they did work for eToys that they did not bill for. For the very notion that they drafted the Hiring Letter and made the billable hour not appear is a criminal prima facie evidence of mens rea by an actus reus item.
More importantly, the Dept of Justice testified that the “parties” had discussions with the US Trustee’s office concerning replacing key personnel of the eToys Debtor and the US Trustee testified that the Trustee’s office warned the “parties” not to replace key personnel of the Debtor with anyone connected to the retained professionals of the case. As this would violate the “unambiguous” language of Bankr Code 327(a).
After the Dept of Justice testified about this item, the Dept of Justice attorney for the new Region 3 Trustee, specifically Mark Kenney, did sign a Stipulation to Settle that gave TBF law firm implied, blanket, Illegal, immunity with the following unlawful language;
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures“.
This clause is illegal as the US Trustee’s office is the policing “watchdog” for the sake of public equity protection, as per the Janet Reno Reform Act of 1994 as well as the fact that the whole design of the US Trustee program, as part of the Dept of Justice, is noticed upon every single press release of the US Trustee program, that states the following;
“The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws“
Yet, somehow, for an inexplicable reason, the Dept of Justice is utilizing the US Trustee program to give implied, blanket, immunity to Organized Criminal activity that is not in contention. The parties have confessed to their acts that disregarded the US Trustee warning.
Barry Gold submitted the Hiring Letter that was never revealed nearly 4 years after the date it was purportedly signed. Being supplied, in what has to be one of the great attorney slip up’s of this case, as a defense exhibit by Barry Gold himself.
The Hiring Letter documents willful intent to circumvent the Court and the Code by a collaborative effort. Being provided by Barry Gold himself, it is irrefutable.
Combined with the fact that Barry Gold testified, on the stand, that he was not connected to TBF, while both TBF and MNAT have confessed that they filed multiple false affidavits, where the Hiring Letter now demonstrates motive and purpose. One has to ask what is the motivation and reasoning for the Dept of Justice to breach its fiduciary duty.
Cui Bono?
The fact remains, even if the US Trustee states it will deliberately fail to perform its fiduciary duty, is no justification for the Court to jump on the band wagon of lawlessness and agree that such “breaking of the law” is O K.
Doing so is an act of sedition to ones Oath of Office and grounds for impeachment.
Additional reasons why the Dept of Justice is seeking to Cover Up the whole affair, may be due to the more recent discovery that the US Attorney in Delaware, Colm F Connolly was a partner with the MNAT law firm in 2001.
At the barest of minimums, Colm Connolly’s office is guilty of conflict of interest, protocol violations, ethics violations and Model Rule of Conduct violations for not referring the matter to an independent prosecutor or the Public Integrity Section.
Combined with the fact that the US Trustee disgorge motion only mentions the TBF law firm, even though the MNAT law firm confessed to filing multiple false affidavits also and had to participate in either covering up the Hiring Letter or fostering the scheme to defraud the court.
Made more morose by the fact that the Dept of Justice attorney, Mark Kenney, also does not mention MNAT issues when it seeks to give implied, blanket, Illegal, immunity to TBF.
An immunity issue that has apparently become wholesale and adopted by all as we have now also discovered that one of the items the “not seek to compel” clause desires to cover up is the fact that TBF, MNAT and Barry Gold all have undisclosed connections to Bain.
MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/ KB for discounts in the tens of millions of dollars, while not only remaining undisclosed about their connections to Bain and KB, they also now have confessed to filing more than 34 false affidavits stating they had no conflict of interest issues.
MNAT is now also discovered to have been working with Mattel , Learning Co merger (also a Bain party connection) and being less than candid about the Learning Co issue, MNAT convienently neglected to disclose the issue that the Learning Company merged with Mattel as doing so would have automatically disqualified MNAT representation of eToys Debtor.
Now we have the Dept of Justice breaching their fiduciary duty so maliciously that the US Trustee program, with the General Counsel from Washington DC is acting as an appellee, defending Barry Gold, TBF and MNAT in the 3rd Circuit appeal case 07-2360.
By the way, the Acting General Counsel for the Dept of Justice EOUST office in Washington DC is the former removed Roberta DeAngelis as Region 3 Trustee.
DeAngelis is now apparently promoted to the position of being in charge of investigating her own cases.
Lawrence Friedman had replaced DeAngelis with a press release that occurred Dec 22, 2004, the significance of the date is it was the very day of the Emergency hearing in eToys where the Court Ordered the parties to answer the allegations by January 25, 2005, in accordance with Local Rules.
They, the parties of MNAT, TBF and Barry Gold had no choice but to admit to the false testimony, for the proof provided by Laser Haas was Court docket affidavits of the TBF and Barry Gold. They therefore could not continue to deny their own handwriting that had been previously hidden, now discovered by a lapse linguae and the Public Access to court docket records that began in 2001.
Then a hearing on Feb 1, 2005 occurred where the Court then Ordered that Haas and the eToys shareholders could depose TBF, MNAT and Barry Gold on Feb 9, 2005.
The US Trustee told the Delaware Federal Court that it would make its position on the issues known, prior to Frank Perch’s scheduled travel of Feb 16, 2005.
After the Depositions provided additional proof of fraud and perjury, Frank Perch emailed the US Trustee motion to Disgorge on Feb 15, 2005 as promised. (eToys docket item 2195)
Then, less than 10 days later, Mark Kenney made moot the Disgorge Motion for $1.6 million and supplied the Illegal immunity provisio to TBF (and the rest purportedly) on Feb 24 2005 as a Stipulation to Settle the US Trustee Disgorge Motion (eToys docket item 2201)
Then, the March 1, 2005 hearing occurred to address the issue of fraud and perjury, where the Court speciously Ordered that Laser Haas could no longer speak and that they would not enter the Chairman of the Creditor Committee affidavit into the record that day. (asthe Chairman was who TBF was engaged by, the affidavit testimony that TBF defrauded the Creditors Committee would dam TBF to criminal liability).
However, during the March 1, 2005 hearing, the transcript of which is in the record as eToys docket item 2228. Paul Traub of TBF not only confessed again to filing the false affidavits he also admitted to the Court that TBF paid Barry Gold 4 separate payments of $30,000 each prior to placing Barry Gold within eToys as a “wind-down coordinator” who then became President, CEO and now confirmed Plan Administrator. Where Barry Gold has authorized more than $12 million in payments to TBF, MNAT and other connected parties illegally.
Laser Haas had received a direct email from Lawrence Friedman that he would address the issues of the case by his staff appropriately. Where the removal of Roberta DeAngelis and the Disgorge Motion seemed to provide proof that Lawrence Friedman was performing his fiduciary duties when others would not.
Then, the Stipulation to Settle occurred.
Then, Paul Traub gave the additional testimony of paying Barry Gold prior to placing him “in secret” within eToys.
Then, we discovered the MNAT, TBF and Barry Gold connections to Bain/ KB Toys and the Collusion to Defraud the Estate.
Then Laser Haas also learned that Scott Henkin of Fir Tree Value Fund had approved, “off the record” of the Barry Gold and Paul Traub connections.
Then Laser Haas discovered that MNAT, Barry Gold and TBF were also attempting another $100 million dollar cash fraud in the KB Toys bankruptcy case.
Then, Mark Kenney, the Dept of Justice attorney for the Region 3 Trustee, defended MNAT, TBF and Barry Gold by successfully getting the Delawre Federal Court to strike and expunge HAAS’s testimony.
You can see the written proof of this Obstruction of Justice Here
Then Laser Haas informed Lawrence Friedman of the additional perjury and fraud efforts with Mark Kenney’s overt acts of Obstruction of Justice.
Then Lawrence Friedman resigned (Please see Dept of Justice press Release here )
Also Frank Perch quietly did exit or resign at the same time.
Speciously, you will not find any press release by the Dept of Justice about Roberta DeAngelis promotion to General Counsel for the EOUST office in Washington DC. (you can see all press release by the Dept of Justice HERE
The Delaware Bankruptcy Court then held a hearing as the Wall Street Journal had reported on the TBF disgorge settlement HERE
The Delaware Bankruptcy Court visiting Justice Randolph Baxter refused Laser Haas new CLI counsel from speaking after Randolph Baxter allowed the parties to reschedule the CLI claims hearing, allowed CLI counsel to withdraw and did forbid the new counsel for speaking the very day Baxter did strike and expunge CLI and HAAS Court approved Senior Priority Admin claim for more than $3 million.
Then Haas appealed.
Then, speciously, after being silent for more than 6 months after TBF confessed to paying Barry Gold. The Court did enter an OPINION that vindicates TBF, MNAT and Barry Gold as the Delaware Bankruptcy Court, going into the Twilight Zone, stated that now perjury had been documented. Despite the Fact that the US Trustee had already testified to the Court that the US Trustee had warned the parties against violating the law where TBF And MNAT have already confessed to filing more than 34 false affidavits.
The Judge continued going off the deep end of logic with a 57 page Opinion that refused to refer the $300 million in fraud and perjury to the US Attorney’s office as is required by the Judicial Canon’s of Conduct ( specifically 3(B)3 ) and 18 USC 3057(a). (please see OPINION by Judge Mary F Walrath Here )
This is just as well, we suppose, with the newly discovered evidence that the US Attorney in Delaware, Colm F Connolly, was a partner with the MNAT law firm in 2001. Referring the matter to Colm Connolly office then did not matter as Laser Haas had been informing the Delaware US Attorney, specifically Asst US Attorney Ellen Slights and Deb for quite some time.
Now with the newly discovered evidence that Colm F Connolly was a partner at the MNAT law firm in 2001, when the fraud and perjury began (Please see Dept of Justice notice HERE )
Wherefore, Laser Haas realized a long time ago that the rule of Law was non existent in Delaware, as even the 3rd Circuit has stated that the Federal Rules of Appellate Procedure does not apply to Delaware Bankruptcy Cases (please see 3rd Circuit per curiam Opinion Here ) Where it says on page 7 that the Federal Rules of Appellate Procedure does not apply to this instant case.
Why even both with the mockery.
Just issue a nationwide Memo, all matter of Haas v eToys are prejudged against HAAS, QED!
Despite that readily apparent efforts of cronyism, to protect the Banrkuptcy Ring of Delaware, Haas did file a Citizens Complaint with the California US Attorney’s office Tom O’Brien.
Please see Citizens Complaint HERE
We were supposed to receive an answer from the US Attorney’s office of Tom O’Brien this week, the answer seems to have come in another form of message as the L A Times reported that last week Tom O’Brien did disband and dismantle the Public Fraud and Corruption Task Force.
More importantly, Tom O’Brien apparently threatened his own Asst US Attorney’s that if they revealed any other reason why the Task Force was disbanded, including bad mouthing their boss, that the Asst US Attorney’s would pay a penalty.
You can see the actual threat in the L A Times Store HERE
Upon receiving that news, Laser Haas began calling all the Asst US Attorney’s he could to get a comment.
No comment has been given, However, the Asst US Attorney’s did refer the matter “officially” to the FBI and the FBI did intake the information and has passed the case up the proverbial ladder within.
May it be that the FBI is really true blue and patriotic enough not to be corrupted by the Delaware and Washington DC corruption of Organized Crime referred to by Congress as a Bankruptcy Ring.
We will try to keep you informed.