About bankruptcy fraud

To see all the Court docket record links documenting Obstruction of Justice to benefit the MNAT law firm, Paul Traub’s law firm(s) and their clients of Bain and Goldman Sachs

Please see the DOJ Cover Up page

http://www.petters-fraud.com/DOJ_Cover_UP.html

The biggest issue is not only the 100 felony violations that the DE DEpt of Justice personnel are trying to prevent from any Official/Proper investigation.

Why was the central CA Public Corruption Unit shut down and career prosecutors Threatened?

http://articles.latimes.com/2008/mar/20/local/me-shakeup20 

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Unlike everyone else’s endeavors out there we do not claim to be the best, nor the premiere or most detailed web or blog site.  It remains our goal to halt Fraud on the Court by those who would steal from any person by pretense or “color of law”.

   While this site began with the issue of eToys and the fraud perpetrated upon public equity holders, creditors and other good faith parties.  We welcome everyone to discuss fraud in the American bankruptcy court realm.  We do not care if the case is small, Chptr 7, 11 or 13.  If you know of a fraud situation please put a concise statement about it here. 

      We will do our best to refrain from being high handed in our monitoring of the issues at hand.  Personal attacks are forbidden and we caution you. Do not make allegations lightly.  Placing them on the web, in the national public, brings in a federal standpoint on all issues.

       Americans are losing their homes, cars, careers, retirement funds, public stock and, in some case, their life savings, by those that believe they are justified as legal or other professional sharks under the misnomer of the word Trustee. 

        Money does corrupt, absolute power corrupts and those lawyers, accountants and judges who would dare abuse their esteemed position of trust are unworthy of the words honorable or trustee.

        As American Citizens it is OUR fiduciary duty to monitor our fields.  If we do not watch the crop of justice, weeds, slugs and all other pests and vermen will devoure our soul and prosperity with glee.

        The Truth remains an inflexible entity that can only be assaulted by apathy and corrupt attempts to silence.

       Let the Truth be known, let us be a united America and truly allow freedom to reign!

WARNING – there is an Organized Criminal element that has illicit influence over the DE Federal Bankruptcy Court !

Please take the time to review the facts documented below – For Your Sake!

The US Trustee was replaced, the Asst US Trustee made a Motion to Disgorge for $1.6 million – then 9 days later the DOJ Trial Attorney voided the Motion to Disgorge and gave the perpetrators  immunity – despite the fact that they Confessed to 34 false affidavits in order to Deliberately Deceive the Federal Court in $200 million in fraud.

Then the perpetrators tested their impunity level and committed another $100 million fraud and the same DOJ Trial Attorney petitioned the Courts to Strike & Expunge the proof of Perjury and Fraud on the Court.

Resultantly the Director of the Exec Office of United States Trustee’s in Washington DC RESIGNED (here) and the Asst US Trustee stepped down as well.

We informed the FBI, OIG, Public Integrity Section, OSC, OPR, OGE, Pres Bush Corp Fraud Task Force, the SEC and many more.

All of whom referred us to the local US Attorney and the General Counsel of the EOUST.

Unfortunately the removed Region 3 Trustee was quietly and speciously promoted to the post of Acting General Counsel of the EOUST. The quiet part is the fact that there was no press release on the high level promotion until years later when we discovered the issue – the specious part is her office was in charge of investigating her case

and NOW – she has been placed back within to clean up her own mess (see belated DOJ UST press release (here))

We all find it rather Odd that there are no other US Trustee press releases since Oct 2008!

We also discovered the fact that the Local US Attorney in DE, whose office refused to investigate or prosecute the Perjury & Fraud failed to disclose the fact that he was a partner with the MNAT law firm in 2001 – the very year that MNAT confessed to failure to inform the Court of the Non Disclosure of Conflicts of Interest.

You normally could see the USDOJ Office of Legal Policy copy of his Resume (here) – but they have yanked it down – we kept a Print Screen Copy for anyone who wants it.

Then we reported those Ethics Violations and Model Rule of Conduct issues to the US Attorney in CA – who never responded.

However;

The Los Angeles Times reported on a story “Shake-up roils federal prosecutors” – where the central CA USA walked into a weekly staff meeting and summarily disbanded the Public Corruption Unit (here)

If you read the entire LA Times story – you will see that it reports that DOJ personnel were Threatened to remain silent OR ELSE!

The party that was given immunity was Paul Traub’s firm of Traub Bonacquist & Fox.

The relevance outside of the previous eToys.com fraud is the basic fact that Traub as Creditors counsel placed his partner (Barry Gold) within eToys as President/CEO – and MNAT helped draft the Hiring Letter that stayed hidden until we documented the Perjury – it contains a clause that allows Barry Gold to choose – whether or not – to apply to the Court per Section 327(a).

Barry Gold committed on the stand Perjury denying his connections to Traub when an eToys shareholder questioned him in 2002 after he supplied a Plan Administrator’s Declaration – Under Penalty of Perjury – stating that the Plan involved “extensive” “arms length” and good faith negotiations between Debtor and Creditor.

That is between Barry Gold and his partner Paul Traub.

The DE Bankruptcy Court warned this whistle blower to back off – as did Paul Traub’s firm – where Susan Balaschak and the whistle blowers own Attorney emailed a Threat that if Laser Haas did not Back Off – not only would he and the Court approved company (CLI) that he owned – they would not get paid – Laser’s career would be destroyed and they would come after him for previous earnings.

When the WSJ released an article the day after the Threat was made July 25, 2005 (here)

It is Our Federal System of Justice that has become an Organized Criminal Enterprise and the fact that this whistle-blower failed English and was spanked by the Houligans should not by the basis for apathy or lack of introspect.

The EOUST replaced the Region 3 Trustee Dec 22, 2004. The US Trustee press release stated the new party is experienced in Fraud matters (here)

Making the crimes extensively egregious and heinous is the fact that the US Trustee testified it forewarned the parties NOT to replace key personnel of eToys with anyone connected to the retained professionals (as such is against the Law Section(s) 101(14), 327(a) and Affidavit Rules 2014,2016) (see Disgorge Motion parts 19 & 35 (here))

The Disgorge Motion concluded, when it did not know of the 100 other crimes that transpired – that the acts of deception were deliberate, rather than inadvertent and Traub’s firm had perpetrated Fraud on the Court.

So it remains inexplicable – that the US Trustee’s website Tout’s its fiduciary responsibility to monitor and Police Fraud (see UST website right hand top corner (here)) – yet the DE DOJ Trial Attorney gave Paul Traub’s firm Unlawful immunity and the promise of the US Trustee to refrain from its fiduciary duty as is testified in PDF pages 8 & 9 (here) as the Stipulation to Settle the Disgorge Motion that is Proffered by the US Trustee states;

WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures

Researching what would prompt the DOJ to offer future willful blindness – led us to the discovery of additional crimes.

Seems MNAT, Barry Gold and Traub all have a working relationship with Bain and Goldman Sachs.

eToys sold the bulk of their assets to Bain/ KB for discounts in the hundreds of millions and MNAT, Traub and his partner Barry Gold negotiated the deals.

This is Collusion.

KB filed two bankruptcies, in the one DE Bankr 04-10120 – Michael Glazer as CEO of KB paid himself, others and BAIN $100 million – prior to the Bankruptcy Filing.

The party representing BAIN is MNAT

Michael Glazer was a director and shareholder of Stage Stores – and Barry Gold / Traub’s firm worked for Stage Stores and their Directors (Stage Stores is mostly owned by Bain associated parties)

Then Paul Traub petitioned the KB Toys Court to be the one to prosecute the $100 million dollar preferential that MNAT was defending.

Akin to Capone asking Frank Nitti to be the one to prosecute him.

When we pointed out those crimes to the Court – the same DOJ Trial Attorney (Mark Kenney) petitioned the Court to Strike and Expunge the proofs of Perjury and Fraud (here)

This was not the only time Mark Kenney and his associates Obstructed Justice – he also asked the SEC to back off from initiating an official investigation and Mark Kenney, Roberta DeAngelis (as Acting GC of the EOUST) among others petitioned the 3rd Circuit Court to Expunge the case.

They were defending their brief that offered immunity to Traub that the DE Bankruptcy Court approved when the whistle blower appealed the DE Bankruptcy Court’s decision to honor Paul Traub’s threat.

Paul Traub, MNAT and Barry Gold told the DE Bankruptcy Court that whistle blower generoursly waived its $3,7 million in commissions and fees. For eToys was selling all their assets to Bain/KB for $5.4 million. When Laser Haas and his company CLI helped get back over $45 million to eToys bank accounts he had no idea that the reason those parties were making it so HARD to sell – was they were selling eToys to themselves.

When Laser Haas told the DE Court that the Affidavit was a forgery  and pointed out to the Court that the very document the parties claim is a Waiver – states that CLI can seek success fees';

The Court said that the whistle blower does not have standing as a person aggrieved – seems you need the court’s permission to point out criminality!

Does not matter much – as Stage Stores was Co-Debtor with Liquidity Solutions.

Right after Paul Traub and MNAT secretly planted Barry Gold within eToys as President/ CEO – Liquidity Solutions and related companies began buying up the eToys claims.

Barry Gold has thus far paid out over $10 million in fees to Traub, MNAT and others that participated in the Cover Up’s.

Where the other $30 million plus has gone and how much to the Liquidity Solutions accounts – despite the fact that they are Collusions – will never be known.

Currently eToys (for the shareholders sake and creditors) is suing Goldman Sachs in the NY Supreme Court.

Being that MNAT represents Goldman Sachs in DE – MNAT nominated Traub’s firm to do the work and the Court approved Traub’s Supplemental Affidavit – that he confessed was false.

It is also learned that Traub’s NY co-counsel of Wachtel helped with Barry Gold’s Director & Officers (D&O) insurance in eToys.

Traub and his cohorts know that he was caught red-handed by Laser Haas due to mistakes forgotten in Court docket records – this may explain why half the NY Sup Ct case 601805/2002 is Under SEAL.

At the same time one of the very first eToys documents that the DE Court approved of – at the behest of MNAT – was the Destruction of eToys Books n Records.

Despite that Destruction – the whistle blower found $2 million in cash deposits hidden overseas that David Haddad was trying to keep hidden.

Whistle blower Haas also discovered that Foothill Capital loaned eToys $40 million in November 2000 and transacted over $100 million that was paid to Wells Fargo prior to the March 7, 2001 bankruptcy filing of eToys.

Barry Gold, Xroads LLC and Paul Traub all having a working relationship with Wells Fargo.

This is a crime of Collusion to Defraud an Estate as is well established in the on point case of In re Bucyrus 94-20786 (E D Wish 1994) The book written by Milton C Regan of “Eat What You Kill” the fall of a Wall Street attorney – documents how a $35 million dollar loan (by a former Goldman Sachs guy) was never reviewed and Gellene went to Jail as Milbank Disgorged it’s entire $1.9 million and lost a $20 million dollar + litigation.

If the reader here does not understand the harm that was being done by the duplicity of the DOJ giving Paul Traub immunity, then I guess it does not matter either that both of Paul Traub’s other partners – Marc Dreier and Tom Petters – committed $700 million and $3 Billion in Fraud!

  1. March 4, 2008 at 9:26 pm

    :)

  2. November 18, 2010 at 10:04 am

    Thanks for sharing the information..See cost of bankruptcy what are your views?

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