shareholders find fraud
Update March 14, 2011
Toys R Us has Received Stolen Property
With the real culprit and conspirator to monopolize the independent retail toy industry being a party that has participated in massive acts of fraud and collusion within our federal court system.
That culprit is BAIN.
You will see a varnished detail of Bain’s ownership of Toys R Us at the WikiPedia website thread on ( here )
What WikiPedia cannot give anyone an accounting of; is how BAIN has stolen most of the independent retail toy industry through bankruptcy court collusion and fraud.
Bain not only owns Toys R Us, as you can see in the Wikipedia report, Bain also owns Baby Universe, Kay Bee Toys, FAO Schwartz and eToys.
All of those items were acquired through bankruptcy cases and involved a perpetrator that the Dept of Justice gave illegal immunity to – after he confessed to intentional fraud on the court and more than 17 false affidavits.
That perpetrator is Paul Traub – who was partners with Tom Petters ($40 billion fraud), Marc Dreier ($700 million fraud) and also associated on both sides of the fence with OKUN’s 1031 Tax Group.
Marc Dreier was sentenced to 20 years in prison.
Tom Pettes was sentenced to 50 years in Prison.
OKUN was sentenced to 100 years in Prison.
What did Paul Traub get
See Paul Traub and his new found place at Gordon Brothers ( here ).
Meanwhile the NY Supreme Ct case of eToys v Goldman Sachs (#601805/2002) has been closed and the DE Bankruptcy Court has permitted the confessed culprits to steal this whistle-blower’s fees and expenses.
Funny thing is www.MNAT.com had confessed to supplication of more than 15 false affidavits as well. Neither the DE Bankruptcy Court, nor the US Trustee’s office will look at the big picture of MNAT’s fraud on the court by Perjury. This is because MNAT was secretly the attorney for Goldman Sachs when it asked the DE BK Ct to allow the firm to hand pick the party to prosecute Goldman Sachs.
If that act of Collusion and Conspiracy to defraud was not bad enough; the party MNAT hand picked to prosecute MNAT’s client was none other than
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
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?
Akin to Madoff – the eToys debacle has been transpiring for almost a decade.
Also on point with Madoff/Markopolous – these websites, shareholders and this whistle blower have been screaming from the roof top(s), Letters to SEC, DOJ, FBI etc etc – for nearly a decade.
The United States Trustee testified that the UST’s office forewarned the parties not to replace key personnel of eToys with anyone connected to the retained professionals ( please see UST Motion to Disgorge the Traub firm part 19 and part 35 (here)).
Despite that authorative warning – MNAT and Traub collaborated to plant Barry Gold (a Confessed paid associate of Paul Traub’s) within eToys as a “wind-down coordinator” (duplicative of CLI duties) and then as President, CEO and finally confirmed Plan Administrator.
The conspirators also drafted a Hiring Letter (here) that gave Barry Gold an option to choose whether or not to apply to the Court in compliance with Section 327(a), Rule 2014 – based upon Bankruptcy Code 101(14).
This was in fact – Fraud upon the Court – by Officers of the Court – vis-a-vis Perjury as MNAT and Traub supplied over 34 false Rule 2014/2016 Affidavits over a period of years – stipulating that they had no Conflict of Interest.
Collateral Logistics Inc (CLI) – the Court approved liquidation consultant for eToys is owned 100% by Laser Haas.
CLI halted the auction sale to Bain/KB Toys of all eToys assets for $5.4 million and managed to get back nearly $50 million into the eToys cash accounts.
Along the way CLI and Laser were harrassed by Traub, Barry Gold, MNAT and Ellen Gordon from Xroads LLC at every turn. Including the issue that Laser had the public entity of eToys with possible mergers of Playco, Scholastic and others – that were all nixed by Traub, Gold and MNAT.
After many confessions by Traub, MNAT and Barry Gold – the Motion to Disgorge Paul Traub’s firm of $1.6 million was made void/moot by the DE Dept of Justice Trial Attorney Mark Kenney.
The actual document gave Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of future willful blindness by the US Trustee’s office (see Stipulation to Settle proffered by Mark Kenney (here)).
The Specific clause that is also a Breach of Fiduciary Duty and violates the Oath of Office by the US Trustee and Mark Kenney stipulates:
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures“
Though this was not the 1st “faux pas” of Mark Kenney – it would prove to be the undoing of many things later – for it outraged Laser Haas so much so – that he began a relentless effort to find out what it was that the parties were making such a grand endeavor to Cover Up.
Laser Haas had previously received the direct email response of the Director of the United States Trustee’s Executive Office in Washington DC – promising to rectify the matter.
The promise seemed valid as the EOUST replaced the Region 3 Trustee (here) on December 22, 2004 – that just so happens to be the very day the Emergency Hearing was transpiring on the perjury & fraud (here)
Laser also had eToys.com sold to Bain/KB for $10 million – that was re-negotiated by Traub, Gold and MNAT down to $3 million. There is no report of how much was finally paid – if anything.
KB Toys was owned at the time by Bain – who also had associates who owned and controlled the Stage Stores Bankruptcy in Southern Texas.
Barry Gold and Traub worked for Stage Stores and their directors in 2000 and 2001. One of the Directors/stockholders was Jack Bush (a long time acquaintance who was also CEO of Bain’s IdeaForest) and another was Michael Glazer who was also CEO of KB Toys.
Traub confessed that while Barry Gold was leaving Stage Stores and prior to Barry Gold being planted within eToys – that Traub’s firm paid Barry Gold four (4) payments of $30,000 each – which halted in May 2001 – where Barry Gold then received $40,000 per month (Please see Transcript of March 1, 2005 hearing pgs 60 thru 69 (here)).
Prior to KB Toys filing bankruptcy in 2004, Michael Glazer paid Bain, himself and others $100 million. The law firm representing Bain in the $100 million dollar matter is MNAT and Paul Traub actually had the unmitigated gall to petition the court to be the one to prosecute the $100 million dollar matter! (yeah we know – sort of like Frank Nitti asking Capone to be the Judge)
When Laser went to blow the whistle in that case – the Dept of Justice came to the rescue of Paul Traub (here) as Mark Kenney Obstructed Justice and had the Court Strike & Expunge the evidence of Perjury and Fraud.
Then the Director of the EOUST in Washington DC Resigned (here)
Despite the fact that the whistle blower contacted the FBI, OSC, OGE, Public Integrity Section, OPR, EOUST, SEC, Pres Bush Corporate Fraud Task Force and others – Laser was instructed to report the matters to the local US Attorney and the General Counsel of the EOUST.
Unfortunately – unbeknownst to Haas at that time – the removed Region 3 Trustee DeAngelis was promoted to the post of Acting General Counsel of the EOUST – therefore put in charge of investigating her own case.
Haas also discovered that the US Attorney in Delaware at the time – Colm Connolly – had his own Non-disclosure of a Conflict of Interest – where Mr. Connolly had actually been a partner with the MNAT law firm in 2001 – the very year the fraud and perjury began (you previously could go to the US DOJ Office of Legal Policy and get the resume of Colm Connolly (here) – UNfortunately – the DOJ has redacted the resume – (Laser has a print screen copy for anyone who needs the Proof).
So Laser reported the Ethics, Model Rule of Conduct and Breach of Oath/Fiduciary Duty issues to the Public Corruption Unit in central CA.
That also resulted in specious acts that imply a cover up as the Central CA US Attorney walked into a weekly staff meeting – when the response by the DOJ was due to Laser – only to see the USA summarily disband the Public Corruption Unit.
Then AG Mukasey and US Attorney O’Brien gave the excuse that the dismantling of the Public Corruption Unit was to make the DOJ more efficient – so where is the more proficient investigation and prosecution of the eToys fraud schemes.
More importantly – why did US Attorney O’Brien deem it necessary to Threaten career AUSA’s to keep their mouths shut (see LA Times Story “Shake-up roils federal prosecutors” (here))
Giving Proof that UCLA Law Professor LoPucki was correct in his new study that Bankruptcy Judges Routinely make ILLEGAL decisions for the sake of big fees to local firms (here) – the bankruptcy Judge stated in eToys – despite the confessions to deliberate False Affidavits – that no perjury was documented as the Judge approved the illegal immunity provided to Paul Traub.
If you think that it has done no additional harm – who cares about eToys anyways – then maybe someone could explain how Paul Traub’s other 2 partners felt brazen enough to commit $700 million and $3 Billion in Fraud – (see cases of Marc Dreier and Tom Petters).
Paul Traub is also still handling the eToys case against Goldman Sachs – a $500 million dollar issue in NY Supreme Court (case 601805/2002)
Seems Traub, Gold and MNAT all have relationships with Goldman Sachs -where MNAT is even Goldman Sachs local counsel in Dealaware and MNAT nominated Traub to handle the NY Supreme Court case (Nitti being Judge of Capone this time)
Even Traub’s co-counsel in NY – Wachtell – handled Barry Gold’s D&O insurance.
We may never know the real skinny on all of the crimes – even if the DOJ does come around to doing the Right Thing – for MNAT, Barry Gold and Traub told the eToys Court that Laser Haas and CLI had graciously waived the $3.7 million in Fees and Expenses.
The Court said that Haas did not have standing to object to the Document that he said was a forgery – despite the fact it is signed by him.
It is par for the course – for one of the first documents that the Delaware Court approved of was MNAT”s Motion to request permission to Destroy Books n Records (see eToys docket item 300)
This is everyone’s system of justice at work
If they can do this much illegal banter in brazen open display
How much is going on in other cases behind unviewed doors?
——————– Prior to Toys R Us acquisition of eToys.com
Currently eToys.com, an eToys bankruptcy asset is now in the hands of D E Shaw and was merged recently with BabyUniverse.com on the NASDQ exchange at the stock symbol POSH.
The former eToys shareholders of record (SHOR) feel they were defrauded of their company and any fair dealings.
One of the executives of D E Shaw, Mr Henkin was a co chair of the Creditors Committee in eToys who confessed to Laser Haas, an eToys whistle-blower, that there was an “off the record” agreement to permit Barry Gold to work for eToys.
The off the record deal was accomplished by acts of Perjury and a clandestine hiring letter that placed Barry Gold, a paid associate of the eToys Creditor’s attorney, Traub Bonacquist & Fox (TBF), where Barry Gold became a wind-down coordinator of eToys. Which was duplicating the job that Collateral Logistics (CLI) had been hired to do as the sole liquidation consultant of eToys.
Upon the success of the ruse, the TBF, along with the court approved attorney for eToys, Morris Nichols Arsht & Tunnel (MNAT) then had Barry Gold become the President and CEO of eToys once Barry Gold agreed to circumvent the Court’s auspice and any review by parties of interest such as CLI, the Creditors who were not part of the ploy and deceived, totally, the eToys shareholders who had been denied any committee representation in the matter.
One of the more aggressive defenders of his shareholder rights, Robert Alber, had asked the Court to assure that if any connections were discovered that the group of offenders would not receive a “get out of jail free card”.
Mr. Alber had also questioned Barry Gold about his possible connections to Paul Traub of TBF, during a pre Plan confirmation hearing. Everyone in the room, except for Mr. Alber and maybe the Judge, knew that Barry Gold was connected to TBF. Yet Barry Gold denied, falsely, being connected to Traub, specifically when a case occurred in the past, which both Traub and Bary Gold worked upon.
More importantly MNAT, TBF and Barry Gold all have undisclosed connections to Bain, which owns KB Toys. Bain and KB acquired the bulk of the eToys bankrupt assets for discounts in the tens of millions of dollars which was negotiated by MNAT, TBF and Mr. Gold.
The fact that the parties submitted false affidavits while this non disclosures is continuous is the most serious fraud on the court issue and has facilitated the Conspiracy to defraud everyone, including the shareholders.
Barry Gold and his associates refused to contact parties that CLI had produced who wanted to buy the public entity of eToys.
The Dept of Justice has refused to prosecute the documented fraud and has assisted the threats of TBF against Laser Haas. TBF had warned Haas that if he did not “back off” not only would he not be paid, his career would suffer greatly and other retaliatory actions would occur.
The Court and Dept of Justice has expunged and stricken Laser’s proof of Fraud stating that he does not have the permission of the Court to bring it to the Courts attention by lacking Article III Constitutional standing.
Now that eToys.com is now a public entity again, the shareholders of the former eToys bankrupt entity have little hope that the Dept of Justice will admit to their egregious errors and corrected the fraud that has harmed so many people.
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.
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!