Federal Judge accusses DOJ

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 

———————————–

The Associated Press released an article where Judge Judith Fitzgerald, a visiting justice who handles the overflow of cases in the Delaware Bankruptcy Court stated that the Justice Dept silence aided Fraud on the Court which resulted in millions of dollars in billings to a firm that would not have occurred had the US Trustee informed the Court of the malfeasance.

 The United States Trustee for Region 3 Delaware, Kelly B Stapleton remarked that it is against the Justice Dept protocols to inform parties of ongoing investigations.

     At issue with such remarks is the fact that the US Trustee stated they referred the matter to the US Trustee who informed the FBI.

      The US Trustee is a temporary Dept of Justice program that was designed to be the “policing” and “watchdog” agent for the Court and public equity entity issues in bankruptcy matters.

        By remaining silent about the over billing the US Trustee permitted bad faith acts to continue for more than a year and a half. 

         As a result all the judges that approved the entity’s now have to approve Examiners to assess how much damage has occurred.

          What is really alarming is that the press release contains testimony that parties were told to stand down.

           Now one has to wonder whether or not Obstruction of Justice occurred and ask the uncomfortable questions of who and for why?

           Fraud on the Court is such a serious issue that the US Supreme Court has stated the statute of limitations does not run out.  As the officers of the Court are self policing, officers of the Court cannot expect to use such esteemed levels of trust to facilitate fraud by making end run around trusted statutes with time.

        It is established that those the court approves to work for federal cases, such as accountants and attorneys are officers of the Courts.

         Some of the press links can be found easily on google at the web links such as this one http://www.google.com/search?hl=en&q=judge+justice+dept+silence+aided+fraud

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. citizenobserver
    January 11, 2010 at 2:46 am

    Cases like this and many many other smaller ones escape the public eye. The fabled “bankruptcy ring” and problems within the BK clerk offices is of great concern. The clerks’ offices problems were never resolved by law enforcement. They could not be because the problems are too well entrenched; too much to overcome. It is high time to start implementing and enforcing the BK laws instituted after 2004. A suggestion would be to start with the smaller more numerous bad faith BKs. The ones that are fertile grounds for abusing the system as this is where fraudsters make their most mistakes. They will take note if they are pursued and will move elsewhere.

    It is of great concern to those who pay taxes all their lives, observe rip-offs by crime fraud groups and then find there is a loophole so large in the BK system that actually protects fraudsters or easily allows them to cut holes in it. They and others like them repeat the crimes and visit the courts again and again —WASTING TAX MONEY while committing crime. The professionals that contribute to the problem do not recognize nor care that their short term gains cause huge losses long term to other and ultimately themselves.

    I would like to cite a case that is ongoing now. I cannot feel comfortable to be specific on this board because those very same fraudsters and their attorneys are around here too. The case involves collectors, dumping, transfers of assets, frauds and forgery. It is in plain site of the court for over two years in a bad faith Chapter 7. Just some weeks ago the parties used simply falsified IRS form to defraud the court and yet not a single peep about it from the numerous court officers to the Judge who needs to know these things. The list of frauds in this BK are much higher in number than the trial court where they found many frauds.

    The frauds accelerate. Professionals are knowingly involved in asset/records omissions and destruction. Oddly the Judge has asked for those facts numerous times but attorneys do not want to present the numerous facts and traces to the Judge. Why? When the evidence is brought in more loopholes are used to delay the evidence until such time as it is not worth it for parties or DAs to pursue the crimes. It is a shallow game of corruption that the public needs to know about. Especially as it can be easily addressed.

    • laserhaas
      February 20, 2010 at 7:40 pm

      We thank you for your interest and taking notice. It is also understandable – that you seek anonymity. If you so choose – set up a dummy email account and email me case or crime specifics at laser.haas@yahoo.com

      Unless citizens Unite against tyranny and corruption the evil shall continue to reign and devour at ease!

    • February 21, 2010 at 4:12 am

      As a citizen observer, one sees that a primarily civil based UST cannot report the criminal problems to the FBI as sugggested in your article. It risks being watered down for a number of reasons. This common sense approach is one of most BK attorneys to report these sort of problems to the UST or trustee. It carries with it risk of failure in a system that has huge mass, arcane rules and endemic problems e.g. those well known to law enforcement who are familiar with the “BK Ring”. The investigation needs to start from the FBI investigation and then go to the UST/FBI to enforce. Another helpful method would be to set up an independent “Peer Review” panel under the highest court (ie not BK court itself)or FBI for trustees. Such a board could refer cases to FBI and lessen FBI workload in this area.

  2. February 21, 2010 at 4:23 am

    The case regarding trustee Dye’s substitution and the structural conflict that should never have occurred yet lasted for about 5 years within the realm of the UST may be an example to investigate. There never were any criminal charges, there was many years of billings to the estate, both collectors/debtors rights were at stake in a system that focused on money first and its rule of law as secondary.

  3. February 21, 2010 at 4:27 am

    …And lastly, was it the trustee who was the problem or more so the other professionals that did not act to prevent an obvious structural conflict leaving it intact for years in what they knew would have to be an outcome not allowing for same set of law firms representing both trustee and debotr/defendants at the same time in a BK. Spooky.

  4. annabella76
    February 23, 2010 at 8:26 am

    “THE WORLD IS A DANGEROUS PLACE TO LIVE, NOT BECAUSE OF THE PEOPLE WHO ARE EVIL,
    BUT BECAUSE OF THE PEOPLE WHO DON’T DO ANYTHING ABOUT IT.” –Albert Einstein

  1. No trackbacks yet.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 2,680 other followers

%d bloggers like this: