Dept of Justice covers up perjury, fraud and Racketeering in eToys, Stage Stores, KB, that has benefited Mitt Romney’s Bain entity
Dept. of Justice does Cover-up of $300 million in Fraud and
Securities schemes – connected to Mitt Romney’s Bain entity.
UPDATE June 2009
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!
PREVIOUS
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The items we offer below are related to fraud issues that are documented by Official records such as the Federal Court docket system. This is what is so amazing about this case. The proof is there, black n white, for all to see, it is the prosecution of the crimes that is severally lacking.
The law firms of Traub Bonacquist and Morris Nichols are consistently involved with Bain and Bain related issues. The crime has occurred where Traub and Morris Nichols have failed to disclose the Bain related issues to the bankrutpcy court while they negotiated the sale of eToys bankruptcy assets to Bain/KB in discounts of tens of millions of dollars.
The Dept of Justice desires to slap the wrist of the felons, who are law firms and the party the law firms placed within eToys as wind down coordinator. That being Mr. Barry Gold. Mr. Gold is a paid associate of Traub. Traub and Morris Nichols drafted a clandestine hiring letter that allowed Mr. Gold to circumvent the Court and the Law improperly. The letter was not revealed until after we proved the non disclosed connections.
The selling of the eToys bankrupt assets to a party that you are connected to is Collusion to defraud an Estate. Being that they did so “collaboratively” is a Conspiracy to Defraud an Estate. As they are officers of the court, self policing – who provided false affidavits to the Court – that facilitate these frauds, doing so over many years, in multiple estates, by mutiple parties in places across the country all the criteria for Racketeering is satisfied.
The Delaware US Attorney that has refused to prosecute is Colm F Connolly, who is now discovered to have been a partner with Morris Nichols when the fraud was initiated.
More morose than the egregious matter of Colm Connolly not prosecuting his partner and associates is the client relationships of Bain with Morrs Nichols. For Bain was owned and controlled by the Mitt Romney at the time the malfeasance was facilitated.
Now Colm Connolly is being promoted to a Federal Judge. The cause and effect issues are readily apparent. The need to halt this massive manifest injustice has gone uanswered.
The Fraud has come full circle. One of the sales that Traub, Morris Nichols, Irell & Manella, Xroads LLC and Barry Gold halted, was parties that desired to acquire the public entity of eToys. As severe an offense as that is it is compounded by the fact that eToys is now public again, by the scheme of dissolving the former shareholders of record nefariously. A former Bond holder executive who participated in circumventing the Court and the Code is now key exec at D E Shaw who participated in the merger of eToys Direct with BabyUniverse on NASDQ at stock symbol POSH.
Mitt Romney has declined to provide the details of his financial fortune(s). As it is documented that he has benefited through Bain from the malfeasance. While the Dept of Justice personnel acts in a treasonous manner toward their Oath of office in refusing to prosecute the blantant acts of fraud. If this is the way the Dept of Justice protects Mitt Romeny before he becomes President, what would occur after?
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Below you will find a short story version of the facts and after that, some headline suggestions, which is followed by more detailed discussions including emails with Dept of Justice key personnel who resigned thereafter.
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eToys goes public in mid 1999 and Bankrupt in March 2001
sells assets to Bain /KB for discounts in tens of millions.
The public entity eToys.com filed for bankruptcy in 2001. At which time the court approved the law firms of Traub Bonacquist (TBF) and Morris Nichols (MNAT) to be the Creditors and Debtor’s counsel. The law mandates that both firms have no connection with eToys or with each other. The rules of conflict of interest are designed to assure the public and the creditors get a fair deal, especially when communal stock companies are involved. They must keep their hands out of the cookie jar.
The policing agent assigned to be the watchdog for the public is the Dept of Justice US Trustee’s office. The US Trustee program was formed around 1987 to separate such duties from the Judges who were handling bankruptcy cases. Congress felt such separations were necessary in order to halt any cronyism or corruption possibilities with the millions, which has since become billions of dollars, in complex legal decisions and million dollar fee’s that Judges permit law firms and other court approved professionals to earn each year. Cronyism in any fashion is a forbidden practice.
Whistle-blower Laser Haas exposes conflict of interest in eToys
There are more than 100 statutory violations that have occurred in eToys. Including perjury, scheme to fix fees, intimidation of victim/witness, conspiracy, obstruction of justice and RICO violations to name a few. The $300 million in fraud has not been prosecuted by the DOJ, even though confessions to perjury have occurred.
So that the reader may understand the serious consideration of the issues below I, Steven Haas (a/k/a Laser Haas) testify that the foregoing is true and correct. These statements are made under the “Penalty of perjury” this 25th day of October 2007.
Collateral Logistics’ Inc (CLI), a company owned by Laser Haas, was hired as the Court approved liquidation consultant where eToys had announced that they were going to auction off hundreds of millions in assets for $5 million. The bankruptcy assets were eventually sold to Bain/KB. The combined efforts of Barry Gold, MNAT & TBF etc gave Bain/KB discounts in the tens of millions. At that time Bain was owned and/or controlled by the Presidential hopeful Mitt Romney.
The sales efforts of Laser managed to get back more than $45 million into the eToys bank accounts. Yet for some inexplicable reason the new CEO of eToys, Barry Gold and the law firms TBF & MNAT kept finding fault with Laser’s accomplishments. When Laser discovered the possibility that Barry Gold and TBF might be associated and thereby be in legal violation of lawful disclosure requisites Laser was offered a very clever bribe of $800,000 with a warning of TBF’s high connections.
Upon turning down that gratuitous offer, a campaign to destroy Haas began that forced Laser to hire a new attorney for CLI. Henry Heiman who was formerly a Trustee in Delaware. TBF, MNAT and Barry Gold had “produced” some documents to the Court stating that Haas generously waived all earnings. CLI was entitled to more than $3 million in fees and expenses. Heiman stated that he would correct the matter, that the contracts the court approved were indisputable and that CLI would be paid in 30 days. Haas told Heiman and the US Trustee office how the parties had tried to invite Haas to become one of the “good ole boys”. Both stated there was no law broken, that no court violation had occurred and denied any legalities/violations of conflict of interest issues.
HAAS studies Law on DOJ website and informs his lawyer and DOJ of perjury
Two years later Laser began to sense that Heiman did not have the best interest of CLI in mind; so Laser started to research the Code and Rules of the bankruptcy system that anyone can find on the Dept of Justice website. The law states the Courts can only approve attorneys for work in bankruptcy matters, once the attorneys submit an Affidavit, under Bankruptcy Rule 2014. Attorneys must state that there are no connections or conflict of interest. They must not touch the pot of golden cookies in the cookie jar.
The DOJ website led Laser to discover that his both Heiman & the Dept of Justice Attorney, Mark Kenney, had lied to Haas that the bribe was not an issue unless accepted. Perjury had been committed by the false affidavits that had been tendered by the attorneys. TBF, Barry Gold, MNAT, etc, had been paid more than $14 million in fees and expenses. Attorneys must re-certify there are no conflicts whenever the seek payments. They must submit fee applications at least every three months.
Parties angered at Laser’s investigation warn HAAS to “back off” or else!
Upon supplementary discoveries of malfeasance Laser again contacted the Dept of Justice’s Mark Kenney and informed him of the issues at hand. This resulted in heated phone conversations whereby Heiman emailed Laser a threat by Susan Balaschak of TBF. Stating if Haas did not “back off” from his investigations not only would CLI not get paid for the work the Court had approved, Laser’s career would suffer greatly and TBF would seek additional retaliations to come after Haas for monies earned earlier.
DOJ Attorney slip of tongue provides proof of Perjury and Fraud.
When Laser called the Dept of Justice about such, Mark Kenney also addressed Haas in an angry manner and stated that the conflict of interest issues of Barry Gold and TBF had been handled in Bonus Sales. There it was, out of anger, a slip of the tongue, Mark Kenney accidentally provided Haas with the place to find the proofs that the Dept of Justice had known all along. Undisclosed conflicts of interest of TBF and Barry Gold existed and had already been addressed by the Courts twice before. Congress has mandated that all court cases now be available to the public by Internet access, knowing the fact that issues hidden tends to corrupt. The public access system is called PACER.
Researching PACER for the Bonus Sales case (Del Bankr 03-12284) led to the discovery of a company TBF’s owner, Paul Traub and Barry Gold hold together. That being the entity of Asset Disposition Advisors. (ADA) The old adage of the lie told yesterday is forgotten when one tells a lie today proves to be correct in this case.
Haas’s attorney Heiman refused to supply the Court with this damming information and Heiman immediately asked the Court to withdraw as CLI counsel. Upon Laser’s supplying of the proof to the Court, the eToys shareholders reached out to Laser. The comparing of notes led to discovery of many additional hidden secrets. Both the shareholders and Haas made Emergency motions to ask the Court to deal with the issue of the false affidavits that were to be heard on December 22, 2004.
Director of DOJ replaces Region 3 Trustee in Delaware
The Director, Lawrence Friedman, of the US Trustee’s in Washington D C replaced Roberta DeAngelis by a press release on Dec. 22, 2004. At the Emergency hearing on Dec. 22, 2004 the Judge Ordered TBF, MNAT and Barry Gold to address the non-disclosure of conflict of interests issues by responses on Jan. 25, 2005. The Asst US Trustee, Frank Perch armed with the responses and confessions of multiple, intentionally false affidavits, then Motioned to Disgorge TBF $1.6 million on Feb. 15, 2005.
DOJ Attorney, Mark Kenney offers felony violations a Get out of Jail Free Card
Just when Laser and the eToys shareholder key researcher (Robert Alber) felt that justice would occur, out of the blue, less than 10 days later Mark Kenney enters a Stipulation to Settle that reduces the penalty of the returned monies of $1.6 million to only $750,000. At the same time Mark Kenney included language within the settlement that implied a get out of jail free card to everyone while also permitting continuous circumvention of the Law. It illegally states that the parties would not be compelled to tell any of their other illegitimate activities. Mark Kenney being charged by Oath with protecting the public’s interest had turned collaborator and seeks to protect the perpetrators of fraud on the court with a slap on the wrist fine. This is simply absurd!
Paul Traub confesses to paying Barry Gold 4 payments $30,000 each
Not only has TBF & MNAT confessed to several acts of false affidavits, Paul Traub of TBF also confessed directly to the court that he paid Barry Gold four payments of $30,000 each that stopped when TBF & MNAT placed Barry Gold secretly within the Debtor. A hidden Hiring Letter shows that Barry Gold was given illegal permission to circumvent the Court and the Law, by his own choice, and such was deliberate. Once he agreed to violate the law, he was then paid $40,000 per month and a bonus at the end. To earn this money all Barry Gold had to do was work 4 days per month for the Debtor.
Laser and Alber immediately complained to the Court, to Frank Perch and the Director of the Dept of Justice EOUST office, Lawrence Friedman. Mr. Friedman emailed Haas his staff was on top of it and that the matters would be addressed properly.
Laser and shareholder Alber inform Court of Bain conflict of interest
in eToys, where KB, MNAT, TBF & Gold all are connected.
At the same time Haas and Alber began researching for the reasons why the Dept of Justice’s Mark Kenney would stick his neck out, so flagrantly against the Law. To everyone’s surprise the additional non-disclosures the Stipulation tried to cover up was the fact that MNAT, TBF & Barry Gold all had non-disclosed connections to KB/Bain. TBF and Barry Gold had worked for/with Bain. SanKaty, Stage, as Mitt Romney owned the entity called Stage Stores, also a bankruptcy matter in another state, Texas.
MNAT, it turns out, also represents Bain interests on a regular basis. MNAT had handled a Mitt Romney/Bain connected entity, the Learning Company, when it merged with Mattel. Both the Bain and Mattel issues mandate immediate removal of MNAT, TBF & Barry Gold with referral to the United States Attorney’s office for prosecution.
Dept of Justice is strangely silent about MNAT confessions of false affidavit’s.
Yet the Disgorge motion and Stipulation to Settle speciously ignores MNAT. There are also multiple $100 million dollar preferential issues in both eToys and KB Toys bankruptcy that have never been reviewed. MNAT brazenly represents Bain in the KB Toys bankruptcy case. This is also a crime as has been established in the matter of In re Bucyrus. In that case Milbank was disgorged their entire fee’s paid, the Law firm lost a $20 million lawsuit and Gellene was sent to jail for his perjury in trying to hide such from the Court by false affidavits. A book on the Gellene matter is available on Amazon, entitled Eat what you kill -The fall of a Wall Street Lawyer.
Armed with get out of Jail Free Card Paul Traub commits additional
fraud asking for permission to prosecute $100 million cash payment
of parties Traub is connected to in KB Toys case.
To demonstrate how little the $750,000 meant to TBF as a deterrent, Paul Traub then petitioned the Court to handle the $100 million dollar preferential of Michael Glazer and Bain in the KB Toys case. TBF and Barry Gold did not inform the KB Judge of their connections to Bain and Glazer. Whereupon Haas and Alber immediately cried foul to Asst US Trustee Frank Perch, to the Court and to Lawrence Friedman.
DOJ attorney Obstructs justice defending perpetrators while asking the Court
to strike and expunge HAAS and Alber proofs of perjury and fraud.
Mark Kenney responded to the proofs provided by Laser by Obstructing justice stepping in as the defense for TBF. Kenney asked the courts to strike and expunge the proofs provided by Laser and Alber. The Court signed an Order dismissing Laser’s & ALBER’s comments and then held a hearing about the issue. As if such treasonous defenses and improper procedures were not enough, Laser discovers that Mr. Perch and Lawrence Friedman both put in their resignations, from their positions of esteemed office, for “personal reasons”. Leaving an perceptible void of responsible authority. The resignations,and Traub settlement were detailed in the WSJ article on July 25 2005.
Threats of “or else” come true and parties defraud CLI and Laser
As Mark Kenney was successful in assisting in the defense of TBF, MNAT and Barry Gold, the court also assisted the threats of TBF against Haas, by allowing the CLI claims hearing to be rescheduled. Haas’s new counsel, Brad Brook, now having a slam-dunk case against the fraud, with admitted acts of perjury, should have motioned to win the case, bizarrely, instead Brook asks to withdraw. Stating falsely that Haas had disappeared and could not be reached. Brook could not offer or state it was a monetary issue as his firm believed in Laser’s case so much they took it upon contingency.
The Court permitted the rescheduling, the withdrawal of Laser’s attorney and then summarily dismissed the CLI claims case. The Court ignoring the issues of due process and Constitutional rights, even went so far as to refuse Laser’s new counsel from speaking to the Court the very day the Court dismissed the $3 million claim that CLI had earned from the Court approved contracts as liquidation consultant.
Laser and Alber contact FBI, OIG, US Marshalls only to be referred back
to the Dept of Justice parties seeking to coverup the perjury & fraud.
Both Haas and Alber complained to the FBI, the US Marshall’s, the OIG, the OGE and the OPR offices of the US Government. All of which referred Haas and Alber to the US Attorney’s office in Delaware and the US Dept of Justice office of General Counsel of the EOUST in Washington D.C..
The sham of these referrals is the fact that the after the resignation of Lawrence Friedman, the replaced Region 3 Trustee, Roberta DeAngelis was promoted by the Dept of Justice to be the Acting General Counsel for the US Trustee’s. DeAngelis is now scandalously in charge of investigating her own cases that she was removed from!
Making matters even worse the US Trustee’s office has been acting as appellee in the appeals of Haas and Alber, improperly defending TBF, MNAT and Barry Gold by asking the Courts to strike and dismiss the Haas or Alber appeals for being “without merit”. Roberta DeAngelis has actually signed a brief asking the 3rd Circuit to dismiss, which violates her oath of office and fiduciary duty to serve the public Trust. Mark Kenney and DeAngelis are both guilty of breach of Fiduciary Duty as per 18 USC 1346.
Bankruptcy Court Judges issues 57 page Opinion on Perjury and Fraud stating
no Perjury was proven ignoring the 5 confessed false affidavit’s.
Heading off the first appeal of Laser, the bankruptcy court issued a 57 page Opinion that testifies on behalf of the perpetrators and states clearly erroneous findings of fact and conclusions of law to justify the position. It is as if the Delaware bankruptcy court has become a twilight zone and sanctuary for white-collar, syndicated crime!
Anyone can plainly see that the entire system of cronyism is defending TBF, MNAT and Barry Gold. The one question that has remained unanswered is Why? Who can it be, that the entire system is protecting? At the same time the question comes to mind as to how high does the manipulation of the system go? Is the White House aware of all the perversions of the Justice system and if so, why has no one sought to correct the problem? Where does the power come from that can manipulate the Dept of Justice?
Dist Court Judge dismisses all 3 appeals and then is promoted to 3rd Circuit
Judge Kent Jordan was partner at law firm that represented Laser’s CLI in etoys
Everywhere that Haas and Alber look they find inexplicable questions of connections and cronyism that remain unanswered, even though the acts of impropriety are clearly evident. Just months ago it was discovered that the Judge who had heard all 4 Delaware District Court appeals in the eToys case, Judge Kent A Jordan, was a partner in the firm of Morris James. As per the law § 455 Kent Jordan should have recused himself from the case as his firm Morris James was the firm that Haas had fired when he had hired Henry Heiman to pursue the claim of CLI in eToys.
Laser discovers that US Attorney who refuses to prosecute was partner at MNAT
Also the resignations of esteemed parties do not cease, as Debra Yang of President Bush’s Corp Fraud Task Force also resigned without providing any remedy. A feat that is only made pale by the fact that it is now discovered that the US Attorney for Delaware Colm F Connolly was a partner of the law firm of MNAT. Colm F Connolly is now to be the Judge in Delaware District Ct position made vacant by Kent A Jordan.
It appears it certainly is a great career move to refuse to investigate or prosecute one’s former partner, associates and clients. Especially when the Presidential hopeful Mitt Romney owns one of the clients and has benefited from the malfeasance.
Nevertheless, it now has to be a vital cause of concern for MNAT, Barry Gold, TBF & Mr. Connolly, as such actions are unethical, illegal and good reason for Colm Connolly failing to be promoted to the Federal Judge position. The lawbreakers now realize they are caught, red-handed, with everyone’s hands in the cookie jar.
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Many possible headlines, all true, just choose one depending on your nerve!
Dept of Justice personnel Cover up Racketeering in eToys, Stage Stores and KB bankruptcy matters which has connections to Mitt Romney
Dept of Justice has conflict of interest in failing to prosecute
Perjury and fraud that has benefited Mitt Romney
Delaware US Attorney has failed to prosecute Perjury, fraud
and conspiracy in eToys bankruptcy case despite over 100
documented statutory violations and confessions
to falsifying multiple Rule 2014 Affidavit’s!
Dept of Justice engages in cover up of $300 million dollar fraud case of eToys.
Dept of Justice has conflict of interest issues for refusing to prosecute Perjury and $300 million in Fraud related issues concerning eToys, KB & Stage Store bankruptcies.
US Attorney Colm F Connolly failed to prosecute $300 million in Perjury and Fraud issues of eToys involving Colm F Connolly’s former clients & law firm MNAT.
Laser Haas own attorney, Henry Heiman emails threat of
Traub Bonacquist law firm for Haas to “back off’ or else!
The short version of the legal story of corruption and Fraud with key DOJ emails!
The issues are complex, convoluted and yet really simple. $300 million has been fleeced from the bankruptcy cases of KB, Stage Stores and eToys reprehensibly. Perjury is being supported by multifaceted exploitation of legal premises in order to protect inner circle legal elite. All one has to do is look at Court docket records as the facts are there!
The court approved firm of the Creditors in eToys is Traub Bonacquist (TBF). TBF has already admitted to providing the court with multiple, false affidavit’s that they knew were false. A false affidavit by any regular citizen is perjury. The Delaware law firm of Morris Nichols (MNAT) represents the estate of eToys by the Court’s approval. MNAT has also admitted to filing multiple false Rule 2014 affidavits. [Perjury]
What TBF, MNAT and the CEO of eToys did not tell anyone in the beginning [2001], until it was discovered 3 years after the fact[fall 2004]. Is that TBF, MNAT and Barry Gold all have undisclosed connections to Bain/KB. Which is a major crime of collusion and fraud, being that eToys sold the bulk of the assets to Bain/KB. An issue that is compounded further by the fact that Bain was controlled and/or owned by Presidential hopeful Mitt Romney.
Then the Court, the US Trustee and the US Attorney refused to investigate or disqualify the parties, including MNAT, even though the Law and all legal precedents mandates such disqualification and referral for prosecution must be done.
To make matters even worse, TBF, MNAT drafted a “clandestine” Hiring Letter for Barry Gold, as a way for Mr. Gold to avoid perjury risk. Then TBF & MNAT placed Barry Gold in as the eToys, “wind down coordinator”, who became the President/CEO and finally the confirmed Plan Administrator in control of $50 million in cash.
TBF also confessed to the Court, on March 1, 2005 that he paid Barry Gold 4 separate payments of $30,000, each which halted once TBF placed Barry Gold within the eToys estate, in secret. Where Barry Gold then received an initial $40,000 per month. Making Barry Gold a direct paid party of TBF. The fact that MNAT and TBF drafted the Hiring Letter that allowed Barry Gold to intentionally circumvent the Law and the Court is a feat only exceeded by the lack of prosecution of a matter that is connected to a $300 million in unanswered fraud issues while the original stockholders are thrown away and eToys.com is going public again on NASDQ with only 17 stockholders. While no one knows if Mitt Romney is to be one of the stockholders in the new company, many of the Bain employed persons are participating in the merger with BabyUniverse.com which will seal the deal of stealing the assets from the eToys shareholders even though it is now readily apparent that the sale to Bain/KB failed the legal requisite of being “bona fide”!
The Courts have continuously acted contrary to Constitutional mandates shamefully and have stricken, expunged and dismissed our proofs of fraud at the direct request of the United States Trustee. Repeatedly throwing out Laser and the eToys shareholders. This is Obstruction of Justice in every sense of the word.
Delaware US Attorney Colm F Connolly
The US Attorney, Colm F Connolly, for Delaware; has refused to investigate or prosecute the issues for several years. Being that the whistle blowers are Laser Haas, a Court approved employee in the bankruptcy case and other “pro se” parties such as eToys stockholders, it is easy to sweep the issue under the rug.
After all, who are people, press, authorities going to give the most credibility to? The “pro se” parties who are losing their rights to be paid? Or the esteemed DOJ parties of a US Attorney, US Trustee who have the blessing of a Chief Federal Justice? After all we all trust the system of justice!
Armed with the newly discovered evidence that one of possible reasons the US Attorney, Colm F Connolly is refusing to investigate and prosecute the case may be due to the fact that he was a partner at the firm of Morris Nichols and Bain was his client.
Morris Nichols (MNAT) represented both Bain and eToys when eToys sold the assets to Bain/KB in 2001 for discounts in the tens of millions. The participating parties in the schemes have also received more than $14 million in fee’s. (that we know of)
Combine that with the fact that Bain was owned or controlled by the Presidential hopeful, Mitt Romney, plus $300 million in unexplained preferentials and you have an abundance of motive. Now Colm F Connolly is being considered for a Federal District Court Judge position vacated by Kent A Jordan who already participated in all four of the Delaware District Court appeals concerning eToys.
Undisclosed conflict of interest are against the Law.
If one just considers, for one moment that acts of cronyism by justices, court Clerks and Dept of Justice authorities are happening. Which seeks to snow the general public while giving immunity to officers of the court. Then anyone has to really question why are those esteemed, publicly trusted, authoritative parties permitting willful circumvention of the Law? Why is the Government we vote into office permitting acts of lawlessness that has facilitated fraud upon the court in a premeditated fashion? What is the motivation of the Court and Dept of Justice to permit criminal acts to continue without prosecution? At the same time why is the Dept of Justice and the Courts allowing the crooks to keep the spoils?
In case the reader may desire a chance to grasp the diverse legal issues; and understand the criminal acts at hand. We break it down into simple semantics.
The bankruptcy law only allows a bankruptcy judge authority over civil actions. Conflict of interest Federal Rules, Code and regulations exist to make sure attorneys keep their hands out of the cookie jar. Courts and lawyers decide where the bankrupt entities monies shall be dispersed.
If they (the attorneys) are connected to any party in the case, then it is a conflict of interest and a possibility of preferential treatment. Therefore Congress has mandated disclosure of all relationships, to keep everything above board.
Being that the Court and lawyers are, in essence, self-policing, any discovered “conflict of interest” that was not disclosed Congress and the U.S. Supreme Court mandates that such requires disqualification and disgorgement. (the return of monies that have been gained improperly and throwing the fox’s out of the hen house.)
Congress also mandates that such is a criminal act and must be referred to the Dept of Justice for prosecution. The policing party to assure that process is the United States Trustee. The US Trustee is permitted no latitude in deciding whether or not to prosecute.
The law mandates, under 28 U.S.C § 586(a)(3)(F), that a US Trustee must Notify and Refer non disclosure of conflict of interest acts by court approved persons to the US Attorney’s office. Both the US Trustee and a Judge are ordered by the statutory mandate of 18 U.S.C. § 3057(a) to notify the US Attorney’s office of any bad faith acts that they have witnessed being done by lawyers. This mandate is so restrictive that the Dept of Justice website states if a Trustee desires not to prosecute (because the act was not intentional), then the Trustee is still required to report the crimes to the US Attorney’s office and the Trustee may then submit a Memo of Declination to prosecute. Even then the US Attorney has to do an independent investigation and if such investigation takes more than 1 hour, a case number must be assigned. No case number, no case!
Yet speciously, despite the proof and confessions of multiple acts of Perjury. Perjury that has perpetrated “fraud on the court” resulting in more than $300 million dollars in fraudulently obtained assets, remains unpunished and continuous.
Dept of Justice and the Courts have detailed knowledge of the law of disqualification
The Dept of Justice and the Courts know the law. A judge or US Attorney can not become such straight out of law school. They have extensive experience in such matters being well versed in their fiduciary responsibilities and are salaried well above the American average, usually around $120,000 or more per year.
Yet, it seems in this eToys or Delaware bankruptcy cases that the DOJ and the Courts recognizes that the public is basically lacking in such detailed knowledge. Therefore the DOJ, with the blessing of the Courts are encourage the perpetrators, with their high political connections, to believe they get away with the crime. Everyone who is charged to halt the crimes are being willfully blind with recklessly disregard of the facts, as the Dept of Justice & Judges have the additional luxury of invulnerability.
The Dept of Justice United States Trustee takes an Oath of Office and is charged, under 28 U.S.C. § 586, with the fiduciary duty as both the “policing” agent of professional employment issues in bankruptcy; while the US Trustee is also the “watchdog” of public equity bankruptcies, per the authority of the Janet Reno Reform Act of 1994.
It is this fiduciary failure of the Dept of Justice, under the façade of the “color of law” (perversion of legal statutory mandates & obligations) by the pretense of acting as if one is performing one’s duties, which is permitting the corruption of the justice system.
The wholesale slaughter of the good order of society has been effected, with an “in your face” mockery of justice by destruction of the judicial process through statements by the Courts, that a person must have the courts permission, to make a 911 call to the Court about grand scale larceny. Such implies the perpetrators, who are officers (and friends) of the court are “above the Law”!
They control so much power, influence, money and political connections and even utilize our own attorney’s to deliver threats (by giving them higher paying cases) that the Courts, the perpetrators and the Dept of Justice personnel, all the way from Washington D.C. have entered the 3rd Circuit appeals as appellee’s defending the right to throw our proofs of the Perjury and Fraud out of the record.(3rd Cir 06-4308 & 07-2360)
The Federal Courts cronyism persistently abuse parties who point out malfeasance.
While it is true we are just a few “pro se” parties of very little significance, the fact remains it is the American system of justice that is being corrupted. All the proofs of the crimes are within Court docket records, there is no hyperbole or conjecture here. The lies the parties told yesterday contradict the lies they are telling today. It is the internet that has now provided access to court docket records. Through Congressional Acts that seek to provide the public with the ability to make sure that things no longer go on behind closed doors.
The cronyism that has gone on for an extended period of time is so arrogant, they simply assert the fact that they will ignore the public records and retaliate in every manner their power permits against anyone who would dare use the internet to ferret out the Truth. Dov Avni, a stock holder in Stage who owned only $4500 in stock was ordered by the Court to pay $380,000.00 and the US Marshall’s were sent after him half a dozen times. It is all right there in the Court records.
Pro se party in Stage Stores points out hidden $75 million asset
One of the items Dov Avni brought to our attention was the fact that the F.D.I.C had granted Stage Stores a banking charter for the credit cards of Stage. The original worth of that bank was $75 million. It was never declared in Stage Stores bankruptcy and was sold for $150 million to the World Bank. This is also a huge crime.
They, the judges who are willfully blind, the US Trustee’s who act in reckless disregard of the facts, are protecting their career associates who are doing syndicated, criminal acts; by stating they are above the law and the American public does not have standing or permission to address and stop the malfeasance. It is our hope, that the internet keeps this story alive as they have threatened us with our demise for our failure to “back off”.
Only 3 out of the abundant Perjury acts documented by the US Trustee in eToys
The Asst U S Trustee (AUST) testified in the Feb 15, 2005 Disgorge Motion (eToys docket item 2195) whereupon the AUST stated the following items
1. The AUST testified about having detailed discussions with the parties and cautioning them to refrain from violations of § 327(a). Specifically against the replacement of key personnel of the eToys (Debtor) with any new officers that are connected to the retained [court approved] attorneys in eToys. Disgorge motion ¶ 19 and ¶ 35.
2. As stated in parts 1 thru 9 in the Disgorge Motion the US Trustee affirmed that Traub Bonacquist & Fox (TBF) had filed multiple Rule 2014 affidavits reaffirming [falsely] that there were no conflicts of interest. (TBF was court approved Creditors counsel)
3. Parts 10 to 19 the AUST stated that TBF was vastly experienced in matters of disclosure, being well versed in the Code requirements while TBF did not claim ignorance of the requirements with the AUST detailing the Dept of Justice in depth knowledge of the legal requirements of disclosing.
4. In ¶ 17 the Trustee confirms that TBF had breached its duty to disclose.
5. Also it part 17 it states that TBF compounded its failure by providing multiple affirmative misrepresentation [Perjury] that falsely stated TBF remained a “disinterested person”.
6. A serious additional element proving the legal prosecutorial requisite of “scienter” (knowledge of doing intentional wrong) is the fact, which the AUSA acknowledge in ¶ 18, is TBF confessed that it considered amending their Rule 2014 affidavit when the issues became known in anther case of In re Bonus Sales. Whereby TBF decide to continuously remain silent on the issue which had been hidden for a long time. (this is a Big confession)
7. In part 19 the Disgorge motion states that Barry Gold’s hiring was no accident, specifically remarking upon the fact that Barry Gold was placed within the Debtor directly at the behest of TBF.
8. Part 21 of the motion states that TBF seriously affected the judicial process, while the disgorge motion also stated
9. Within part 27 the US Trustee states “A court may ordinarily disqualify a professional, deny compensation in whole or in part, or even order disgorgement —“ this remark is disingenuous as explained bellow.
10. Of special note is the fact that both the US Trustee and the Court offered up the controlling precedent of Law that the 3rd Circuit and US Supreme Ct states as the controlling issue, the case of In re Hazel Atlas Glass, which denotes the fact that Fraud upon the Court is a continuous offense until sufficiently remedied! “any Court decision that was acquired through fraud on the court is in essence no decision at all becoming void “ab initio”.”
Several items that are amazing within the AUST disgorge motion is the fact that Mr. Perch concludes that Fraud upon the Court had occurred (¶ 35) and if the court were to disgorge anything less (than $1.6 million) it would simply be viewed “as a cost of doing business” lacking in sufficient deterrent value. ( ¶ 39 “conclusion”).
Dept of Justice coverup of Fraud as DOJ attorney circumvents the Law
Then, in an appalling and specious manner, less than 10 days later, the Dept of Justice attorney for the new Region 3 Trustee offers a Stipulation to Settle that provides the following illegitimate language while the Dept of Justice offers TBF implied settlement with immunity;
“WHEREAS the United States Trustee shall not seek to compel TBF to make any additional disclosures”
The Mark Kenney Stipulation to Settle does not state any legal basis for doing an act that of circumventing the Code; an endeavor that even a Federal Justice is prohibited from effecting. The 3rd Circuit cites repeatedly the matter of In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) where the Sixth Circuit found that the prohibition against disinterestedness was “unambiguous” and held that “[section] 327 prevents individual bankruptcy courts from having to make determinations as to the best interest of the debtors. (Where there is an actual conflict of interest, however, disqualification is mandatory. See In re Marvel Entertainment Group, 140 F.3d at 476.) (emphasis added.). United States Trustee v. Price Waterhouse, 19 F.3d 138 (3rd Cir. 1994) where the Third Circuit referred to the adoption of the Sixth Circuits well established standard that “bankruptcy courts cannot use equitable[any] principles to disregard unambiguous statutory language.” Id, at 142
Chief Justice states eToys case is extra ordinary due to fraud on the Court
The Chief Justice in the eToys Bankruptcy, Mary F Walrath, (MFW) stated on page 14&15 of her own OPINION that Fed.R.Civ.P. 60(b)(6) did apply reflecting that “extra-ordinary circumstances” did exist. Citing In re Benjamin’s Arnolds, Inc., No. 4-90-6127, 1997 WL 86463. at *10 (Bankr. D. Minn. Feb 28, 1997).
MFW also continued to remark that this Opinion “constitutes the finding of facts and conclusions of Law–” whereupon the OPINION concludes, against all established principals and logic, with brazen disregard for unambiguous statutory language, that Mr. GOLD was “not” required to apply by § 327(a).
Cementing a distortion of justice by concluding with the demoralizing remark that it was not necessary for the Court to submit the issue to the U.S. Attorney office. In direct disregard of the Federal Judicial Canon’s of Conduct and in direct legal violation of 18 U.S.C. § 3057(a) which specifically states any judge knowing of a violation by a judge or lawyer under their purview, who is engaged in acts contrary to the law, must notify the US Attorney.
Laser and shareholder speak with Dept of Justice Director about fraud
Laser Haas and Alber had contacted the U S Attorney office in Delaware and had detailed discussions, providing extensive proof to Ellen Sights and Debra within the US Attorney’s office of Delaware.
The erroneous conclusions contravenes the absolute correct statement the chief justice affirmed in the OPINION when she remarked:
“The failure of an attorney employed by the estate to disclose a disqualifying conflict of interest, whether intentional or not, constitutes sufficient ‘extraordinary circumstances’ to justify relief under Rule 60(b) (6). To hold otherwise would only serve to penalize the [Plaintiff] for delay that was beyond his control and to reward conflicted attorneys for failing to disclose”
So one must conclude that the Judge is either unable to read her own writing or two different people (personalities) proffered the remarks.
As the conflicting attorneys are being reward and HAAS has been expunged with fraud and perjury utilizations in denying court approved contracts, fee’s and expenses of more than $3 million for blowing the whistle.
It appears almost readily apparent that there must be a type of alcohol within the Delaware Federal Court realm which encourages double-mindedness and acts by venerated authoritative figures that are acting contrary to the Law and Oath’s they are sworn to uphold!
Just as significant is the fact that the US Trustee and court have ignored the Law, the “well established” within the 3rd Circuit and the US Supreme Ct. per many cases such as In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) which long established the mandate where “courts cannot use § 105 [sua sponte] powers to disregard disinterestedness criterion”. (emphasis added). ! In re: First Jersey Securities the 3rd Cir. stated ‘where there is an actual conflict of interest, however, disqualification is mandatory’. (citing In re Marvel Entertainment Group, 140 F.3d at 476.) “Section 105(a) cannot be used to circumvent the clear directive of section 327(a)”. Id. At 725
The US Trustee has sought leniency in 3 different ways within the Disgorge motion.
a. The AUST falsely stated in the first footnote that “Gold, as an employee of the debtors rather than a professional employed under 11 U.S.C. §§ 327(a) was not required to file a Rule 2014 affidavit.”
b. The refusal to seek disqualification is clearly erroneous, as is stated in the Middleton Arms etc. cases , disqualification is Mandatory!
c. This is the Biggie, the item that is of serious interest now with the newly discovered evidence of Colm F Connolly’s direct connection as a Dept of Justice Attorney who gained such employment while being an attorney at Morris Nichols Arsht & Tunnel (MNAT) for there is no mention, whatsoever, of disgorging MNAT. WoW!!!!!!
As it is clearly demonstrated above, a “wind down coordinator” [financial advisor] is a Professional as defined by the Law and the US Trustee’s hand book and guidelines (please see In re: Middleton Arms, Ltd. Partnership, 934 F.2d 723 (6ht Cir. 1991). Financial Advisor/workout consultant [wind-down coordinator] is a professional subject to 327(a) especially with any degree of autonomy In re: Riker industries, Inc., 122 B.R. 964, 973 (Bankr N.D. Ohio 1991), “bankruptcy courts determine the definition of a professional person due to his autonomy and authority over bankruptcy related matters”.)
The US Trustee’s Disgorge Motion even testifies on the “financial advisor” issue by citing an on point reflection of a similar case and situation. Part 16 of the Disgorge endeavor verbatim
“Regardless of whether such connections affected its disinterestedness, TBF was obligated to disclose its connections with Gold as soon as the debtors employed Gold. See Mateer of CF Holding Corp., 164 B.R. 799, 806- 07 (Bankr. D. Conn. 1994) (debtor’s financial advisor denied over $795,000 in fees and expenses for failure to timely disclose —-)”
You can also see such detail in the cases of In re: Stahl v Bartley Lindsay 137 B.R. 305, 309 (D. Minn. 1991) “Courts have concluded that financial advisors must be retained under 11 USC § 327(a). In re Martin 817 F 2d 175 180 (1st Cir1987) –addressing both the “unclean hands” doctrine and listing the 12 factors to consider in application of who must apply and disclose by 327(a).
The statements by the Court and US Trustee are very disingenuous in seeking not to disqualify, while ignoring other statutory mandates concerning Barry Gold failures to apply per § 327(a) which is cause for disqualification
As the fraud is multiple years, multiple parties and multiple states it is RICO
The staunch efforts of judicial and DOJ “nolle prosequi” (failure to prosecute) grossly violates the law and in effect administrates cronyism into full blown complicity that results from retaliatory acts of fraud against Haas and the eToys shareholders,
Such is accomplished by the reckless disregard of the facts and willful blindness of Dept of Justice officials concerning large scale RICO activities. Persistently repeated by Dept of Justice and other Federal authorities nefariously; with belligerent endeavors to strike, expunge and dismiss Haas or Alber in the 3rd Circuit appeals dissipatedly.
Now, even the full might and authority of the Washington D C Dept of Justice highest officials have signed their names, (in an endeavor of imprimatur) by flagrantly using the clout of the highest office of the US Government Dept of Justice to influence matters contradictory to their Oath of office and the Law.
Dept of Justice website publishes the Law for everyone to see
As can be seen on the Dept of justice website. The statement that no disqualification is required or that Barry Gold need not apply is extremely untruthful; being completely divergent to the very instructions that any UST is given within their own handbook and guidelines ( see http://www.usdoj.gov/ust/r15/Forms/EOUST_Ch7-11_Fee_App_Guidelines.PDF ) as seen on the Dept. of Justice US Trustee website, where you find The US Trustee Manual states the following on-point discussion of this issue;
11 U.S.C. § 101(14)(A)-(D) “mandates a literal approach to the disinterested person requirement and sets forth in detail a series of characteristics that disqualify a person.”
While continuing it remarks upon the financial advisor [wind-down coordinator] issue
“If a professional has the characteristic then disqualification is automatic.” And “Since the language of the statute is clear, it must be applied as written” citing In re: Middleton Arms, Ltd. Partnership, 934 F.2d 723 (6ht Cir. 1991). Financial Advisor/workout consultant is a professional subject to 327(a) especially with any degree of autonomy In re: Riker industries, Inc., 122 B.R. 964, 973 (Bankr N.D. Ohio 1991), Stahl v. Bartley Lindsay co. 137 B.R. 305, 309 (D. Minn 1991); In re: Marion Carefree Ltd. Partnership 171 B.R. 584, 588 (Bankr. N.D. Ohio 1994); In re: First Jersey Securities 180 F.3d 504, 509 (3rd Cir. 1999).
There are also articles and briefs supplied by the Dept of Justice
General Counsel to Congressional Committee’s demonstrating advanced
knowledge of such by the very same Roberta DeAngelis who seeks as the
US DoJ General Counsel to defy in the eToys appeals. In the report to
Congress as Region 3 Trustee in 2004,
just prior to the Emergency Motions of HAAS and Robert Alber, the Region 3
Trustee stated to the Committee on the Judiciary of the
United States House of Representatives (“Trustee Report”)
(“EXHIBIT 10”) whereupon Trustee Roberta DeAngelis remarked
“Professionals may be compensated only after application, notice to parties,
and approval by the bankruptcy court”(page 3 Trustee Report).
More significantly the Trustee Report remarks on page 2 that;
Full and complete compliance requires that the professional report
all connections, not just those connections that, in the judgment of
the professional, may be relevant.
It is the court’s task to determine whether the connections are
disqualifying. In its administration of Chapter 11 cases, the
United States Trustee endeavors to assure that the self-reporting
required of professionals is provided and that disqualifying
connections are brought to the attention of the court.”
The Dept of Justice Law and Guidelines says one thing
while they do another
For the proof of willful, premeditated circumvention
of the Law is in the Record
All this contradictory decision making demonstrating, at the barest of minimums, that the Dept of Justice is acting “double minded” is the reality of how the US Dept of Justice and the Court knows the key fact that Barry Gold is a “wind down coordinator” for the only place that such is mentioned by the perpetrating parties is within the Barry Gold response to the allegations. Specifically the Barry Gold Hiring Letter that was drafted by TBF, MNAT, Barry Gold, David Gatto (VP/CFO of eToys) and others, which contains the following deliberate, willful ability to circumvent the Court and the Code, which is most certainly a crime; after the UST forewarned the parties against such endeavors, by the deceptive option to encourage or permit Barry Gold not to comply with the Code; worded egregiously, in the following manner:
“As of the Commencement Date, your position with the Company shall be as Wind Down Coordinator and you shall retain such position until (i) the approval of your employment as an Officer of the Company by order of the U.S. Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) —“
The HIRING LETTER’s opt out clause from §327(a); stated a reward for not seeking approval-
“—and you have waived the condition in clause (i), then you shall be appointed as President and Chief Executive Officer of the Company and your employment with the Company will be for an initial term ending May 20, 2002.” As anyone can see Barry Gold is rewarded [bribed] by his waiving, at his own volition, the requirement of applying to the Court, for if you remember that this letter remained hidden until the conflict issues were “ferreted” out, then it is simply plausible that Barry Gold required a “get out of jail free card” to avoid committing perjury and everyone involved said “ O K” we will draft you a hiring letter with a sneaky little phrase allowing you plausible deniability.
Dept of Justice and SEC are informed of Laser Haas anxiety
If you look at the Dept of Justice’s large scale fraud endeavors against the public you will find reports by the former Director Lawrence Friedman stating in 2004 that over 10,000 cases of fraud was addressed that resulted in $60 million in fraud corrections. http://www.usdoj.gov/ust/eo/public_affairs/press/docs/silver_screen_final_10-28-04.htm.such remarks were similarly made in 2003 which can be viewed here http://www.usdoj.gov/ust/eo/public_affairs/testimony/docs/testimony.pdf )Mr Friedman resigned right after the March 1, 2005 hearings and Mark Kenney’s efforts to ask the court to strike and expunge Haas and Alber (please see the press release at http://www.usdoj.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm ) Mr. Friedman had emailed Laser Haas directly and told him the issues would be addressed by his staff on the very same day that Mark Kenney had offered the illegitimate “get out of jail free card” to TBF.
|
From: Lawrence.A.Friedman@usdoj.gov Date: 02/25/05 14:49:58To: ‘laserhaas@msn.com’Cc: Kelly.B.Stapleton@usdoj.govSubject: RE: Item sent to the record today |
Mr.. Haas:
You most assuredly have our attention and my personal commitment that we will act in every case where action is required and we are aware of it. Please understand however, that like any prosecutor, we must exercise appropriate discretion in carrying out our responsibilities which while sometimes in a particular case may seem unjust, it is done with perspective to ALL matters we handle. I sympathize with your frustration and again assure you that my staff is extremely competent to handle this matter and will exercise appropriate judgment.
Lawrence A. Friedman, Director
Executive Office for US Trustees
United States Department of Justice
Washington, DC
Even though Director Friedman had taken preemptive action in replacing the Region 3 Trustee, Roberta DeAngelis which can be seen at the following website ( http://www.usdoj.gov/ust/eo/public_affairs/press/docs/stapleton_release2_12-04.htm
) and had followed up with the Disgorge efforts against Traub, it is readily apparent that someone else was running the show and we believe this is why Lawrence Friedman resigned. For the fact remains the declaration he made about his competent staff has proved to be, at a minimum, one readily apparent fallacy. While I did do my best to provide him the leeway he requested as is seen in my emails to Director Friedman
From: laserhaas@msn.com [mailto:laserhaas@msn.com]
Sent: Friday, February 25, 2005 5:13 PM
To: Friedman, Lawrence A
Subject: RE: Item sent to the record today
Dear Mr. Friedman:
I deeply apologize for upsetting you and tying up resources with my emails and faxes. My intention was and remains the endeavor to get your offices attention and confirmation that someone is paying jurisprudent oversight to what is occurring concerning the flagrant matters at hand. Having received your request I most apologetically will comply and accept your email acknowledgement to also confirm you are on top of the matter. Which until reception of your email I felt my pursuit of justice was falling into a void. Sincerely
Laser Steven Haas
Further conversations were not so cordial.
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From: Lawrence.A.Friedman@usdoj.gov Date: 02/25/05 14:01:06To: ‘BHaasS@aol.com’Cc: Kelly.B.Stapleton@usdoj.gov; Frank.J.Perch@usdoj.gov; Mark.Kenney@usdoj.gov; ‘kell.b.stapleton@usdoj.gov’; ‘rsussman@kronishlieb.com’; ‘mminuti@saul.com’; ‘jgarrity@shearman.com’; ‘gwerkheiser@mnat.com’; ‘condo28@mail.com’; ‘laserhaas@msn.com’; ‘Grobinson@sec.gov’; ‘ssherillbeard@sec.gov’; ‘bbrook@bbhhlaw.com’Subject: RE: Item sent to the record today |
Dear Mr. Hass:
Please stop sending me copies of all these emails. My staff is extremely capable of passing on to me any items that would require my attention. If any party in each of the 1,650,000 cases filed last year served me with copies of every communication we would not have time to take any position in regards to your case.
Lawrence A. Friedman
Director, Executive Office of US Trustees
United States Department of Justice
Washington, DC
—–Original Message—–
From: BHaasS@aol.com [mailto:BHaasS@aol.com]
Sent: Friday, February 25, 2005 4:49 PM
To: bhaass@aol.com
Cc: Stapleton, Kelly B.; kell.b.stapleton@usdoj.gov; Perch, Frank J.;
Kenney, Mark; Friedman, Lawrence A; rsussman@kronishlieb.com;
mminuti@saul.com; jgarrity@shearman.com; gwerkheiser@mnat.com;
condo28@mail.com; laserhaas@msn.com; Grobinson@sec.gov;
ssherillbeard@sec.gov; bbrook@bbhhlaw.com
Subject: Item sent to the record today
To All parities of interest: This is to make everyone aware that Collateral Logistics, Inc. (“CLI”) — Steve Haas as President does state adamantly the following:
CLI Objects to the request by the US Trustee to amend more softly the original US Trustee request of disqualification and disgorgement of $1.5 million in fee’s — whereas CLI feels that said original request was not, in many ways, severe enough correction of the matter at hand.
Secondly the request to move forward the smaller settlement with broad indemnification language is strenuously objected to along with the request to hear the settlement matter on March 1, 2005. It is much more appropriate that those that did deceive admit the facts at hand and their intent and throw yourselves on the mercy of the Court and those harmed by the scheming. This rampant endeavor to gain a monopoly of the Delaware Court system through power, influence and corruption has to cease. SincerelySteve HaasPresident and CEO
Collateral Logistics, Inc.
After emails Lawrence Friedman and Frank Perch resign and DeAngelis is promoted.
Surely one should find it odd that the replacing of a Region 3 Trustee is marked with a press release, while the person who was replaced, removed or side ways appointed has no mention, whatsoever, as being promoted to the General Counsel position in Washington D C. ( http://www.usdoj.gov/ust/eo/public_affairs/press/index.htm ).
The fact remains that the US Attorney Colm F Connolly and Mark Kenney, along with the US Trustee (formerly Roberta DeAngelis and Frank Perch)(now Kelly B Stapleton and Andrew Vara ) along with the General Counsel of the Dept of Justice EOUST ( the former Region 3 Trustee Roberta DeAngelis) have all refused to disqualify, disgorge properly and prosecute Traub Bonacquist & Fox, Morris Nichols Arsht & Tunnel, Barry Gold, Bain/KB Toys, Liquidity Solutions, Xroads LLC, Wells Fargo/Foothill Capital, David Gatto, David Haddad (who had hidden $2 million in cash overseas) Richard Cartoon and Fredrick Rosner (Traub’s local counsel who had moved to 4 different firms carrying eToys case with him).
US Attorney for Delaware was a partner of the Law firm the DOJ refuses to prosecute
Colm F. Connolly
Colm F. Connolly has served as the United States Attorney for the District of Delaware since September 4, 2001. Mr. Connolly was an Assistant United States Attorney from 1992 to 1999 and a partner with the Morris, Nichols, Arsht & Tunnel law firm in Wilmington, Delaware 2from 1999 to 2001. After graduating from the Duke University School of Law in 1991, Mr. Connolly clerked for Judge Walter K. Stapleton of the U.S. Court of Appeals for the Third Circuit. Mr. Connolly holds a bachelor’s degree from the University of Notre Dame and a master’s degree from the London School of Economics. There are $300 million in unanswered issues, while denying access to books n records. With the newly discovered evidence that Colm F Connolly was with Morris Nichols prior to becoming a US Attorney. The whole Delaware Bankruptcy system has gone A W O L in a syndicated White Collar Criminal manner that would make Al Capone and the G-dfather desire to rise from the grave….
The Facts are indisputable, No Prosecution has occurred of deliberate Fraud
So the issue is very simple, the AUST has stated that he [fore]warned the parties against replacing key personnel of the Debtor with anyone connected to the [court] retained professionals in the case. You also have documentation by the US Trustee’s office that not only was that warning disregarded, the parties engaged in drafting a “clandestine” Hiring Letter that remained hidden for 3 years until the “non-disclosure” of “conflict of interest” issues was discovered. Where the offending parties admitted they filed multiple, false Rule 2014 Affidavits. (which is Perjury) as is now documented in another, less connected issue concerning Mitt Romney’s campaign participant the 23-count indictment Wednesday, Alan B. Fabian, who is also accussed of Perjury in a bankruptcy matter (and all he did was deny a connection on a $3 million dollar issue). Which can be seen at the following web link http://www.google.com/search?hl=en&q=mitt+romney+campaign+fraud+perjury&btnG=Search
After you have the issue of being warned, with admitted acts of multiple, false affidavits, you also have the fact that TBF confessed that he paid Barry Gold four (4) separate payments of $30,000 each before and after eToys filed bankruptcy, Which was halted once TBF placed Barry Gold within the debtor as “wind down coordinator” who then became President and CEO after choosing to deliberately not inform the court by an illegal , contractual measure that was drafted by every “officer of the Court” you can think of within the case, (which is a conspiracy to defraud).
Now if that is not enough for you, add to the items above that we have since discovered 100 other felony violations, including the fact that eToys sold the assets to Bain/KB Toys whom TBF, MNAT, David Gatto and Barry Gold have all been connected to. This is the most serious of violations, it simply Can Not be done, they, in essence, sold the assets to themselves, under the “guise” of being the highest of trusted parties with affidavit’s swearing up and down that they had No such Connections.
jabramczyk@mnat.com Jon E Abramczyk partner MNAT tel 302 351-9211
Jon regularly represents major Fortune 500 corporations and their directors in Delaware, including Morgan Stanley & Co., Inc., Viacom, Inc., CBS Corporation, Hallmark Cards and QUALCOMM, Inc. He recently successfully represented Bain Capital, Vornado and KKR in the Court of Chancery litigation challenging their acquisition of Toys-R-Us.
As MNAT has failed to disclose and being that the conspiracy to defraud was soooo successful, the parties decided to have it all. The confirmed PLAN of eToys that decides what the creditors and eToys shareholders get was drafted by the parties under the guise that they were all “arms length” “good faith” negotiating parties. While the US Trustee and Court state that no proof has been provided that any Perjury has occurred (despite the already known confessions to the contrary) you have another smoking gun. For Traub supplied Barry Gold as the confirmed Plan administrator, the sole party in control of the entire $50 million that remained. The Plan also states that Barry Gold can not have any relationship to anyone and that it must be done “arms length” Which is documented by Barry Gold with false remarks {Perjury] as “plan administrator” in the Plan Declaration Barry Gold signs “under penalty of perjury”, (eToys D.I. 1312 page 24, ¶63). Under part C. Plan Proposed in Good Faith 1129(a)(3) Part C. ¶44 Barry Gold testifies
“The Plan represents extensive arms’ length negotiations among the Debtors, the Creditors’ Committee, and other significant parties in interest, as well as their advisors. The Debtors proposed the Plan in good faith —“
As if this is not enough, Barry Gold is permitted to pay any items under $1 million without the Court’s approval and is further compounded by the issue that the AUST has already acknowledged that TBF received $1.7 million after the Plan was confirmed.
You also have other issues such as Wells Fargo loaned eToys $40 million in November 2000 and then took out $120 million before eToys filed on March 7, 2001. A preferential that is 100% rescindable under the bankruptcy Law of equitable subordination as the loan originated by Foothill Capital and was returned to, with all the profits to Wells Fargo. Having never been under review by independent counsel is a crime that is documented in the matter of In re Bucyrus 94-20786 (E D Wisc) Gellene as counsel of the firm of Milbank & Tweed. Gellene went to jail for his perjury when someone he was connected to loan the debtor $35 million ( a former Goldman Sachs party) and the loan was never reviewed. Milbank & Tweed was disgorged their entire $1.9 million and lost a lawsuit of $30 million. ( please see the web stories at the following http://findarticles.com/p/articles/mi_qa3975/is_200601/ai_n17187297 and http://lawprofessors.typepad.com/whitecollarcrime_blog/legal_ethics/index.html the Oesterle Law Professors blog is a wealth of information on such, just as his friend Peter Henning who addresses White Collar crimes )
When Barry Gold and TBF worked for the Stage Stores Bankruptcy (S Texas 00-35078) (which is also owned by Bain, SanKaty, Mitt Romney, Michael Glazer (CEO of KB) TBF never disclosed that Liquidity Solutions is “co-debtor” with Stage Stores ( a fact that is very Well hidden!)
Liquidity Solutions and companies affiliated with Liquidity began buying up many of the claims (and plan votes) in eToys. There is nothing against the law about buying up creditors claims, the Courts actually encourage the business. However, you must Disclose such, for any related party by such conflict can give preferential treatment to such “undisclosed” connections at direct, materially adverse harm to everyone else. Which is also complicated by the other factors, the Court, speciously permitted the unusual act of approving destruction of books n records. Which tends to hide the proof of who is owed what.
Even more morose, is the aforementioned issue that Barry Gold is the sole authority of who gets paid what settlements under $1 million without the requisite of the Courts approval. Every single time Laser or the eToys shareholders have asked for review of books n records as well as all accounting, that is permitted under Bankruptcy Rule 2004 (it is even permitted to use such review as a “fishing” expedition to search for malfeasance). The Court, the TEAM of TBF, MNAT and Barry Gold and the US Trustee who is mandated to enforce such, have all simply ignored the requests. Will not even hold a hearing about such.
Now complete the circle that the US Trustee, as is testified within the Disgorge Motion is the “watchdog” as per 11 U.S.C. § 307 and the Janet Reno Reform Act of 1994. (see disgorge motion ¶ 2). Along with the fact that the US Attorney has refused to prosecute or hire any independent special attorney while at the same time the Dept of Justice personnel who were trying to handle the matter all resigned. Whereupon the removed Region 3 Trustee, Roberta DeAngelis was promoted to the position of General Counsel in Washington D .C , after the person who demoted her resigned, which is further compounded by the fact that DeAngelis is now entering the appeals as an appellee defending the egregious actions and erroneous decisions. At the same time asking the Court’s to strike, expunge and dismiss Laser and Alber, which in effect steals the monies that they are righteously entitled to and are being defrauded of by “unclean hands” who have gained “unjust enrichment” by the manifest injustice of pretense and “color of law” intentional acts of circumvention of the Court by Perjury, who by deliberate acts of subterfuge are still hording the spoils of their crimes with glee.
To finally cap it all off, DeAngelis states to the court in her brief that if the Court should decide the appellants have merit, then the Court should return the case to the Del Dist Court instead of the bankruptcy court. Where it just so happens that the US Attorney who has refused to prosecute his former associates and parties he “represented” (specifically Bain, Goldman Sachs etc) is now being considered to be promoted to the vacant Del Dist Ct position.
We only need one crime and act of cronyism to warrant Congressional investigation and press attention.
Yet here we have the grandest of schemes, by the grandest of players, who are all esteemed members of the Court and Dept of Justice, who are acting contrary to Law and in a treasonous manner to their oath of office and fiduciary duty.
We seriously doubt that so many judicial and Dept of Justice parties meant to get entangled in one of the largest racketeering events you will see. What we really believed happened is each separate arm went to protect slight acts that collaboratively make for an organized syndicate indictment.
If there are any among you that doubt parties can be corrupted by acts of cronyism that is connected to $300 million and powerful political promotion possibilities, by all means, please raise your hand!
——————————————————-
DELAWARE JUDGE ACCUSSES Dept of Justice of FRAUD on the COURT
Delaware Bankruptcy Court Judge Fitzgerald
This case is sooooo Great on so many levels.
1- It states it is Against the Law not to inform the Court there are ongoing investigations
as such facilitates fraud on the Court.
2- As the Judges are not notified in the eToys case(s) then there is not case into the 100 felony issues we reported.
3- The Dept of Justice will now be forced to review issues on Delaware cases.
Things are heating up guys. (I believe that the only reason this case came to light is the person died, had such not occurred, the lid would still be on the case, we do not know what caused his death)
I may be broke and homeless, but no longer is it hopeless.
———————————————
It was reported today that a Delaware Bankruptcy Judge accussed the Dept of Justice of withholding information that caused millions in over billings.
A judge on Thursday accused the U.S. Justice Department of contributing to fraud by failing to notify her of a yearlong investigation into a consulting firm suspected of making millions by padding fees in bankruptcy cases.
Judge Judith Fitzgerald of the U.S. Bankruptcy Court in Pittsburgh said at a court hearing that she and other bankruptcy judges in several states are “very upset” they weren’t informed of the Justice Department’s probe into the billing practices of L. Tersigni Consulting.
“Literally millions of dollars went out of debtors’ estates that should not have gone out,” Fitzgerald said. She said “there was a fraud on this court, and the Department of Justice participated.”
A spokesman for the U.S. Attorney in Newark, N.J. who launched the investigation denied there was a ban on communication with the bankruptcy court about the investigation.
“At no time did the U.S. Attorney’s Office instruct anyone to withhold information from the bankruptcy court. That simply did not occur,” Michael Drewniak said in an e-mailed statement.
Bankruptcy judges in Delaware, Pittsburgh, New Jersey and New York are being asked to appoint examiners to assess the damage.
“Everyone was told to stand down, including the U.S. Trustee,” said the attorney, Robert K. Malone.
Malone said Rapp was instructed to stay on the job at the Tersigni firm and supply documents to the U.S. Attorney and FBI, which he did.
Malone said there was evidence that Tersigni in some cases underbilled bankrupt companies.
Judge Fitzgerald on Thursday said the Justice Department was bound by ethical rules that require attorneys who suspect fraud in court proceedings to call it to the attention of the judge.
“What on earth was going on in the Department of Justice?” she asked.
Stapleton, the U.S. Trustee, told the judge that Department of Justice rules bar attorneys involved in a criminal investigation from feeding information to attorneys who work on the civil side, such as the U.S. Trustee. She said she could not say whether the criminal investigation was still under way or whether the matter had been submitted to a grand jury.
Lawyers representing the Tersigni interests could not be reached for comment.
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Citizens Against Professionals Bankruptcy Fraud 
Many people have a bone to pick with etoys, Bain and Traub.
Someone is going to nail these guys to the wall for what they are stealing
an average u s citizen can get 2 to 5 years for $5000 in fraud.
While lawyers, judges and presidents to be get away with millions.
what a snow job…
Fraud and corruption same old Gov. story . blah, blah
Nice work!
Keep fighting the fight, we’re gonna win.
We do not understand why we can not have our cake and eat it to. They stole our company, it is only fair that everyone pays…