Archive
Romney’s Bain & Goldman Sachs attorneys Traub & MNAT Conspired and Colluded to commit IPO/ Bankruptcy Fraud eToys
NEWS BREAK
PoliticusUSA.com release November 2, 2012
Mitt Romney Benefited from Fraud, Corruption and Racketeering
X—————————————————————————-X
NOTE: There’s NO statute of limitations on Bankruptcy Fraud
until 5 years – AFTER the case closes.
Additionally, if the fraud is by a court approved Officer of the Court
– there’s NO Statute of Limitations PERIOD (In re Hazel Atlas Glass – US Sup Ct 1944)
More Proof Emerges – Romney Campaign Lying About Leaving Bain in 1999
and
Mitt Romney Direct Connections to Fraudsters
NOTE ————to ALL FEDERAL AGENTS – JUDGES – SEC and people honorable.
.
I, Steven Haas (more commonly known as Laser Haas)
AVER – UNDER PENALTY OF PERJURY
This, the 11th day of April 2012
REAFFIRMED this, the 15th day of May 2012
do state and affirm the items here to be True and Correct that
.
Mitt Romney is benefitting from federal fraud Continuously.
.
Romney was “still” CEO of Bain until August 2001
Bain with their cohorts Goldman Sachs, Paul Traub,
Barry Gold and www.MNAT.com law firm
CONSPIRED & COLLUDED to DeFraud a Public company (eToys)
and commit State, SEC & Federal Frauds thru massive Bankruptcy Frauds
in the hundreds of millions of dollars.
And the PROOF Is Overwhelming & Profuse via Public Docket Records
Through Collusion, Conspiracy and Perjury Bain Capital, with the assistance of its counsel Greg Werkheiser of MNAT and Paul Traub – stole the federal bankruptcy estate assets of eToys in 2001. Due to Smoking Gun evidence discovered by this Affidavint party – Both MNAT and Paul Traub “undisclosed” relationships with Goldman Sachs and Barry Gold were reported.
Since that time – MNAT has confessed to its failure to disclose the Goldman Sachs relationship and Paul Traub has confessed his secret partnership with post bankruptcy petition President & CEO of eToys (Barry Gold). In 2001 and 2002, deals were made with Bain Capital and Kay Bee Toys to give away the assets to them – basically for free.
However, MNAT and Paul Traub, despite an Order of October 4, 2005, by Chief Bankruptcy Justice Mary F Walrath – to disclose all other relationships; the parties have failed to mention their connections to Bain Capital and Kay Bee Toys. This Collusion and Conspiracy is accomplished by Perjury.
Compounding these issues are Department of Justice items of corruption – where the United States Attorney in Delaware, from 2001 to 2008 – refused for those 7 years – to investigate or prosecute the parties. Even after they had admitted to “Intentional” fraud on the court. This is because the United States Attorney in Delaware was Colm Connolly. USA Connolly also had his own conflict of interest – he failed to inform us (while refusing to prosecute the parties) – that Colm Connolly was a partner at MNAT in 2001. The very year the crime spree began.
Colm Connolly partner at MNAT law firm
.
Colm Connolly’s Resume at the Department of Justice Archived Website http://www.justice.gov/archive/olp/colmconnollyresume.htm
.
Bain now owns Toys R Us that illegally owns the stolen property of eToys
.
Morris Nichols Arsht & Tunnel (“MNAT”) did confess to failure to disclose the fact that it was Goldman Sachs Delaware counsel – when the court approved MNAT as eToys Debtor’s counsel. In accordance with the LAW and the US Supreme Court adoption of the case of In re Middleton Arms 19 F.3d 138 USLW 2638, 25 Bankr. Ct.Dec. 618, Bankr. L. Rep. P 75,763 (as adopted by the 3rd Circuit case of US Trustee v Price Waterhouse ( here ). Failure to disclose ANY conflict of interest – must result in disqualification.As the Third Circuit denoted in US Trustee v Price Waterhouse;
“As the Supreme Court and our court have repeated many times in recent years, when statutory language is clear and unambiguous it ordinarily must be followed. See, e.g., Rake v. Wade, — U.S. —-, —-, 113 S.Ct. 2187, 2191, 124 L.Ed.2d 424 (1993); Patterson v. Shumate, — U.S. —-, —- – —-, 112 S.Ct. 2242, 2246-47, 119 L.Ed.2d 519 (1992); Prisco v. Talty, 993 F.2d 21, 24 (3d Cir.1993); Virgin Islands v. Knight, 989 F.2d 619, 633 (3d Cir.), cert. denied, — U.S. —-, 114 S.Ct. 556, 126 L.Ed.2d 457 (1993). Here, the relevant statutory provisions are clear and unambiguous”
But the Delaware Department of Justice and Federal Court’s are damnation bent to break all Laws and Federal Rules of Civil Procedure, destroying the Public’s faith in the integrity of the Judicial Process.
For the sake of cronyism, tyranny and corruption to protect MNAT and its clients.
As a result – the Dept of Justice rogue elements have broken the Law so profusely and docket record substantiated overwhelmingly – that MNAT’s secret clients Goldman Sachs and BAIN are getting away with organized crime.
eToys bankruptcy assets were sold to MNAT’s secret client BAIN/ KB Toys for discounts in the tens of millions of dollars. This is Collusion to Defraud an Estate by Officers of the Court.
The US Supreme Court and the Third Circuit, along with the eToys Judge’s Opinion and US Trustee’s Motion to Disgorge Traub Bonacquist & Fox – all have denoted the case of In re Hazel Atlas Glass v Hartford-Empire 322 U.S. 238 (1944) states (here) – that;
“(a) Even if Hazel [HAAS] failed to exercise due diligence to uncover the fraud, relief may not be denied on that ground alone, since public interests are involved”.
As the 3rd Circuit has affirmed and both the Delaware Bankruptcy Court and US Trustee denoted the case – it is therefore beyond contestation. Therefore, it remains inexplicable and intolerable – that our public servants are basically permitting the bank robbers to seize the bank – keep the deposits and maintain the teller windows to continue their larcenies.
Resultantly – through a series of Bankruptcy Fraud cases (eToys 01-706) – (KB Toys 04-10120) and other cases of In re Playco, the Parent Company, FAO Schwartz and even KB Toys again – MNAT”s client BAIN now owns the control of most of the independent retail toy industry.
All of that has been merged into BAIN’s new ownership of Toys R Us
(see WikiPedia history ( here ).
__________________________________________________________________
BAIN’s – Toys R Us is in possession of stolen property = eToys.
As per the rules of equitable justice – where a thief cannot keep the car he stole – BAIN’s Toys R Us cannot keep the stolen property from the eToys public company. Especially since it was procured by Fraud as MNAT, eToys CEO and Confirmed Plan Administrator Barry Gold and Paul Traub of Traub Bonacquist & Fox = all have UN-disclosed connections to BAIN/KB.
The stolen property must be returned or compensated for – to a clear independent.
They cannot simply put in another crony and say they settled the issue!
Dept of Justice's very own criminal lord!
- Toys R Us possess stolen property eToys
You can see additional facts on the massive frauds – how Paul Traub was given illegal immunity and then his partner Marc Dreier went to jail for 20 years – Tom Petters went to jail for 50 years – Traub’s other secret associates Cerberus was a feeder fund for Madoff who rec’d 100 years plus and did OKUN’s from OKUN 1031 Tax Group – (where Traub and his ex partner Michael Fox worked both sides of the fence) – OKUN also rec’d 100 years in Prison.
See links to this and more at www.Petters-Fraud.com
Because – what do you think Paul Traub gets for being partners to all these crimes
POLAROID for FREE
__________________________________________________________________
UPDATE Aug 31, 2011 
WARNING – there are rogue elements within the Dept of Justice – seeking to subvert the Constitution of the United States for veiled agendas sake – contrary to Congressional Law! During his tenure at the Delaware Department of Justice, US Attorney Colm Connolly’s office repeatedly declined to investigate and prosecute the MNAT law firm.
MNAT had made many confessions to perpetration of intentional deception of the Delaware Federal Bankruptcy Court by the MNAT law firm.
HOWEVER – a serious Conflict of Interest Ethics violations was committed.
Colm Connolly failed to disclose the fact that he was a partner at the MNAT law firm in 2001 – the very year the MNAT perpetrated many civil & criminal code violations – including Perjury, Collusion, Scheme to Fix Fees, SEC violations, Intimidation of Victim/Witnesses, Conspiracy, False Oaths/Declarations, Perjury and Racketeering violate of California, New York and Delaware state/ federal cases.
Please see Colm Connolly’s Resume from the Department of Justice
http://www.justice.gov/archive/olp/colmconnollyresume.htm
An Organized Criminal element maintains control over the Federal Bankruptcy Courts are the rogue parties within the DOJ US Trustee’s Office.
There are only 21 Police – the US Trustee’s –
in charge of all 1.5 million on average bankruptcy filings each year.
But there are 338 Bankruptcy Judges (here)
More than 100 felony violations occurred with confessions to 34 false affidavits (Perjury) that accomplished admitted premeditated Fraud on the Court.
Granting the criminals willful blindness allowed Marc Dreier, Tom Petters, Larry Reynolds and others to accomplish an additional $ 4 Billion dollars in fraud.
Cover UPs of MNAT & their clients
Goldman Sachs & Bain Organized Crimes
__________________________________________________________________
- DE DOJ removes Irell & Manella firm to make MNAT eToys Debtor counsel
- MNAT law firm petitions and receives ILLEGAL approval to Destroy Books n Records
- MNAT confesses False Affidavits hid relationships to Goldman Sachs
- However, MNAT still continues to Criminally conceal connections to Bain & Mattel
- eToys sold bulk of bankruptcy estate to BAIN/ KB for tens of millions in discounts
- Mattel was eToys largest unsecured Creditor over $10 million
- Goldman Sachs took eToys Public and with MNAT controlled eToys v Goldman Sachs case
- DOJ Collusion helps destroy evidence of Goldman Sachs Breach of Fiduciary Duty
- Destruction of Books n Records permitted MNAT to destroy eToys v Goldman Sachs case
- Laser Haas provides Smoking Gun Proof Barry Gold and Paul Traub are partners
- One part of US Trustee – Motioned to Disgorge Traub’s firm $1.9 million ( here )
- Less than 10 days later, another faction of US Trustee gave Traub immunity (here)
- Another $100 million crime transpire during US Trustee attempt to Settle fraud
- US Trustee rogue personnel receive illicit permission to strike & expunge evidence
- Forces Resignation of Washington DC DOJ Deputy Director Friedman
- Removed Region 3 US Trustee is Secretly made General Counsel of US Trustee
- US Trustee submits 3rd Cir Ct brief fraudulently expunging whistle blowers
- Dept of Justice testifies in 1st footnote that General Counsel will not pursue MNAT
- DOJ assists Traub, MNAT & Barry Gold Perjury that Haas “waived” Fees
- Beyond absurdity – no one would waive millions fees – forgery item 11 says NO waiver
- Despite confessions to 34 False affidavits Courts Opinion says NO Perjury (pg 52)
Currently the present US Trustee’s Office is
THE Most sophisticated group of white collar criminal activity in the United States.
Our tax paid Police – the 21 US Trustee’s handle over $500 Billion dollars annually.
There is no other arm of the Dept of Justice that handles so much money with absolutely no oversight whatsoever!
http://www.petters-fraud.com/DOJ_Cover_UP.html
When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.
http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.
UPDATE Dec 19 2008
Some day soon, the DE US Attorney, Colm F Connolly, will have to explain why he declined to investigate or prosecute his former firm (MNAT) and partners for their participation into the $300 million dollar fraud in eToys and the 34 acts of perjury (MNAT confessed to supplication of 15 false affidavits to the Federal Court in DE).
Then again, maybe not – who knows how deep the corruption goes.
The one thing we do know for sure, documented by the Court Docket record of eToys docket item 2201 – is that instead of prosecuting the TBF law firm for confessing to deliberately deceiving the court through more than 17 false affidavits – the Dept of Injustice gave the TBF law firm Unlawful, implied, blanket, immunity.
Then Traub committed another $100 million fraud endeavor in the KB Toys case and the DE DOJ obstructed justice by having the evidence striken and expunged (See KB Toys bankruptcy DE 04-10120 docket item 2228 therein)
Since then, Paul Traub’s two other partners have been accused, arrested and are being held without bail for more than $2.3 billion in fraud. Tom Petters for $2 Billion, Marc Dreier for $300 million ( a separate $300 million from eToys)
http://www.petters-fraud.com/DOJ_Cover_UP.html
What are the odds, had the Federal authorities investigated and prosecuted Traub in the beginning, that Dreier and Petters would not have reached to the level of criminality they are documented to have accomplished?
We may never know!
The Law firm of Morris Nichols Arsht & Tunnel (MNAT) has confessed to filing multiple, false, Rule 2014 and Rule 2016 affidavits, in order to be paid millions in fees in the eToys case.
.MNAT was the Court approved counsel for the Debtor of eToys. Traub Bonacquist & Fox (TBF) was the court approved counsel for the creditors of eToys.
Barry Gold was the “wind down coordinator” , then President, CEO and now Plan Administrator of eToys.
.The Law firm of TBF also confessed to filing multiple, false, affidavits to the federal court in eToys.
Today we focus on the issue that has gained national attention recently, as can be seen at the WSJ Law Blog here
Where the Wall Street Journal noted that the Wilmington Journal had begun to review the serious issue that Congress is intent upon looking into Delaware Courts bias decisions that disfavor the public shareholders and bless Executive or inner circle elite. ( to see the Wilmington Journal article here )
What is at stake is Delaware’s dominance of corporation filings that has blossomed into a Delaware bankruptcy Courts and attorney bonanza at the expense of the public at large by rulings contrary to Congressional mandates and common decency.
It was not my desire to be at odds with rogue personnel within the Dept of Justice. (at least we hope they are a rogue element and not the norm). Nor was it my desire to pick upon powerful, esteemed elites of MNAT, TBF or US Attorney Colm F Connolly.
To the contrary, my desire is that this all go away with proper remedy.
I did not seek their incarceration or demise, however, they cannot steal from a company I was sworn to protect, whether they take away my right to be paid or not, the fiduciary duty Remains!
It is their arrogance and belief that they are Above the Law, that shall either assure their success in the criminality or assure their demise.
However, they, MNAT, TBF, Barry Gold and the rogue personnel within the Justice Dept, choose little ole me (actually I am a big person :0) ) as the enemy worthy of their disdain and efforts for destruction.
My own attorney, Henry Heiman, a former Trustee in Delaware, after I had been offered inducements, warnings and more, where Heiman, feeling no worries, due to the “good ole boys” network in Delaware, Heiman emailed me a threat from Susan Balaschak of TBF. That if I did not back off, not only would HAAS and CLI not be paid, my career would end and they would come after me.
My response was to blow the whistle. While many said I should have found a way to take the $800,000 bribe and adapt my views. Be the silly person I am, I reported the bribes and threats to the Dept of Justice.
This blowing the whistle, initially, resulted in confessions. TBF and MNAT confessed to filing multiple, false, affidavits to the Courts. (more than 35, to be exact).
TBF confessed that Barry Gold was his paid associate, that TBF had paid Barry Gold four (4) separate payments of $30,000 each.
TBF, MNAT and Barry Gold also confessed that they drafted a Barry Gold Hiring Letter.
The Hiring Letter contains language that rewards Barry Gold if he does not apply to the Bankruptcy Court for persmission to be hired.
The reason the parties drafted the clandestine Hiring Letter (the letter remained hidden until Jan 25 2005 even though it was signed in June 2001) where MNAT, TBF were warned by the US Trustee’s office not to violate Section 327(a) of the Bankruptcy Code. (the US Trustee testified to this in the Motion to Disgorge TBF for $1.6 million on Feb 15, 2005, eToys docket item 2195) as they were warned not to do a crime, the only chance they had, to get away with crimes, that were already ongoing, was to seize control of the entire estate. The Hiring Letter would have guaranteed their success, if they had not chosen to stiff HAAS and CLI just because they had the power to do so.
The issue at hand for Delaware Courts, MNAT and the US Attorney, Colm F Connolly. Is that, despite the confessions, the Disgorge Motion and Stipulation to Settle, never, Ever, mentions MNAT. This testifies, as prima facie evidence, being an actus reus act in and of its own existence, to the very fact that MNAT is enjoying a spirit of no prosecution.
The Stipulation to Settle is an ILLEGAL document,
where the Dept of Justice in Delaware, apparently in an effort to protect MNAT, has given TBF improper, Illegal, permission to Circumvent the Code. This implies that willful circumvention of a Code or Rule, a crime in any sense of the word, has become systemic in Delaware.
The exact words in the Stipulation to Settle, flagrantly defy the Code/Rule of Law and the Dept of Justice’s fiduciary duty to the public and the courts.
“WHEREAS The United States Trustee shall not seek to compel TBF to make additional disclosures”
Every counsel in the world can tell you they would LOVE for such a clause to be legal. In essence that clause and setting the precedent that such is permitted, single handedly, wipes out the statutes and intent of Congress.
We do not have to prove anything else in this case, that clause, documents, by the Dept of Justice own signature, the intent to willfully circumvent the Code.
In re Middleton Arms Ltd Partnership 934 F.2d 723 (6th Cir 1991) has been affirmed by the US Supreme Ct and the 3rd Circuit. “courts cannot disregared the clear and “unambiguous” mandate of Section 327(a)”.
When any non disclosure of conflict of interest is discovered, after the fact, the Courts must disqualify. Not is not even within the authority of a Federal Justice to Circumvent the Law. Because that is called, in any public citizens realm, Breaking the LAW!
Bonds, Martha and Clemens are citizens who made a false statement and all are paying through the nose for such self protection efforts.
MNAT, TBF, Barry Gold, Colm Connolly, Mark Kenney, Roberta DeAngelis, Kelly B Stapleton, Andrew Vara and anyone else in this case are “officers of the court” and thereby are held to a higher standard. They are given their esteemed levels of trust and above average pay days, due to the fact that they are required and swear an oath to be of the highest integrity.
When they violate that level of trust, the crimes or heinousness of the highest kind. Again, it is their arrogance and Abuse of power that is the testimony of their character. I am just the messenger.
Now Colm F Connolly is nominated to be a Delaware District Court Judge. Where Connolly’s resume became public information. By revealing that Colm F Connolly was a partner at MNAT in 2001, many ethical questions are automatically obvious.
Why has Colm F Connolly’s office refused to investigate MNAT?
Why has Colm F Connolly failed to refer the MNAT matter to the Public Integrity Section as is required by Dept of Justice protocol when the US Attorney has any connection, whatsoever, to an issue?
Did Colm F Connolly assign a case number to the issue, as the protocol of the Dept of Justice mandates, when more than one hour of time is expended on an issue?
MNAT, TBF and Barry Gold are utilizing the Stipulation to Settle permission to circumvent the law to keep quiet about the MOST important issue. Barry Gold, TBF and MNAT all have “undisclosed” connections to Bain/KB Toys.
MNAT, TBF and Barry Gold all negotiated the sale of most of eToys assets to Bain/KB. This is Collusion to Defraud an estate.
It breaches their fiduciary duties to their respective clients, it breaches their Oaths, Declarations and Affidavits to the Court and violates Model Rules of Condcut, SarOx, SEC Regulations, Delaware State Corporate Law and many other platforms.
It is THE most serious betrayal of trust that can occur. For MNAT, TBF and Barry Gold “sold out their client for their own benefit”.
Colm F Connolly, Mark Kenney, Roberta DeAngelis, Kelly Stapleton, Andrew Vara and everyone else knows the LAW and their fiduciary duties are to the public and the Constitution.
We do not have to prove the benefit that the Dept of Justice personnel received in their efforts of nolle prosequi (refusal to prosecute).
The failure to prosecute obvious criminal acts and the overt manner that the Justice Dept has engaged upon, in order to defend the criminality and punish this whistle blower, speaks for itself.
It is plain dumb, to continue this charade any further. It is obvious that they have reached the end of their power center. If they desire to mitigate their own demise, it would be wise to effort a honorable remedy now, to demonstrate good faith.
All their calls to the WSJ to shut down my statements had to send a message that things are heating up.
Senator Biden was informed of this stuff for years. He is at risk also.
They are the ones who choose to go all or nothing, when they already had it all, they could have given back a little, to everyone and made this issue go away.
Instead, they used their power and influence with the Dept of Justice and the Delaware Courts, going TOO FAR!
They have stolen a public company and even if you toss out Bankruptcy Code and Rules, by Delaware’s own Corporate Laws, the sale of eToys.com assets is rescindable, as it fails the “bona fide” requisite.
The push, the hard push, to make Colm Connolly a Judge, is that he then, cannot be removed, unless he is impeached.
If Delaware wants cronyism as the main character trait within its Systems, it will get what it asks for!
However, the fact remains is that this is multiple cases, multiple years, multiple parties, multiple states, involving hundreds of millions of dollars. All being done contrary to the Law.
If this was a powder substance instead of the stroke of a pen, it is obviously Racketeering. Because they are doing such by abuse of power and you have yet to see a body in the streets, some are inclined to permit the leniency.
It is obvious however, that those that desire leniency are not the ones who lost their money in eToys.
When the RICO efforts involve those the country pays salaries of $100,000 or more per year, to defend us from racketeers, then you do not have the law, you have anarchy and cronyism.
_________________________________________________________________
It is now March 2011,
Goldman Sachs and their attorneys continue open defiance of the Constitution/Law on a regular basis. Enjoying a massive Cover Up by rogue elements within our federal systems of justice – including a US Attorney who buried the investigation/prosecution – because he used to be a partner of Goldman Sachs DE counsel’s firm (Please see US Attorney Colm Connolly’s resume with www.MNAT.com ( here )). Stating the following;
1999 – 2001 – Morris, Nichols, Arsht & Tunnell LLP – Partner
2001 – present (2008) – United States Attorney’s Office – District of Delaware
Plain to see is the fact that a partner of Morris Nichols, Arsht & Tunnell (MNAT) was Colm Connolly; till the latter part of 2001. The fact of the matter remains, eToys filed for bankruptcy March 7, 2001; and the fraudulent affidavits and Obstruction of Justice crimes began on (or before) that date. As a matter of jurisprudence, when Colm Connolly became the Delaware US Attorney; he was required to either give the case to the Public Integrity Section and/or appoint and independent Special Prosecutor.
The elaborate conspiracy, as well as the blatant/flagrant, extensive efforts to sweep the case under the rug and the fact that the skullduggery has crossed many state lines, over several years, in multiple cases – demonstrates clear evidence of Racketeering by the parties involved.
Stating that a law firm has an “undisclosed” relationship and/or “conflict of interest”; remains a decorum effort within the federal court system to diffuse the egregiousness and heinousness of the nefarious dealings to a vernacular soft play on words. The fact of the matter remains, Goldman Sachs is benefiting from Collusion & Conspiracy to Defraud a client (eToys); which they took IPO. Doing so by breaking the Law whenever it suits them.
In this case, Goldman Sachs attorney’s are benefiting more than 2 “un-disclosed” clients. Goldman Sachs law firm was caught by us red-handed. With more than 15 affirmatively false affidavits (Rule 2014/2016); over a period of several years. So they simply confessed ( see Deposition of MNAT ( here )). Beyond the classic “pump-n-dump” IPO scheme; www.MNAT.com also secretly represents Mattel and BAIN (see SEC MNAT disclosure ( Here ) and MNAT defending BAIN in another fraud in excess of $100 million; which the DE Dept of Justice swept under the rug successfully petitioning ( here ) the court to Strike & Expunge our evidences ( here ).
Inexplicably, despite the confessions by MNAT attorneys; the DE US Trustee has never addressed the www.MNAT.com Fraud on the Court via 15 acts of Perjury. Actually defying their Oath to protection the Constitution from enemies both foreign and Domestic; the DE Dept of Justice put in a 3rd Cir brief that gives egregious evidence of collusion to that high court as well. As if it had to walk upon cow tow’d grounds before the Kings; the US Trustee (including the General Counsel from Wash DC) put in a statement to the Cir Ct stating the US Trustee did not and will not address MNAT issues (see US Trustee brief 1st footnote ( here )). The Third Circuit helped the schemes by concluding in its Opinion that the FRAP (Fed R App Proc) do NOT apply to this case. WOW
Compounding the organized criminal acts beyond compare, instead of protecting their client (eToys); MNAT chose to defend their cohorts and perpetrators of Fraud on the Court by Perjury (Paul Traub and Barry Gold). Defending them at every corner.
MNAT’s organized criminal efforts are massive, relentless and always endeavoring to set case precedents appalling. While remaining in defiance of the Bankruptcy Code & Rules, submitting false affidavits profuse; MNAT requested and received permission to Destroy Books n Records (see Exhibit ( here )).
The effort to Obstruct Justice by the Destruction of Books n Records is a crime because MNAT was destroying evidence that could have cost their client Goldman Sachs hundreds of millions of dollars (and quite possibly billions as a precedent). In 2002 eToys (ebc1) sued Goldman Sachs in the NY Supreme Ct (case # 601805/2002) ( here ). What is the crux of the case is the issue that eToys was paid $16.50 of the original IPO price of $18 to $20. The stock soared to as high as $85; with the question unanswered – Where did the rest of the monies go? The gaining permission to DESTROY the relevant records gained an unjust enrichment advantage for Goldman Sachs.
Making matters beyond morose; Goldman Sachs attorney actually had the unmitigated gall to get the DE Fed Ct’s permission to hand pick the firm/attorney to prosecute Goldman Sachs. This mockery of justice was made even more heinous and egregious due to the fact that MNAT selected their cohorts in Fraud on the Court by Perjury (Paul Traub). Traub’s firm also secretly works for Goldman Sachs and Bain interest.
Those crimes fight for top billing with the real tragedies. Both MNAT and Traub Bonacquist & Fox, pretending that they were diametrically opposed; petitioned the court to reject any counsel for the eToys shareholders. This crime effort has been successful as Traub and MNAT’s other secret client (Bain) acquired the bulk of eToys billion dollar company for pennies on the dollar. A crime compounded even further because this whistle-blower rejected their bribery and informed the US Trustee’s office. Everyone told us that there were no crimes; but the US Dept of Justice EOUST website informed us differently. So we fought them at every corner and stopped their plans to buy eToys for $3.5 million; getting more than $45 million in cash back into the bankruptcy estate.
Paul Traub and MNAT defeated that good faith effort also. Taking Fraud on the Court to a whole new level; the nefarious parties simply purchased all the creditors claims. Again without disclosing their connections (Bain/Stage Stores/Liquidity Solutions). To assure the schemes success, Paul Traub and MNAT placed in a secret partner of Paul Traub as eToys CEO. They drafted a clandestine Hiring Letter ( here ) that gave Barry Gold illegal permission to ignore the requisite to apply to the Court.
To cement that particular part of the scheme, Barry Gold was also named as Confirmed Plan Administrator; where he actually signed an Oath/Declaration perpetrating his own humungous Fraud on the Court by stating;
“the Plan was confirmed by – extensive arm’s length agreements between Debtor (BArry Gold) and Creditors (his partner Paul Traub)”
Then they furthered their criminality by getting the court to sign an Order that Barry Gold did not have to receive the Court’s permission to pay any creditors issues below $1 million dollars. The only permission Barry Gold needed was the Creditors (his partner Paul Traub).
When we overwhelmed the DE Dept of Justice with proofs of these crimes and additional crimes such as the Bain/KB Toys case (DE Bankr. 04-10120); the Deputy Director of the Dept of Justice Resigned ( Here ).
All of this was reported to the Dept of Justice Public Corruption and President Corp Fraud Task Force Units clear across the country. Instead of investigating and prosecuting them; the Public Corruption Unit was shut down and career Asst US Attorneys were threatened to keep their mouths shut or Else.
See Los Angeles Times story “Shake-up roils federal prosecutors” ( here )
Crimes Committed that DOJ refuses to prosecute
The Law firms of Morris Nichols Arsht & Tunnel (MNAT) and the now defunct law firm of Traub Bonacquist & Fox (TBF) have already confessed to supplying more than 34 false affidavits to the Federal Bankruptcy Court in Delaware.
MNAT has confessed that it neglected to disclose it represents Goldman Sachs in Delaware and TBF has confessed that it paid four (4) payments of $30,000 each to Barry Gold prior to placing Barry Gold within the eToys estate by false affidavits and a secret Hiring Letter that gave Barry Gold permission to Circumvent the Law and the Court.
When Barry Gold was in danger because of his perjury acts he provided the Hiring Letter as his defense on January 25, 2005.
MNAT and TBF have confessed to drafting the Hiring Letter but state that it is no big deal as Barry Gold was not really required by law to apply to the Court.
MNAT also refuses to remember who drafted the Hiring Letter.
MNAT is either guilty of drafting an item for eToys (whom MNAT represents) where MNAT did not bill for the item or MNAT did bill for the item and has purged the Docket in some manner of the facts.
All those who believe that MNAT has forgotten who drafted a letter that gives willful permission for the new “wind-down coordinator” who joined eToys post petition, the right to Circumvent the Court and the Code by his own volition, Please raise your hand?
The Dept of Justice has joined in the Fraud and Perjury by giving Illegal immunity to TBF to circumvent Code 327(a) with the following obvious unlawful language
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures”
There are more than 3 serious non-disclosure items that such a clause seeks to cover up.
1. MNAT, TBF and Barry Gold all have undisclosed conflicts of interest with Bain /KB
2. MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/KB for discounts in the tens of millions of dollars.
3. TBF, Barry Gold and Xroads LLC all have undisclosed connections to Wells Fargo Foothill Capital $40 million dollar loan that transacted more than $100 million prior to eToys filing bankruptcy.
4. eToys went Public in 1999 for $8 billion and was bankrupt by Dec 2000, where did the equity go and why did MNAT, TBF and the Dept of Justice allow the Court to approve the Order in a Bankruptcy Estate to Destroy Books n Records.
You can also read items at http://fraud-corruption-mnat.townhall.com/default.aspx
The US Attorney in Delaware, Colm F Connolly, that has thus far refused to prosecute the case is now nominated for a Judge and his resume reveals that he was a partner with the MNAT law firm in 2001, when the fraud and perjury began.
When we informed the US Attorney in California of this he shut down the Public Corruption Task Force saying it would be better for the Dept of Justice to re allocate that personnel.
At the same time the US Attorney Tom O’Brien threatened his subordinates that if they revealed the real reason he shut down the Task Force he would punish them.
http://www.latimes.com/news/local/la-me-shakeup20mar20,1,7868966.story
FBI begins investigation into eToys saga
UPDATE – March 7, 2011
It was anonymous information from some true public servants that led me to the knowledge that Roberta DeAngelis (the replaced REgion 3 US Trustee) was secretly promoted to General Counsel of the Exec Office of US Trustee’s (EOUST) when DOJ Deputy Director Lawrence Friedman Resigned.
Some other (or maybe same group) of concerned federal public servant(s) also informed me that the DE US Attorney (Colm Connolly) had a vested interest in burying the investigation and prosecution of the www.MNAT.com law firm.
It has now been 3 years since the US Attorney in CA actually Shut down the Public Corruption Unit and audaciously threatened Asst US Attorney’s to keep their mouths shut or else.
http://articles.latimes.com/2008/mar/20/local/me-shakeup20
Their illegal endeavor to cover up the organized criminal bankruptcy ring of Goldman Sachs, Bain, Paul Traub and MNAT has thus far succeeded. The 2 FBI agents I spoke to have never done anything of consequence. I am tempted to name them both. But will call them 1 more time.
Meanwhile – our efforts to halt the cronyism, tyranny and corruption that is incestuously infecting our federal systems of justice has given us a new break. In a week or so – we are about to submit a brief to the FBI, SEC, DOJ and IRS about a former Deputy Director of the DOJ who is involved in a scheme to defraud that also involves the Cayman Islands.
Stay Tuned!
UPdate June 7 2010
Rogue element within federal system of justice
seeks to halt investigations.
When proof was provided of cronyism,
Corruption and Cover Up.
A brother of an Asst US Attorney, (purportedly) committed suicide. Even if it was such – the fact of the matter is the tragedy might have been prevented had the DE Dept of Justice not give Tom Petters partner (Paul Traub) illegal immunity and promise of willful blindness. (see a belated press story on suicide of Marty Lackner brother of MN Asst US Attorney J Lackner (here)).
Paul Traub is partner
Tom Petters and Marc Dreier
Tom Petters with the assistance of Paul Traub, Larry Reynolds (a man under investigation by the IRS while in WISTEC) was able to achieve a $3.7 Billion dollar Ponzi Scheme and the MN DOJ declined to investigate or prosecute Petters for almost a decade. Marty Lackner was involved in $1 billion dollars of the scheme and committed his purported suicide as a man in his forties, with children and not under any publicly announced indictment (if not for his untimely demise – no one may have never known of his connection).
Madoff related party purported suicide
When we reached out to persons who contacted us in Florida about Paul Traub’s possible Madoff connections – Picower purportedly committed suicide (see one initial story (here))
Then Petters associate commits suicide
Another purported suicide happened in Europe when the FBI first raided and a more recent (indirectly) connected suicide has transpired of Petters associate Denny Hecker
http://blogs.citypages.com/blotter/2010/03/to_bankruptcy_h.php
.
Rogue Federal Agents Threaten Whistle Blower
We have had reviews by the DOJ, the Admin of US Courts, Senate Sgt at Arms, Fed agencies galore, NASDQ and more. The slow, but relentless wheels of justice are beginning to turn as federal investigations (legitimate) are hopefully to begin.
Prior to this time we were threatened that arrests would occur if we dared to bring the proof to the FBI, when
Check out Clocked Copy of 18 U.S.C. 3057(a) Complaint
http://petters-fraud.com/Clocked_18_USC_3057_A.pdf
.
DOJ dismantles Public Corruption Unit to Bury investigation
– the Public Corruption Unit of the Dept of Justice was dismantled and career Asst US Attorneys were actually threatened NOT to tell the Press the real reasons why – or Else.
http://articles.latimes.com/2008/mar/20/local/me-shakeup20
Paul Traub’s cohorts Goldman Sachs Fraud
Help Destroy Evidence from Federal case
These additional nationally significant events transpired – All directly connected to the Goldman Sachs fraud of eToys Initial Public Offering (IPO) and Bain’s benefiting from their undisclosed counsel(s) (www.MNAT.com Paul Traub’s firm(s) (currently www.ebglaw.com and their roaming organized criminal Executive (Barry Gold – who was also “secretly” Paul Traub’s partner).
Failing to disclose the fact that MNAT and/or Paul Traub had connections to Bain/ Goldman Sachs and their affiliated persons – the Cohorts (Barry Gold, MNAT and Paul Traub’s firm(s) conspired to achieve the successful Pump n Dump of eToys.com IPO.
The very first publicly viewable certified criminal endeavor was MNAT’s Motion (approved) for Destruction of Evidence (the Books n Records of eToys)
http://petters-fraud.com/MNAT_Motion_Destruction_Books_n_Records.pdf
.
DE Dept of Justice Assists in Cover Up again
Then the DE Dept of Justice had eToys primary counsel removed under the guise that Irell & Manella had a Conflict of Interest / and Irell & Manella was replaced by DE powerhouse lawfirm www.MNAT.com recently an Irell & Manella senior exec mysteriously vanished
http://blogs.wsj.com/law/2010/05/25/coast-guard-halts-search-for-missing-irell-manella-partner/
What was not disclosed at the time is the fact that MNAT had 100 times significantly more germane Conflict of Interest(s)
.
.
MNAT law firm Fraud of Mattel, Bain, eToys, Goldman Sachs
MNAT handled the merger of The Learning Company (a Bain affiliated entity) with Mattel (eToys largest toy industry unsecured creditor) – such – if disclosed; would have required the immediate disqualification of MNAT as the eToys Debtors counsel.
http://petters-fraud.com/MNAT_consent_Mattel_LearningCo_merger.doc
MNAT did finally get “caught” red-handed supplying more than 15 false affidavits (Perjury) to the DE Federal courts. MNAT then confessed that it had failed to disclose its connections to Goldman Sachs where MNAT handled the DE bankruptcy of Finova (DE Bankruptcy 01-705) and eToys was DE Bankruptcy 01-706.
http://petters-fraud.com/MNAT_deposition_Feb9_2005.pdf
MNAT is guilty of Collusion to Defraud eToys (as eToys Debtor’s counsel) because it negotiated the sales of the debtor to Bain/ Kay Bee Toys. MNAT, Paul Traub’s firm(s) (Paul Traub’s local counsel (Frederick Rosner) went to many firms in DE carrying eToys with him) (Paul Traub’s firm (Traub Bonacquist & Fox (TBF)) was forced to disband) then Paul Traub partnered with Marc Dreier (doing 20 years in prison for $700 million in fraud) – now Paul Traub is with Epstein Becker and Green.
.
.
$800K attempted Bribe results in Smoking Gun
MNAT and Paul Traub also confessed that the post-bankruptcy petition CEO of eToys (Barry Gold) was secretly a partner with Paul Traub. They were caught after offering us a Bribe for $800,000 and then sending a Threat for us to “back off” from investigating the crimes. The DE Dept of Justice trial attorney (Mark Kenney) then made a lapse linguae stipulating he had handled the Paul Traub/ Barry Gold Conflicts of Interest in the case of Bonus Sales. When we researched what he meant (as punishing one crime does Not give immunity to all others) we found the Smoking Gun. A vanity letterhead (footer) stating that Barry Gold and Paul Traub were partners Before Mr. Gold became CEO of eToys.
http://petters-fraud.com/Asset_Disposition_Advisors_ADA_Traubs_Letter2_Bonus_Sales.pdf
.
.
US Trustee Program removes Region 3 Trustee DeAngelis
Director of DOJ EOUST replaces Region 3 Trustee Roberta DeAngelis when we report the Perjury / Fraud being unaddressed. The US Trustee Press release is timed the very day of our Emergency Hearing (Dec 22, 2004) to hear the Perjury/ Fraud issues.
http://www.justice.gov/ust/eo/public_affairs/press/index.htm
.
.
Paul Traub is caught in Fraud with Barry Gold before eToys
Many items then emerge of Barry Gold and Paul Traub’s previous connections – including Stage Stores
http://petters-fraud.com/StageStores_TBF_Supplemental_Affidavit_BarryGold.pdf
Stage Stores was a southern TX bankruptcy (00-35078) that was also Co-Debtor with Liquidity Solutions and owned by the founder of Bain and had officer/ director/ stockholders like Jack Bush and Michael Glazer. Coincidently Barry Gold worked for the director and confessed that he got many engagements due to Jack Bush (a Bain executive of many Bain entities). Michael Glazer was also CEO of Kay Bee Toys at the same time. Barry Gold and Paul Traub confessed that Paul Traub’s firm (TBF) paid Barry Gold four (4) payments of $30,000 each during Stage Stores and prior to secretly planting Barry Gold in as CEO of eToys. Where eToys then sold its assets for discounts in the tens of millions to Bain / Kay Bee Toys.
See pages 60 thru 69 of the eToys Transcript where Paul Traub was questioned by the Court directly.
http://petters-fraud.com/TranscriptMarch_1_2005_Traub_Confesses_60thru69.pdf
.
.
US Trustee Motions to Disgorge Paul Traub $1.6 million
http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million.pdf
Less than 10 days later
.
.
DE DOJ gives Paul Traub’s firm Illegal Immunity.
Nothing is as illegal or solid a proof of Breach of Fiduciary duty as the DOJ Trial Attorney (Mark Kenney) document that voided the $1.6 million motion to Disgorge Paul Traub’s firm; for the Stipulation to Settle the Perjury / Fraud contains the following obvious betrayal of a federal officers oath of office;
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures”
See Stipulation pages 8 & 9 here
http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
While all of the addressing of Paul Traub and MNAT’s Perjury and FRaud was transpiring – they engaged in another $100 million fraud in the Kay Bee Toys case. Michael Glazer -the CEO of KB – paid himself and Bain $100 million prior to Kay Bee filing for Bankruptcy. Enigmatically MNAT is representing Bain in the $100 million Fraud and Paul Traub had the Unmitigated gall to ask the Court to be the party who prosecuted the preferential transaction. When we pointed out the Perjury/ Fraud and non-disclosure of a serious Conflict of Interest to that Court- the
.
.
DE Dept of Justice
has court Strike & Expunge Perjury/ Fraud evidence
http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf
.
.
Director of DOJ EOUST Resigns
After we go to Director Lawrence Friedman and seek him to hold his direct email promise to rectify the bad faith; we point out that the fraud has now exceeded $300 million and is stepping across state and case lines. Director Friedman chose discretion over valor and Resigned (going to Bear Sterns).
http://www.justice.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm
Dept of Justice punishes Whistle Blower $3.7 million
Because we were a Court approved liquidation consultant. The DE Dept of Justice felt we should be grateful. When Mark Kenney was told of Paul Traub’s emailed threats and made the faux pas of telling us about the Bonus Sales case (and we reported such) he became hostile. MNAT supplied a Forged document stipulating that Haas had simply Waived $3.7 million in fees and expenses. Funny thing is – if anyone reads the purported waiver – it actually stipulates in item 11 that CLI (Haas’s company) is entitled to success fees. Then the Court ruled that Haas was moot and could no longer provide evidence of the Perjury and Fraud because he had “waived” his right to be in court. That Haas was no longer a party in interest or person aggrieved. In other words a person has standing to waive an item – but not standing to point out the purported waiver is Fraudulent.
http://petters-fraud.com/Haas_Affidavit_816.pdf
DE Bankruptcy Ct states
Lying Under Oath is Not Perjury
Paul Traub’s firm(s) and MNAT have already Confessed to more than thirty-four (34) false affidavits and Deliberately deceiving the Court. This is Fraud on the Court by Perjury. But the Judge, when we appealed the ruling that Haas and Collateral Logistic’s Inc., (CLI) is dismissed with prejudice – stated No Perjury was documented and refused to refer the matter to the US Attorney’s office (as is required of all Judges under 18 USC 3057(a)). This bogus opine, 6 months after the confessions, came of the court only came after we timely appealed to the US Dist Ct. See page 52 of the OPINION of Oct 4, 2005 that approved the unlawful immunity for Paul Traub’s firm.
http://petters-fraud.com/MFW_Opinion_Oct4_2005_granting_TBF_immunity.pdf
Haas and eToys shareholders appeal all the bogus rulings to the DE Dist Ct and 3rd Cir Ct.
The Third Circuit dismisses Haas’s appeals affirming that Haas simply “waived” his right to be heard and that he is a disgruntled claim holder who was a security guard / transportation guy at eToys.
Third Circuit states FRAP Does Not Apply in eToys
see page 7 http://www.ca3.uscourts.gov/opinarch/072360np.pdf
DE DOJ States it will Not pursue MNAT
see 1st footnote of brief
http://petters-fraud.com/US_Trustee_Obstruction_3rdCir_07_2360.pdf
Roberta DeAngelis secretly promoted to GC of EOUST
We were given several tidbits by federal persons who really believe in their oath of office. One germane item is the hidden fact that the removed Roberta DeAngelis was quietly/ secretly promoted to the post of Acting General Counsel of the EOUST. Thus when the FBI, SEC, OSC, OPR, Public Integrity Section, the OIG, OGE, President Bush Corporate Fraud Task Force all told us to go to the GC of the EOUST and the local US Attorney – they actually were telling us to go to parties who were being asked to investigate themselves. When we reported this – the DOJ US Trustee press release was finally released and Region 3 Kelly Beaudin Stapleton Resigned (and was replaced by non other than Roberta DeAngelis)
http://www.justice.gov/ust/eo/public_affairs/press/docs/2008/pr20080502.htm
US Attorney is partner with Conspiracy to Defraud eToys
We were also then informed something we could absolutely not believe. The DE US Attorney (Colm Connolly) who was refusing to investigate and prosecute the crime had his own Conflict of Interest. Colm Connolly was secretly a partner with MNAT in 2001 (the very year MNAT began their Perjury/ Fraud in eToys). Therefore Connolly had to either refer the matter to the Public Integrity Section or assign an Independant Prosecutor. See Colm Connolly’s resume
http://www.justice.gov/archive/olp/colmconnollyresume.htm
CA US Attorney Threatens Career Prosecutors to Keep Silent
We also had federal justices who did not like what they saw, including persons who helped draft the Bankruptcy Code/ Rule of Law. We were given an Official Court form (to make them aware we had friends) of 18 USC 3057(a). We were also told to submit such with a brief of details and have each and every page time stamped (Clocked Copy)
http://petters-fraud.com/Clocked_18_USC_3057_A.pdf
http://petters-fraud.com/CLocked_18_USC_3771.pdf
http://petters-fraud.com/ClockedCopyHAASmotionKBcaseMisPrisionFelony.pdf
Shake up of Federal Prosecutors
http://articles.latimes.com/2008/mar/20/local/me-shakeup20
There is SOooooo much more to this story. eToys is suing Goldman Sachs for $500 million in NY Supreme Ct. Problem is Paul Traub’s firm and Barry Gold (both who have a vested interest in the crimes and work with Goldman Sachs at the time) are running the case. Paul Traub was hand picked to prosecute the matter by Goldman Sachs DE Attorney MNAT. Not only is the proceeding a Sham – because we caught them previously by faux pas of sorts in the public docket record – nearly 1/2 the entire NY Supreme Ct case (# 601805/2002) is Under SEAL.
Then you have not one – but two judges who went after Paul Traub’s firms for their bad faith. One was promoted off the case to the NY Supreme Ct of Appeals – the other (who threatened the counselors that “their lives were on the line”) was promoted 3 weeks later to the 3rd Cir Ct.
Then the DE Federal Ct and 3rd Cir dismissed the case stating the Federal Rules of Appellate Procedures does Not apply to Bankruptcy Ct decisions to the Federal Dist Ct.
Then there is the issue of Jack Abramoff trying to illegally seize control of the Region 3 US Trustee’s office
see page 12 of the Congressional archives at this weblink
http://petters-fraud.com/Congress_Copies_Abramoff_email_2_getUSTpg12of50.pdf
Abramoff went DOWN because his partner’s haughtier (Johann Hamerski) he offered a $175,000 bribe to eToys shareholder Robert Alber and when Alber said NO – Hamerski threatened to have him killed. Johann then began a campaign against Alber spending $1 million dollars in effort to destroy him. Alber had 2 nervous break downs and ultimately had to endure Brain surgery. Hamerski was tricked to believe he would put Alber in jail – where he travel to AZ and then they upgraded the recording equipment as Alber received a Dream team (OJ like) of Public defenders who wield in carts of files and held Johann Hamerski on the stand in AZ for two days – then Abramoff went through hell.
But the real big story beyond the many specious deaths related to Paul Traub affairs is the fact that Traub Bonacquist & Fox partner (Harold Bonacquist) is listed in the NY State Bar and Supreme Ct as to be contacted through the US Embassy/ Consulate General of the Philippines to make an appointment with him in Istanbul (a non extradict)
http://www.archons.org/news/detail.asp?id=289
Traub’s Partner Marc Dreier and Tom Petters
committed hundreds of millions and billions of dollars in fraud – AFTER the DE Dept of Justice granted Paul Traub illegal immunity in 2005. There is no doubt those billions of dollars in schemes (and some of the related suicides) could have been avoided – had the Feds did thier job in 2005. Marc Dreier got 20 years – Tom Petters got 50 years – and Paul Traub worked the debtor side of Okun’s 1031 Tax Group as Michael Fox (TBF partner) worked the Creditors’ Trustee side. Okun got 100 years.
But the REALLY BIG STORY is the founder of Bain, whom Traub and Barry Gold met at NeoStar, worked with at Stage Stores and is the single greatest reason (next to DE former Senator being VP – who actually was carted around by Tom Petters airline (Sun Country)).
The single greatest reason why Bain bought KB in 2000, then Bain/ KB bought eToys, who was in bankruptcy. Then Liquidity Solutions (Stage Stores Co-Debtor) bought up all the claims.
Update July 15 2009
NY Supreme Court FRAUD
Hopefully the FBI, NY Supreme Ct, 1st Department and AG Cuomo will look into the on going $500 million in fraud in the NY Supreme Court case 601805/2002
Where nearly 1/2 the docket is Under SEAL!
Paul Traub and his firm – specifically Susan Balaschak (now with Akerman Senterfitt) lied to the NY Sup Ct in the case of eToys (ebc1) v Goldman Sachs (case # 601805/2002).
Of the many deceptions proffered upon the NY Supreme Ct is the failure to disclose that Paul Traub’s firm was hand-picked to handle the case by the MNAT law firm in DE.
MNAT is a co-collaborater with Paul Traub to plant Barry Gold secretly within eToys as President/CEO and confirmed Plan Administrator.
It is now confessed that Barry Gold is also a paid associate of Paul Traub’s firm of Traub Bonacquist & Fox (TBF) and a partner with Paul Traub in Asset Disposition Advisors (ADA)
More significant is the fact that MNAT is Goldman Sachs local counsel in DE and received a slap on the wrist sanction for failing to disclose this issue to the DE Federal Court – utilizing more than 15 false affidavits over several years to withhold the information.
Susan Balaschak even testified to the NY Supreme Court that the Creditors Committee (renamed the Post Effective Date Committee (PEDC)) was informed of Everything that was going on (see her testimony NY Sup Ct docket item 216 http://petters-fraud.com/SusanBalaschakAffidavit_NYSupreme_DI_216.pdf
Of the many false remarks in the Declaration by Susan Balaschak is the testimony that the three (3) co-chairs of the PEDC is LEGO, Fir Tree and Fisher Price.
Susan Balaschak is failing to inform the NY Sup Ct that both the Director of Credit at Mattel (Chairman of the Creditors in eToys and Mattel owns Fisher Price) and the Director of Credit at Fisher Price were “speciously” coerced to leave their offices early. The Director at Fisher Price was removed after he promised this whistle-blower that he would look into the matter directly. The former Chairman from Mattel had put in an affidavit that MNAT, Traub, Barry Gold and the party that gave Paul Traub’s firm unlawful implied, blanket, immunity had it stricken from the record (see Obstruction of Justice item http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf
Compounding the egregious behavior is the fact that Scott Henkin, the Exec at Fir Tree Value Fund – had confessed to us that he had given his “off the record” approval of the Non-disclosure of the relationship between Barry Gold and Paul Traub.
When we reported this to the Court = Scott Henkin threatened Laser Haas and then was speciously promoted to Senior Executive of DE Shaw. Real egregious behavior considering the fact that Bain sold eToys.com to DE Shaw and Scott Henkin became part of that firm.
After we reported this discovery the founding party DE Shaw himself – Resigned.
Fianlly – Susan Balaschak offers the NY Supreme Court Ellen Gordon as corrobative witness – this to is fraud on the court – as Xroads LLC no longer has Ellen Gordon working with them and Ellen Gordon was Barry Gold’s right hand person who also did her absolute best to nix ever deal to merge the public entity of eToys.
Xroads LLC, Paul Traub and Barry Gold have much to fear as they all work with Wells Fargo – and Foothill Capital (a Wells Fargo entity) loaned eToys $40 million November 2000 and transacted over $100 million prior to March 7, 2001.
The failure to review this preferential and submit affidavits stipulating there is no conflict of interest is already established as a criminal act. Where in the case of In re Bucyrus 94-20786 (ED Disc Wisc 1994) Gellene of Milbank & Tweed firm went to jail, Milbank Firm had to disgorge their entire $1.9 million and lost over $20 million litigation.
You can see the story in the book “Eat What You Kill” the Fall of a Wall Street Attorney by Milton C Regan.
Coincidently the $35 million dollar loan in Bucyrus involved a former Goldman Sachs associate.
Milbank refused to return the $1.9 million until the Court stipulated that it would subpoena Gellene to testify!
More than 100 felony violations plus 34 acts of perjury to perpetrate Fraud on the court – including one of the first Motions MNAT sought was the Destruction of Books n Records (eToys DE Bankr 01-706 docket item 300).
You can see many links (court docket proofs and newspaper items) on the DOJ and Court cover ups of Paul Traub, Barry Gold, MNAT, Goldman Sachs and Bain;
Including the fact that eToys lawsuit against Goldman Sachs in NY Sup Ct has nearly 1/2 of the docket Under SEAL
www.petters-fraud.com/DOJ_Cover_UP.html
——————————
UPDATE July 2, 2009
These items are testified for all federal agents including the Admin of US Court’s and Senate Sgt of Arms readings – Under Penalty of Perjury by Steven Haas (a/k/a Laser Haas) – this the 15th day of July 2009.
The walls are closing in on the Organized Criminal element – a/k/a a Bankruptcy Ring – of Paul Traub and his cohorts.
After initial discussions with the FBI Special Agents on the east coast and west coast – it appears the wheels of justice turn slowly.
However – with the compounding factors that both of Paul Traub’s former partners were arrested (Tom Petters and Marc Dreier) for $700 million and $3 Billion in fraud schemes – the case appears to have heated up somewhat.
With additional information being given to multiple state AG’s, the SEC OIG and local SEC, IRS, FBI task force teams – one can only continue to dance a nervous jig waiting for the swift/hard hammer of justice.
Paul Traub has confessed to acts of Perjury, but the DE federal courts, due to his purported efforts to bring many cases there – have thus far turned a blind eye to Perjury & Fraud and the Court initially said that no perjury was documented.
However, the Chief Justice and DOJ Trial Attorney that have turned a blind eye to the perjury/fraud- now have much explaining to do. The Chief Justice is winding down her cases and retiring and it is only a matter of time before the DE DOJ Trial Attorney and Region 3 Trustee are replaced.
Of the many crimes Paul Traub, Barry Gold and the MNAT law firm have committed include, but are not limited to;
Also Barry Gold, Paul Traub and the MNAT law firm violated nearly every single section of
18 USC 152 & 157
http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title9/41mcrm.htm
One would be much harder pressed to find a section Traub and his cohorts did not violate – rather than the easy pathway of documenting all the felony violations that Transpired.
Traub also threatened this whistle-blower to “back off” and was so powerfully entrenched within the DE system – the DOJ in DE and the DE BK Court simply ignored the allegation – because Laser’s attorney actually was lacking in intelligence enough that he “emailed” the threat.
Traub, Barry Gold and the MNAT law firm submitted a brief to the DE BK Court stipulating that Laser Haas and his court approved company, Collateral Logistics Inc (CLI) – was so generous that they “waived” the entire fees and expenses (est $3.7 million)
Funny thing is – the very document that was submitted actually states that CLI can seek success fees (see item 11 http://petters-fraud.com/Haas_Affidavit_816.pdf )
One does not know which is more lacking in sound judgment – the fact that perpetrators of fraudulent documents to the court did not have sense enough to fake the document in its entirety or the intolerable premise that the Court and DOJ would back up the fraudulent endeavor and accept a paper that is obviously bogus.
Nothing is as illegal or solid a proof of Breach of Fiduciary duty as the DOJ Trial Attorney (Mark Kenney) document that voided the $1.6 million motion to Disgorge Paul Traub’s firm;
for the Stipulation to Settle contains the following obvious betray of a federal officers oath of office;
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures”
See Stipulation pages 8 & 9 here
http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
What is almost laughable – if it were not so morose – is the fact that the Motion to Disgorge Paul Traub’s firm is digitially signed by Mark Kenney and it testifies therein – Twice – that the US Trustee forewarned the parties NOT to replace key exec’s of the eToys Debtor with anyone connected to the retained professionals (see parts 19 & 35)
http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million.pdf
While only addressing 3 felony violations – the Disgorge Motion concludes that Fraud on the Court transpired.
The US Supreme Court has stated (and the 3rd Circuit has affirmed the premise) that Fraud on the Court by Officers of the Court is an extra-ordinary circumstance that expunges the statute of limitations. Please see case of In re Hazel Atlas Glass http://altlaw.org/v1/cases/383006
Additionally, Mark Kenney also Obstructed Justice by petitioning to strike & expunge proofs of perjury/fraud of Traub in the Kay Bee Toys Bankruptcy case.
http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf
Also Mark Kenney and for Region 3 Trustee Roberta DeAngelis who is now back in as Region 3 Obstructed Justice with the brief that stipulates in the footnotes that it did not and will not address MNAT issues.
http://petters-fraud.com/US_Trustee_Obstruction_3rdCir_07_2360.pdf
Mark Kenney also instructed the SEC to back off from initiating an official investigation – according to Gordon Robinson – who is apparently no longer with the SEC (or changed his email).
—————–
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 writings—————–
On Dec 22, 2004, an Emergency hearing transpired at the DE Bankruptcy Court to address Perjury & Fraud.
When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.
http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.
When those that are paid to protect and serve, seek to abuse that esteemed position of power and trust for the benefit of cronies you have not a measure of law and civility, you have the recipe of disaster that begins as anarchy that ultimately has to foster deep civil unrest!
Hopefully anarchy will not find itself halted in its tracks due to the one entity that is questioned from time to time, but the American public still believes is true blue.
The FBI!
It is not in contention that false affidavits, by sophisticated bankruptcy counsels were supplied to the Federal Court. For they have confessed to the fact. Both the MNAT and TBF law firm have confessed to filing multiple false affidavits.
Upon the discovery of the fraud and perjury issues, Lawrence Friedman the Director of the US Trustee program in Washington DC did remove Roberta DeAngelis as Region 3 Trustee over Philadelphia and Delaware (please see the press release of Kelly B Stapleton here
What is neglected in the confessions to the multiple (and some admitted as intentionally left false) affidavits, is the documentation that they have admitted to more than 34 false affidavits.
Additionally, TBF and Barry Gold have confessed to drafting the egregious, Hiring Letter that gave Mr. Gold illegal authority to Circumvent the Code and the Court by his own volition. While MNAT states that they cannot remember who participated in the drafting of the letter at their firm.
Either MNAT did not draft the letter and has a fiduciary duty to its client (the eToys bankrupt estate) to report the item to the court.
OR
MNAT did participate in the drafting of the Hiring Letter and has to explain how in the world they did work for eToys that they did not bill for. For the very notion that they drafted the Hiring Letter and made the billable hour not appear is a criminal prima facie evidence of mens rea by an actus reus item.
More importantly, the Dept of Justice testified that the “parties” had discussions with the US Trustee’s office concerning replacing key personnel of the eToys Debtor and the US Trustee testified that the Trustee’s office warned the “parties” not to replace key personnel of the Debtor with anyone connected to the retained professionals of the case. As this would violate the “unambiguous” language of Bankr Code 327(a).
After the Dept of Justice testified about this item, the Dept of Justice attorney for the new Region 3 Trustee, specifically Mark Kenney, did sign a Stipulation to Settle that gave TBF law firm implied, blanket, Illegal, immunity with the following unlawful language;
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures“.
This clause is illegal as the US Trustee’s office is the policing “watchdog” for the sake of public equity protection, as per the Janet Reno Reform Act of 1994 as well as the fact that the whole design of the US Trustee program, as part of the Dept of Justice, is noticed upon every single press release of the US Trustee program, that states the following;
“The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws”
Yet, somehow, for an inexplicable reason, the Dept of Justice is utilizing the US Trustee program to give implied, blanket, immunity to Organized Criminal activity that is not in contention. The parties have confessed to their acts that disregarded the US Trustee warning.
Barry Gold submitted the Hiring Letter that was never revealed nearly 4 years after the date it was purportedly signed. Being supplied, in what has to be one of the great attorney slip up’s of this case, as a defense exhibit by Barry Gold himself.
The Hiring Letter documents willful intent to circumvent the Court and the Code by a collaborative effort. Being provided by Barry Gold himself, it is irrefutable.
Combined with the fact that Barry Gold testified, on the stand, that he was not connected to TBF, while both TBF and MNAT have confessed that they filed multiple false affidavits, where the Hiring Letter now demonstrates motive and purpose. One has to ask what is the motivation and reasoning for the Dept of Justice to breach its fiduciary duty.
Cui Bono?
The fact remains, even if the US Trustee states it will deliberately fail to perform its fiduciary duty, is no justification for the Court to jump on the band wagon of lawlessness and agree that such “breaking of the law” is O K.
Doing so is an act of sedition to ones Oath of Office and grounds for impeachment.
Additional reasons why the Dept of Justice is seeking to Cover Up the whole affair, may be due to the more recent discovery that the US Attorney in Delaware, Colm F Connolly was a partner with the MNAT law firm in 2001.
At the barest of minimums, Colm Connolly’s office is guilty of conflict of interest, protocol violations, ethics violations and Model Rule of Conduct violations for not referring the matter to an independent prosecutor or the Public Integrity Section.
Combined with the fact that the US Trustee disgorge motion only mentions the TBF law firm, even though the MNAT law firm confessed to filing multiple false affidavits also and had to participate in either covering up the Hiring Letter or fostering the scheme to defraud the court.
Made more morose by the fact that the Dept of Justice attorney, Mark Kenney, also does not mention MNAT issues when it seeks to give implied, blanket, Illegal, immunity to TBF.
An immunity issue that has apparently become wholesale and adopted by all as we have now also discovered that one of the items the “not seek to compel” clause desires to cover up is the fact that TBF, MNAT and Barry Gold all have undisclosed connections to Bain.
MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/ KB for discounts in the tens of millions of dollars, while not only remaining undisclosed about their connections to Bain and KB, they also now have confessed to filing more than 34 false affidavits stating they had no conflict of interest issues.
MNAT is now also discovered to have been working with Mattel , Learning Co merger (also a Bain party connection) and being less than candid about the Learning Co issue, MNAT convienently neglected to disclose the issue that the Learning Company merged with Mattel as doing so would have automatically disqualified MNAT representation of eToys Debtor.
Now we have the Dept of Justice breaching their fiduciary duty so maliciously that the US Trustee program, with the General Counsel from Washington DC is acting as an appellee, defending Barry Gold, TBF and MNAT in the 3rd Circuit appeal case 07-2360.
By the way, the Acting General Counsel for the Dept of Justice EOUST office in Washington DC is the former removed Roberta DeAngelis as Region 3 Trustee.
DeAngelis is now apparently promoted to the position of being in charge of investigating her own cases.
Lawrence Friedman had replaced DeAngelis with a press release that occurred Dec 22, 2004, the significance of the date is it was the very day of the Emergency hearing in eToys where the Court Ordered the parties to answer the allegations by January 25, 2005, in accordance with Local Rules.
They, the parties of MNAT, TBF and Barry Gold had no choice but to admit to the false testimony, for the proof provided by Laser Haas was Court docket affidavits of the TBF and Barry Gold. They therefore could not continue to deny their own handwriting that had been previously hidden, now discovered by a lapse linguae and the Public Access to court docket records that began in 2001.
Then a hearing on Feb 1, 2005 occurred where the Court then Ordered that Haas and the eToys shareholders could depose TBF, MNAT and Barry Gold on Feb 9, 2005.
The US Trustee told the Delaware Federal Court that it would make its position on the issues known, prior to Frank Perch’s scheduled travel of Feb 16, 2005.
After the Depositions provided additional proof of fraud and perjury, Frank Perch emailed the US Trustee motion to Disgorge on Feb 15, 2005 as promised. (eToys docket item 2195)
Then, less than 10 days later, Mark Kenney made moot the Disgorge Motion for $1.6 million and supplied the Illegal immunity provisio to TBF (and the rest purportedly) on Feb 24 2005 as a Stipulation to Settle the US Trustee Disgorge Motion (eToys docket item 2201)
Then, the March 1, 2005 hearing occurred to address the issue of fraud and perjury, where the Court speciously Ordered that Laser Haas could no longer speak and that they would not enter the Chairman of the Creditor Committee affidavit into the record that day. (asthe Chairman was who TBF was engaged by, the affidavit testimony that TBF defrauded the Creditors Committee would dam TBF to criminal liability).
However, during the March 1, 2005 hearing, the transcript of which is in the record as eToys docket item 2228. Paul Traub of TBF not only confessed again to filing the false affidavits he also admitted to the Court that TBF paid Barry Gold 4 separate payments of $30,000 each prior to placing Barry Gold within eToys as a “wind-down coordinator” who then became President, CEO and now confirmed Plan Administrator. Where Barry Gold has authorized more than $12 million in payments to TBF, MNAT and other connected parties illegally.
Laser Haas had received a direct email from Lawrence Friedman that he would address the issues of the case by his staff appropriately. Where the removal of Roberta DeAngelis and the Disgorge Motion seemed to provide proof that Lawrence Friedman was performing his fiduciary duties when others would not.
Then, the Stipulation to Settle occurred.
Then, Paul Traub gave the additional testimony of paying Barry Gold prior to placing him “in secret” within eToys.
Then, we discovered the MNAT, TBF and Barry Gold connections to Bain/ KB Toys and the Collusion to Defraud the Estate.
Then Laser Haas also learned that Scott Henkin of Fir Tree Value Fund had approved, “off the record” of the Barry Gold and Paul Traub connections.
Then Laser Haas discovered that MNAT, Barry Gold and TBF were also attempting another $100 million dollar cash fraud in the KB Toys bankruptcy case.
Then, Mark Kenney, the Dept of Justice attorney for the Region 3 Trustee, defended MNAT, TBF and Barry Gold by successfully getting the Delawre Federal Court to strike and expunge HAAS’s testimony.
You can see the written proof of this Obstruction of Justice Here
Then Laser Haas informed Lawrence Friedman of the additional perjury and fraud efforts with Mark Kenney’s overt acts of Obstruction of Justice.
Then Lawrence Friedman resigned (Please see Dept of Justice press Release here )
Also Frank Perch quietly did exit or resign at the same time.
Speciously, you will not find any press release by the Dept of Justice about Roberta DeAngelis promotion to General Counsel for the EOUST office in Washington DC. (you can see all press release by the Dept of Justice HERE
The Delaware Bankruptcy Court then held a hearing as the Wall Street Journal had reported on the TBF disgorge settlement HERE
The Delaware Bankruptcy Court visiting Justice Randolph Baxter refused Laser Haas new CLI counsel from speaking after Randolph Baxter allowed the parties to reschedule the CLI claims hearing, allowed CLI counsel to withdraw and did forbid the new counsel for speaking the very day Baxter did strike and expunge CLI and HAAS Court approved Senior Priority Admin claim for more than $3 million.
Then Haas appealed.
Then, speciously, after being silent for more than 6 months after TBF confessed to paying Barry Gold. The Court did enter an OPINION that vindicates TBF, MNAT and Barry Gold as the Delaware Bankruptcy Court, going into the Twilight Zone, stated that now perjury had been documented. Despite the Fact that the US Trustee had already testified to the Court that the US Trustee had warned the parties against violating the law where TBF And MNAT have already confessed to filing more than 34 false affidavits.
The Judge continued going off the deep end of logic with a 57 page Opinion that refused to refer the $300 million in fraud and perjury to the US Attorney’s office as is required by the Judicial Canon’s of Conduct ( specifically 3(B)3 ) and 18 USC 3057(a). (please see OPINION by Judge Mary F Walrath Here )
This is just as well, we suppose, with the newly discovered evidence that the US Attorney in Delaware, Colm F Connolly, was a partner with the MNAT law firm in 2001. Referring the matter to Colm Connolly office then did not matter as Laser Haas had been informing the Delaware US Attorney, specifically Asst US Attorney Ellen Slights and Deb for quite some time.
Now with the newly discovered evidence that Colm F Connolly was a partner at the MNAT law firm in 2001, when the fraud and perjury began (Please see Dept of Justice notice HERE )
Wherefore, Laser Haas realized a long time ago that the rule of Law was non existent in Delaware, as even the 3rd Circuit has stated that the Federal Rules of Appellate Procedure does not apply to Delaware Bankruptcy Cases (please see 3rd Circuit per curiam Opinion Here ) Where it says on page 7 that the Federal Rules of Appellate Procedure does not apply to this instant case.
Why even both with the mockery.
Just issue a nationwide Memo, all matter of Haas v eToys are prejudged against HAAS, QED!
Despite that readily apparent efforts of cronyism, to protect the Banrkuptcy Ring of Delaware, Haas did file a Citizens Complaint with the California US Attorney’s office Tom O’Brien.
Please see Citizens Complaint HERE
We were supposed to receive an answer from the US Attorney’s office of Tom O’Brien this week, the answer seems to have come in another form of message as the L A Times reported that last week Tom O’Brien did disband and dismantle the Public Fraud and Corruption Task Force.
More importantly, Tom O’Brien apparently threatened his own Asst US Attorney’s that if they revealed any other reason why the Task Force was disbanded, including bad mouthing their boss, that the Asst US Attorney’s would pay a penalty.
You can see the actual threat in the L A Times Store HERE
Upon receiving that news, Laser Haas began calling all the Asst US Attorney’s he could to get a comment.
No comment has been given, However, the Asst US Attorney’s did refer the matter “officially” to the FBI and the FBI did intake the information and has passed the case up the proverbial ladder within.
May it be that the FBI is really true blue and patriotic enough not to be corrupted by the Delaware and Washington DC corruption of Organized Crime referred to by Congress as a Bankruptcy Ring.
We will try to keep you informed.
DOJ efforts to cover up MNAT perjury and Fraud now receives national attention
UPDATE Aug 31, 2011
WARNING – there are rogue elements within the Dept of Justice – seeking to subvert the Constitution of the United States for veiled agendas sake – contrary to Congressional Law! During his tenure at the Delaware Department of Justice, US Attorney Colm Connolly’s office repeatedly declined to investigate and prosecute the MNAT law firm.
MNAT had made many confessions to perpetration of intentional deception of the Delaware Federal Bankruptcy Court by the MNAT law firm.
HOWEVER – a serious Conflict of Interest Ethics violations was committed.
Colm Connolly failed to disclose the fact that he was a partner at the MNAT law firm in 2001 – the very year the MNAT perpetrated many civil & criminal code violations – including Perjury, Collusion, Scheme to Fix Fees, SEC violations, Intimidation of Victim/Witnesses, Conspiracy, False Oaths/Declarations, Perjury and Racketeering violate of California, New York and Delaware state/ federal cases.
Please see Colm Connolly’s Resume from the Department of Justice
http://www.justice.gov/archive/olp/colmconnollyresume.htm
An Organized Criminal element maintains control over the Federal Bankruptcy Courts are the rogue parties within the DOJ US Trustee’s Office.
There are only 21 Police – the US Trustee’s –
in charge of all 1.5 million on average bankruptcy filings each year.
But there are 338 Bankruptcy Judges (here)
More than 100 felony violations occurred with confessions to 34 false affidavits (Perjury) that accomplished admitted premeditated Fraud on the Court.
Granting the criminals willful blindness allowed Marc Dreier, Tom Petters, Larry Reynolds and others to accomplish an additional $ 4 Billion dollars in fraud.
Cover UPs of MNAT & their clients
Goldman Sachs & Bain Organized Crimes
__________________________________________________________________
- DE DOJ removes Irell & Manella firm to make MNAT eToys Debtor counsel
- MNAT law firm petitions and receives ILLEGAL approval to Destroy Books n Records
- MNAT confesses False Affidavits hid relationships to Goldman Sachs
- However, MNAT still continues to Criminally conceal connections to Bain & Mattel
- eToys sold bulk of bankruptcy estate to BAIN/ KB for tens of millions in discounts
- Mattel was eToys largest unsecured Creditor over $10 million
- Goldman Sachs took eToys Public and with MNAT controlled eToys v Goldman Sachs case
- DOJ Collusion helps destroy evidence of Goldman Sachs Breach of Fiduciary Duty
- Destruction of Books n Records permitted MNAT to destroy eToys v Goldman Sachs case
- Laser Haas provides Smoking Gun Proof Barry Gold and Paul Traub are partners
- One part of US Trustee – Motioned to Disgorge Traub’s firm $1.9 million ( here )
- Less than 10 days later, another faction of US Trustee gave Traub immunity (here)
- Another $100 million crime transpire during US Trustee attempt to Settle fraud
- US Trustee rogue personnel receive illicit permission to strike & expunge evidence
- Forces Resignation of Washington DC DOJ Deputy Director Friedman
- Removed Region 3 US Trustee is Secretly made General Counsel of US Trustee
- US Trustee submits 3rd Cir Ct brief fraudulently expunging whistle blowers
- Dept of Justice testifies in 1st footnote that General Counsel will not pursue MNAT
- DOJ assists Traub, MNAT & Barry Gold Perjury that Haas “waived” Fees
- Beyond absurdity – no one would waive millions fees – forgery item 11 says NO waiver
- Despite confessions to 34 False affidavits Courts Opinion says NO Perjury (pg 52)
Currently the present US Trustee’s Office is
THE Most sophisticated group of white collar criminal activity in the United States.
Our tax paid Police – the 21 US Trustee’s handle over $500 Billion dollars annually.
There is no other arm of the Dept of Justice that handles so much money with absolutely no oversight whatsoever!
http://www.petters-fraud.com/DOJ_Cover_UP.html
When the MNAT law firm and the Traub Bonacquist & Fox law firm Confessed to supplication of more than 34 False Affidavits and Deliberately deceiving the Court – the DE Dept of Justice Trial Attorney – Mark Kenney – gave Traub’s firm a Stipulation to Settle that granted Paul Traub’s firm UNlawful, implied, blanket, immunity and the promise of the DE DEpt of Justice US Trustee’s office (the Police of the Bankruptcy Court) gift to Traub of future willful blindness by the US Trustee’s office.
http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
You must scroll down the PDF to the WHEREAS clauses proffered by the Dept of Justice Trial Attorney.
UPDATE Dec 19 2008
Some day soon, the DE US Attorney, Colm F Connolly, will have to explain why he declined to investigate or prosecute his former firm (MNAT) and partners for their participation into the $300 million dollar fraud in eToys and the 34 acts of perjury (MNAT confessed to supplication of 15 false affidavits to the Federal Court in DE).
Then again, maybe not – who knows how deep the corruption goes.
The one thing we do know for sure, documented by the Court Docket record of eToys docket item 2201 – is that instead of prosecuting the TBF law firm for confessing to deliberately deceiving the court through more than 17 false affidavits – the Dept of Injustice gave the TBF law firm Unlawful, implied, blanket, immunity.
Then Traub committed another $100 million fraud endeavor in the KB Toys case and the DE DOJ obstructed justice by having the evidence striken and expunged (See KB Toys bankruptcy DE 04-10120 docket item 2228 therein)
Since then, Paul Traub’s two other partners have been accused, arrested and are being held without bail for more than $2.3 billion in fraud. Tom Petters for $2 Billion, Marc Dreier for $300 million ( a separate $300 million from eToys)
http://www.petters-fraud.com/DOJ_Cover_UP.html
What are the odds, had the Federal authorities investigated and prosecuted Traub in the beginning, that Dreier and Petters would not have reached to the level of criminality they are documented to have accomplished?
We may never know!
The Law firm of Morris Nichols Arsht & Tunnel (MNAT) has confessed to filing multiple, false, Rule 2014 and Rule 2016 affidavits, in order to be paid millions in fees in the eToys case.
.MNAT was the Court approved counsel for the Debtor of eToys. Traub Bonacquist & Fox (TBF) was the court approved counsel for the creditors of eToys.
Barry Gold was the “wind down coordinator” , then President, CEO and now Plan Administrator of eToys.
.The Law firm of TBF also confessed to filing multiple, false, affidavits to the federal court in eToys.
Today we focus on the issue that has gained national attention recently, as can be seen at the WSJ Law Blog here
Where the Wall Street Journal noted that the Wilmington Journal had begun to review the serious issue that Congress is intent upon looking into Delaware Courts bias decisions that disfavor the public shareholders and bless Executive or inner circle elite. ( to see the Wilmington Journal article here )
What is at stake is Delaware’s dominance of corporation filings that has blossomed into a Delaware bankruptcy Courts and attorney bonanza at the expense of the public at large by rulings contrary to Congressional mandates and common decency.
It was not my desire to be at odds with rogue personnel within the Dept of Justice. (at least we hope they are a rogue element and not the norm). Nor was it my desire to pick upon powerful, esteemed elites of MNAT, TBF or US Attorney Colm F Connolly.
To the contrary, my desire is that this all go away with proper remedy.
I did not seek their incarceration or demise, however, they cannot steal from a company I was sworn to protect, whether they take away my right to be paid or not, the fiduciary duty Remains!
It is their arrogance and belief that they are Above the Law, that shall either assure their success in the criminality or assure their demise.
However, they, MNAT, TBF, Barry Gold and the rogue personnel within the Justice Dept, choose little ole me (actually I am a big person :0) ) as the enemy worthy of their disdain and efforts for destruction.
My own attorney, Henry Heiman, a former Trustee in Delaware, after I had been offered inducements, warnings and more, where Heiman, feeling no worries, due to the “good ole boys” network in Delaware, Heiman emailed me a threat from Susan Balaschak of TBF. That if I did not back off, not only would HAAS and CLI not be paid, my career would end and they would come after me.
My response was to blow the whistle. While many said I should have found a way to take the $800,000 bribe and adapt my views. Be the silly person I am, I reported the bribes and threats to the Dept of Justice.
This blowing the whistle, initially, resulted in confessions. TBF and MNAT confessed to filing multiple, false, affidavits to the Courts. (more than 35, to be exact).
TBF confessed that Barry Gold was his paid associate, that TBF had paid Barry Gold four (4) separate payments of $30,000 each.
TBF, MNAT and Barry Gold also confessed that they drafted a Barry Gold Hiring Letter.
The Hiring Letter contains language that rewards Barry Gold if he does not apply to the Bankruptcy Court for persmission to be hired.
The reason the parties drafted the clandestine Hiring Letter (the letter remained hidden until Jan 25 2005 even though it was signed in June 2001) where MNAT, TBF were warned by the US Trustee’s office not to violate Section 327(a) of the Bankruptcy Code. (the US Trustee testified to this in the Motion to Disgorge TBF for $1.6 million on Feb 15, 2005, eToys docket item 2195) as they were warned not to do a crime, the only chance they had, to get away with crimes, that were already ongoing, was to seize control of the entire estate. The Hiring Letter would have guaranteed their success, if they had not chosen to stiff HAAS and CLI just because they had the power to do so.
The issue at hand for Delaware Courts, MNAT and the US Attorney, Colm F Connolly. Is that, despite the confessions, the Disgorge Motion and Stipulation to Settle, never, Ever, mentions MNAT. This testifies, as prima facie evidence, being an actus reus act in and of its own existence, to the very fact that MNAT is enjoying a spirit of no prosecution.
The Stipulation to Settle is an ILLEGAL document,
where the Dept of Justice in Delaware, apparently in an effort to protect MNAT, has given TBF improper, Illegal, permission to Circumvent the Code. This implies that willful circumvention of a Code or Rule, a crime in any sense of the word, has become systemic in Delaware.
The exact words in the Stipulation to Settle, flagrantly defy the Code/Rule of Law and the Dept of Justice’s fiduciary duty to the public and the courts.
“WHEREAS The United States Trustee shall not seek to compel TBF to make additional disclosures”
Every counsel in the world can tell you they would LOVE for such a clause to be legal. In essence that clause and setting the precedent that such is permitted, single handedly, wipes out the statutes and intent of Congress.
We do not have to prove anything else in this case, that clause, documents, by the Dept of Justice own signature, the intent to willfully circumvent the Code.
In re Middleton Arms Ltd Partnership 934 F.2d 723 (6th Cir 1991) has been affirmed by the US Supreme Ct and the 3rd Circuit. “courts cannot disregared the clear and “unambiguous” mandate of Section 327(a)”.
When any non disclosure of conflict of interest is discovered, after the fact, the Courts must disqualify. Not is not even within the authority of a Federal Justice to Circumvent the Law. Because that is called, in any public citizens realm, Breaking the LAW!
Bonds, Martha and Clemens are citizens who made a false statement and all are paying through the nose for such self protection efforts.
MNAT, TBF, Barry Gold, Colm Connolly, Mark Kenney, Roberta DeAngelis, Kelly B Stapleton, Andrew Vara and anyone else in this case are “officers of the court” and thereby are held to a higher standard. They are given their esteemed levels of trust and above average pay days, due to the fact that they are required and swear an oath to be of the highest integrity.
When they violate that level of trust, the crimes or heinousness of the highest kind. Again, it is their arrogance and Abuse of power that is the testimony of their character. I am just the messenger.
Now Colm F Connolly is nominated to be a Delaware District Court Judge. Where Connolly’s resume became public information. By revealing that Colm F Connolly was a partner at MNAT in 2001, many ethical questions are automatically obvious.
Why has Colm F Connolly’s office refused to investigate MNAT?
Why has Colm F Connolly failed to refer the MNAT matter to the Public Integrity Section as is required by Dept of Justice protocol when the US Attorney has any connection, whatsoever, to an issue?
Did Colm F Connolly assign a case number to the issue, as the protocol of the Dept of Justice mandates, when more than one hour of time is expended on an issue?
MNAT, TBF and Barry Gold are utilizing the Stipulation to Settle permission to circumvent the law to keep quiet about the MOST important issue. Barry Gold, TBF and MNAT all have “undisclosed” connections to Bain/KB Toys.
MNAT, TBF and Barry Gold all negotiated the sale of most of eToys assets to Bain/KB. This is Collusion to Defraud an estate.
It breaches their fiduciary duties to their respective clients, it breaches their Oaths, Declarations and Affidavits to the Court and violates Model Rules of Condcut, SarOx, SEC Regulations, Delaware State Corporate Law and many other platforms.
It is THE most serious betrayal of trust that can occur. For MNAT, TBF and Barry Gold “sold out their client for their own benefit”.
Colm F Connolly, Mark Kenney, Roberta DeAngelis, Kelly Stapleton, Andrew Vara and everyone else knows the LAW and their fiduciary duties are to the public and the Constitution.
We do not have to prove the benefit that the Dept of Justice personnel received in their efforts of nolle prosequi (refusal to prosecute).
The failure to prosecute obvious criminal acts and the overt manner that the Justice Dept has engaged upon, in order to defend the criminality and punish this whistle blower, speaks for itself.
It is plain dumb, to continue this charade any further. It is obvious that they have reached the end of their power center. If they desire to mitigate their own demise, it would be wise to effort a honorable remedy now, to demonstrate good faith.
All their calls to the WSJ to shut down my statements had to send a message that things are heating up.
Senator Biden was informed of this stuff for years. He is at risk also.
They are the ones who choose to go all or nothing, when they already had it all, they could have given back a little, to everyone and made this issue go away.
Instead, they used their power and influence with the Dept of Justice and the Delaware Courts, going TOO FAR!
They have stolen a public company and even if you toss out Bankruptcy Code and Rules, by Delaware’s own Corporate Laws, the sale of eToys.com assets is rescindable, as it fails the “bona fide” requisite.
The push, the hard push, to make Colm Connolly a Judge, is that he then, cannot be removed, unless he is impeached.
If Delaware wants cronyism as the main character trait within its Systems, it will get what it asks for!
However, the fact remains is that this is multiple cases, multiple years, multiple parties, multiple states, involving hundreds of millions of dollars. All being done contrary to the Law.
If this was a powder substance instead of the stroke of a pen, it is obviously Racketeering. Because they are doing such by abuse of power and you have yet to see a body in the streets, some are inclined to permit the leniency.
It is obvious however, that those that desire leniency are not the ones who lost their money in eToys.
When the RICO efforts involve those the country pays salaries of $100,000 or more per year, to defend us from racketeers, then you do not have the law, you have anarchy and cronyism.
Criminal acts exposed
I. STATEMENT OF JURISDICTION
1. Quoting the US Trustee in their response to Robert Alber’s initial brief, this appeal involves a core proceeding (as defined in 28 U.S.C. § 157(b)(2)) arising under title 11 of the United States Code, over which the United States Bankruptcy Court for the District of Delaware had jurisdiction pursuant to 28 U .S.C. § 157(b)(1). The United States District Court for the District of Delaware had jurisdiction over Appellant Robert K. Alber’s appeal from the bankruptcy court’s October 4, 2005 order pursuant to 28 U. S.C. § 158(a)(l), as it was an appeal from a final order of the bankruptcy court. Mr. Alber timely filed a notice of appeal of the district court’s February 27, 2007 final order dismissing his appeal to the district court. Accordingly, this Court has jurisdiction over Mr. Alber’s appeal pursuant to 28 U.S.C. § 158(d). This Writ also states such as well as various other, serious issues, that make the instant appeal a matter that this honorable body needs to address at the request of this “pro se” petitioner Steven Haas (“Haas”), the Court approved liquidation company sole owner whom the bankruptcy Court also gave standing[1] to.
II Extraordinary Circumstances dictating the need for Writ of Mandamus
2. This Emergency Motion seeks a Writ of Mandamus that may be utilized when the system refuses to address matters of recusal or comply with unambiguous statutory mandates of disqualification. Fraud is continuous, even today, in eToys and the authorities thus far have engaged in staunch acts of “nolle prosequi”. A Writ of Mandamus[2] is “drastic remedy that a court should grant only in extraordinary circumstances in response to an act amounting to a judicial usurpation of power” (In re: Mwanze, 242 F.3d 521, 524 (3d Cir. 2001)). This court has jurisdiction and is about to make a decision in the eToys case that is germane to Emergency[3] issues and this Court should be informed of the facts documented below to avoid any further wasting of the Court’s efforts of justice. It is imperative to inform the Court that serious criminal “defensive” posturing is occurring in a possible effort to pervert justice for the benefit of “unclean hands”. They are doing preemptive efforts to thwart the appeal outcome Jan 2nd.
3. This Circuit has addressed the issue of “bankruptcy rings” before. (In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986)). This Circuit remarked upon the fabric of the stabs to clean up errant efforts, after the fact, to circumvent the Code, concerning offending applications of § 327(a) and Rule 2014 affidavits. This Circuit remarked;
“[W]e reject the notion that a complete and thorough post-application review may substitute for prior approval in most cases. This approach would render meaningless the structure of the Bankruptcy Code and Rules, which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”.
4. It is undisputed that errant, false Rule 2014 affidavits[4] have occurred. This instant appeal originates from disputing the US Trustee signing of a Stipulation as the Court refused to disqualify parties who admitted mendacity. The illegality being readily apparent as the Court and US Trustee seek judicial usurpation of powers by the Court approving an illegitimate clemency clause;
“WHEREAS, the United States Trustee shall not seek to compel TBF to make additional disclosures”
5. There is no legal basis for the Bankruptcy Court to use such “clause” as a qualitative or quantitative measure of “judicial usurpation” of the integrity of the judicial process. Chiefly important, manifest injustice is continuous, within the jurisdiction of this Circuit by willful blindness, “pretense” and “color of law”, benefiting a “bankruptcy ring” that is becoming incestuous organized crime within the Delaware court system.
6. The Matter of Arkansas was concerning a much less ruthless effort, being a “nunc pro tunc” employment, yet this Circuit felt it necessary to remark upon Cronyism and “bankruptcy rings” in the Arkansas matter to send a clear message and warning that the Circuit was aware of such nefarious possibilities, so that those that would engage in any efforts of end runs around the law and the Court’s auspice would think twice. Where this Circuit specifically remarked;
“It is significant that Congress chose to place the requirement of court approval for the employment of an attorney, accountant, or other professional by the creditors committee directly in the Bankruptcy Code in 1978. 11 U.S.C. § 1103(a). The legislative history makes clear that the 1978 Code was designed to eliminate the abuses and detrimental practices that had been found to prevail. Among such practices was the cronyism of the “bankruptcy ring” and attorney control of bankruptcy cases. In fact, the House Report noted that “in practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors.” H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. & Ad. News 5963, 6053”
7. On Dec. 14, 2007, this Circuit scheduled the mattes for Trial on January 2, 2008. Then on Dec. 18, 2007 a motion by the “planted” party of Barry Gold[5] who has implied he will, or has, withdrawn as CEO/ Plan Administrator occurred. The perpetrators and Mr. Gold are seeking payment of legal defense funds, at the same time the KB Toys case[6] (which owes the eToys Debtor tens and maybe hundreds of millions) is rushing to a close, while the NY Supreme Court trial of tens of millions remains in serious question of fraudulent peril.
8. The Asst US Trustee testified to the fact that the parties sought permission concerning placing a connected party in as sole bankruptcy authority. Despite the warning the counsel for the Creditors and for the Debtor placed a connected party in as a “wind-down coordinator” (Barry Gold), who has been the Plan Administrator since November 2002 till present. Now the parties seek to maintain control by ruse[7] in replacing Mr. Gold.
9. While this movant does not desire to interrupt the current proceeding that is scheduled for January 2, 2008. Such may be necessary, at least for a few days, to give opposing parties the chance to respond. The fact remaining is the US Trustee and the other appellee’s have refused to give this movant [Haas] proper notice, repeatedly, even after being forewarned[8] against such malevolent behavior. The perpetrators are in total, nefarious control of the estate, within and throughout, seeking to maintain safe control.
10. It is a fact, not in contention, that the Creditor and Debtor’s counsel have confessed to supplying, multiple false Rule 2014 affidavits to the bankruptcy court[9]. The counsels submitted monthly items to the Court and have provided over 19 false affidavits. Including two (2) false testimonies by the Plan Administrator. Yet, despite Court docket proofs of this perjury, the US Trustee and the bankruptcy court have stated no perjury has been documented being contradictory to its own Opinion[10] while approving the US Trustee’s clause. Once one confesses of perjury nothing they say has value or verity.
11. This instant appeal also concerns the issue that no disentitlement has occurred as the bankruptcy court went on the record in the Opinion of October 4, 2005 refusing to disqualify,[11] also refusing to refer the matter to the US Attorney’s office. Now the parties seek to pull a fast one on the Circuit’s authority by replacing the Plan Administrator with a party hand picked to assure the continued success of their schemes.
III Issues presented
12. In the current debate of whether the district court abused its discretion in dismissing Mr. ALBER’s appeal under Poulis, multiple parties requested to amend the appeal concerning Steven Haas (a/k/a Laser) (hereafter referred to as “Haas”) and the parties sought also to amend the appeal headings concerning Kelly B Stapleton. MNAT law firm has specifically named Haas specifically in the MNAT cross appeal[12] of 05-831.
13. This Court denied requests to amend parties, yet the parties of the US Trustee and various appellee’s have refused to serve “proper” notice to party Haas. Haas notified the appellee’s, when Haas sent out the Haas response brief in this instant appeal, warning the appellee’s not to ignore Haas, or any other parties of interest[13]. That setback now presented, Haas also brings to this Court these other issues as well, for review,
a. Does Haas have standing as person aggrieved and/or appellee
b. Must the parties give notice to Haas and abstain from bad faith
c. Under Fed. Rules of Evidence – Judicial Notice 201[14]
1. Was Barry Gold required to apply per § 327(a)
2. Is the US Trustee Stipulation to Settle circumvent of 327(a) valid
3. Did the Bankr. Court errs in stating no perjury occurred.
4. Did the Bankr. Court err in stating no disqualification
5. Did the Bankr. Court err in refusing to refer to the US Attorney
6. Did the Bankr. Court err in denying Haas standing
7. Did the Dist Court err in dismissing Robert Alber under Poulis
8. Will this Court void Barry Gold, ab initio, per 327(a) or Plan 5.2
9. Was the Ordered response of January 25, 2005 a total come clean
10. Will this Court rule that “fraud on the court” has occurred, intentionally and make official referral to the US Attorney office
d. Can this Court order that Haas or CLI be Plan Administrator in place of the voided Barry Gold, for the sake of rectifying fraud & the Plan protection[15].
e. Due to the abundant skullduggery overwhelming documented; will this Court maintain authoritative watch over the case or Order a change of venue to assure integrity of the judicial process, including the “extraordinary” method of “Quo Warranto” as this criminal conspiracy warrants.
f. Will this Court take notice that the Plan has extraordinary circumstances that exists that the Debtor’s estate can be made whole by a comfort order
IV This brief is submitted by Oath “under penalty of perjury”.
14. These facts are brought to you this day, by Steven Haas (a/k/a Laser Haas) (hereafter referred to as “Haas”). Whereby I, Steven Haas, this 26rh day of December 2007, “under penalty of perjury” testify to all items above as well as the following items below;
15. Accordingly the questions that we pose to you, or any reader of this criminal saga, shall simply be, – do you mind? Does one mind that officers supplied the court with sworn affidavits that were false, intentionally? Does one mind that the Dept of Justice has chosen to crush a whistle-blower while defending the perpetrators of fraud instead of protecting the public’s trust as they are sworn to do[16]? Are you incensed by the fact that the Court itself, sought to be lenient on behalf of well-established colleagues[17]?
16. Is it upsetting to know the bankruptcy court’s leniency is complicit in defrauding creditors and whistle-blowers[18]? Can anyone sit inactive while our system of justice, the US Trustee’s bureau and US Attorney’s office engage in a cover up that seeks to keep every authority from knowing that their acquaintances are involved in a plot of $300 million in fraud? Where the “police” of the Courts are defending versus arresting malfeasance as a “syndicate” has reared its ugly head and dares anyone to question why!
17. They have given implied, blanket, immunity to their well-established colleagues! Is this mockery of justice to continue? Can we stop people who state, with legal fraud, that they are Above the Law? Can we stop Organized Crime in our Courts?
V Background and Statement of the War of Fraud
A simple desire to destroy books n records and the next thing $300 million disappears.
18. One is bound to be astonished, and cynical, at the same time. The amount of subterfuge in the eToys saga makes it necessary to present this chronicle in a manner that will cure the doubter within. Haas is “pro se” after having hired eight different counsels, (even though the Debtor’s estate is contractually obligated[19] to provide defense), where all counsels refused, despite 18 USC § 4 MisPrison and 18 USC § 3057(a), firmly declining to report fraud on the court, by officers of the court, to any authority. As a result Haas and CLI was an abandoned client and was forced to become “pro se”.
19. It is a moral & legal imperative that verification of the facts occurs. (To assure the purity of the System of Justice). Self-dealings, being illegal, are profuse[20]. They are enjoying the qualm that such cannot be, taking advantage of the unwillingness to hear.
20. It is necessary to review the three key court docket items,[21] the US Trustee and Bankruptcy Court provided, which will substantiate the actual criminality and a give anyone all the tangible evidence needed to know something is seriously wrong.
21. The firm of Morris Nichols Arsht & Tunnel (MNAT) was the Court approved counsel for the eToys bankruptcy case in Delaware (Bankr.# 01-706) (the “Debtor”). The firm of Traub Bonacquist & Fox (TBF) was the Court approved counsel for the Official Committee of Unsecured Creditors in eToys. The firm of Collateral Logistics, Inc., (CLI) was the Court approved, “sole” liquidation consultant of the Debtor. (Haas is the 100% sole owner of CLI). Robert Alber is an eToys public equity shareholder. The Post Effective Date Committee (the “PEDC”) is the court approved Plan committee.
22. Abundant proofs of vast felony violations, including $300 million in fraud & voluminous acts of perjury (several acts already confessed[22]), have already been documented by the Bankruptcy Court[23]. The lawful authority[24] of the system has become void and rogue parties of the system making efforts to cover up an OOPS are now caught!
23. The management team that had originally formed eToys and went public in 1999 decides to file bankruptcy in 2000 and then declared that they were going to vacate the estate. The Court approved an Order to destroy[25] “books n records” (D.I. 300) after the eToys Debtor filed bankruptcy around March 7, 2001, leaving a void by a paperless trail.
24. Thus you have an uncanny situation where the Court should appoint a US Trustee; in opposition, Delaware is notorious for its disinclination to do so. Paul Traub the founder of Traub Bonacquist & Fox, as counsel for the creditors, being an opportunist, seized upon this perfect scenario as a pioneer of coarse ways to take advantage of the bankruptcy system. All the evidence of Court docket records demonstrates that TBF continuously became more brazen and flagrant[26] in disregard of § 327 and Rule 2014.
25. The fact is they (TBF & MNAT) admitted to acts of filing false Rule 2014 affidavits in eToys[27], stating, in a cheeky[28] manner, that it was inadvertent. While fiendishly the truth is they admitted to a small amount of illegal acts, as they continuously remain silent about $300 million in fraud. They are also unfettered in major threats of retaliation, obstruction of justice and racketeering because of implied immunity[29].
26. The Asst US Trustee originally responded with a Motion to Disgorge[30] TBF. Which was then inexplicably followed by a Stipulation to Settle, by Mark Kenney (the attorney for the US Trustee). Additional fraud occurred in the KB Toys case, in March 2005, that Haas whistled upon, as TBF had threatened Haas to “back off” or CLI would not get paid and that Haas and/or CLI would suffer additional retaliations[31].
27. The eToys Bankruptcy Court then retaliated, expunging and dismissing Haas & CLI, wiping out CLI/ Haas’s Senior priority admin claim for $3 million. That Haas did appeal in September 2005. The bankruptcy court then issued an Opinion and corresponding Order that approved the Stipulation to Settle on October 4, 2005.
28. Haas and Robert Alber immediately appealed this approval, while MNAT also cross-appealed. Multiple appeals, petitions for rehearing, including requests for en banc rehearing occurred, that were all dismissed without adjudication upon the merits of Haas, CLI issues or proper review of the matter of Fraud on the Court. (Many by Judge Kent A Jordan[32] which demands recusal under §455 and additional appeal rehearing).
29. Subsequently the most recent appeal currently being reviewed by this Court, as the Dist. Ct. used the extreme of a prejudicial Poulis Std., to dismiss Robert Alber, where the dismissal by Poulis, to be utilized last, is in debate as the Judge used it as a first.
30. Everyone, including more than four (4) parties from the US Trustee’s office have submitted briefs, response briefs and letters to this Third Circuit Court seeking to expunge Haas and Robert Alber, while the Justice Dept has refused to prosecute the case[33].
31. The lack of action by the Dept. of Justice parties, (that have breached their fiduciary duties), are thereby forcing the question[34] of “Quo Warranto”! As the scheming parties of TBF, MNAT & Barry Gold can only succeed by ploy and plot, with the blind eyes of the police (US Trustee), as they are now conniving to replace the position of Plan Administrator with another of “their” own and justice dictates that this cannot be allowed.
VI. The 3 court documents that prove the intent to do a Cover Up
32. The proof of perjury and fraud is the Asst US Trustee’s Motion to Disgorge TBF for $1.6 million[35]. (The Disgorge Motion) (D.I. 2195 in eToys Bankr) (Feb. 15 2005).
33. The Asst US Trustee did not seek the mandatory disqualification, required by law and falsely concluded that a “planted” party by the Creditors attorney (Barry Gold) (a “wind down coordinator”) was kosher, being opposite to the Code mandates.
34. This false premise of stating Barry Gold was not required to apply per § 327(a) is a requisite in order to hoodwink inquiries[36] and to defeat Haas and Alber.
35. The Disgorge Motion occurred because Haas proved and Alber joined Haas regarding “undisclosed” conflict of interest existing between TBF and Barry Gold (as well as many other items of non-disclosure).
36. Then, less than 10 days later, on Feb 24, 2005, the Dept of Justice attorney, Mark Kenney, made that Disgorge Motion void impiously. Mark Kenney supplied a Stipulation to Settle, (D.I. 2201) to give new leniencies to TBF as it concluded that TBF only would pay $750,000 sanction for TBF’s transgressions, with abatement of disclosure.
37. This act to Settle can only be described as subversion to an oath of office.
38. Finally, the third document, that pulls the wool over the eyes of the public, is the Bankruptcy Court’s Opinion[37] of October 4, 2005 (D.I. 2319). That had a corresponding Order attached (D.I. 2320). Despite the fact that Paul Traub of TBF confessed[38] to the Court, in a March 1, 2005 hearing to multiple statutory violations, the court refused to disqualify or refer for prosecution. Even after TBF admits it paid Barry Gold four (4) payments of $30,000 each prior to TBF placing Barry Gold, in a clandestine manner, as the bankruptcy Court clearly errs in remarking no wrongdoing occurred.
39. The Opinion headed off Haas’s appeal stating the Court finds the no criminal acts occurred. (A statement made in comfort as everyone keeps striking and expunging Haas). Then the Court also remarked, in a flagrant manner of Mark Kenney’s Stipulation to Settle, that it refused to refer[39] the matter to the US Attorney’s office[40].
VII The Dept of Justice warned TBF not to violate Section 327(a) and 101(14)
40. Congress was aware that undisclosed conflicts are dangerous, which was affirmed by this Circuit, concerning the bankruptcy realm[41]. Therefore the Laws of 101(14) “definition of disinterested person”, Code 327(a) “Employment of Professional Persons” and the affidavit requisite, to confirm that a court approved professional is in compliance, Rule 2014, was formed to assure judicial as well as professional integrity. The Asst US Trustee Disgorge Motion stated that he [fore] warned the parties[42]. (D.I. 2169 ¶19 & ¶35). Yet the Disgorge Motion and bankruptcy Court Orders refuse to disqualify.
41. Despite an authoritative instruction against an obvious unlawful act, the parties nefariously conspired to commandeer control of the estate. Whereby both the Debtor and Creditor’s counsel (MNAT & TBF) drafted a clandestine Hiring Letter[43] (D.I. 2169) to place a connected party (Barry Gold of TBF) within eToys as the “sole” bankruptcy authority of the estate. They simply kept one exec on the payroll, to assure an appearance of a Debtor, (David Gatto) even though they were in essence, void of a client. The Hiring Letter documents duplication of CLI approved work by Barry Gold, who was a “wind down coordinator[44]” (an effort to flip flop on what duties he was performing).
VIII Dept of Justice refuses to prosecute confessed perjury and obvious fraud
42. As the Asst Trustee remarked upon in the Disgorge Motion, the US Trustee is charged with overseeing Chapter 11 cases within the Delaware Judicial District in accordance with 28 U.S.C. § 586. The US Trustee’s office was designed by Congress to protect the system and public from “bankruptcy rings” and cronyism. The US Trustee is the “policing” authority of Chapter 11 bankruptcy matters as the Disgorge Motion pointed out in referencing Morgenstern v. Revco D.S., Inc. (In re Revco D.S., Inc.), 898, F.2d 498, 500 (6 th Cir. 1990) (describing the US Trustee’s office as a “watchdog”).
43. When we shouted and screamed to all the authorities concerning the profuse frauds, the Delaware US Attorney, Mr. Colm Connolly’s staff failed to tell us then (3 years ago) that Mr. Connolly was a partner with MNAT in 2001, when the bulk of the offenses occurred. (It is perceptible that any honorable review of the facts, will kismet many).
IX Trustee warned them not to do wrong as Fraud begins with a Hiring Letter
44. The Hiring Letter was submitted into the record, three years after it was drafted, along with their confessions to false affidavits. (D.I. 2169) as many false items are verified by the Disgorge Motion (D.I. 2195[45]). The exact verbiage of the Hiring Letter circumvention of the Code by offers, states the following;
“you shall retain such position – (i) the approval of your employment as an officer by Order of the U.S. Bankruptcy Court”–
That was then made invalid by a bold, willful, circumvention and inducement –
“ –you have waived the condition in clause(i) you shall be appointed as President and Chief Executive Officer of the Company –“
45. At such time Barry Gold was then paid $40,000 per month (for two days work every two weeks) and a promise of a bonus at the end of the case if he chooses willfully to evade the auspice of the Court. (The letter was a scheme by TBF & MNAT).
46. So restrictive is the statutory requisite on disqualification it is beyond the flexible powers of a Federal judge to circumvent the mandate, as is confirmed by In re Middleton Arms, Ltd. Partnership , 934 F.2d 723 (6th Cir. 1991). This Circuit has affirmed that disqualification is a Code mandate when non-disclosure violations occurs.
47. The failure of counsels to not independently review disbursed million dollar preferential cash transfer items, is a crime. (In re Bucyrus 94-20786 (E D Wisc.) Matter of Gellene, Milbank & Tweed, Gellene imprisoned for perjury, total disgorgement of Milbank as they lost a $30 million lawsuit as a result of one instance of perjury to cover up a loan).
48. Allowing the parties who engaged in subterfuge to keep their $14 million in semi -approved fees in eToys is the least of the criminal acts that has occurred in this saga. The US Trustee attorney, Mark Kenney now allows the parties to keep control of the vault of eToys, which the parties have seized nefariously by duping the Court’s through perjury.
X The efforts of deny Haas standing are preemptory efforts to conceal Fraud
49. The Debtor was scheduled to hold an auction to sell the bulk of eToys assets to several parties in March 2001 for $5 million. Haas efforts helped the estate to accumulate over $45 million for liquidation assets. Instead of being appropriately compensated for such triumph, CLI is being punished as the good faith sale efforts – harmed the scheme to sell the assets to connected parties. TBF, MNAT & Barry Gold are all hiding, under the guise of immunity from disclosing clause; of their relationship to Bain that acquired the eToys assets. They are all also connected to Bain’s Liquidity Solutions[46].
50. MNAT, TBF and Barry Gold (TBF’s direct paid associate) refused to compensate Haas or CLI at the end of 2001 and entered a document into the record, (purportedly on behalf of CLI), entitled the HAAS Affidavit in November 2001. The Certificate of Service document proves that MNAT did not give notice to Haas and CLI[47]. 51. The parties had collectively discouraged Haas from seeking independent counsel for CLI; (as a cost saving benefit to the estate). The Court approved the Order that stated the paperwork of CLI would be supplied to the Court with the “assistance of Debtor’s counsel” while waiving Rule 2016. This is corroborated by the Court Orders approving CLI (D.I 253 & 523) and the multiple affidavits of the Chairman of the Creditors Committee. So every time the scheming parties mention that CLI failed to file paperwork, they are testifying against their own failure to perform a fiduciary duty.
52. The Chairman also testified within multiple affidavits[48], to the fact that MNAT, TBF and Barry Gold deceived the Chairman when TBF and MNAT placed Mr. Gold in as eToys “wind-down coordinator”. At all times Barry Gold was supplied by TBF, Traub stated Mr. Gold was as an “arms length” entity, unconnected to anyone, as another court approved, Xroads LLC submitted a bill stating[49], “ awaiting court approval of Gold”.
53. When the eToys shareholders questioned Mr. Gold about his TBF connections in a hearing on the Plan confirmation (transcript D.I. 1394). Mr. Gold denied[50] connections to TBF while on the stand and many in the room, (including the Dept of Justice), knew the statement was false at that time. Mr. Gold cemented the ruse by a Plan Declaration – Affidavit, where Barry Gold falsely stated, perjuring himself, that all the negotiations were done by “good faith” “arms length” parties (D.I. 1312) (Gold &TBF).
XI HAAS always had counsel until the Court expunged CLI in retaliation
54. From the time of the Haas Affidavit, once the defiant parties established goals in unethical behavior, until August 2005, Haas had engaged more than 8 counsels for CLI. All of who refused, despite the duty mandated under 18 USC § 4 MisPrison, to report the acts of non-disclosure of conflict of interest to the Court or US Trustee. During the August 2005 hearing where the Bankruptcy Court expunged the CLI and Haas Senior priority Admin claims, His Honor Baxter refused a new counsel from speaking (Transcript D.I. 2322) where Haas had to go out of the Delaware system and seek new counsel to put in a “pro hac vice” as Judge Baxter made all counsel efforts moot expunging CLI claims.
55. Haas had informed, continuously, Mark Kenney, (the Dept. of Justice, Wilmington DE, attorney for the Region 3 U.S. Trustee’s office), of the issues at hand. The responses by Mr. Kenney[51] were always dismissive until one day, in a fit of irritation; Mark Kenney did a “lapse linguae” as Mark Kenney stated that the conflict of interest issues of TBF & Barry Gold was resolved in the Bonus Sales case(DE Bankr 03-12284).
56. Researching how one case could cross collaterally solve the issues in another case led to the discovery of the Bonus Sales proof that inadvertently brought down their house of deceptive cards. Bonus Sales and the similar case of In re Homelife 01-2412 both had addressed the issues of TBF, Barry Gold their entity ADA and ineligibility due to conflicts of interest. TBF, Gold and Fleet Bank had already been addressed multiple times by the US Trustee. Fleet Bank remains a non-disclosed issue, even to this day, in the eToys matter by TBF and Barry Gold, along with many other “hidden” issues of the parties.
XII. The perpetrators are permitted retaliation as the Court expunges Haas
57. Enigmatically the Dept of Justice personnel, the perpetrators, and the Court’s, have stated that Haas does not have permission to bring the issues of Fraud on the Court to the attention of the Court. The haughtiness to infer that one needs permission to point out fraud is disgraceful! This illegitimate denial of Article III standing is disingenuous, having no basis in statutory Law. The ardent horde does take advantage of loopholes or ambiguity. (A policeman can refuse to halt a robbery, if your money is ??)
58. It is only through this “color of law” that the parties are able to dodge prosecution by denying Haas or CLI standing. This is despite the fact that the Court did approve the CLI contracts, which state the eToys Debtor is directly responsible for all labor and expense “to be paid for by eToys” (eToys D.I 253 & 523). Thus the nine (9) months of labor by Haas for eToys gives pecuniary interest. As well as Code 503(b) Substantial Contribution, if for no other contribution than that which has resulted in the disgorgement of $750,000 that TBF has agreed to pay. Courts are required to give adjudication upon the merits of § 503(b)[52]. It is reprehensible unfairness, the worst manifest injustice that one could perpetrate, to punish a whistle-blower, while parties gain by collusion and perjury –(thus far there has been no equitable justice in the eToys case)!
59. MNAT, TBF and Barry Gold, did connive to persuade Haas, parties of interest and the Creditors, to “trust them” where they persuaded Haas not to obtain independent counsel for CLI as a cost saving measure to the estate, beguiling everyone. It is extremely specious that the only item that MNAT, TBF or Barry Gold supplied to the Court is the HAAS Affidavit of November 2001, which the parties falsely state it is a waiver. Who believes anyone would work a year and then say don’t pay for the good faith work? Why would anyone fight for something given away? Rule 2016 let off is specious!
60. A court cannot tender rewards to conflicted attorneys[53], who have gained unjust enrichment, with admitted “unclean hands”, while the integrity of the court has been intentionally defiled. Any equitable justice has become a vacant notion in Delaware fraud.
XIII Asst US Trustee Frank Perch states that Fraud on the Court was intentional
61. As a result of finding Court docket (Bonus Sales) irrefutable proof of an ongoing, non-disclosed, relationship between TBF and Barry Gold, Haas placed such information into the Court docket record in the fall of 2004. After requests for an Emergency hearing the following acts occurred,
1. Two members of Goldman Sachs sat on the board of RR Donnelley while Donnelley voted on eToys/Sachs an issue, (including the $300 million lawsuit of the Debtor in NY Supreme Ct against Goldman Sachs) RR Donnelley and Goldman Sachs divested themselves of each other in Dec. 2004.
2. Lawrence Friedman the Director of the Dept of Justice EOUST office replaced the Region 3 Trustee; Roberta DeAngelis with Kelly B Stapleton and a DOJ UST press release was issued on December 22, 2004[54].
3. An Emergency hearing to address the non-disclosure/conflict issues occurred on December 22, 2004. At which time the Asst US Trustee stated to the Court it was apparent that non-disclosures occurred, (Transcript docket item 2151)
4. The Court Ordered responses to the allegations to occur by Jan 25, 2005.
5. The confessions to the non-disclosure occurred in the responses, also during a Feb 1, 2005 hearing and confessions during depositions taken per court approval on Feb. 9, 2005. (Transcript of February 1, 2005 docket item 2191).
6. The court rescheduled February 4, 2005 trial, for the CLI and Haas claims.
7. Asst US Trustee Frank Perch was to travel on Feb. 16, 2005 and informed the Court he would make the US Trustee’s position on the issues known prior to.
8. On Feb 15, 2005 the Disgorge Motion of TBF for $1.6 million occurred.
9. The Disgorge Motion Feb. 15 2005 (D.I. 2195) stated that a. The US Trustee had [fore] warned the retained professionals against replacing key personnel of the debtor with anyone connected to TBFb. That therefore the acts were deliberate, rather than inadvertent.c. There was material adverse harm.d. That the [diametric] lines between debtor and creditor were destroyed.e. TBF was vastly experienced bankruptcy attorney in national casesf. Fraud on the Court had occurred.g. To disgorge anything less than $1.6 million of the $3.5 million TBF had acknowledged receiving – would lack deterrent value
h. The Disgorge Motion erroneously stated Barry Gold did not have to apply as a “post-petition” “wind-down” coordinator [per 327(a)]
10. Less than 10 days later Mark Kenney issued a Stipulation to Settle (D.I. 2201) containing the illegitimate clause “shall not seek to compel – disclosure”
11. Speciously neither the Disgorge Motion nor the Stipulation to Settle mentions MNAT. The crimes of MNAT non-disclosure issues are vastly understated.
12. On March 1, 2005 a hearing was conducted where Paul Traub of TBF confessed to the Court that he placed Barry Gold within the Debtor after TBF had paid Barry Gold four (4) payments of $30,000 each. (D.I. 2228)
13. We investigate why the “no seek to compel” clause was necessary and find an additional $100 million fraud item in KB Toys which Mark Kenney obstructs justice of when he asks the courts to expunge our proof . (KB Toys D.I. 2228)
14. We inform Frank Perch and Director Lawrence Friedman of the additional $100 million in Fraud[55] and Frank Perch, along with Lawrence Friedman resign[56].
15. The Court retaliates by rescheduling CLI trial date, expunges CLI, refuses CLI new counsel and denies Haas standing as “person aggrieved”.
XIV A double-minded US Trustee’s office proffers immunity for intentional fraud
62. The Stipulation to Settle (D.I. 2201) went way beyond Frank Perch’s initial efforts of leniency with the improper permission to circumvent the Code.
63 This effort by Mark Kenney ignores the Law. As well as it smears the US Trustee’s office by breach of fiduciary duty to protect the Courts from malfeasance. Here, we have extensive effort by TBF to abuse such an esteemed level of trust[57] flagrantly. With direct overt protective acts by the “policing” US Trustee on behalf of perjury and fraud.
V TBF confesses to four (4) payments of $30,000 each to CEO of eToys
64. On March 1, 2005 a hearing was conducted where Paul Traub of TBF was under direct Court examination (Transcript D.I. 2228) while the Court ordered, that as Haas’s counsel refused to be present; Haas shall be denied standing per Article III. (one would think the Court should have Ordered Haas’s counsel to be present).
65. Again, Haas must be silenced in order to hide the facts of their crimes.
66. During the March 1, hearing Paul Traub of TBF confessed to the fact, under direct Court examination, that TBF, as Creditor’s counsel paid Barry Gold four (4) separate payments of $30,000 each, prior to placing Barry Gold secretly within the Debtor. Yet the Court and US Trustee totally disregard this issue and the Hiring Letter furtively!
67. These acts of perjury and fraud are made extensively heinous, as the Asst US Trustee Frank Perch testified, in the Disgorge Motion of warnings (¶ 19 & ¶35).
68. The Justice Dept and the Court are defending the perpetrators. Is it any wonder why Haas and CLI cannot find a lawyer? Anyone with common sense can see that the Law is now not being applied. Speaking to over 1323 firms and attorneys all said no.
XVI Dept of Justice persons is acting as defense counsel for perpetrators
69. Further investigations by Haas and the eToys shareholders led to the discovery by Haas that TBF and MNAT had ongoing relationships with Bain/KB Toys. The significance being that MNAT, TBF and Barry Gold negotiated the sale of the Debtor’s assets to Bain/KB Toys for discounts in the tens of millions.
70. As morose as that is, TBF further compounded their nefarious acts by petitioning the KB Toys court for the right to prosecute the $100 million cash that Bain and Michael Glazer had paid themselves pre petition. At which time Mark Kenney engaged in his 3rd overt act to obstruct justice by asking the KB Toys Court (successfully) to strike and expunge Haas (KB Toys # 04-10120)(D.I.2228).
71. The US Trustee office has persistently aligned themselves with the perpetrators as an appellee asking the Courts to expunge Haas and the eToys shareholders.
XVI Haas own counsel forwards threats by TBF to “back off” or else
72. Previously Haas attorney, Henry Heiman had passed on a threat by TBF’s Susan Balaschak, doing so by email[58]. Whereupon TBF warned Haas that if he did not “back off” not only would CLI and Haas not be paid for the work, Haas’s career would suffer greatly and additional retaliations would occur.
73. The outcome speaks for itself, as probability and result, where the court threw away Haas and CLI without any proper review upon quantum meruit! XVII A pre-petition loan of $40 million and over $100 million fraud continues.
74. Haas also discovered that TBF and Barry Gold also had an ongoing undisclosed relationship with Wells Fargo/Foothill Capital. An entity which loaned the Debtor $40 million in November 2000 and transacted over $120 million[59] in withdrawals prior to the March 7, 2001 bankruptcy petition filing (again see In re Bucyrus 94-20786 – Gellene/ prison – The case of Bucyrus is exactly on point with eToys fraud).
75. Haas discovered overseas-undeclared cash deposits in excess of $2 million. (The Court stated it had no authority over international cash deposits). More assets are hidden by the conspired petition of the court for destruction of books and records in the very beginning of the case (approval D.I. 300).
XVIII Contacting authorities results in Obstructive run-arounds by DOJ personnel
76. The Court remarked that it had warned Haas against any further notices to the Court and had also warned of sanctions on July 26, 2005[60].
77. Haas had also contacted the OIG, the OGE, the OPR and the FBI (especially after physical threats occurred.) Also informing the Public Integrity Section and Pres Bush Corp Fraud Task Force, all of which referred Haas and the eToys shareholders back to the General Counsel (currently Roberta DeAngelis) of the EOUST office in Washington D.C and the US Attorney in Delaware.
78. Roberta DeAngelis in violation of protocol and ethics is now in charge of reviewing her own cases. The Opinion and Order were also immediately appealed and denied due to the US Trustee aligning themselves with TBF & MNAT .
79. Referring items to the US Attorney’s office has had similar results. As the US Attorney in Delaware has now been nominated for the position of Delaware District Court Judge, his resume became public, upon which it is now discovered that Colm F Connolly was a partner with the MNAT law firm in 2001, when the fraud and perjury began. Not appointing an independent prosecutor is a disgraceful ethics violation.
80. The Opinion and corresponding Order of October 4, 2005 aids the readily apparent efforts to cover up as it is a 57-page testimony vindicating the parties with off-point remarks on ADA.. The Opinion also stated, errantly, that Barry Gold was not required to apply per § 327(a). (They fraud needs this deceitful concept maintained). The Court and US Trustee simply ignored a Dec. 1, 2005 Motion to Recuse under Rule 5004 and a Motion to Review Failure to Act by US Trustee under Rule 2020.
XIX The US Trustee is extensively instructed and knows the Law has been broken
81. Multiple appeals have been filed and there is now this appeal in the Third Circuit appeal (case# 07-2360). The US Trustee’s office is acting as an appellee with TBF, MNAT and Barry Gold defending the right to proffer the illegitimate settlement and immunity clause. Even the new Asst US Trustee Vara has joined violates his own actions.
82. The new Asst Trustee Vara handled the case of In re Cold Metal 02-43619 (E D Ohio Bankr 2002) where Trustee Andrew Vara addressed, extensively, the on-point issue of § 327(a) as the brief signed by Trustee Vara cited the accurate case of Stahl v Bartley Lindsay Co. (In re Bartley Co.,) 137 B.R. 305, 309 (D. Minn. 1991) stating “financial advisor or workout consultant is considered a professional subject to retention”. (Barry Gold was required to apply and even Asst US Trustee is aware of it).
83. At the same time former Region 3 Trustee Roberta DeAngelis, in a report to the “Subcommittee on Commercial and Administrative Law” which was to the Committee on the Judiciary cited cases demonstrative of Her and the US Trustee’s office detailed knowledge of Barry Gold scenarios, as DeAngelis quoted In re: Harnischfeger, case 99-02171 (Bankr. D. Del. 1999) The US Trustee [successfully] moved to disqualify the [financial advisor] firm for failure to disclose.
84. Mr. Gold is guilty of participating in the conspiracy to deceive the Creditors by participating in the Hiring Letters and his false testimony on the stand and the Plan Declaration. While there is also abundant “prima facie” evidence that the acts of perjury, etc., were “deliberate, rather than inadvertent” (D.I. 2195 ¶19).
XX. Barry Gold 327(a) issue is a deception under the “color of law” false premise.
85. The whole illegitimate premise of no prosecution is based upon the specious seed of pretense that Barry Gold was not required to apply per § 327(a). Such “color of law” pretense is a fallacy as Mr. GOLD complies with the factors to determine whether an entity to be employed by a debtor is a professional within the meaning of 327(a). In re Martin 817 F 2d 175 180 (1st Cir. 1987) addressing both the “unclean hands” doctrine and listing the 12 factors to consider in application of who must apply and disclose by 327(a)[61]. In re Kraft v Aetna 43 B.R. 119 Bankr. Ct. Dec (MD Tenn 1984) ([Trustee] cannot bypass 327(a) by stating mechanical services.) All Circuits have adopted “autonomy” as the key. 86. The US Trustee is instructed from the onset, by a Handbook & Guidelines which can be found online at the US Trustee’s website under the heading “Significant Guidance Documents” (please see Handbook[62]). All evidence aptly demonstrates the extensive knowledge they have on the issue at hand concerning Barry Gold per § 327(a). Having such vast experience and expertise in the matter, one must therefore conclude that they know their fiduciary obligations and choose to do otherwise. Why, who knows? XXI. Summary of criminal acts that have been confessed
`1. It is undisputed that TBF placed Barry Gold in as “wind-down coordinator”
of the Debtor without disclosure. (D.I. 2195 ¶17)
2. TBF has confessed to multiple false affidavits including TBF’s intentionally overt act permitting the false affidavits to stand, even after Traub and Michael Fox discussed the issue that their relationship became apparent (publicly visible) in the Bonus Sales case, yet they surreptitiously choose to remain silent demonstrating “mens rea”. (D.I. 2195 ¶18).
3. It is a fact that MNAT has confessed to supplying multiple false affidavits, which is Perjury. (While MNAT has failed to totally “come clean” on other false items such as Bain and Mattel). TBF alone submitted over 15 pledges.
4. Barry Gold supplied additional “actus reus” items by the clandestine Hiring Letter (D.I. 2169), which contains the illegitimate clause that bribed Mr. Gold if he would intentionally choose not to apply to the Court [§ 327(a)]
5. Barry Gold “scienter” is documented by the perjury, on the stand, when questioned by Alber about undisclosed connections to TBF (D.I. 1394)
6. Barry Gold “actus reus” act of committing perjury was also the Plan Declaration/Affidavit, which stated that the Plan was negotiated in “arms length” negotiations between Debtor and Creditor’s. (Perjury as Mr. Gold is testifying “arms length” Between Barry Gold and TBF)(D.I. 1312).
7. A Rule 2014/2016 certification is required every time a fee application is submitted. More than a twenty such fee applications were submitted by TBF, MNAT & others knowledgeable about non-disclosure acts, these acts also compound the perjury violations. Where even the Scheme to Fix Fee statute (18 USC 155) while being a misdemeanor in nature, has become a format of a conspiracy felony when both the Debtor and Creditor’s counsel conspire to draft the Hiring Letter to circumvent the court & the Code. (It is absurd how MNAT refuses to state which partner did the drafting).
8. Asst US Trustee Frank Perch also testified in the Disgorge Motion that TBF had discussed the issue, prior to doing the bad faith act, of anyone replacing key personnel of the Debtor with persons connected to retained lawyers in the case. (D.I. 2195 ¶19 &¶35). This is sufficient “scienter” requisite.
9. The Asst US Trustee documented additional “bad faith” acts of complicity when TBF sought to handle the conflicted issue of Goldman Sachs because MNAT was also non-disclosed. Whereby TBF compounded the original acts of “non-disclosure” by a supplemental affidavit, affirmatively misrepresenting TBF had no “conflict of interest” issues (D.I. 2195 ¶17).
10. The parties committed the crime of Intimidation of Victim/Witness when TBF warned Haas to “back off”, or else Haas would see how high TBF was “connected”. MNAT has done similar efforts against Robert Abler nefariously in working with a party that sued Alber in many instances.
XXII. Dept of Justice breaches duty as it is not permitted discretion to give immunity
87. The US Trustee is the “watchdog[63]” for public equity entities per the Janet Reno Reform Act of 1994. When the policing entity turns against the public’s trust and engages in acts that defy statutory requisites, betraying Oaths of office, for the sake of felons, the whole system collapses and anarchy becomes the controlling factor.
88. The duty to Notify and Refer criminal acts is statutory for US Trustee’s per 28 USC § 586(a)(3)(F) and 18 USC 3057(a). So restrictive is the mandate to refer that the US Trustee’s Handbook & Guidelines state that if a US Trustee desires that no prosecution occur, a Memo of Declination must be sent with a history of the events to the US Attorneys office. This was a Congressional mindset to protect against indecency; even a US Trustee is barred from any latitude of prosecution. The US Trustee cannot pic n choose whom to review for tribunal; it is the US Trustee’s job to report and let others decide.
XXIII Justice Dept personnel continue efforts to Cover up their fiduciary breach.
89. Mark Kenney told this petitioner that a bribe or threat to “back off” was not a crime until the bribe was accepted or an act of documented harm had occurred (nice try)!
90. TBF was assisted by Mark Kenney’s Motion to Strike and Expunge this whistle-blower (please see KB Toys case 04-10120 docket item 2228). (Taxpayers paying for the US Trustee’s office to defend criminal acts – now that is a real budget breaker).
91. Email notices have also been sent to Kelly B. Stapleton. As the Region 3 Trustee that replaced Roberta DeAngelis the fact remains Stapleton’s electronic signature is upon all Trustee documents in the eToys matter since Feb. 2005. Including the erroneous Stipulation to Settle.
92. Roberta DeAngelis seeks to bring the full clout of the Washington DC office to the Third Circuit appeal, where she has signed her name to the brief, along with 3 other members of the United States Trustee Dept, to defeat “pro se” parties.
93. Spuriously the US Trustee is an appellee, hand in hand with the perpetrators, defending the right to proffer the illegitimate clause that circumvents § 327(a). While defrauding Haas/CLI with the efforts to improperly dismiss Haas
XXIV. It is a criminal conflict that theUS Attorney in DE was a partner at MNAT
94. Finally, the saga of the failure to prosecute can only be successful if a prosecutor, after being informed of the crimes, chooses to decline prosecution. Given the overwhelming amount of court docket evidence of perjury and fraud of MNAT, TBF and Barry Gold, the issue of selling the assets of one client (eToys) to their other “continuous” client (Bain) remains unaddressed. Begs the question, if Colm F Connolly handled the Bain/eToys/MNAT issue while he was a partner at the MNAT law firm?
XXV The criminal acts the shameful “not seek to compel” clause desires to Cover-Up
95. Having been enraged by the audacity of the Dept. of Justice double-mindedness, where we were already upset that the Disgorge Motion erroneously stated in the very first footnote thereof, remarking that Barry Gold was not required to apply[64] [per § 327(a)]. Failing to seek the mandatory disqualification[65] of conflicted attorneys as required by Law. Even the CLI attorney at the time, Brad Brook said it was insulting and gave this petitioner the Norton books to see in black n white, case histories about requisites & Law.
96. It dawned on Haas that there must be something very important that would have one arm of the US Trustee’s office endeavor to go against another arm. What could be so important as to necessitate such a dichotomy? The answer was found in research and the obvious, syndicated effort to protect ones cronies from additional, prosecution harm.
97. The US Trustee is instructed from the onset; by the Handbook & Guidelines[66], on who is required to apply as a professional person and how the US Trustee must protect the Court and public from such harms[67]. So many harms one is mind-boggled. No principled person can dismiss without extensive review, the following items,
1. The Debtor’s estate sold the bulk of eToys assets to Bain/KB Toys. The $10 million was reduced to $3 million by TBF, MNAT and Barry Gold.
2. TBF, MNAT and Barry Gold are connected to Bain. Bain and their affiliated owner(s) controlled Stage Stores/Liquidity Solutions Where TBF and Barry Gold was engaged, prior to and during eToys work. Michael Glazer, the CEO of KB was at Stage Stores. (Southern TX Bankr 00-35078)
3. Mitt Romney owns a lot of stock in Stage Stores at the time the offenses transpired. Toby Lenk the CEO of eToys vacated the Debtor and went to work for a Bain affiliated. We now have Dave Gatto’s resume of Bain.
4. MNAT is also connected to Bain; MNAT brazenly represents Bain in the KB Toys bankruptcy case (as the cat is now out of the bag). MNAT was less than candid in its disclosure discussions about the Learning Company. The Learning Company was a Bain, affiliated entity merging with Mattel.
5. While much has been discussed about the issue, the fact remains, though the Court and US Trustee have acknowledged reading the Hiring Letter, the criminality thereof has simply been ignored, TBF and Barry Gold are connected to Wells Fargo/Foothill Capital, Foothill loaned eToys $40 million in Nov 2000 and transacted over $100 million in cash transactions prior to eToys filing bankruptcy in March 2001.
6. TBF, MNAT and Barry Gold were all working in the KB Toys bankruptcy the same time they are working in the eToys bankruptcy, which is contemptible. TBF petitioned the KB Toys court to be the one to prosecute the $100 million cash pre petition transfer to Bain/Michael Glazer.
7. When we notified the Court, Mark Kenney motioned to strike us, instead of prosecuting the crime.
8. MNAT, Barry Gold, Ellen Gordon of Xroads and TBF refused to engage in purchase discussions with parties that sought to acquire the public entity of eToys. This is an SEC violation of the highest order.
9. The parties also refused to assist the shareholders to have an equity committee, which compounds the crimes when a sale is not sought by collusive efforts to gain sizeable control of the estate.
10. Xroads also had non-disclosed connections to Wells Fargo.
11. TBF and Barry Gold have undisclosed connections to Fleet and Merrill Lynch as well, huge causes of action and other matters of fiduciary duties.
12. TBF and Barry Gold also have non-disclosed connections to Goldman Sachs (In re: Cosmetics Plus).
13. CLI had a potential merger/acquisition of Playco International. TBF and Barry Gold declined to consider the offer. TBF did not disclose TBF was creditors counsel in Playco.
14. TBF did not disclose in eToys or Playco that TBF was connected to the secured lender Wells Fargo (Wells Fargo was involved in both Playco and eToys matters).
15. TBF did not disclose connections to Paragon Capital that was co-owned by OZER and Wells Fargo in Playco.
16. TBF was of revoked status in the state of NY for several years, until Alber informed the Courts. (The bankruptcy court acknowledge blue ink copy).
17. TBF, MNAT and Barry Gold handpicked the counsel of eToys and TBF is co counsel for the eToys lawsuit against Goldman Sachs (a $300 million dollar issue that the Supreme Ct of NY has permitted to go forward. (case # 601805/2002)).
18. Susan Balaschak has supplied a false affidavit within (D.I. 216) stating that TBF has informed the eToys case “parties of interests” of everything. Including the Creditor’s Committee.
19. Susan Balaschak has speciously offered Ellen Gordon of Xroads as a key witness of the fact.
20. TBF neglects to tell the NY Court that Scott Henkin of Fir Tree Value Fund already confessed to being part of the conspiracy to place Barry Gold in the Debtor, knowing that Barry Gold and TBF were connected.
21. Scott Henkin is guilty of conspiracy and seems to have been rewarded, as he is now a senior exec at D E Shaw who owns the “new” public entity of eToys.com on NASDQ (symbol KIDS).
22. At the same time the other Committee person that was assisting Haas to solve the eToys issues, (Jim Brown of Fisher Price), has been speciously removed from office.
23. TBF and Barry Gold entity ADA was formed by Nancy A Valente, who also works for Johnson & Johnson. J&J acquired the assets of Babycenter.com from eToys pre petition, (purportedly for $10 million).
24. As a pre petition preferential the J&J issue is also a crime, even without the Valente issue, when not independently reviewed.
25. Stage Stores is co-debtor with Liquidity Solutions, Liquidity Solutions deceptively began to acquire the bulk of eToys claims, without disclosure after Barry Gold was placed on board eToys in mid 2001. All claims therefore are equitable subordinates under Code § 510(c).
26. While at the same time the sale of the Debtor’s assets to Bain/KB having “undisclosed” connections to the counsels and CEO of eToys results in the sale of eToys.com failing the “bona fide” requisite of the Code. This makes all sales to Bain/KB rescindable as fraudulent transactions or equitable subordinates. Etoys.com is now public again on NASDQ as KIDS.
XXVI The acts of “nolle prosequi” seek to outclass the acts of perjury & Fraud
98. The US Trustee’s guidelines states the United States Trustees is instructed by 28 U.S.C. § 586(a)(3)(F). (In the same manner the court is instructed by 18 U.S.C. § 3057) The trustee must also (a) investigate the debtor’s financial affairs, 11 U.S.C. §§ 704(4), 1106(a)(3); (b) oppose discharge where appropriate, 11 U.S.C. §§ 704(6), 1202(b)(1), 1302(b)(1); and (c) furnish information concerning the estate as requested by party in interest, 11 U.S.C. § 704(7). (i.e. Books n Records to the Court approved CLI.)
XXVII Denial of standing is a criminal attempt to conceal fraud with no legal basis
99. Haas has sought, prior to this time, requests for Fed.R.Civ.Proc. 23.1 “Derivative rights of shareholders”, Fed.R.Civ.Proc Rule 24 “Right to Intervention” and Fed.R.Civ.Proc Rule 25 “Right to Substitution of Parties” because the Courts would inappropriately allow CLI’s counsels to abstain from the issue. Rule 23.1, 24 and 25 are even given validity in Bankruptcy Rules as 7023.1, 7024 and 7025 respectively. The denial of Article III has no foundation in Law, it only benefits the “malum in se”!
100. Also Haas had the qualified right offered to anyone (even a janitor or person off the street) under §503(b) Substantial Contribution. No one can suitably argue that the US Supreme Ct would sustain that such latitude to restrict “due process” can be use as a tool to defeat a whistle-blowers efforts to halt manifest injustice of fraud on the court, by officers of the court, who commit willful perjury and intentional, schemed fraud!
101. Be that as it may, TBF, MNAT and Barry Gold, along with the US Trustee/Court’s have repeatedly denied Haas the ability to bring forth the proof of fraud. Even if, arguendo, you allow such perverse logic some fundamental basis, the fact remains it is now discovered that what is occurring is the Court, US Trustee and the perpetrators are finding fault with the Debtor’s breach of a contractual fiduciary duty that the Court itself approved by the “indemnification” clauses that were drafted by MNAT, TBF, Irell & Manella & Barry Gold. The Indemnification clauses specifically provide that the Debtor is to DEFEND, indemnify and hold harmless CLI and Haas. Finding fault of no counsel is finding fault with the Debtor, as is stated in Amended CLI order, the clause verbatim;
Indemnification. The Debtors shall defend, indemnify and hold CLI and its affiliates, the officers, directors, agents and employees of each, harmless from and against any and all claims, suits, damages, losses, liabilities, obligations, fines, penalties, costs and expenses (whether based in tort, breach of contract, product liability or otherwise), including reasonable attorneys fees and expenses, arising out of or based on any loss of the Remaining Collateral other than any such loss arising from or in connection with CLI’s, its agents and/or employee’s negligence or intentional misconduct.
102. Anyone can point out a crime. It is only for the benefit of criminals that one would deny any person the right of standing during issues or efforts to point out fraud.
103. It is established that “Fraud upon the Court” is a serious issue that the Circuits and the Supreme Court have established the “doctrine” of extended timing, which all seem to find their genesis in Hazel-Atlas Glass Co. v Hartford-Empire Co., 322 U.S. 328 (1944) (“Hazel-Atlas”) where it has been established that an Order is made void “ab initio” as stated in the In the matter of Kenner v. Comm’r Of Internal Revenue, 387 F.2d 689, 691 (7th Circuit 1968) “a decision produced by fraud on the court is not in essence a decision at all and never becomes final.” This precedent has been affirmed by the Circuits and was also quoted by the Court (MFW) in the Opinion of October 4, 2005. Yet, when it concerns Haas, the Court simply ignores its own advice in the Opinion, including the statements that “extra-ordinary” circumstances exist where the Court said “that to hold otherwise [concerning TBF & MNAT] would only serve to punish [plaintiffs] and reward conflicting attorneys” (please see Opinion by Her Honor Walrath pg 16) (D.I. 2319).
Conclusion and prayer for relief
104. So far any authoritative party must either face the discretion is better than valor pathway, by resignation, or; any public servant that remains is faced with an overwhelming hedge of power, influence and the blue wall of silence truism. Leaving one with a choice to rule against one’s esteemed colleagues or join in the deceit, (a dilemma to say the least)! Extraordinary circumstance needs many “extraordinary” remedies.
105. We therefore seek honorable public servants who will refuse to stand idle while corruption; cronyism and criminal acts of a “bankruptcy ring” pervert the entire justice system so blatantly that it ensnares everyone who the government assigns to the case. We need the undeniable spirit that seeks Truth, Justice and the American way.
106. The recent Dist Ct. case in Michigan dealt with a similar refusal to classify fraud as Fraud upon the Court (please see matter of M.T.G. In re Matrix Tech Grp 95-48268). However, unlike the Matrix case, where the question of “intent” is in debate, this case does have concrete proof of intentional circumvention with the written collaborative Hiring Letter. The case of Baron’s in Florida (S FL Dist Ct 07-60770) cited the eToys & Matrix issues, concerning Fraud on the Court – and Baron’s successfully reopened the closed case. (It is amazing that other cases can accomplish remedies where the cited case is woefully lacking.)
107. The N Y case of the US Trustee Paul Banner v Cohen Estis and Assoc, cited eToys as a case precedent for the denial of all fee’s for non-disclosure. (The Balco/Estis case involved only 1 non-disclosure issue, where eToys has over 20 failures to disclose). To date there has been no adequate remedy in eToys, with sufficient deterrent, by proper disqualification and disgorgement, to conspired acts of willful, Fraud on the Court, accomplished via “officers of the Court”. It appears that the whole Delaware court system is in disarray and that no one in the system of justice has the fortitude to stand tall.
108. One should only have to point out the egregiousness of the “shall not compel” clause and that item alone should send a shockwave through the system of justice. Anyone with any sense of decency should be aghast at the audacity of Mark Kenney and his cohorts. When a public servant betrays their oath of office and then engages in overt acts of obstruction contrary to ones fiduciary duties, against whistle-blowers, in order to cover up malfeasance by ones cronies. Such is instilling civil unrest by the destruction of the integrity of the judicial process for the sake of persons who consider themselves to be Above the Law. This is overwhelming demonstrated! One need only look at the facts, which we have placed online, in affidavit form, for everyone to see[68].
109. I, Steven Haas, (a/k/a Laser) testifies to these statements, throughout this brief, under the “penalty of perjury”. We said we would provide you with a few items of criminal, felony violations. We have provided you with more than 30. Without going into the many, many more, such as Sarbanes Oxley, failure to disclose overseas cash assets, the SEC being instructed to refrain from making an official investigation occur. Every single time the court was told that CLI had waived all claims against the estate, was an act of perjury and collusion to defraud CLI and Haas. (Does anyone really believe that a person would wave $3 million in fees/commissions earned over 9 months?)
110. It is really a simple question. Was the nomination of a new head of the Dept of Justice a real change toward restoring the integrity of the Justice Dept? Or, being that a Presidential hopeful, Mitt Romney, owned Bain, a potential future boss, will such cause the Justice Dept. to maintain the status quo?
111. The parties of MNAT, TBF and Barry Gold have engaged in vote rigging, Plan rigging, perjury, fraud, deception and voluminous schemes that are as reprehensible as anyone can imagine. They state the PEDC does this or that, when the fact is, they, the perpetrators of fraud, are the PEDC. (An independent counsel must review all the facts).
112. Thus far the system of justice has shown no integrity? The evidence, the facts at hand, and the effort to remedy fraud in a manner befitting justice can only answer the question. Thus far in this eToys matter, it has been proven, that there is a double standard of justice. This case is the poster child to prove that there are those that there is a “bankruptcy ring” by those that are “Above the Law”.
113. As stated originally, the issues presented are clearcut, as such we pray this Court utilize the Fed Rules of Evidence of Judicial Notice 201 and put a halt to the organized crime that seeks to corrupt the entire system. Therefore we beseech that this Court state that Haas has standing as a “person aggrieved”. That from this date forward the parties shall be sanctioned if the dare to effort to fail to notice Haas.
114. We feel it is readily apparent by every standard established within the Circuit that Barry Gold had to apply per § 327(a). It is also practical that a declaratory remark of the disdain of all efforts to circumvent the Code by the Stipulation to Settle occur. The Courts must halt all efforts to give implied immunity in the “not seek to compel” clause. As the Court and US Trustee are errant in the finding of fact and conclusion of Law, which the Opinion of October 4, 2005 states that no perjury has been documented. Many disqualifications are therefore required.
115. We also pray this Court acknowledge that there is overwhelming documentation that warrants the disqualification of MNAT, TBF, Barry Gold, Frederick Rosner, Irell & Manella, Xroads LLC, Richard Cartoon, Scott Henkin and any other person, party or entity that had complicity in the intentional deceptions. That all must disgorge, at a minimum, 100% of all fees and expenses. That a comfort Order be given to permit proper Plan compliant causes of actions and pursuits. Including the remedies permitted due to the avoidable preference treatment afford KB/Bain acquisition of eToys assets. As well as the issues of equitable subordination of Liquidity Solutions, etc.
116. The Dist. Ct. was totally errant in dismissing Robert Alber by the Poulis Standard. As such this case is to be remanded to a Bankruptcy Judge to adjudicate properly the merits.(The shareholders should be granted an equity committee standing and counsel).
117. We especially pray this Court find that the original responses Ordered by the Bankruptcy Court for January 25, 2005 were to be a totally “come clean” affair. Lest the Courts send a message that officers of the court can continue deceptive practices due to the inability to ferret out all statutory violations that are continuously cloaked.
118. Given the abundant amount of skullduggery involved, we beseech this honorable body to maintain a heavier than average hand of authority to assure the integrity of the judicial process. If such is not prudent due to the need to keep each Court separate in duties, may it please the court to either change venue to California (the physical presence of the Debtor) or, in the pursuit of equitable justice and good faith efforts of Plan compliance it is therefore necessary to appoint a special independent Justice, above reproach.
119. Especially given the abundant bias shown against Haas and CLI by multiple judicial parties. As the recent case of Dickie Scruggs in Alabama demonstrates, it is sometimes necessary to recuse an entire Judicial body who would be faced with the dilemma of Ruling against a life long colleague. Especially since Haas filed a Judicial Misconduct complaint against the Bankruptcy Court for the abundant acts of bias.
120. Being that the Bankruptcy Court has ignored review request concerning Books n Records, a Rule 2004 fishing expedition should be permitted by Haas and the shareholders, totally at the Debtor’s expense. The Xroads LLC entity has been paid over a million dollars to handle the financial accounting of the Debtor and cannot state legitimately, that it will take time to detail all financial records.
121. The Bankruptcy Court also simply ignored the December 1, 2005 requests for Recusal under Rule 5004 and Review of Failure to Act by US Trustee under Rule 2020. Therefore it is necessary, combined with the abundant efforts that are contrary to the statutory mandates of the US Trustee, that “Quo Warranto” be considered to remove the parties of Mark Kenney, Roberta DeAngelis, Colm F Connolly, Kelly B Stapleton, Andrew Vara, Her Honor Mary F Walrath, His Honor Randolph Baxter, His Honor Donald Sullivan and His Honor Kent A Jordan from this case. For most certainly we are parties with interest and extraordinary circumstances are already acknowledge, now being documented in abundance. Their honor is not a question, but their actions dictate a must.
122. Wherefore we ask that the Court make an official recommendation for a special US Attorney and prosecutor with official request for a statement from the SEC Bankruptcy Fraud Division whom Mark Kenney instructed not to send any official requests. That the Court void Barry Gold, ab initio, as is provided in the Plan clause 5.2 for willful misconduct and gross negligence. Barry Gold also had Plan clauses that forbade him from dealing with connected parties (clause 3.12). As such all payments, post-plan confirmation to MNAT, TBF, Frederick Rosner and/or any other connected issue, such as Bain, Liquidity Solutions, Richard Cartoon, etc. are void “ab initio”.
123. As the parties schemed to defraud Haas and CLI, where Barry Gold was muscled in to do the duties of CLI and Haas. (Wind down coordinator being the same thing as “sole” liquidation consultant), to place Haas in, nunc pro tunc, as CLI and Haas were Court approved complies with every thing that is decent and correct, including Plan Administrator as this is in compliance and duties as liquidation consultant, already going above and beyond the call to halt organized criminal efforts to fleece the estate. As the perpetrators are engaged in efforts, anticipating this Circuits rulings, where they shall seek to replace Barry Gold with one of their own “hand picked” parties under the guise that the PEDC is a purely, honorable, framework. It is only prudent that the Courts do “extraordinary” remedies to assure the fraudulent acts do not continue.
124. The only parties that will object to the monies being returned to the estate, are those that took it and will lose it. Barry Gold has now motioned for his legal defense fund to be paid by the Debtor and his motion infers that the PEDC, which was till this date, Barry Gold’s cronies, where Barry Gold hints, at the item Haas has known would come. The perpetrators of fraud can protect themselves by hand picking the PEDC and new Plan Administrator parties. Which will in essence assure their success in the criminal efforts, by proxy. The NY Supreme Court case of ebc1, Inc (Debtor) vs Goldman Sachs and others, was also a TBF ploy and all parties thereto, hand picked by TBF are subject to scrutiny even if they are the promised child, due to the association with TBF and the failure thus far to point out the frauds to the NY Supreme Ct. (we have been emailing all parties).
125. Susan Balaschak of TBF has falsely informed the NY Supreme Court that they have kept everyone informed and TBF seeks to offer the former Xroads LLC party Ellen Gordon as proof. Without disclosing to the NY Court all the issues prevalent and that Ellen Gordon is most likely no longer with Xroads LLC as Xroads LLC contacted Haas about the fraud, perjury and Xroads billing issue.
126. The KB Toys case, which owes this Debtor money and is rushing to close is a matter of tens to maybe hundreds of millions of dollars. The NY Case is a $300 million issue. Which at the barest of minimums needs a new independent counsel to review and that Court to be officially informed of the jeopardy of all rulings being void, ab initio, due to the fraud on the court that is ongoing. A comfort order is highly warranted as this Debtor, with honorable Plan Administration, can become whole. Courts are required to act differently when a company can be made whole again.
127. We do not ask that the hearing scheduled for January 2, 2008 be delayed. We only ask that this Court permit Emergency relief, allowing shortened notice (email should suffice) and chance for reply, as an email notice is more good faith treatment, than those afforded Haas by the perpetrators who refuse to give notice to Haas.
128. We seek, Haas begs, for your conscience and nobility. Please agree to have valor against organized crime? We do not even ask that you solve the CLI senior admin claim or Haas claims issue(s). (Though they have assisted in making this petitioner itinerant and bereft of career or funding). For we will gladly let those items stand on their own once the fraud issues have been properly pursued.
129. It is not the eToys case or claims thereof that is the priority here. For Haas, CLI, eToys and even the defrauded shareholders is not an American quest. The issue here is key personnel at the Dept. of Justice would rather resign then force a remedy to occur, this should exasperate anyone with a conscience. If the Justice Dept personnel, the US Trustee’s attorney, can arbitrarily betray their Oath’s of office and design to defraud the entire integrity of the judicial process, for the sake of ill gotten gains & perverted acts of justice on behalf of esteemed friends as if no one cares anymore? (Anyone would be hard to find a case more reprehensible, with more fraudulent efforts, than eToys).
130. We seek someone’s American spirit within. The sense of goodness and righteousness that is intolerant to insidious acts of bad faith by those we assign with authority over us controlling the system of justice in our Federal Courts. They can only get away with the schemes, which has stolen a public entity and corrupted our Dept of Justice nefariously, if we permit them free reign to do so. As it has always been stated;
“All that is required for evil to prevail is that good people remain at rest”
131. For though it is our cookies that the attorneys and others have stolen, it is the American Jar of Justice whose lid was removed and tossed away for the benefit of those that have proven the Law has no authority over them.Prima facie evidence that a “bankruptcy ring” and Cronyism exists as this Circuit has already acknowledged such exists. (see Arkansas Supra). We pray the Court forgive our briefs length, our request for short notice and hope the Court is sympathetic to the plight of our pursuit for justice. On Feb. 25, 2005 the Director of the EOUST emailed us that we had his specific attention and that his staff will exercise appropriate judgment. The result was the Stipulation to Settle and then the resignation of the Director and Asst US Trustee. We hope and pray, that this Court has extensive resilience to go well beyond such exercises and judgments.
We humbly await the Court’s response.
/s/ Steve Haas (a/k/a Laser)
100% Sole owner of Collateral Logistics, Inc.
[1] The bankruptcy court approved two contracts for Collateral Logistics (CLI) that also mandated a certain number of personnel be provided for by CLI to the Debtor estate at the direct expense to be paid by Debtor. The vast amount of arguments that Haas lacks standing are disingenuous as a ruse to cover up fraud.
[2] TITLE 28 > Part V > CHAPTER 111 > § 1651
(a) The Supreme Court and all courts established by Act of Congress may issue all writs necessary or appropriate in aid of their respective jurisdictions and agreeable to the usages and principals of Law.
[3] “A writ of Mandamus[3] will issue only in extraordinary circumstances” (See Sporck v. Peil, 759 F.2d 312, 314 (3d Cir. 1985) (See remarks in Arkansas of In re Laurent Watch Co., 539 F.2d 1231, 1232 (9th Cir. 1976) (per curiam)
[4] The US Trustee Motion to Disgorge and the bankruptcy Courts Opinion have affirmed false affidavits.
[5] It is undisputed, actually “confessed” that the Creditor’s law firm Traub Bonacquist & Fox (TBF) did place a TBF paid associate within the Debtor as a “wind-down coordinator” doing such post-petition. As affirmed in both the US Trustee Disgorge Motion (D.I. 2195) & the Bankruptcy Court’s Opinion (D.I. 2319)
[6] One of the non disclosures that remains ongoing is Barry Gold, the Debtor and Creditors counsel connections to Bain/KB Toys where the parties colluded and sold the assets of the eToys Debtor to Bain/KB for discounts in the tens of millions while the collaborative parties refused to seek public equity mergers.
[7] The parties rigged the plan votes, control the Plan by negative notice and own many of the claims without disclosure of the facts. After already confessing to ignoring a warning by the US Trustee and doing misdeeds
[8] When Haas sent the response to the Alber initial brief the email contained the specific warning for the parties to refrain from the continuous practice of not notifying Haas, which was patently ignored.
[9] The Debtor and Creditor’s law firm have admitted to supplying, multiple, false affidavits to the Court. The Disgorge Motion, ¶19 and ¶35 stated the parties were [warned] while the Disgorge Motion proved intent ¶18
[10] The Court also stated in the OPINION that exculpations would not apply “for acts constituting willful misconduct or gross negligence.” While Her Honor Walrath cited on such on page 12 & 13 of the OPINION in part 6 Exculpations; In re United Artists Theatre Co., 315 F.3d 217, 230 (3rd Cir. 2003); and In re PWS Holding Corp., 228 F.3d 224, 246 (3rd Cir. 2000) as there are more than 23 false affidavits willful is affirmed.
[11] 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.) . In re Middleton Arms, L.P., 934 F.2d 723, 724 (6th Cir. 1991) 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
[12] The appeals of Del. Dist. Ct. of 05-830 and 05-831 are procedurally consolidated
[13] Haas received a belated mailing of the US Trustee’s response brief and appellant Robert Alber gave Haas a copy of the other appellee brief, remedies are required, as the parties, including the US Trustee endeavor to persuade this Court that Haas is a “non party”. Schemes to defraud will prevail without vigilance.
(b) Kinds of law. A court may take judicial notice of law. Law includes (1) the decisional, constitutional, and public statutory law, (2) rules of court, (3) regulations of governmental agencies, and (4) ordinances of municipalities and other governmental subdivisions of the United States or of any state, territory or other jurisdiction of the United States.
(c) When discretionary. A court may take judicial notice, whether requested or not.
(d) When mandatory. A court shall take judicial notice if requested by a party and supplied with the necessary information.
(e) Opportunity to be heard. A party is entitled upon timely request to an opportunity to be heard as to the propriety of taking judicial notice and the tenor of the matter noticed. In the absence of prior notification, the request may be made after judicial notice has been taken
[15] This request, while unusual is not improper. The bankruptcy Court originally approved Haas’s company, Collateral Logistics Inc (CLI) as the Court’s “sole” liquidation consultant. The parties conspired to defeat the liquidation efforts by perjury and willful fraud on the court. Haas has remained diligent in CLI duties. The position of “wind-down coordinator” and liquidation consultant or Plan Administrator are the same.
[16] The US Trustee is commanded by Oath of office and 28 USC § 586(a)(3)(F) (and more) to halt the crimes.
[17] It is highly plausible that the Opinion of the Bankruptcy Court of Oct 4, 2005 was influenced to vindicate.
[18] The Court approved the Hiring of CLI and Haas; as a prudent matter of equitable justice it is appalling that the bankruptcy court would retaliate & deny adjudication upon merits of good faith, court approved work while refusing to address the issue of Fraud on the Court. Any Court must halt, rather than encourage Fraud.
[19] The bankruptcy Court approved the Contracts for CLI and Haas that stated the paperwork of CLI would be submitted to the Court with the “assistance of Debtors counsel” [MNAT] and the Indemnification clauses of the two [2] bankruptcy court approved CLI contracts specifically state the Debtor shall defend Haas and CLI.
[20] A debtor in possession is bound by a duty of loyalty that includes an obligation to refrain from self dealing, to avoid conflicts of interests and [even] the appearance of impropriety See e.g., Lopez-Stubbe v. Rodriguez-Estrada (In re San Jaun Hotel Corp.,) 847 F.2d 931, 950 (1st Cir. 1988); Bennitt v. Gremmill (In re Combined Metals Reduction Co.), 557 F.2d 179, 196-97 (9th Cir. 1977)
[21] The Fed R App Proc states that all parts of the original docket record are part of the Record. Therefore we ask that the Court review the US Trustee Motion to Disgorge Traub Bonacquist (D.I. 2195), the US Trustee Stipulation to Settle the Disgorge Motion (D.I. 2201) and the Opinion by the Bankruptcy Court (D.I. 2319)
[22] The Opinion & Order of the Court already documents that MNAT, Barry Gold and TBF had conflict of interest issues. It skips by the fact that false affidavits are Perjury. The fact remains perjury is confessed.
[23] The Asst US Trustee, Frank Perch, Disgorge Motion (D.I. 2195) only addressed a few of the 100 felony violations and concluded that there were multiple, intentionally false, Rule 2014 affidavits and Fraud upon the Court had occurred. The US Trustee already proved TBF planted Barry Gold in the Debtor nefariously.
[24] Many parties staunchly persevere in denying appeal party Haas, Article III standing, as “person aggrieved” in order to dupe any honorable authority of the System of Justice and parties of interest from knowing that egregious, heinous crimes have occurred. Doing so under “pretense” and “color of law”. Quite simply, the parties desire to cover up the issues, to hide the fact that well-established colleagues have stepped over the line. They need Haas to be denied standing so that adjudication upon merits never occurs. This will assure that the crimes go unpunished and cements material harm to parties of interest.
[25] (Approving destruction of books & records is a specious event all its own)
[26] Barry Gold has not disclosed his resume fact of being CFO of TSS Stores for 24 years, yet it is there where Mr. Gold first did a juggling act with § 327(a) and a §503(b) claim, as a Supplemental Affidavit in the Stage Stores Bankruptcy case shows that the dodging of § 327(a) of TBF and Barry Gold in many cases is profuse.
[27] It is an undisputed Fact that both MNAT and TBF supplied multiple (19), false Rule 2014 Affidavits.
[28] In re Envirodyne, 150 B.R. at 1022 (“if the professional sought to be employed does not satisfy one prong of this standard, the Code prohibits the court from authorizing his or her employment”). His Honor Judge Alito stated In the Matter of Price Waterhouse 19. F.3d 138, 140 (3rd Cir. 1994) that the 3rd Circuit rejects the endeavor to misappropriate the Language that the Court may take a “flexible approach” in reference of In re BH&P, 949 F.2d at 1315 [**12] stating that “in the current case, we must interpret and apply Section 327(a) —– as we have explained, we find no ambiguity in the relevant language of Section 327(a).” (It should be noted that none of the debtors’ creditors objected to the proposed retention in the Price Waterhouse case)
[29] With the Stipulation to Settle, the Bankruptcy Court simply ignores a request for Rule 5004 Recusal and Rule 2020 Review of Failure to Act of US Trustee and the Opinion. Thus parties remain openly “conflicted”!
[30] The Asst US Trustee resigned after placing in the Motion to Disgorge TBF for $1.6 million (D.I. 2195)
[31] Haas has testified, continuously, that the CLI attorney, Henry Heiman, emailed the threat of TBF to Haas.
[32] It has been subsequently learned that Judge Kent A Jordan was a partner of the Morris James law firm that Haas initially engaged for the CLI claim. The Morris James firm issue necessitates Recusal under § 455.
[33] The US Attorney Colm F Connolly whose office has declined to prosecute the eToys perjury and Fraud. The Delaware US Attorney said there is no case. (While not revealing the fact that Colm F Connolly was a partner with MNAT in 2001, when the fraud and perjury began. The violations of ethics remain insidious).
[34] The Director of the US Trustee EOUST in Washington DC had replaced Roberta DeAngelis with a press release dated Dec. 22, 2004, as that was the very same date of the Emergency hearing on perjury it is key. At the same time, Director Friedman also had personnel, direct contact, with both Haas and Robert Alber, informing them that the issues would be addressed. Then, contrary to that assertion, Mark Kenney issues the Stipulation to Settle and Paul Traub continues his fraud pursuits in the KB Toys case, asking, without disclosing connections thereto, to be the one to prosecute a $100 million transfer. After Haas complained to the Asst US Trustee and Director Friedman both parties resigned for “personal reasons” with no remedy.
[35] The Disgorge Motion states, effectively, that TBF did file multiple, intentionally false, Rule 2014 affidavits (more than 19), which were materially adverse to the eToys estate and the Disgorge Motion, concluded, materially adverse harm with fraud upon the court had occurred by TBF. (The Disgorge Motion only addressed four (4) of the 100 felony items documented to the Courts)
[36] The Disgorge Motion is also erroneously silent concerning MNAT and footnote1 says Mr. Gold is O K.
[38] Paul Traub was under direct Bankruptcy Court examination March 1, 2005 and while on the stand Paul Traub confessed to the fact that TBF paid Barry Gold four [4] payments of $30,000. (Transcript D.I. 2228)
[39] (Violating 18 USC 3057(a), the Judicial Canon’s of Conduct as well as any sense of ethical decency).
[40] The Opinion is a 57 page that actually appears to be a defense document and is contradictory to itself and clear “unambiguous” statutory requisites and well established precedents within the Third Circuit.
[41] A recent report given to Congressional parties by the Legal Victim Assistance Project remarks upon the fact that it appears the US Trustee system is complicit in fraud. The document by Meryl Lanson reflects upon the Third Circuit case of In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986) which specifically noted that the system will continuously be corrupted by attorneys. The Third Circuit specifically cited Arkansas issues and remarked, “This approach would render meaningless the structure of the Bankruptcy Code and Rules which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”. While this Circuit also remarked, “Among such practices was the cronyism of the “bankruptcy ring” and attorney control of bankruptcy cases. In fact, the House Report noted that “in practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors.” H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. & Ad. News 5963, 6053”
[42] The Disgorge Motion is very professionally written and detailed in proving fraud and perjury. Asst. US Trustee Frank Perch specifically states that the parties discussed the item of replacing key personnel of the Debtor with connected persons to the Court approved retained professionals and the US Trustee said NO!
[43] The eToys docket item 2169 is Barry Gold’s response Jan 25, 2005 the Hiring Letter is Exhibit 1 thereof
[44] The Hiring Letter says Mr. Gold is a “wind down coordinator” this is duplicative of CLI as “sole” liquidation consultant for the Debtor’s estate The combined collaborative powers of TBF, MNAT and Barry Gold, along with a willfully blind US Trustee’s office effectively muscled out Haas and CLI from duties.
[45] Both the US Trustee Disgorge Motion and the subsequent Bankruptcy Court Opinion of October 4, 2005 directly quote the issue of “wind-down coordinator” which is only provided within the Hiring Letter of Barry Gold. How a policing and judicial authority can see such “prima facie” evidence and remain silent is absurd!
[46] Liquidity Solutions acquired many of the Claims of the Debtor and Liquidity is Co-debtor of Bain’s Stage.
[47] MNAT supplied the HAAS Affidavit to the Court and then later claimed it was a “waiver”. The HAAS affidavit is eToys docket item 816 and any review clearly shows that CLI is entitled to success fees as it states in items 10 and 11 of the HAAS Affidavit. Combined with the amount of subterfuge no honorable body of justice can cleanly permit the parties to retaliate against HAAS without independent adjudication.
[48] The Courts simply ignore the Chairman’s affidavits including the one of June 2005 (D.I. 2288 Exh A)
[49] EToys docket item 467 by CrossRoads LLC (the Court approved financial consultants) specifically states that Xroads negotiated the new D&O insurance for Barry Gold and was waiting up the Court’s approval of the hiring of Barry Gold
[50] The Chairman of the Creditors Committee also gives affidavits stating TBF and Barry Gold deceived the Creditors Committee and the Court on Barry Gold and CLI issues. (D.I. 1481, 2111, 2281 & June 2005 2288.
[51] Mark Kenney was irritated at Haas persistence as Haas had notified Mark Kenney all along including Haas calling to Mark Kenney attention that the case Mark Kenney told Haas of, to dismiss Haas allegations, the Bonus Sales case and Mark Kenney failed to move immediately to rectify. Whether Mark Kenney has received remuneration or other considerations or is just seeking to be a good buddy, he is complicit overtly.
[52] Matter of Stewarts Foods v. Broeckor (In re Stewart Foods) 64 F.4d 141, 27 Bankr. Ct. Dec. (CRR) 1016, 34 Collier Bankr. Cas. 2d (MB) (a claim arising from breach is an administrative expense if actual benefit)
[53] Evening the Opinion of the Bankruptcy Court concluded that “extraordinary” circumstances existed in the eToys case & failure to address fraud on the court would “reward conflicting attorneys and punish plaintiff”
[54] http://www.usdoj.gov/ust/eo/public_affairs/press/docs/stapleton_release2_12-04.htm (DeAngelis replaced)
[55] Proving Asst US Trustee Frank Perch correct, about lacking sufficient deterrent, Paul Traub of TBF was discovered to be petitioning to handle the $100 million cash payment to Bain in the KB toys bankruptcy case. Where TBF has not disclosed connections to Bain, Barry Gold worked in KB Toys with ADA and MNAT brazenly and flagrantly represents Bain. When Haas pointed it out Mark Kenney defended fraud. (DI 2228)
[56] http://www.usdoj.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm (Friedman resigns)
[57] Please see In re California Canners and Growers (Bankr. N.D. Cal 1987) 74 B.R. 336, also affirmed in Image Technical Services, Inc v. Eastman Kodak Company (N.D. Cal. 1993) 820 F. Supp. 1212, 1217 that also cites Schmitz v. Ziveti (9th Cir. 1994) 20 F.3d 1043, 1048-1049 “a lawyer has a duty to investigate for his [firm’s] potential conflicts of interest [reporting any violations to the court].
[58] Haas has submitted this into the record along with other items and His Honor Baxter permitted the parties to Strike and Expunge the Haas statement at the behest of the perpetrators. (D.I. 2294, 2295, 2297 & 2302). In revealing the actuality that Heiman passed along the threats by email Haas and CLI do not waive attorney client privilege.
[59] The Debtor’s schedules stated that eToys only transacted $100 million prior to filing bankruptcy.
[60] July 25, 2005 the WSJ had issued a press story about the issue, which can be seen at http://www.wjfa.net/bk/etoys.html A Wall Street Journal article on the TBF issued was printed July 25, 2005
[61] See also In re Seatrain Lines, Inc., 13 B.R. 980, 981 (S.D.N.Y. 1981) and In re Fretheim, 102 B.R. 298, 299 (D. Conn. 1989). In re Twinton Properties 27 B.R. 817 Bankr. (CCH) 69096 (MD. Tenn. 1983) listing the 9 elements to be clear and convincing of no conflict. In re: Childress v. Middleton Arms (“Bankruptcy Court may not authorize even if the [Plan] debtor would be better served”.) (The Sup Ct and Third Cir affirmed Middleton Arms certification that failure to disclose mandates disqualification.) The quotes comes from the US Trustee’s Manual vol. 3, United States – Kraft v. Aetna Casualty and Sur. Co., 43 B.R. 119 (M.D. Tenn. 1984)
[62] http://www.usdoj.gov/ust/eo/public_affairs/sig_guidance/index.htm This Dept of Justice Trustee Handbook and Guidelines is on a website so that everyone may know the Law. To keep the system Kosher.
[63] CORPORATE DISCLOSURE STATEMENT PURSUANT [US Trustee] TO FED. R. APP. P. 26.1 [the]United States Trustees are officials of the Department of Justice appointed by the Attorney General to supervise the administration of bankruptcy cases and trustees . See 11 U.S.C. §§ 581-589; United States Trustee v. Revco,D.S.,Inc. (In re Revco D.S.,Inc), 898F.2d498, 499 (6`hCir. 1990)(“[t]heUnited States trustee, an officer of the Executive branch, represents . .[the] public interest.”)
[64] The Disgorge Motion 1st footnote states -1/ 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
[65] See In re Seatrain Lines, Inc., 13 B.R. 980, 981 (S.D.N.Y. 1981) and In re Fretheim, 102 B.R. 298, 299 (D. Conn. 1989). In re Twinton Properties 27 B.R. 817 Bankr. (CCH) 69096 (MD. Tenn. 1983) listing the 9 elements to be clear and convincing of no conflict. In re Kraft v Aetna (appraiser cannot bypass 327(a) by stating mechanical services.) In re: Childress v. Middleton Arms (“Bankruptcy Court may not authorize even if the [Plan] debtor would be better served”.) (The Sup Ct and Third Cir affirmed Middleton Arms certification that failure to disclose mandates disqualification.) The quotes comes from the US Trustee’s Manual vol. 3, United States – Kraft v. Aetna Casualty and Sur. Co., 43 B.R. 119 (M.D. Tenn. 1984) The Circuits have long adopted the notion that it is the “autonomy” in bankruptcy decisions that is germane. You cannot simply rename a “wind-down coordinator” to the post of janitor (or CEO) & bypass the statutory requisite of the Code, an estate “sine qua non” is disclosure, above all else
[67] (We apologize if it seems that there is redundancy here, in pointing out the items that may now seem obvious and hammered home. As our efforts for 6 years, to get the felony criminal acts halted, have thus far been unsuccessful, we do not know how to conform with the requisite of the Law by any other manner than that of repeating the narrative enough, until someone “gets it” sufficiently- to then halt the crimes/remedy)
Blogroll
- Bankruptcy Misconduct
- Federal Judge accuses Justice Dept of facilitating Fraud
- Fraud on the Court
- Mitt Romney Bain entity benefits from $300 million in fraud and Dept of Justice efforts cover up.
- Morford Watch
- TownHall Press Blog on eToys Bain Fraud
- Wells of Justice
- Where is Justice For All
- WordPress.com
- WordPress.org
Citizens Against Professionals Bankruptcy Fraud 
You must be logged in to post a comment.