Posted by
LASER Haas on Saturday, April 12, 2008 1:10:31 PM
BACKGROUND on $300 million fraud, 34 confessed false affidavits (PERJURY).
The public entity of eToys IPO occurred in mid 1999 and was highly successful as the stock was worth nearly $8 billion.
Then in the fall of 2000, the entire wealth of eToys had disappeared as they became bankrupt.
No charges, no case and not even any investigation!
The law firm of Morris Nichols Arsht & Tunnel (MNAT) became the Federal Court approved officer of the court as the eToys Debtor counsel in 2001 and in accordance with Bankruptcy Code 327(a) (hiring of professional persons) MNAT testified by an Affidavit under Bankruptcy Rule 2014 that it was a disinterested person having no Conflict of Interest as defined in Bankr Code 101(14).
The Law firm of Traub Bonacquist & Fox (TBF) was the Bankruptcy Court approved officer and counsel for the Official Committee of Unsecured Creditors. TBF had transistioned from being the counsel for the "unofficial" committee since Nov 2000 to the Official Committee in March and April 2001.
Laser Haas was a Court approved Liquidation Consultant that TBF had encouraged HAAS to use his company and that TBF and MNAT, as a cost saving benefit to the Debtor, would then submit the paperwork, on behalf of HAAS's corporation Collateral Logistic's Inc (CLI) to the Court's for payments.
As a cost saving benefit to the Debtor's estate, Barry Gold, TBF and MNAT discouraged HAAS from having independent accountant pr counsel for CLI or HAAS. Even the Creditor's committee discouraged HAAS from having an independent attorney, where TBF and MNAT would supply the paperwork for HAAS and/or CLI to the Courts. This was included in the contract for CLI and was Court approved.
The two contracts for CLI and HAAS were drafted by MNAT, Barry Gold, TBF and others and includes both clauses that all fees and commissions to be paid CLI are to be net of all expenses including, but not limited to, labor, taxes, insirance and that the Debtor shall DEFEND, INDEMNIFY and Hold Harmless CLI and its Officers, agents or assigns.
In other words, every time the Court states that CLI and HAAS cannot or does not have counsel, it is assisting the Debtor with direct Material Breach of its own fiduciary duties.
Barry Gold became the ILLEGAL "wind -down coordinator" of eToys as the Bankruptcy Court had approved the Destruction of Books n Records, all the executives of eToys fleed from the company in March and April 2001. Barry Gold then became the ILLEGAL President and CEO of eToys in May 2001.
It is ILLEGAL because the Bankruptcy Code & Rules specifically require that all "post-petition" professional employment, having any authority or autonomy in Bankruptcy matters MUST apply to the Court for permission, as per Section(s) 327(a) (Code on Professional employments) Section 101(14) (Code on definition of "disinterested person" [if you are not disinterested you Cannot be hired]) and Rule 2014/ Rule 2016, the Affidavit requirements, as professionals are basically "self policing" they Must sign an affidavit stating they are Disinterested and have no conflict of interest!
For if you are NOT disinterested or you DO have a conflict of interest, the Code prohibits your employment.
TBF and MNAT withheld from the Court many items, as TBF and MNAT testified falsely, (violating Section 327(a) and Rule 2014/ 2016 as TBF and MNAT repeatedly and falsely testified, under penalty of perjury, that they had no conflict of interest, including the fact that TBF and MNAT egregiously drafted a sclandestine Hiring Letter that gave Barry Gold illegal permission to Circumvent the Law and also dodge applying.
The very fact that TBF and MNAT were in that pursuit together made them partners in a conspiracy to defraud an estate, perpetrate fraud on the court and destroyed any ability to be honorable fiduciaries to their respective clients.
Being that the scheme to defraud Debtor estates involves multiple parties, multiple cases, multiple years, across state lines, doing the same type of crime over and over is justification for a Racketeering Indictment.
Making the situation worse was the fact that MNAT, TBF and Barry Gold all had "undisclosed" connections to Bain / KB as Bain owned and controlled KB and eToys, with the help of MNAT, TBF and Barry Gold negotiated the sale of the eToys assets to Bain/ KB for discounts in the tens of millions of dollars.
The Criminal Statutes on Collusion to Defraud an estate are so strong, that even if the parties had gotten a billion dollars for the sale, the Code states it is still a Crime, no matter how much they received for the sales efforts.
The Fact that they deliberately negotiated that their respective clients received less, while they enriched their on going client, Bain makes the crime much more extensively harmful to all parties of interest.
When HAAS began to realize what was going on, they offered him a clandestine bribe.
He said no and a 7 year battle began where MNAT, TBF and Barry Gold, along with other complicit parties, believed that they had achieved total success in their collusion, perjury and fraud. Where, prior to HAAS provding irrefutable proof of perjury and fraud, MNAT was already blatantly and flagrantly representing Bain in the $100 million dollar Cash preferential in the KB Toys bankruptcy case. (when HAAS provided proof of the additional perjury and fraud in KB, the Dept of Justice came to the rescue of MNAT and TBF)
HAAS own Attorney emailed HAAS a threat to Back Off from investigating the perjury and Fraud.
Even though HAAS had the hidden cooperation of one of TBF's former legal associates informing him that Barry Gold and Paul Traub were engaged in deception, that Barry Gold and Paul Traub had been buddies for over a decade, HAAS had to rely on his newly hired attorney, Henry Heiman, to tell him what was right and wrong.
When HAAS finally realized in 2004, that Henry Heiman, a former Trustee, had apparently decided to work for TBF's interest, HAAS informed Heiman of the results of his on going investigation.
Henry Heiman then panicked and discussed the issues with TBF.
This resulted in Susan Balaschak of TBF threatening HAAS that if he did not 'back off" from the investigation, not only would HAAS and CLI not be paid for the Court approved work, HAAS would lose his expense money, they would destroy his career and additional retailiations would occur, such as coming after him for monies previously received.
HAAS informed the US Trustee's office of the fact that Henry Heiman actually emailed this Threat to HAAS
Because you are suppose to be able to Trust a United States Trustee - correct?
The Dept of Justice Attorney, Mark Kenney then responded with a "lapse linguae" that actually helped HAAS bring down the whole house of cards.
Mark Kenney, being somewhat in a panic and anger mode himself, told HAAS that the issues of Barry Gold and Paul Traub had been taken care of in the case of Bonus Sales and that all "we had to do was make TBF a special counsel and all this could be avoided".
HAAS recorded the conversations;- as he had heard of Bonus from someone else, but had not heard the entire item Bonus Sales.
This, along with the fact that HAAS had begun to extensively learn the Law from the Dept of Justice website and could now research with some degree of skill, the Delaware Court docket system through PACER and Lexis.
Researching how addressing the issue in one case could somehow solve the issues in another case led to the discovery of a company that Paul Traub and Barry Gold had owned together since April 2001. that being Asset Disposition Advisors (ADA).
Eventhough the DOJ attorney, Mark Kenney, has aligned himself as co-conspirator with the perpetrators of fraud, abusing his esteemed level of Trust and policing authority in a corrupt manner, being seditious to Mark Kenney and the US Trustee's Oath of Office under 28 USC 586, breaching fiduciary duties under 18 USC 1346, as well as being in violation of 18 USC 3057(a), 18 USC 4 MisPrison and their are doing so under "color of law" breaking the Law of 18 USC 242.
The fact remains, is that if Mark Kenney winds up doing ten years, they can at least reduce it to 6 with probation. For without that Court docket record iron clad proof of ADA affidavit in Bonus Sales, that had both Paul Traub and Barry Gold's name on it (vanity is the rue of us all), this case would never have gone down the discovery pathway that had occurred.
Since that time, they have made over a dozen additional "faux pas" that have benefited the Criminal Investigation
Including the testimony by Traub and Fox that they deliberately withheld the information from the Court.
Combined with the fact that Paul Traub actually went on the stand March 1, 2005 and testified by confession how his TBF firm actually paid Barry Gold four (4) payments of $30,000 each, prior to placing Barry Gold within eToys.
Where, the clandestine Hiring Letter proves that the parties Intentionally bribed Barry Gold not to seek the Courts permission to be approved and hired, whereupon he then received $40,000 per month with a promise of a huge bonus at the end of the case.
The Hiring Letter was revealed by Barry Gold's own attorney (another BIG faux pas) where Barry Gold needed help to defend himself aginst the perjury he committed. For even though the Hiring Letter allowed Barry Gold to escape the issue in 2001, after believing he had gotten away with the deception and crimes, Barry Gold testified on the stand to eToys shareholders that he was not connected with TBF.
Barry Gold had also submitted a Declaration affidavit in 2002 falsely testifying that he was NOT connected to anyone. Stating ,almost humorously, that the Confirmed Plan of eToys was drafted in extensive "arms length" negotiations between Debtor n Creditors.
That is between Barry Gold and TBF where arms length is impossible to achieve.
When we initially provided overwhelming, "court docket record proof" of Perjury and Fraud upon the Court to the Executive Office of the United States Trustee's in Washington DC (EOUST) the Director responded by replacing the Region 3 Trustee, Roberta DeAngelis with Kelly B Stapleton.
The press release at the Dept of Justice US Trustee website states that Kelly Stapleton remarked that as a former prosecutor
"the elimation of fraud and abuse of the bankruptcy system is of compelling interest to me"
The promotion of Kelly Stapleton press release is speciously timed to coincide with the date of the Emergency hearing in the Delaware Bankr Court on the perjury and fraud thereof. (December 22, 2004). (
please see DOJ press release Here )
Then, the law firms of MNAT and TBF confessed to acts of false affidavits (34) and deception of the Court.
The issues are compounded by the fact that the Asst US Trustee Frank Perch testified he specifically cautioned the parties not to violate the very Law's that they have now confessed to intentionally breaching.
That is why Trustee Perch stated, that the acts were deliberate, rather than inadvertent in his US Trustee Motion to Disgorge.(eToys docket item 2195 Feb 15 2005)
Making the acts extensively more heinous Paul Traub and Michael Fox of Traub Bonacquist & Fox even had "confessed" that when their deception became readily apparent in the Bonus Sales 03-12284 case, they considered amending their Rule 2014/ Rule 2016 affidavits and decided to continue to remain silent about the perjury.
We emailed and provided hard copy proofs of additional frauds and perjury to the Director of the EOUST, Mr Lawrence Friedman who sent this following email to me.
Mr.. Haas:
You most assuredly have our attention and my personal commitment that we will act in every case where action is required and we are aware of it. Please understand however, that like any prosecutor, we must exercise appropriate discretion in carrying out our responsibilities which while sometimes in a particular case may seem unjust, it is done with perspective to ALL matters we handle. I sympathize with your frustration and again assure you that my staff is extremely competent to handle this matter and will exercise appropriate judgment.
Lawrence A. Friedman, Director
Executive Office for US Trustees
United States Department of Justice
Washington, DC
Then, less than 10 days later, the Dept of Justice Attorney, Mark Kenney, signed his name and the digital signature of the New Trustee Stapleton to an illegal Stipulation to Settle that gives implied, blanket, Illegal, immunity to the acts of criminality.
One of the protocol's that is to occur when an attorney is caught in "non-disclosure" of "conflict of interest" issues, is that the remedy is to be a sufficient deterrent of all other legal professionals as a clear warning for everyone not to effort a similiar bogus behavior. While Congress has set down the Constitutional mandate that non disclosure of Conflict of interest by attorneys MUST result in disqualification of the attorney.
The Judge can pick and choose, within reason, how much to sanction, punish and deter, however, the Court is forbidden from circumventing the clear and "unambiguous" languate of 327(a).
However, in the eToys case, where the US Trustee will not even mention the MNAT law firms name and had offered the Stipulation to Settle, this resulted in MNAT and TBF immediately engaging in another $100 million in cash fraud efforts in the KB Toys case in March/April 2001.
Then, Mark Kenney, a Dept of Justice attorney for the Region 3 Trustee office actually had the unmitigated gall to step up to the plate and Obstruct Justice on behalf of TBF and MNAT law firms, asking that the Federal Court strike and expunge my proof of fraud and perjury. (
please see Court docket record of Obstruction of Justice
Here )
When we informed Director Friedman of this, he RESIGNED (
see press release Here )
Again please pay attention to the Speciousness of the date of resignation, similar to the date of replacing Kelly B Stapleton as Lawrence Friedman announced his resignation the same time my [Haas] brief went into the KB Toys case conerning another $100 million in fraud. It is likely that Lawrence Friemdman was coerced by his subordinates that nothing was really going on and that an "OOPS" had occurred in beseeching the Director to permit leniency towards the MNAT and TBF law firms.
When Mr. Friemdnan realized he had been duped by his own personnel and had therefore approved of Obstruction of Justice he had not choice but to exit gracefully.
May be hard to find him these days and get a comment as he is quite busy, leaving the DOJ he became a big dog at Bear Sterns.
What is simply amazing about all this, is the American public and press remains constantly rope a doped by a bait n switch away tactic, as the US Trustee program boasts of its efforts to halt bankruptcy fraud in such items as the
Silver Screen Fraud efforts (
Here ) and
Operation Truth or Consequences (
Here ) While it is also no small coincidence that the Sting operations nailed the Haas's sisters in Delaware (
I do not believe they are related to me).
Prosecute John Q for a $10,000 item and let the Attorneys still millions, billions and public companies, Justice at its finest.
For it seems that the Dept of Justice Trustee, Kelly B Stapleton was telling the Truth about how "the elimation of fraud and abuse of the bankruptcy system is of compelling interest to me"
Just not the Truth with thought she was referring to, as her office has engaged in multiple acts of assisting and fostering the MNAT and TBF criminal enterprise by ovet acts that are blantant efforts at Obstruction of Justice.
what was "compelling" to Stapleton's office is the need to keep the crimes going!
Hard to blame Kelly Stapleton, Andrew Vara and Mark Kenney by themselves though, as they seem to have their own form of implied, blanket, immunity, for the "removed" Roberta DeAngelis was quietly and speciously promoted to the post of Acting General Counsel (by Acting Director White), where DeAngelis is in charge of what cases get referred to the US Attorney's office for prosecution.
Before you laugh too hard, believe it or not, it gets worse.
The US Attorney that the Court or the US Trustee would have referred the matter to in Delaware is Colm F Connolly,
The problem with that is Colm F Connolly was a partner with the MNAT law firm in 2001 and may have even worked on the eToys or Bain issues (
see DOJ press release here )
That is not the "worse" part I was referring to, although it is a matter of grave concern as Colm Connolly is nominated for a Federal Justice position, the mere fact that his office did not refer the matter to the Public Integrity Section or an alternative, independent prosecutor clearly demonstrates that Connolly is unfit to be a Federal Judge.
No, the worse part is that after we referred the matter to the US Marshall's, the DOJ, the FBI, the General Counsel (DeAngelis), the OIG, the OGE, Colm Connolly's office (specifically Ms Slights) and the Pres Bush Corp Fraud Task Force.
We then received veiled threats when Debra Yang of the Corp Fraud Task Force (officed in Central CA US Attorney's office) sent the matters to Delaware, being (purportedly) as uniformed as we were about DeAngelis and Connolly, the local FBI gal told me that she was aware of my ---- harassing emails and that there was no investigations, no charges or no case, unless I do not cease from my emails in violations of the electronic spam act.
I do not fault her also, as she could not have possibly (hopefully at least) been aware of the cronyism and corruption or ethics violations all connected to the MNAT law firm.
Sort of like a Judge having the D A and a Policeman testifying to him that you were drunk. It does not matter that the Truth is the cop and the officer were the ones drunk when they hit your car and that you drink one beer once a year.
Who will the Judge or jury believe?
Debra Yang discovered that she did not know whom to believe and resigned.
(cannot blame her though, it is rumored that she received a $1.5 million sign on bonus to leave an incentive for a $140,000 per year appointee too much to say no to).
HOWEVER,
The worse issue is the Corruption, Cronyism and PROTECTION of the Organized Criminal Acts of MNAT and TBF have now crossed State lines, agencies and organizations within the Dept of Justice as well as our court systems at Circut level.
For when
we learned that the US Attorney Colm Connolly was a partner with the MNAT law firm we informed the Wall Street Journal reporters who had previously worked on the story with us for 5 years and reported the TBF illegal settlement along with resignation of Lawrence Friedman (
please see the actual WSJ article Here )
We supplied a
Citizens 18 USC 3057(a) Complaint and
18 USC 3771 Complaint to the US Attorney Tom O'Brien who took over the Public Corruption and Fraud Task Force after Debra Yang made her exit. (
see complaint Here )
We have received no written response from Tom O'Brien's office, even though the DOJ Central CA website states you will receive an answer within 8 to 12 weeks.
However, Mr. O'Brien did make his Opinion on Fraud and Corruption matters know when, on the 12th week that our response was now overdue, Tom O"Brien walked into the weekly meeting and screamed, yelled and threatened the career prosecutors for failing to do more prosecutions as Tom O'Brien informed everyone, out of the blue, that he was going to shut down the Public Corruption and Fraud Task Force. He also threatened persons at the meeting that if they revealed any other reason than the one he gives, to the press, for why the unit was being disbanded, that he would punish them (
Please see L A Times Story HERE )
Apparently O'Brien and the new Attorney General Mukasey are of the same mindset, as Mukasey also stated that the disbanding of the Fraud unit would make the Dept of Justice more efficient as Mukasey vows to address Public Fraud and Corruption.
More efficient AT WHAT?
(
we believe they mean what Kelly B Stapleton really meant, efficient at protecting the MNAT nefarious horde) (you can see
Mukasey's defense of O'Brien's right to shut down the Fraud Task Force here )
The AG and US Attorney's do not have to worry though as the Delaware Chief Justice and 3rd Circuit Court has their back.
The Delaware Chief Justice Mary F Walrath was caught in a box when she assisted the TBF Law firm in the success of their Threats that my own attorney Henry Heiman (a former Trustee) emailed me.
Being that one's own attorney can email concrete blackmail, extortion and intimidation of Victim/Witness [whistle blower] without fear of prosecution. It is then highly unlikely that Mukasey or O'Brien will ever have to be held accountabl