Skip to main content

       Having made allegations profuse, in the previous Diary (here), stating, what amounts to opening remarks. That Bain and Goldman Sachs have committed federal fraud in the eToys case - with many cohorts - with more than 100 felony counts. It is now time to give the easy part of this organized criminal enterprise. How they planned to make a company worth alot of money, then steal that money, again and again and again. It is worth your time to read and learn - it will Free Your Mind and open your eyes.
Background".

 

     In 1999, several major business dealings transpired. Mitt Romney  and various Bain associated parties were involved in Stage Stores and The Learning Company. Also in 1999, an online internet retailer during the Clinton years, eToys,  made the decision to go public. Goldman Sachs is the firm that took eToys thru its "IPO" (initial public offering). The contracts were written for an projected $18 to $20 per share price. When the stock soared to above $78 - a pump/n/dump scheme began. Goldman Sachs was limited to $1.50 per share commission.

     Yet, inexplicably, eToys only received $16.50 and the balance of money Goldman Sachs was sued to explain. The case is in the New York Supreme Court (case 601805/2002). To make sure that they would not have to explain where the money went, Goldman Sachs arranged for a [solvent] eToys to file bankruptcy March 7, 2001. They then [illegally] destroyed the evidence and obstructed justice. Then the NY Supreme Court case of Goldman Sachs,(in essence suing Goldman Sachs), was put entirely under SEAL from public view.


      Goldman Sachs is represented [secretly] in Delaware by the Law firm Morris Nichols Arsht & Tunnell ("MNAT"). The Law firm that handled the merger of Romney's Bain "The Learning Company" with Mattel - was also the Delaware law firm of MNAT. Originally, eToys, located in California, hired the Californian firm of Irell & Manella. Corrupt federal employees within the Department of Justice in Delaware, substituted MNAT [illegally] - as eToys bankruptcy Debtor's counsel. To complete the conspiracy and collusion to defraud, MNAT, working hand in hand with the Creditors Committee attorney (Paul Traub); put in a new President and CEO of eToys - Mr. Barry Gold. Being that many crimes were already transpiring and Paul Traub has a secret relationship with Romney/ Bain and cohorts; it should not knock you off your chair to learn that secretly - Barry Gold and Paul Traub are also partners.

How they then engaged in Racketeering to monopolize the retail toy industry is below

       

Bain, Toys R Us, Monopoly, Goldman Sachs & Racketeering


.

They Broke the Law

     If you are saying to yourself, that all the relationships that we mentioned above, sounds like a conflict of interest - You are Correct. Furthermore, unlike in the government or Wall Street; where conflicts can be resolved by negotiation or distancing. In federal estates, ANY undisclosed conflicts of interest are totally forbidden by law. As per Section 327(a) - the failure to disclose a relationship - MUST result in disqualification and, at the judge's discretion - disgorgement of fees and expenses.

     To recap what was just presented above, the relationships are incestuous and systemic. Though they have been boasting and enjoying their brilliant, ruthless and successful business plan; it is also - Totally - Illegal. Attorneys who practice in bankruptcy cases, must have the court's approval per § 327(a)  as a Professional Person. They must "disclose" any and all relationships to other parties and be a "Disinterested Person" (per Section 101(14)). They may self police themselves (a recipe for disaster in the eToys case). The check-n-balance is that they must submit a Rule 2014 Affidavit, testifying - "Under Penalty of Perjury" - that they have NO Conflict of Interest.

Conflict of Interest in eToys - the Players

.
        Despite what you have heard by the press, Mitt Romney founded Bain Capital and did NOT give up all business pursuits in 1999. He needs you to believe that line of BS, because the crimes in eToys - if [when] investigated - makes the Chief Executive of Bain accountable. Mitt Romney still ran Bain Capital (and hundreds of sub entities therefore) in 1999, 2000 and 2001.


   

  Paul Traub and Barry Gold met with Romney's Bain at NeoStar, Jumbo Sports, TSS or earlier. Both Mr. Gold and Mr. Traub have admitted that they get employments thru Jack Bush of Dallas Texas. Jack Bush was a director at Stage Stores and also CEO of Bain's IdeaForest. He was also with Barry Gold and Paul Traub at Jumbo Sports in Florida. Also at Stage Stores as director was Michael Glazer, who was the CEO of Kay Bee Toys too. Don't forget, MNAT works for Goldman Sachs, Bain/ Mattel and partnered with Paul Traub to [secretly] put in Barry Gold as the [Illegal] President/ CEO of eToys


.

Mitt Romney was CEO of Bain in 2001 and still benefits from fraud


.
     As "transitive logic" goes - A=B B=C thus A=C. Thus Romney=Bain  and Bain=Traub then Romney=Traub. Wherefore, we have MNAT equals Bain, Romney equals Bain, Traub equals Bain and Traub equals Barry Gold. Their relationships are incestuous beyond compare. As this chart shows, Romney is connected by the dots to everything. Including fraudsters Marc Dreier and Tom Petters. But more on that in future Chronicles.



Mitt Romney, not Bain, had been the controlling owner (800,00 shares) of Stage Stores in 2000/ 2001; which filed bankruptcy in 2000. Barry Gold worked for the Stage Store directors and "they" got caught because Barry Gold personally signed the letter at Stage Stores to hire Paul Traub (see Supplement Rule 2014/ 2016 Affidavit (here)). Then they all went to illegally seize and controll the entire federal bankruptcy estate of eToys. Except for 1 little wrench. The court approved Liquidation Consultant CLI was keeping eToys alive and was going to remain a public company due to CLI's sole owner = Laser Haas = (me).

Schemes + Plots + Ploys and More Schemes


.
Scheme 1 - A classic pump n dump

       You have to be somewhat amazed at the Lottery these crooks won. You have a public company (eToys), where the stock soared to above $78, but Goldman Sachs only gave eToys around $16.50. Even though they had contract to earn no more than $1.50 per share; the amount of money and above the law mentality - was just too much of a temptation. So a classic pump-n-dump occurs.

Scheme 2 - Buy a Billion $ company for a few million

        You now control all 3 parties necessary. That being Debtor (Barry Gold as President/ CEO), his partner (Paul Traub) as the Creditors attorney (they are required by law to NOT be connected). With the coup de grace of also having the Debtor's attorney MNAT (also forbidden by law, against having any beneficial connections with the creditors and/ or their attorney).

Scheme 3 - When you have to pay more millions to buy - also be the one to sell

        There's a wrench in the works. Laser Haas. You have the perfect world, a way to own a company worth billions for $3 to $5.4 million. Along comes Haas and the next thing you know - the ambitious clown has driven up the price to $50 million. How in the hell are you going to get that money back?

         Simple - sell it to yourself.

         I know, right now you are saying "Huh" - how do you do that? Actually it is really simple when you think about it. Just answer this question. What happens when anyone or any company files bankruptcy? I mean in the sense of what "we" - the general public/ persons - think about a bankrupt person or company?  You forget about them - right! You toss them out of your mind. Once anyone or any company goes belly up - it is Buried from our minds. This is how they have been stealing from us for decades.

       When a company or person files for bankruptcy - they become an "alter ego" = sort of like a Corporation (did the light bulb just go on)? Bankruptcy is the realm of finality. Once someone files bankruptcy - anyone who is a creditor - is lucky to get 10 cents on a dollar. Romney/ Bain/ Traub and MNAT know this. So do all the creditors in the country. Like the Post Office, UPS, Fedex, Sony, General Mills --- HASBRO and Mattel. They have to pay their attorneys $500 to $1000 per hour (I know - it sucks how much they can get away with).


When your business is bankruptcy - Bankrupt Every Business


.
      Now keep up. This is the place where they snow everyone. How Goldman Sachs,  Bain, Bank of America Fleet Retail Finance and even GE - are making millions faster than a whole bunch of check cashing branches at once. They make money on both sides of the fence. You make fees for handling the bankruptcy case, stiff everyone you owe, re issue stock to yourself (do you hear me Mitt Romney and Ron Burkle)? Then, when you want to buy the bankrupt federal estate - Become the Seller.

       Let me say that again, cause I know it is confusing - until you say "OH" I get it.

       If you are Bain and you want to buy eToys for as little as possible, you have to bid against everyone else that wants eToys. This is a problem. If you have been watching the TV Shows "Auction or Storage Wars" - you see junk go for high prices. When we 1st watched, there were 4 or 5 groups bidding. Now there are 100 people. Same thing with Pawn Stars in Las Vegas. They are SO busy, that there's a coffee and hot dog wagon outside and a LINE at 5 a.m. in the morning. Sometimes people wait for hours in 110% heat or freezing cold. NUTs.

        So, Mitt Romney and his Bain had a problem, Laser Haas was doing to their plan to buy eToys for pennies, the same thing TV did for Storage Wars. Being that I have been in the Liquidation business for 25 years, had handled over 1000 bankruptcies, liquidations, auctions etc. All I did was call everyone, tell them how great a deal they could get and that $3 million that MNAT, Traub and Barry Gold "thought" they were going to sell eToys to Bain/ Kay Bee for - jumped to tens of millions. There were two (2) problems, that the criminal cohorts needed to resolve.

    1.  Get rid of Laser Haas - he is a pain in our ass.

    2.  How do we get back the extra money he made us spend?

      My power center was good faith creditors and honorable employees at eToys. Over 1000 people were losing their jobs. I told them I could save them. They asked for proof and I took them to my 150,000 sg ft warehouse and presented them with a bank letter to guarantee them $5.4 million. Thus, I had the room to move everyting and the money equal to the highest bid. So everyone believed.

     Unfortunately, there were snakes in the grass. I was too naive, even with my 25 years of experience. I knew that Paul Traub was up to no good. So when the new, extremely funny and charming Barry Gold came to meet me and asked if he could help - I said yes.

Don't Laugh too loud - it cost me $3.7 million

 

   Yep, you are laughing at me now, saying You Fool - You Fool. Sad to say - you are correct, I was foolish enough to believe in honorable United States Trustee's. I was foolish enough to believe that I had a Chief Federal Justice's signed contract. That I was getting back more than $50 million and saving the company when they were only getting $3 to $5.4 million. I was foolish enough to believe that Barry Gold had NO connections to Paul Traub - RIGHT. After all, it would be against the law. It gets worse, but you are gonna laugh your ass off.

  I was also foolish enough to pull Barry Gold over and say

                            "Watch out for Paul Traub - I think he is a crook" "

     Now that I know what was really going on - it must have taken everything in the world for Barry Gold not to choke on his own tongue and get away to his laughter. I had to be the joke of all the lawyers bars on Wall Street for months. Can you imagine being Eliot Ness and pulling over a Taxi driver named Frank Nitti and tell him - Look, go away, Al Capone is possibly a crook? Well, there's my SIGN.....(thanks Engvall)

Implementing Bain's plan to steal Everything

      The Chairman of the Creditors Committee in eToys is an honest man. He had been working at Mattel for 22 years. But, both he and I did not know that MNAT and Mitt Romney were actually inside Mattel thru The Learning Company. There's also the fact that Mattel and Hasbro very Top - their CEO's and General Counsels, had to be in on the plan for Bain to take the monopoly of the toy industry. So they helped Romney/ Bain and Goldman Sachs - by giving the Creditors Chairman in eToys early retirement.

      Then, they simply refused to pay Laser Haas and locked me out of my company. Making me lose career, life savings, money borrowed from others - etc. It has been a decade long battle, costing more money than I would be happy to have today - as my life savings. Because, like the fool that I am, believing in the federal judge's contract I had signed - I naively thought I would just settle one day. How can a court stiff me when I helped get back $50 million - after they were only going to get $5 million?

       With me gone, they turned their focus to the final issue - How to get all that extra money back? Remember, as we discussed before, the best way not to lose as a buyer, is to also be the seller. What happens then will amaze you.

The Distressed Debt Business

       In bankruptcy, there is a seldom discussed business, that is better than Credit Default Swaps. It is called "Distressed Debt". Sony, the Post Office, Fedex, the toilet paper suppliers, the Utility companies - they all know - it is going to take 3, 4 or maybe even 10 years to get paid. At $500 to $1000 per hour - that could end up costing you millions. But you can't simply throw away the debt; such would encourage everyone to file bankruptcy tomorrow. So what big companies do, is sell their claims to people to buy them. It is a win - win. You get money now, save money in legal fees and the people or companies that buy the claims will make a good profit. Correct?

     But here is the $64,000 question.

      If, let's say XYZ company has $10 million in cash after selling everything that was once worth $100 million and the lawyers are going to get paid $500 to $1000 per hour. With accountants like Price Waterhouse, Ernst & Young, Liquidators, Security, Rents and on and on. How does anyone know what to pay for a claim? How is there any guarantee that you will make money?

     Again - Real Simple.

      Bain and Goldman Sachs will NOT pay 1 cent for the claim and get 50% of the net proceeds - when the bankruptcy court settles it. Then, after awhile, Bain and Goldman Sachs (and several other lucky bastard companies) - realize they can do even better. if you could somehow - CONTROL - who gets paid and who doesn't. Then, also keep that item a Secret. You can do a 50/50 deal with who you have to. But, you can buy a few claims that will be given PRIORITY. When you know which is a Priority claim, instead of doing a 50/50 deal - you buy it for CASH. Typically, they pay less than 3%. (after all, the most anyone can expect is 10%).

BAIN actually gets PAID to buy eToys

      Yes, I know, again you are saying "Huh" - how does that happen?

      Well, continuing along the line of "When you are a buyer - also be the seller" - The plan is really simple. MNAT is eToys Debtor's counsel and Paul Traub is the Creditors attorney - they are partners. They put Barry Gold in and kick Laser Haas out. Now you have $50 million, your customers of Bain/ Kay Bee and Goldman Sachs. Bain wants to own eToys for as little as possible and Goldman Sachs wants all the paperwork that shows how much it stole in the case - GONE.

        Barry Gold signed an Declaration to the Chief Federal Justice and said - I quote

       "This Plan (contract) was drafted in "extensive good faith" and  extensive arm's length between Debtor and Creditor. That is to say that Barry Gold just told the court that the Debtor (Barry Gold) was "extensively" acting in good faith and Totally 'arm's length" from the Creditors - His Partner Paul Traub.

         Wait - it gets better.

       In that contract, what the lawyers call a Confirmed PLAN. It actually states that the Administrator (Barry Gold) may settle all claims under $1 million - without asking the Court's permission. The only permission that the Administrator (Gold) needed - was that of the Creditors Post Effective Date Committee (PEDC) - that was being represented by - PAUL TRAUB.

       That's how you are both buyer and seller. You buy up the claims - which is legal for ANYone - even the Debtor to do. HOWEVER, you MUST DISCLOSE all the relationships. If you are a "Connected" party - you are Forbidden to profit One (1) single penny. Because that would be a Conflict of Interest. If you paid $5 dollars - the most you can get back is $5 dollars. If you paid ZERO, the most you can get back is ZERO.

            That's enough for today  guys and gals. - More to come

                                  MUCH MORE

            including a Corrupt United States Attorney - PROOF

 NEXT -   Toys R Us is in Possession of $1 Billion in Stolen Property

Poll

Do you understand what Bain did in eToys?

36%15 votes
24%10 votes
26%11 votes
4%2 votes
7%3 votes

| 41 votes | Vote | Results

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  Tip Jar (6+ / 0-)

    If you desire a better world - be a better person.

    by laserhaas on Fri Mar 30, 2012 at 11:15:06 PM PDT

  •  Maybe if I read this tomorrow I can put it (1+ / 0-)
    Recommended by:
    laserhaas

    together. Not trashing your diary. I just have a really hard time understanding how this sheeite works. Kinda like derivatives and other such wall street concocted bullshit.

    Sig seen on Redstate: ABO Anybody But Obama. Sorry, I'm stealing that.... Another Barack Opportunity. Vote Obama/Biden 2012!

    by mrsgoo on Fri Mar 30, 2012 at 11:53:41 PM PDT

    •  Thanks, I know, it is simple and convoluted at the (0+ / 0-)

      same time.

      Romney - Bain - Goldman Sachs committed Fraud.

      They are doing it with BS cover up words like

      Disinterested Person, Disclosure and Conflict of Interest.

      they are stealing Hundreds of Billions of dollars each year.
      Putting companies into bankruptcy - that don't need to be

      Then they stiff all creditors and re issue free stock to themselves.

      Brilliant Biz Plan

      BUT ILLEGAL and immoral.

      If you desire a better world - be a better person.

      by laserhaas on Sat Mar 31, 2012 at 12:00:02 AM PDT

      [ Parent ]

    •  Likewise (1+ / 0-)
      Recommended by:
      laserhaas

      Not the easiest material to follow. I believe you are truthful but don't you think you should pass this along to someone who isn't connected to the case?  And preferably someone who has extensive business writing experience like Yves Smith. There probably is a there there in your diary. The allegations would be much more objective coming from someone else. I'm not attacking the messenger, but expect that to be a common brush off tactic of Romney defenders.

      •  I appreciate it Dirk. But I've been giving it to (0+ / 0-)

        people for a decade. MSNBC, Congressmen (I do sincerely believe that 2 were giving warnings of what would happen if they didn't back off)

        Totally Concur, that people turn a deaf ear to one telling his own story. This is made worse, by the fact that I am - TOO - emotionally involved and feel the need to "Prove" my case. (Which provides TMI [too much info] except to lawyers desiring to see the legal findings of facts with conclusions of law)

        There are 3 primary problems. My enemies have destroyed me from being a 1% that was NOT like the rest. My very last deal 4 people whom I knew for 2 decades - set me up and made me lose the last $75,000 I can borrow. They've towed my cars under bull [c]hit pretense 4 times - losing all 3 of them. Thrown me out of hotels and even abducted my kid on my birthday -- Calling me to brag about it so that I would Know it was them.

        There are also 7 dead people in my case - including the brother of an Asst US Attorney and an eToys shareholder they Tried to kill, but was able to shoot and kill his attacker.

        That is why I never stay too long in 1 place and WHY - any smart writer, author and such are SMART and properly fearful - of getting involved. These guys play MEAN.

        With that being said, I will do this - each time I put up one of these - i will also put up a short NOTEs for dummies version. Starting with today. Give me a couple of hours and I will provide it for you.

        If you desire a better world - be a better person.

        by laserhaas on Sat Mar 31, 2012 at 07:36:22 AM PDT

        [ Parent ]

      •  Dirk - laser has written dozens of diaries on this (0+ / 0-)

        Most people just ignore them now, and some have politely asked him to stop. There have been a few diaries where people on the site who I respect had a lot of push back regarding laser's view of the events and how prosecutors have judged them. Personally I don't know anything about these companies or Bain's involvement and I have no interest spending the time to learn.

        "let's talk about that"

        by VClib on Sat Mar 31, 2012 at 09:04:09 AM PDT

        [ Parent ]

        •  So, VClib, you want silence on Corruption & Fraud (0+ / 0-)

          We understand that Capone and Nitti - along with all their corrupt judges/ prosecutors/ cops - want (NEED) silence.

          What we don't understand, is why you seem to follow me to many subjects and always find fault.

          Their, the nefarious hordes and corrupt, motivations are obvious.

          But, when you follow someone, constantly find fault and try to discourage others from looking at the facts.

          One has to wonder -

          What is motivating You?

          If you desire a better world - be a better person.

          by laserhaas on Sat Mar 31, 2012 at 09:41:35 AM PDT

          [ Parent ]

  •  Bankruptcy has become SOP. (1+ / 0-)
    Recommended by:
    laserhaas

    It's how traders, the folks who buy low and sell high get rich. It is the arena of the middlemen, that segment of our economy whose existence is largely ignored because it doesn't fit into the binary model of the economy of producers and consumers. Traders sit at the axis and take from both sides until producers collapse and consumers starve.

    Human parasites.  It was the traders, btw, who brought us slaves from Africa.  Free labor to go along with:

    free land
    free water
    free grass
    free minerals
    free pelts
    free fish
    free lumber

    Free enterprise = take free stuff to market to make a profit.
    Middlemen are the bane of our existence.

    People to Wall Street: "LET OUR MONEY GO"

    by hannah on Sat Mar 31, 2012 at 05:02:10 AM PDT

    •  TY - hannah - GREAT siggy. U R Totally Correct. (0+ / 0-)

      err, uh - I guess you also mean me (laser d liquidator)

      but that's O K

      You are soooo Spot On - it is a SOP to find a way to put a company into bankruptcy. The attorneys get nearly 1/2 of the entire Liquidation worth in Fees & Expenses (look at the world record setting Maddof and JP Morgan Bailout gifts.

      WaMu, Bear Sterns and Lehman - Billions in Legal fees

      Thus, all that is left, is how to gobble up the remaining liquidity.

      If you desire a better world - be a better person.

      by laserhaas on Sat Mar 31, 2012 at 07:42:58 AM PDT

      [ Parent ]

      •  I'd like to make a distinction between (1+ / 0-)
        Recommended by:
        laserhaas

        middlemen and factors or salesmen.  As the daughter of a super salesman who takes great delight in helping people purchase what they need and will like, I'm quite resentful of people who chisel producers out of a fair return and charge consumers a premium by manipulating the market to create artificial scarcities.

        It is a matter of fact that a buyer/user/consumer cannot know whether an item he's about to purchase will satisfy.  The producer and subsequent seller OUGHT to know because they either made the item or have it in hand.  Consequently, the producer/seller has, IMHO, an ethical obligation to represent the known item to the best of his/her ability. A good salesman is someone whom an expectant user can rely on to honestly represent what's on offer to be bought.  It's a matter of bridging the gap between experience and expectation.
        Of course, the traditional advice that the buyer needs to be wary serves to absolve those who would chisel and cheat him from the get-go.  "Buyer beware" is a variant of "blame the victim."

        It might be good to realize that producers/sellers face a moral dilemma.  The fact is that what they are taking to market is something they themselves neither want nor need.  They are, in fact, getting rid of a surplus which, if they don't persuade someone else to take on will either rot or rust or deteriorate somehow.  In other words, getting rid of a surplus is motivated by a desire to avoid waste.  Which, on its face, suggests that the producer/seller would be better off just giving the surplus away for free.  However, that's not a good solution because the resources used up in creating the surplus should be replaced and giving things away provides no incentive for making more to replace what's eventually/inevitably worn out.  So, to keep enterprise going, buyers need to pay.  And those who facilitate the transaction also deserve some payment for their service.  Where trouble comes in is when middlemen set up a monopoly and hold goods and services hostage so they can get a profit for eventually releasing their stash.  Middlemen who do that by holding out currency hostage are just as bad, or worse.  What value financiers add is still to be discovered. At best, they are the handmaidens of petty potentates, who delight in creating deprivation so they can then justify their intervention by relieving it, a little.

        In a very real sense, out Congresscritters have turned into middlemen and, as such, they are in competition with the traders/commercial folk in taking a cut for not doing their jobs.

        People to Wall Street: "LET OUR MONEY GO"

        by hannah on Sat Mar 31, 2012 at 10:54:14 AM PDT

        [ Parent ]

        •  I concur hannah. Anyone who is paid to do a job (1+ / 0-)
          Recommended by:
          hannah

          Like Congressmen or US Trustee's or Judges

          who betray their oaths and public trust

          to become "middlemen"

          in competition with their own Fiduciary Duty

          Are, defacto - CRITTERS

          If more here, understood such details, we would not have to worry about Romney stealing the POTUS.

          WAKE UP People

          P L E A S E?

          If you desire a better world - be a better person.

          by laserhaas on Sat Mar 31, 2012 at 11:58:07 AM PDT

          [ Parent ]

  •  I'm really not sure if you understand (1+ / 0-)
    Recommended by:
    laserhaas

    what you're writing about. I am a layperson, but one who's read a fair amount on related issues. Maybe what I've read is wrong; if so, maybe you could explain where the popular literature falls short?

    Two quick examples:

    1) It's my understanding that in an IPO, the underwriter pays the company a fixed price (in this case, $16.50) for shares to sell to the public. The underwriter takes the risk that the stock will go down. If it goes up, of course,  they profit.

    Continuing in that line of thought: they aren't limited to a commission of $1.50 a share. Rather, they give the offering company a (supposedly) good-faith estimate of the price that the public will pay. If the price happens to go higher, the underwriter can say (not entirely without justification) that the market price is not under their control.

    I don't remember anything specific about this case. I do remember cases of underwriters being sued for deliberately low- balling their "good-faith" estimates (and thus the fixed price they pay for the shares). The plaintiffs often have legitimate complaints, but against a heavy burden of proof.

    2) As I understand it, in bankruptcy a company's management is often (usually?) replaced by management favorable to the senior creditors. That makes sense, actually. So, ... yeah.

    Let us all have the strength to see the humanity in our enemies, and the courage to let them see the humanity in ourselves.

    by Nowhere Man on Sat Mar 31, 2012 at 05:25:04 AM PDT

    •  Maybe so Nowhere Man, However, you are wrong (0+ / 0-)

      in your assumptions upon this particular case. They don't apply - Contractually.

      Goldman Sachs had signed a contractual obligation to be limited to the $1.50. Due to "pressure" on this issue and other obvious questions. eToys sued Goldman Sachs in NY Supreme Court - for Breach of Fiduciary Duty and the case was Permitted to go forward.
      Unfortunately, the criminal enterprise was on top of this. Remember, MNAT (secretly) represents Goldman Sachs in Delaware. They lied to me and the courts - filing more than 15 false affidavits - Denying the relationship.

      This one will make you laugh. How I found the Truth aboutheir lies. The eToys case filing number is 01-706 and FINOVA (where they also stole Billions) - is 01-705. By accident one day, I typed the wrong case number. Then BOOM - MNAT, represents Goldman Sachs in Finova. MNAT filed both the Goldman Sachs and eToys cases.

      I know, cracks me up too.

      Thus, armed with the Smoking Gun proof, they were forced to Confess.
      YES
      They have Confessed to their crimes - but you need someone to arrest and prosecute them. The judge says I don't have permission to inform her about the crime. It is akin to Frank Nitti and Al Capone admitting they are an organized criminal empire - but saying to the judge 'yes we are" - but we want someone else other than Laser Haas to tell you about it.

      I can't be bought - Nor can Robert Alber -
      Everyone else, including David Rubenstein and Toby Lenk - where all too happy to lose all their money (yeah, I know)

      eToys went public in 1999 for record prices above $78 per share. Then, (PURPORTEDLY) went broke a year later, while only doing around $200 million a year in sales.

      MNAT, working as attorney for eToys (while also secretly working for Bain and Goldman Sachs - took care of the NY Supreme Court case. MNAT was too scared to be caught suing Goldman Sachs in NY, so they suggested to the court that someone else handle the case.

      The person they suggested was Paul Traub.

      Yep, - NOW you are getting the picture.

      Goldman Sachs was, in essence, suing Goldman Sachs.

      and guess what

      They FAILED

      If you desire a better world - be a better person.

      by laserhaas on Sat Mar 31, 2012 at 08:03:56 AM PDT

      [ Parent ]

      •  Nope. (1+ / 0-)
        Recommended by:
        laserhaas

        I'm sorry I didn't reply earlier; I've been out of the house all day. But a bit of research backs up what I suggested earlier. The appellate transcript summarizes the facts of the case, as found at trial:

        Plaintiff alleges in the amended complaint that Goldman Sachs also acted as eToys' fiduciary and, in that disputed capacity, misled the company into underpricing its IPO at $20 per share (discounted to Goldman Sachs at $18.65 per share).
        Nowhere in there (the part that I quoted, or elsewhere) does it suggest that Goldman's profit was to be limited to the difference between the pre-opening price ($20.00) and the price that Goldman paid for the shares ($18.65).

        More from the appeals court transcript. This also backs up what I said about the underwriter's relationship to the company, and offers a rationale (if (in this case) a flimsy one) for the underwriter to be allowed the opportunity to make a larger profit -- i.e., because they assume the risk of ownership of the shares before they're actually sold on the market.

        The instant IPO was a firm commitment underwriting by which eToys, the issuer, sold an entire allotment of shares to Goldman Sachs' underwriting syndicate which, in turn, sold the shares to the public (see 5 NY3d at 16-17). In a firm commitment underwriting, the underwriter bears the risk of loss on the unsold portion of the offering (Securities & Exch. Commn. v Coven, 581 F2d 1020, 1022 n 2 [2d Cir 1978]). "Because of their firm commitment obligations, underwriters will generally be conservative in pricing an issue" (1 Thomas Lee Hazen, Securities Regulation § 3.2 [6th ed]). Regardless of plaintiff's claims in this action, Goldman Sachs had an inherent interest in limiting its exposure by negotiating for a low offering price. Therefore, Goldman Sachs' interests were indisputably adverse to eToys' due to the nature of the firm commitment underwriting.

        Plaintiff's briefs do not address the motion court's treatment of the prospectus by which eToys acknowledged that it had negotiated the offering price for its common stock with the representatives of the underwriters. According to the prospectus, eToys and the underwriters determined the IPO price after considering prevailing market conditions as well as other factors that included "eToys' historical performance, estimates of eToys' business potential and earnings prospects, an assessment of eToys' management and the consideration of the above factors in relation to market valuation in related businesses." Negotiation is a "consensual bargaining process in which the parties attempt to reach agreement [*3]on a disputed or potentially disputed matter" (Black's Law Dictionary 1064-1065 [8th ed 2004]). The word implies an arm's length exchange. Under the Securities Act of 1933 (15 USC § 77a et seq.), eToys was required to issue a prospectus that accurately disclosed the material facts of the IPO, including the manner by which the offering price was determined (cf. Acacia Natl. Life Ins. Co. v Kay Jewelers, 203 AD2d 40, 44 [1994]). A material inaccuracy would have exposed eToys to liability under the statute.

        I'm not on Goldman's side here; I think they did play dirty. The problem is that it's really hard to prove that they did anything illegal.

        Let us all have the strength to see the humanity in our enemies, and the courage to let them see the humanity in ourselves.

        by Nowhere Man on Sat Mar 31, 2012 at 07:59:41 PM PDT

        [ Parent ]

        •  Hey, I can appreciate you "educating" me on MY (0+ / 0-)

          company. But you have it off "their" remarks

          Goldman Sachs, in essence, sued Goldman Sachs.

          Do you really expect the true facts to come to light?

          Shhheeesssshhhh!

          If you desire a better world - be a better person.

          by laserhaas on Sat Mar 31, 2012 at 08:51:06 PM PDT

          [ Parent ]

          •  I see now (0+ / 0-)

            that commenting in this diary was a mistake. I stand by what I wrote, however. Good luck to you, sir.

            Let us all have the strength to see the humanity in our enemies, and the courage to let them see the humanity in ourselves.

            by Nowhere Man on Sun Apr 01, 2012 at 04:41:31 AM PDT

            [ Parent ]

            •  don't be snide Nowhere. You just happen to be (0+ / 0-)

              typing to the man whom Goldman Sachs and Bain's secret attorneys "Claimed" to be working for eToys and their creditors.

              They Confessed to lying to the court about it all.

              MNAT, the court approved eToys Debtors counsel did an evil in the extreme. Anyone who had any connections to any "class" of involved parties is Forbiddden from being the Debtor's counsel.

              MNAT LIED

              MNAT merged The Learning Company (owned by Bain various parties) - with Mattel in 1999, the same year eToys went IPO by Goldman Sachs.

              MNAT is Goldman Sachs counsel in Delaware.

              It is a Classic pump-n-dump

              MNAT, while Lying to the Chief federal justice and all parties of interest (except those in on the scheme) - then worked with Stage STores (also owned by Romney and Bain cohorts) to move Barry Gold from Stage to eToys as President / CEO -
              In Stage Stores - Barry Gold worked for Jack Bush, Michael Glazer and HIred Paul Traub.

              Michael Glazer was CEO of Kay Bee Toys
              and Paul Traub became the Creditors attorney of eToys.

              So MNAT that is supposed to protect their client (eToys)
              by is connected to Bain, Mattel and Goldman Sachs (technically eToys adversaires) - then worked with Paul Traub who works for Mattel, Stage Stores and Goldman SAchs (owners of In re Cosmetics Plus) - conspired to hire Barry Gold
              Illegally seizing the entire estate (even fooling me at 1st)

              Then, MNAT, secretly also Goldman Sachs attorney, and Barry Gold (secretly Paul Traub's partner) - Nominated Paul Traub to prosecute Goldman Sachs in the State of New York.

              So, any statement, arguendo, that what was said in NY Supreme Court is based upon what all the facts are, is incongruous and absurd.

              You are buying into what they want you to buy into and ignoring In re Brady, In re Giglio
              Once an officer of the court or agent upon the stand testifying, is found to have been Lying - all other testimony is Not Worth a Grain of Salt.

              If you desire a better world - be a better person.

              by laserhaas on Sun Apr 01, 2012 at 05:41:25 AM PDT

              [ Parent ]

        •  BTW = Goldman Sachs NEVER relinquished control (0+ / 0-)

          of eToys - Until it was sold to Bain.

          Even Toby Lenk going to Gap was directed by Sachs

          Toby Lenks home was sold when Sachs told him to do so.

          Remember, you are talking to the man who ran the company - until the attorneys and Bain stole it!

          Unless you are one of those who really believe Mitt Romney left Bain in 1999.

          Then, you may believe AnyThing THEY say.

          If you desire a better world - be a better person.

          by laserhaas on Sat Mar 31, 2012 at 08:55:07 PM PDT

          [ Parent ]

  •  Dirk, mrsgoo and others who care - Here and (0+ / 0-)

    tonight I will address (as simply as I can) the issues of the Federal Employees and judges - who I believe have helped the corruption and frauds to prosper.

    This is a new D
    http://www.dailykos.com/...

    - it  does not delve (too much) into the legal gook. just discusses the various avenues of the "why's

    and the answer in all cases - why no one has done anything about these case and WHY, I cannot quit telling the story - until the crimes are addressed - is

    CORRUPTION

    If you desire a better world - be a better person.

    by laserhaas on Sat Mar 31, 2012 at 12:07:58 PM PDT

  •  Can you imagine? (1+ / 0-)
    Recommended by:
    laserhaas

    What RMoney and his friends could do with the Federal Reserve, the Treasury, Social Security Trust Fund, Defense Department, CIA, NSA and Homeland Security Budgets and the Federal Reserve!

    The Tea Party Idiots and Ron Paul don't know what they are asking for!

    Impeach Grover Norquist! Defeat a Republican!

    by NM Ray on Sat Mar 31, 2012 at 12:38:11 PM PDT

    •  Yes - NM Ray - I can. That's the point, they're (1+ / 0-)
      Recommended by:
      NM Ray

      CROOKs

      Our country has never "intentionally" elected a known organized criminal into office.

      We can stop this guy and get the added bonus of an FBI raid on Bain, Goldman Sachs and about 10 other firms.

      Bain would be out of business Tomorrow, if they investigated this today. The evidence is profuse, overwhelming and irrefutable.

      RMoney and Bain made much of their fortune through fraud and bankruptcy cases. I don't think they would have any problem with bankrupting the U.S. - when there's profit in it.

      If you desire a better world - be a better person.

      by laserhaas on Sat Mar 31, 2012 at 01:17:55 PM PDT

      [ Parent ]

  •  Can you imagine Romney/ Bain getting away with all (0+ / 0-)

    this now  -  and THEN - getting their own handpicked as AG?

    If you desire a better world - be a better person.

    by laserhaas on Sat Mar 31, 2012 at 01:18:29 PM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site