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      For some inexplicable reason, no matter how profuse, overwhelming & irrefutable your evidence's are; "it just ain't easy to get the feds to go after a big sleazy". Akin to the Madoff case, but much bigger in scope: every federal agency has refused to arrest or even investigate Paul Traub. That is until now. A Federal Trustee has now accused Paul Traub of working with & even controlling Tom Petters Ponzi Scheme. As the Star Tribune details some of Paul Traub's mysterious ways in the story "Petters consultant in N.Y. is target of $804,000 clawback" - it states that Paul Traub was key to Petters Ponzi scheme success;

The lawsuit says Traub was paid "an astonishing" $125,000 a month as a consultant to Petters and received $2.46 million "directly, and sometimes secretly" from 2005 to 2008.

"In essence, Traub gave Petters business credibility and access to new potential victims for his fraudulent schemes," the lawsuit states.

Traub promoted Petters as a skilled businessman, according to the suit and "assist[ed] Tom by acting as a 'filter' between the portfolio companies, Petters personnel and third parties."

"Traub possessed considerable control over Petters," the lawsuit states.

       It has been a decade long battle to get anyone to say something about Paul Traub's duplicity in massive federal frauds. Mr. Traub (picture far right) was also partners with Fraudster Marc Dreier (picture inside Justice circle). But, before those 2 fraudsters became notorious; Paul Traub was perpetrating federal frauds to benefit (secret) clients like Mitt Romney/ Bain Capital in case like eToys.

Full Disclosure

      Bain Capital, Goldman Sachs, Paul Traub, Tom Petters, Marc Dreier & Mitt Romney are all involved in Fingerhut & eToys frauds massive. Being that yours truly was the court appointed fiduciary in the federal case (DE Bankr 01-706 (200)) of eToys, this makes us adversaries of the highest order.

      Though I wish someone else would tell the massive fraud stories; everyone (until now) - has always turned a deaf ear. This is because Paul Traub's other partner (Harold Bonacquist of Traub Bonacquist & Fox works  for our federal government (in the Office of Consulate General) and Paul Traub, Bain & Goldman Sachs (along with their attorney ) arranged to put in a MNAT attorney as US Attorney in Delaware.

      Thus, if I did not publish the facts that serve as an inflexible sword of truth against their bad faith deeds; Paul Traub, Bain Capital & Goldman Sachs may never be indicted!

Tom Petters Ponzi Scheme

      Up in Wayzata Minnesota, Tom Petters had a sprawling empire. He owned companies entitled Petters Companies Inc (PCI), Fingerhut, UBid, Petters Magazine, Sun Country Airlines, Polaroid & Petters Group Worldwide (PGW). But, it was not due to brilliant business managing & finance enterpreneurship. It was simply massive frauds - a Ponzi Scheme extra ordinary.

     In 2008, the FBI raided Tom Petters new headquarters, after Deanna Coleman wore a wire and actually recorded confessions of knowledge of frauds & plots to flee prosecution to another country.

     At that time a federal receiver was appointed over the Tom Petters case named Douglas Kelley - from the Kelley & Wolter law firm. Mr. Kelley also became the federal bankruptcy Trustee and began to clawback some of the Ponzi fraud profits.

     Though it is way overdue, Doug Kelley is now going after Paul Traub.

Paul Traub was also Partners with Fraudster Marc Dreier

      Around the same period of time as Tom Petters arrest, another Paul Traub partner was arrested for a $50 million fraud attempt in Canada; his name is Marc Dreier of the law firm Dreier LLP in New York City.

       Marc Dreier's law firm was growing at a phenominal rate. In a short period of time he had 250 attorneys in offices nationwide, including Beverly Hills; with plans for world wide exansions.

       Unfortunately for those involved with Mr. Dreier, he too, was deceiving everyone on his legal/ business skills. Between creating false persons (as Marc Dreier tried to do in Canada) - where he was talking stolen identies to a whole new height and illegally tapping law firm client's escrow accounts; Marc Dreier, like Tom Petters, believed he had partnered up with Paul Traub's apparent DOJ get out of jail - free cards.

     As noted in the story "Petters Receiver Sues Ex-Dreier --" Paul Traub has not been charged (yet) in the Petters fraud case. As the Connecticut Law Tribune article states that;

The Minneapolis Star Tribune and St. Paul Pioneer Press note that Traub has not been charged criminally in the Petters case, which began in late 2008 after Petters was arrested and one of his portfolio companies, iconic camera maker Polaroid, filed for bankruptcy.


Paul Traub now CO-Owns Petters Ponzi'd Polaroid For Free

      A problem of getting away with every federal fraud you can imagine, is that the fraudster never knows when to quit. It is the inherent instinct of mankind, to keep pushing the limits. Now, Paul Traub's hubris of such may just turn out to be his undoing.

      In 2001 he engaged in a serious conflict of interest in the federal bankruptcy case of eToys; which resulted in Paul Traub confessing to intentional lies under oath 17 times. While he & his cohorts received over $10 million in illegal fees - Paul Traub had to only cough up a $750,000 settlement on the issue.

      Getting away with organized criminal behavior, only serves to foster more brazen & flagrant attempts to do more crimes. Thus, when Paul Traub was not even questioned about his duplicity in the Tom Petters Ponzi schemes, he decided to do keep pressing his luck. A deal was struck to give the Ponzi purchased Polaroid to Hilco/ Gordon Brothers in an auction process.

       Then, as the Law.Com story denotes, Paul Traub left Epstein Becker & Green to go to Gordon Brothers as managing principal. Thus he now, in essence, owns Polaroid for Free; which was stolen by he & Tom Petters with Ponzi scheme monies.

      What no one has yet pointed out, is the fact that after Hilco & Gordon Brothers (both clients of Paul Traub's) actually won the auction bid for Polaroid for approx $80 million. Gordon Brothers & Hilco were Not the highest bidders. More importantly, very soon after the purchase, Gordon Brothers announced landing a $2 Billion dollar license deal for Polaroid. How is it that this license deal remained hidden until "After" the Gordon Brother purchase.

       Paul Traub's associated parties are now scattered to the 4 winds. As is noted in the Conneticut Law Tribune article;

Traub, the cochair of Dreier LLP's bankruptcy practice, resigned from the firm the same day that news of its namesake's arrest became public. In February 2009, Traub and former Dreier LLP partners Steven Fox, Wendy Marcari, and Maura Russell joined Epstein Becker. Only Marcari remains with the firm.

Fox and Russell joined Riemer & Braunstein's New York office in July 2011, while Traub headed to Gordon Brothers in June 2010. Gordon Brothers was part of a joint venture with other leading liquidators, which purchased Polaroid's intellectual property and other assets after winning a bankruptcy auction in April 2009.

     I do know about you, but I find it highly surreptitious that Al Capone's buddy Nitti winds up with the golden goose after Capone laid the egg of winding up in prison. In essense, that is what has transpired here and it is both inexplicable & intolerable.

Paul Traub, Bain Capital & eToys Frauds


       Long before 2008, the year when Paul Traub's partners were arrested for their fraud schemes, Paul Traub was already benefiting from Lying Under Oath & scheming to take Conflict of Interest issues to a whole new height in the eToys federal bankruptcy case. This is not in dispute, because he has already confessed to lying under oath (Intentionally) to a Chief Federal justice in Delaware 17 times over four years in the eToys case. (See Wall Street Journal story (here)).

Paul Traub Confessed to Lying Under Oath in 2005 - But is Not Prosecuted

        However, Paul Traub was never properly investigated or indicted (as he should have been) due to the fact of willful blindness on the part of the Department of Justice in Delaware. Which has made efforts to cover up the eToys fraud case (as pictured immediately above). The WSJ article was fully viewable at the Pittsburgh Post Gazette for 8 years (here) - but mysteriously seems to have been yanked down now.

       Fortunately, details of Paul Traub placing his partner (Barry Gold) inside eToys (fraudulently) - can be found at the White Collar Crime website of Professor Podgor's (here). It states;

eToys Inc. was one of the many companies that flamed out once business reality set in, and it filed for bankruptcy in 2001 in Delaware.  Well-known bankruptcy attorney Paul Traub (of Traub, Bonacquist & Fox in New York) recommended to the Delaware Bankruptcy Court that Barry Gold be appointed CEO to oversee the liquidation of the company.  Traub represented eToys creditors in the bankruptcy. Unfortunately, what was not disclosed at the time is that just a short time before that recommendation, Traub and Gold formed a company, Asset Disposition Associates, a liquidation company.

Paul Traub, Barry Gold & Michael Glazer with Romney & Stage Stores

      Paul Traub was involved in Enron, Adeplhia, eToys, Marc Dreier, Okun 1031 Tax Group, Levitz, Tom Petters and so much more. Everywhere mysterious things happened, Paul Traub was there. Including the Mitt Romney owned Stage Stores that filed bankruptcy in Southern Texas in 2000. Stage Stores was speciously a CO-Debtor with Liquidity Solutions. Barry Gold worked for the directors at Stage Stores that, besides Romney (owning a controlling 800,000 shares), also includeds Bain's Jack Bush (Dallas TX) & Michael Glazer (who was also CEO of Bain's Kay Bee Toys).

         Then, the MNAT law firm that merged Mitt Romney/ Bain's entity ("The Learning Company") with Mattel. MNAT then perpetrated a fraud in the eToys case. Morris Nichols Arsht & Tunnell (MNAT) has confessed that it lied Under Oath 15 times over 4 years. What MNAT was hiding is the connections to Mattel (eToys no1 creditor), Bain/ Romney (ultimate winner of eToys assets) and connections to Goldman Sachs. To this date - MNAT has "Only" confessed the conflict of interest of GSachs and fought tooth & nail to stop any investigation into the Bain Capital or Mattel Toys issues.

       During that same period of time, Paul Traub lied about his connections to Bain, Goldman Sachs, Wells Fargo, his desire to own Fingerhut, Merrill Lynch and Bank of America, Gordon Brothers. Also, Paul Traub has now confessed that he "intentionally" lied about his connections to Barry Gold. At Stage Stores, Barry Gold hired Paul Traub in the case and got "caught". Where they both worked with Michael Glazer (CEO of Kay Bee Toys).

Paul Traub & Bain Capital Frauds in the eToys Federal Case

        Now you have Michael Glazer who is CEO of Kay Bee Toys with Barry Gold & Paul Traub that worked for him and with Mitt Romney who is the founder of Bain Capital. They all come to the eToys case where Goldman SAchs, Mattel, Mitt Romney & Bain Capital's law firm - MNAT - lies to become eToys Debtor's counsel.

        That fraudulent effort is then compounded by Paul Traub lying and colluding with MNAT to place Paul Traub's partner (Barry Gold) inside eToys (illegally) as President & CEO of eToys. Then MNAT, Barry Gold & Paul Traub all sell the federal estate assets to Bain/ Kay Bee (Michael Glazer/ Mitt Romney) for less than pennies on the dollar.

         When yours truly forced them to pay tens of millions of dollars or lose the eToys assets to other bidders; Paul Traub, MNAT & Barry Gold forge a paper to the federal court and tell the chief federal justice that I waived my right to be paid. Then, with help of rogue elements in the federal Department of Justice, they ostracize the whistle blower and let the crooks keep the keys to the vault they are fleecing.

Conclusion = Traub & Bain Capital Frauds Should See FBI Raid

         What is absolutely amazing, is the fact that they said another Madoff could not happen again. Even with Madoff, Dreier & Petters arrested, Paul Traub was able to stay free from scrutiny. This has allowed the person who benefited from the federal frauds to believe that he & Paul Traub are so far Above the Law, that they are untouchable. Even when they confess to intentional fraud on the court and lying under oath 34 times.

         But, the SEC has confessed to destruction of case files and they received this case over 40 times. Including discussions with the SEC OIG's office and more. The Dept of Justice is going to have to clean house of Mark Kenney, Roberta DeAngelis (pictured below) and call out former US Attorney Colm Connolly (who was a partner of Bain Capital's law firm MNAT) - for their incompentence, willful blindness and/ or worse.

        Most noteable is the fact that Paul Traub always benefits Bain Capital - despite the fact that he is supposed to be benefiting his clients at charge buyers like Bain Capital as much money as possible. He did Not do that in eToys. When we sold the Domain names of to Bain/ Kay Bee for $10 million; MNAT, Barry Gold & Paul Traub reduced that to only $3 million (and we don't even know if that amount was ever paid). One thing for sure, investigations should begin now. The federal Trustee Doug Kelley pulled no punches, when he said that Paul Traub;

Traub promoted Petters as a skilled businessman, according to the suit and "assist[ed] Tom by acting as a 'filter' between the portfolio companies, Petters personnel and third parties."

"Traub possessed considerable control over Petters," the lawsuit states.

At about the same time he was helping Petters "leverage his Rolodex to create new opportunities," according to the suit, Traub was a partner in the bankruptcy and reorganization firm Traub, Bonacquist & Fox, which ran into controversy in its representation of creditors in the bankruptcy amid conflict-of-interest claims.

Now Everyone See's Why Mitt Romney Lied About Being Bain CEO 2001

He must distance himself from 2000/ 2001 Stage Stores/ Bain/ eToys Frauds.

Thus, the question that begs "Will Paul Traub be the bane of Bain"?


Originally posted to Occupying with Laser on Wed Jun 13, 2012 at 11:20 AM PDT.

Also republished by The Bain Files.


After 11 1/2 years, Paul Traub is accused of fraud; what do you think the amount will add up to?

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| 18 votes | Vote | Results

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