While Mit Romney is trying to get neck & neck into this Presidential race; we've been trying our best to win a marathon quest for justice. Paul Traub has been with Mitt Romney's Bain Capital quests on all sides of the fence - always giving Bain Capital the sweet deal. Whether it was legal or not. Silly me, I thought Mitt Romney might have a Paul Traub problem. Instead, it is U.S. - the United States of America that has one.
As any follower of our saga knows, Paul Traub was with Mitt Romney & Bain Capital interest for decades now; since at least the NeoStar era. As a matter of fact, he still is. In his usual manner for pulling stunts, right before Ponzi schemer Tom Petters was arrested in 2008; Paul Traub arranged for Goldman Sachs & Bain Capital to give $50 million in new funding to Fingerhut (now renamed BlueStem Brands). No matter how you shake, rattle and roll the rule of laws, courts and federal police - Mitt Romney and Paul Traub always seem to come out on top - illicitly. And that ain't right!
Paul Traub Settles Minnesota Ponzi Scheme Clawback
Several weeks ago, the Federal Trustee / Receiver in charge of clawbacks of the Tom Petters Ponzi scheme announced that Paul Traub was the "controller" of the Petters Ponzi. (See more details (here) (here) & the actual court document (here)). However, due to the significance of all the issues and the fact that Mitt Romney can no longer lie about being CEO of Bain Capital in 2001. They have figured another ploy - to appear to make it all go away. The Minnesota clawback efforts (what really should be a full blown indictment & prosecution for frauds) appear to be settling with Paul Traub.
Stage Store Stunts in 2000
In mid 2000, Mitt Romney's entity Stage Stores filed for bankruptcy (S TX Bankr. 00-35078). At that time, Paul Traub's "Toy" gang was All In. Including Mr. Traub's secret, almost life long partner - Barry Gold. As well as Michael Glazer the CEO of Kay Bee Toys.
As the years went along, from cases like NeoStar and Jumbo Sports, Mitt Romney & Paul Traub became more brazen with what they could get away with. In Stage Stores Jack Bush of Dallas Texas, a Bain Capital executive of several entities - hired Barry Gold. Then, Mr. Gold hired Paul Traub's firm - Traub Bonacquist & Fox (TBF) - but failed to inform the court as required by Law. They got caught, Paul Traub had to explain himself (see Supplemental Affidavit (here)) and a deal to let them get away with Perjury & Fraud transpired.
eToys Fraud Scheme - Mitt Romney's 2001 Achilles Heel
We have been pointing out, for a long time now, that Mitt Romney's campaign is lying about him not being CEO of Bain Capital in 2001. The reason is the Paul Traub problem and our 2001 case of eToys. There's no doubt as to, whether or not, fraud and lies to the court transpired. Both Paul Traub and Barry Gold have confessed. As has the other secret Bain Capital law firm of Morris Nichols Arsht & Tunnel (MNAT).
What is in question however, is "IF" justice will ever come to the case. Because of another shady dealing in August 2001 (the very month that Mitt Romney purportedly resigned as CEO of Bain Capital); the Delaware Department of Justice has refused to investigate or prosecute the admitted acts of Perjury & Fraud. Because Mitt Romney and Paul Traub can break the fracture the Laws and assault the United States Constitution at will. It is not their problem - it is America's problem.
Paul Traub Settles Petters Ponzi Scheme Clawback
When the Star Tribune printed the article on the Minnesota Federal Trustee/ Receiver (Doug Kelley) suing Paul Traub and actually naming him as "controller" of the Petters Ponzi scheme. I jumped for joy. For 11 1/2 years - I've been trying to sell my left anything - to get some authority to call Paul Traub the fraudster that he is. Paul Traub has been involved in Adelphia, Enron, OKUN 1031 Tax Group, eToys Fraud, Kay Bee Toys Fraud, FAO Schwartz Fraud and partners with Marc Dreier fraudster too. Apropos to the Petters Ponzi scheme the Star Tribune stated in its story (here);
In the most recent suit, Kelley alleges that Traub was one of a number of individuals Petters used to "create the essential air of success and wealth required to sustain the fraud as well as the expertise to maintain it."emphasis added
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.
Amazingly, the Star Tribune points out the fact that the Paul Traub was partners with the other fraudster Marc Dreier and that he ran into trouble in the eToys case. I almost couldn't believe my eyes. Can it finally be that Goldman Sachs, Bain Capital (and its infamous CEO) along with Paul Traub and their cohorts - are going to finally see justice?
However, the Settlement that is announced by the Minnesota Pioneer Press story (here) - is disturbing to say the least. Again, a reporter denotes that the monies Paul Traub received from Tom Petters personal bank accounts. That Paul Traub provided business leads (feeder funding) to the Tom Petters.
It is a fact that Paul Traub perpetrated massive frauds in the eToys case. He confessed to lying under oath 17 times and "deliberately" leaving those lies to stand and deceive the court. Deception of the court intentionally - is fraud upon the court. Even though Paul Traub was partners with Tom Petters since 1999 (PillowTex case) and also partners with Tom Petters in Polaroid, UBid and Fingerhut.
There's no mention of the fact - in the Star Tribune or Pioneer Press stories that UBid and Fingerhut (where Fingerhut was restructured right before the FBI raid) - those entities have not been seized and Paul Traub now owns Polaroid for Free. When Polaroid was stolen by Petters Ponzi scheme monies. Yet the Pioneer Press does continue to denote that Paul Traub assisted the Ponzi Fraud Scheme as it states;
The claw back case against Traub said some of the payments were channeled through Petters' personal accounts to hide detection by other Petters' employees, conceal the relationship and maintain the fraud scheme.Yet, they have settled. It is hard to believe that Paul Traub would settle and give up nearly $1 million - if he was going to be indicted (as he should have been long ago). Thus, Mitt Romney can lie about when he left Bain Capital. Paul Traub can lie about the fact that he sold out his clients by Perjury & Fraud to Bain Capital. Mitt Romney can have his Off Shore monies benefit from these frauds (as he has confessed that he still gets millions per year from Bain). With NO indictment being announced - whatsoever. Thus, it would appear, that Mitt Romney does not have the Paul Traub problem.
Rather, the United States of America has a Paul Traub is Above the Law Problem.
And that Ain't Right!