Skip to main content

   According to my new acquaint/journalist at Reuters - Goldman Sachs purportedly has "FINALLY" settled the decade plus case of (renamed ebc1 when Bain Capital stole the domain name) versus Goldman Sachs - for Breach of Fiduciary Duty.

OOPs! The title by Reuters ain't exactly correct; - finality takes two.

   I'm in the debt of Delaware Valley reporter Tom Hals and his prior Reuters/Westlaw article titled "U.S. Objects to secret settlement in eToys bankruptcy". Unfortunately that story is upon a paid for subscription so the mean germane excerpts are supplied below. Meanwhile, though Tom Hals has excited me with his "getting it" on the true issues, Tom doesn't control the presses. Therefore I assume it is his editor who gets it wrong with the new story errant in title of; "Goldman Sachs finally ends litigation over 1999 eToys IPO".

    Reuters Editor Leslie Adler and journalist Tom Hals are kind enough to permit my critique of their story to remain for the weekend in the comment section. It might possibly get censored come Monday; but for now it stands.

                           eToys battles with Goldman Sachs has just begun!


Goldman Sachs Can NOT settle with Goldman Sachs

    What is at issue here, has yet to be reported. There are major conflict of interest issues ("Conflicts"); and germane to the purported "Settlement" is the fact that Goldman Sachs is settling with Goldman Sachs;

and that's "Horse[c]hit"!

    As the chart denotes above the Morris Nichols Arsht & Tunnel ("MNAT") law firm represents Goldman Sachs and Bain Capital in Delaware. Hence MNAT is forbidden by Conflicts and as a matter of Bankruptcy Law, to represent eToys. But MNAT committed Perjury over 14 times, to conceal the Bain Capital and Goldman Sachs Conflicts.

MNAT confessed it lied about Goldman Sachs in 2005.

     You can see the Deposition admittance of MNAT attorneys on February 9, 2005 (here) and read the October 4, 2005 - Opinion of the same judge Mary F Walrath in eToys punishing MNAT for failure to disclose Conflicts of interest concerning Goldman Sachs (here).

Why it took 6 whole months for the Judge's opine is a whole other story.

    It is a sacrosanct premise of Bankruptcy Code & Rules of Law that "any" Conflict of interest issues that were Not disclosed by an attorney at law; MUST result in disqualification (I'm going to do a D on this to help educate the readers - because we have naysays who try to babble B.S. to the contrary). You can read about cases and the "sine qua non" issues of Conflicts of interest by Morgan Lewis (here). {NOTE: It is "quaint" that Morgan Lewis teaches Conflicts issues}.

    Also, here's a "redline" version of the American Bankruptcy Institute explain to counsels why their Malpractice insurance is going up concerning Conflicts & other issues (here). Then there's Freivogel On Conflicts that mentions eToys (here) and discusses many cases on the fact that Bankruptcy Conflicts of interest issues are much more stringent than other federal proceedings.

    Thus it is settled, as a matter of Law, specifically Bankruptcy Code & Rule of Law that Conflicts of interest are forbidden in bankruptcy cases. MNAT lying under oath to get permission to be eToys Debtor's counsel was an act of premeditated subterfuge to serve multiple evil masters. MNAT represents Goldman Sachs, who took eToys public and MNAT also (secretly) represents Bain Capital in the the Kay Bee Toys case (Bain Capital's Kay Bee bought eToys while Romney was still CEO). That is also a crime and yours truly informed the court presiding over KB (here).

But the Department of Justice Had MNAT Fraud Evidence Expunged. One needs to capitulate/admit that U.S. Trustee trial Attorney Mark Kenney is partially correct - it's Not the job of Laser Haas to point out the crimes of MNAT, Bain Capital, Goldman Sachs and Paul Traub - IT's the JOB of the United States Trustee's office to do so. But the Colm Connolly connection and the desire to protect POTUS wannabe Mitt Romney prevented the proper adjudication upon the merits of the eToys and Kay Bee cases.

                                   And that ain't kosher!

Goldman Sachs Attorney MNAT Handpicked Prosecutor of Goldman Sachs

      In the same fashion that Capone would be forbidden to hand pick Frank Nitti to be the prosecutor over Al's organized crimes, MNAT (as Goldman Sachs attorney) is also forbidden to hand pick any prosecutor of Goldman Sachs. It is a massive Conflict of interest and everything thereof is the fruit of the poison tree (doctrine of "unclean hands").

     Unfortunately, the yours truly, the eToys shareholders and the Delaware Bankruptcy Court were not aware that MNAT lied about Goldman Sachs until MNAT admitted such in January & February 2005. The pirates thus were successful in their schemes & artifices to defraud. Thus the Delaware Bankruptcy Court (here) approved Paul Traub's firm handling the Goldman Sachs case.

     Not only did Paul Traub get to prosecute Goldman Sachs and now seeks to settle Goldman Sachs for pennies on the dollar. Where eToys was defrauded of hundreds of millions of dollars; and the purported settlement (to be UN-Sealed) states it is only $7 million (which Traub and his co-counsels want to take 1/2 of the money from). But MNAT represents Bain Capital in the $83 million that Kay Bee CEO Michael Glazer paid Bain after Glazer paid himself $18 million; before filing bankruptcy of Kay Bee (see Traub's Motion to be prosecutor HERE).

Goldman Sachs sued Goldman Sachs.

                  Bain Capital sues Bain Capital.

                             Their attorneys MNAT & Traub get rich.

                                        Romney runs for POTUS and seeks "friendly" USAG.

        Wonder if they got the Memo tht Romney didn't make it!

MNAT Obstructs Justice & Destroys Evidence to Benefit Goldman Sachs


      There are 3 levels/standards of evidence in federal cases, "preponderance of the evidence", "clear and convincing" and "beyond all reasonable doubt". Though one could argue that the evidence in our case is from court docket records, plus the confessions, makes a good foundation for "beyond all reasonable doubt" - the fact of the matter is both the eToys bankruptcy case and the New York Supreme Court case of eToys (ebc1) v Goldman Sachs (case #601805/2002) - are "Civil" cases.

Thus we only need meet "preponderance of the evidence" standard!

      Regardless of the banter by those commenters who are out to destroy the message (for whatever their motivation may be) and beyond the fact that most of the naysays fail to inform readers that they are in the legal profession (circling the wagons in a "blue wall of silence" fashion) - the fact of the matter is, MNAT has confessed to supplication of erroneous affidavits and withholding the fact that Goldman Sachs is an MNAT client. By law MNAT is supposed to be disqualified; but the DE Bankruptcy Court said the case is now over - hence no need for disqualification.

OOPs (again) - that remark was in the Opinion of 2005 (pg 29 Remedy - here).

     Goldman Sachs and MNAT are not only GUILTY of massive deception in Federal courts and the New York Supreme Court, they are extensively heinous and egregious in their actions. MNAT conspired with Paul Traub to usurp yours truly from his court appointed chair and sneaked in Barry Gold as President/ CEO of eToys  - who is Paul Traub's partner (see Wall Street Journal story July 2005 - HERE). Judge Walrath knows MNAT, Paul Traub and Barry Gold are supposed to be "DISQUALIFIED" from the eToys case; because of the wrongs they have already confessed. Instead, as noted at the link above, on page 29, under Section of REMEDY - Her Honor makes an erroneous finding of fact and conclusion of law with the following remark;


 Because the case is now over,
                        disqualification of MNAT as counsel to the Debtors is not practical.
    One of "the" most extensively heinous and egregious acts of Goldman Sachs law firm MNAT, is the fact the firm has intimidation and retaliated against victim/witnesses. MNAT has also betrayed its court approved client, for the sake of the secret clients Goldman Sachs and Bain Capital. That is a Breach of Fiduciary Duty; and is exactly the same thing Goldman Sachs is being sued by eToys about. MNAT can't sign a settlement of fees with Goldman Sachs, it is forbidden to do so by Law. Though a bankruptcy judge has discretion on how much money it can FINE (sanction) MNAT; the court has NO discretion - WhatSoEver - about reporting MNAT's crimes to the Department of Justice (as per 18 U.S.C 3057(a)).

     This holds even more true concerning the purported "settlement" that Barry Gold (Paul Traub's partner) is trying to approve with MNAT's signature. (See Objection to Paul Traub's fee request by Barry Gold signed by MNAT - HERE).

      Now here's the huge issue even more relevant than all others above. While MNAT was benefiting Goldman Sachs via many acts of Perjury, in order to become eToys Debtors counsel unlawfully; MNAT also made sure the evidence was Destroyed. With Barry Gold and Paul Traub failing to Object (as they should have to protect their clients) -

MNAT asked for/ rec' okay to DESTROY eToys books & records  HERE).

                         That's Obstruction of Justice - Destruction of Evidence!

       Al Capone can't nominate Frank Nitti to be the one to prosecute Capone or his friends. Nor can Nitti approve of Capone & Gangs "settling" on how much they will give back of what they stole; and how much they'll pay each other as "success" fees for getting off 'Scot Free' with their crimes.

      If there's any justice in the world, this crap will stop REAL Soon!

Judge Denied Motion to SEAL the DEAL with Goldman Sachs

      In what appears to be the first act of decency by Her Honor, the Delaware Bankruptcy Court justice presiding over the eToys case (Mary F Walrath) ruled to DENY the wishes of Traub, MNAT, Barry Gold and Goldman Sachs to SEAL the "settlement" Deal. This is a good thing (see judge's order - HERE).
      Both the Kay Bee Toys and eToys case have been in bankruptcy multiple times. Speciously, the wound right back up at Bain Capital under its Toys R Us name; where Toys R Us remains in possession of the stolen goods of the federal estates of Kay Bee, FAO Schwartz and eToys, all being handled by Paul Traub.

And Bain Capital always getting the sweet crooked deal!


Isn't it about time Goldman Sachs had to plead Guilty?

85%30 votes
2%1 votes
0%0 votes
8%3 votes
2%1 votes

| 35 votes | Vote | Results

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

  •  Was wondering when you'd post something! n/t (4+ / 0-)

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Sun Sep 22, 2013 at 12:13:32 PM PDT

  •  Taibbi wrote about this case, again, on Friday... (8+ / 0-)

    Read THIS, over at his Rolling Stone blog...

    •  Way back in 1999, several eras of corruption ago, Goldman serially engaged in manipulation of the IPO markets, including illegal tactics like "spinning" and "laddering," where insiders and top bank clients would be allowed to buy shares in new companies at severely discounted prices, sometimes in return for investment banking business or for promises that those insiders would jump back into the bidding later to jack up the price artificially. In a famous case involving eToys, Goldman paid a $7.5 million settlement for allowing insiders to buy shares at $20, far below the $75 shares the company traded on opening day. The secret discounts might have cost the company hundreds of millions of dollars. The firm went bankrupt in short order, by the way.

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Sun Sep 22, 2013 at 12:20:10 PM PDT

  •  Sweet! (3+ / 0-)
    Recommended by:
    bobswern, Lujane, Otteray Scribe

    Another victory! Romney is surely going down soon.


    •  Wall Street & Romney's dirty hands all over eToys (4+ / 0-)

      and somehow they end up full of Horse Chit?  

      It takes some big fat cat 'invisible hands', enabled by cagey & corrupt lawyers, buried deep in the unseen 'free market' to get toy stores this unaccountably mucked up.  Aren't these stellar examples of The American Way?  I have to wonder how the Mormon hierarchy actually views this sort of thing...unless of course they are somehow (perhaps overly trustingly?) heavily invested in Bain's dark vampire-like underhanded, backroom conniving value-sucking and capital-stealing ways. These global pirates seem free to operate behind a veil of "well, it's basically legal, at least until we're caught and sentenced with a powerfully disincentive punishment and sincerely promise not to do it again (soon)."  The reluctance of judges and prosecutors to take on the fat cats, to punish them as befits the crime, imprison the management and disband the conniving corporations shows how weak and easily corrupted our democracy has become.

      I can almost hear Goldman-Sachs/Bain lawyers & managers saying "Shall we play a game of global thermonuclear corporate takedown?" Dibs on pensions! Who gets to pump out more overrated derivatives first?

      When life gives you wingnuts, make wingnut butter!

      by antirove on Sun Sep 22, 2013 at 01:25:38 PM PDT

      [ Parent ]

  •  I am opposed to sealed, secret settlements (2+ / 0-)
    Recommended by:
    laserhaas, bobswern

    with the exception of cases that involve minors or vulnerable adults. I am waiting for one of the "corporation persons" to be perp-walked to a Federal prison. That really is not too much to ask. The sweetest of all would be to see players like Romney and Karl Rove in handcuffs and orange jumpsuits.

    Rudeness is a weak imitation of strength. - Eric Hoffer

    by Otteray Scribe on Sun Sep 22, 2013 at 01:43:16 PM PDT

    •  Romney learned a billion dollar lesson about me (1+ / 0-)
      Recommended by:
      Otteray Scribe

      and his records. Therefore, you can bet your bottom dollar he is very concerned about this affair (after all - he lied to the entire country to hide his duplicity - in his OGE 278 Form Addendum).

      Be that as it may, he's always boasted that he gets millions of dollars each year from Bain Capital.

      Hence, if Bain benefited from fraud;
      so has Mitt Romney.

      Clawbacks are a bitch (as any Madoff investor knows).

      Now, as for Paul Traub, it looks like he is the expendable!

      Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

      by laserhaas on Sun Sep 22, 2013 at 02:00:05 PM PDT

      [ Parent ]

  •  For the lay people out here (2+ / 0-)
    Recommended by:
    virginislandsguy, VetGrl

    Please explain how a settlement between Goldman Sachs and eToys' creditors amounts to a settlement between Goldman and itself.

    •  Goldman Sachs law firm is MNAT and MNAT (0+ / 0-)

      confessed to supplying bogus Bankruptcy Rule affidavits to become eToys Debtors counsel.

      Then MNAT, while benefiting from those acts of "PERJURY" did nominate Paul Traub's firm to prosecute Goldman Sachs.

      Frank Nitti can't pick one of his friends to prosecute Al Capone; and Goldman Sachs law firm CAN'T be allowed to handpick a cohort in malfeasance to prosecute Goldman Sachs.

      It is an absurd, morose and intolerable Conflict of Interest.

      The creditors attorney is Paul Traub and Barry Gold is his partner. This is confessed in the court and the U.S. Trustee Disgorge Motion of February 15, 2005.

      MNAT is forbidden by law to have anything to do with eToys settling with Goldman Sachs; MNAT bogus signed Barry Gold's Objection to Traub getting paid too much.

      It is also a fact that the confirmed PLAN of eToys forbids the Administrator (Barry Gold) from having Transactions with Related Persons.

      And this is NOT the BIG conflict of interest that all the bandits are hiding.

      And you know all of this already.

      In any other (legitimate) court in the country, MNAT, Traub and Barry Gold would have already been indicted for this massive fraud on the COURT.

      Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

      by laserhaas on Sun Sep 22, 2013 at 04:16:35 PM PDT

      [ Parent ]

  •  That's the fanciest shell game I've seen in (1+ / 0-)
    Recommended by:

    a long time.

    Proving yet again how rigged big chunks of our world are.

    Nothing in the world is more dangerous than a sincere ignorance and conscientious stupidity. Martin Luther King, Jr.

    by maybeeso in michigan on Sun Sep 22, 2013 at 04:17:18 PM PDT

    •  You have to remember whom it was they tolled for (2+ / 0-)

      Mitt Romney was the CEO of Bain Capital in 2001; when these frauds began.

      That is why he seeks to be "retroactively" retired.

      You know

      Like Al Capone wanted to "retroactively" give back the monies he failed to pay the IRS.

      Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

      by laserhaas on Sun Sep 22, 2013 at 04:19:54 PM PDT

      [ Parent ]

      •  Yep---poor man had to give up (?) his tax (2+ / 0-)
        Recommended by:
        laserhaas, Otteray Scribe

        advantage to run for Gov.    awwwwwww  

        Nothing in the world is more dangerous than a sincere ignorance and conscientious stupidity. Martin Luther King, Jr.

        by maybeeso in michigan on Sun Sep 22, 2013 at 04:36:48 PM PDT

        [ Parent ]

        •  Actually, that's a snow job too. Romney 'claims' (0+ / 0-)

          he signed over all his assets to his wife and/or Blind Family Trust when he ran for Governor.

          Where's the quid pro quo payment from his wife for the assets? If not, she owes taxes for windfall profit.

          Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

          by laserhaas on Sun Sep 22, 2013 at 04:50:16 PM PDT

          [ Parent ]

          •  There is no such thing (0+ / 0-)

            Transfers to spouses are not taxable.

            Transfers to trusts are not taxable.

            Pretty much like the rest of your claims--you just make shit up.

            "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

            by Old Left Good Left on Sun Sep 22, 2013 at 05:55:55 PM PDT

            [ Parent ]

            •  All you naysays are going to eat your words (0+ / 0-)

              real soon.

              Especially with the many "Right" turns in arguments you make, without substance and decency.

              Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

              by laserhaas on Sun Sep 22, 2013 at 06:01:44 PM PDT

              [ Parent ]

              •  For the record (3+ / 0-)
                Recommended by:
                Adam B, virginislandsguy, VetGrl

                This is what you posted as a comment to the Reuters article:

                Evidently, people do not understand the issue of the inflexible sword of truth. Such as the assumption of facts not in evidence with the title here of Sachs — FINALLY — ends eToys.

                You people assume that Goldman Sachs and Bain Capital are so powerful that – when they pull a stunt like this settlement (where Goldman Sachs settled with Goldman Sachs) – that the inflexible sword of truth will never touch them.

                Marc Dreier believed he was untouchable. (20 years in prison)

                Tom Petters believed he was untouchable. (50 years in prison)

                Okun 1031 found out he was touchable. (100 years in prison)

                Madoff too. (100 + years in prison)

                And – I’m forced to admit that yours truly is an amoeba – facing a horde of Goliaths; who devour, destroy and corrupt our federal Government personal systemically and incestuously.

                Be that as it may – take note of this;

                Spitzer and Dreier utilized the same call girls;
                 and both went bye bye.

                DOJ Deputy Director over EOUST (Friedman) – RESIGNED;
                 after emailing this amoeba a promise he didn’t keep.

                That word FINAL – won’t apply until yours truly says it’s FINAL.

                Even if they suicide me like they did Marty Lackner;
                 or toss me in a dump like they did Jack Wheeler.

                That inflexible sword of truth is immortal!

                That is some paranoid shit, dude.

                "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

                by Old Left Good Left on Sun Sep 22, 2013 at 06:09:10 PM PDT

                [ Parent ]

              •  I didn't make an argument (0+ / 0-)

                I corrected you.

                "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

                by Old Left Good Left on Sun Sep 22, 2013 at 06:09:54 PM PDT

                [ Parent ]

                •  You can't take babbling B S and manure it with (0+ / 0-)

                  your words of disdain, banter and obfuscation;

                  and hope to make the truth go away.

                  Goldman Sachs and Bain Capital are guilty of massive frauds vis-a-vis their corrupt attorneys who lied under oath to destroy a public company and loot a federal estate.

                  All you are doing is trying to bully up on a victim.

                  Doing a poor job of it.

                  Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

                  by laserhaas on Sun Sep 22, 2013 at 06:54:03 PM PDT

                  [ Parent ]

  •  On the "Correct" new side, 2 D's coming out (0+ / 0-)

    on the issues.

    Including a crash course it what is a bankruptcy crime; and how lying under oath is Lying Under Oath.

    Martha Stewart went to jail for one blurb to a Fed agent. The crooks in the various cases here have already admitted lying under oath to a chief federal justice, more than 34 times.

    And they are STILL lying under oath - about Bain Capital!

    Mitt Romney was CEO of Bain until Aug 2001. Proof of Bain & Romney Fraud

    by laserhaas on Sun Sep 22, 2013 at 06:19:38 PM PDT

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site