As the Racketeering case of yours truly versus Mitt Romney and his associates continues to what appears to be (finally) a legitimate process, there are several power play issues going on behind the scenes. One issue germane is the fact that the Department of Justice has egg on its face. Instead of admitting such and (finally) getting around to doing their job; a decision upon high has been made to maintain the status quo. With the CoverUps continuing to flow. Hence, the DOJ has denied being duplicitous in covering up Bain Capital frauds.
On October 18, 2013, I sued Mitt Romney, Goldman Sachs, Bain Capital, MNAT law firm, Paul Traub, Barry Gold, Greg Werkheiser and Colm Connolly for Racketeering under 18 USC 1964(c) for violations of the RICO Act. The Court has issued a New Case Order, with specific guidelines on how the trial will progress. As standard procedure, once the parties (defendants) are served their Summons (or waived service thereof) - then they MUST answer.
Upon my request that the court order the U.S. Marshals to serve summons and such being denied, the Court issued this Dec. 18th "IN CHAMBERS ORDER Denying Plaintiff's Request for Service by United States Marshal". Then, coincidently, the DOJ's US Trustee Executive Office ("EOUST") emailed me a letter (on the 18th; but dated the 16th) denying any duplicity in a CoverUp of Bain Capital Frauds. Below the fold we'll discuss why the contentions of the DOJ is BS and the probable bad faith intent to try to give the Defendants a way out - .
The DOJ UST Letter is Suppose to Serve as Romney's Answer
Meanwhile, it just seems fitting that the 60 Minutes article gets inserted here; on how none of the Wall Street rogues are being prosecuted. Oddly enough, CBS is re-airing a 2011 story on failures to prosecute Wall Street Bankers. As if granting me a Christmas present.
Romney and his RICO Gang Can't Answer Laser's Complaint
It is a simple premise. If, as I allege, Romney and his RICO Gang actually ARE guilty of Racketeering; then they can't answer my RICO Complaint. What will they say, "we're sorry your honor - technically we did this; but we really didn't mean to"!
Romney and Gang MUST answer the Complaint or lose by default!
Being that they have to answer, combined with the fact that all my allegations are true, then the Defendants must find a way out of the mess. They will bark about statute of limitations; but that's not going to work. Because Mitt Romney OWNED a federal prosecutor (named Colm Connolly).
Capone can't buy off a prosecutor; and then claim Statute of Limitations!
So, the plan is to have the Department of Justice issue this letter that states Laser Haas doesn't have a case. Then Romney and his group will fail to answer; but they will provide their "purported" response in the manner of "Hey - Your Honor - We have a letter from the DOJ US Trustee's office that states Laser Haas doesn't have a case".
Problem with that is, the DOJ is not a party of my Racketeering Case.
Analyzing the DOJ's US Trustee's Letter
So, let's take a look at the Executive Office of United States Trustee's letter, issue by issue, and I'll show you how totally full of bull shit that office currently is. Here is the whole letter, all 3 paragraphs, broken down separately. The remarks of the extremely investigative DOJ's US Trustee office are telltale that the 1% ARE above the Law; and I can prove it by the "preponderance of the evidence" standard.
US Trustee Letter to Laser Haas - Paragraph 1
December 16, 2013
Mr. Laser Haas
Dear Mr. Haas;
This responds to your facsimile of October 26, 2012, making a complaint against Roberta DeAngelis, United States Region 3, and Mark Kenney, Trial Attorney, in connection with the case of eToys, Inc., Case No. 01-00706 (Bankr. D. Del.). You allege that Ms. DeAngelis and Mr. Kenney acted in bad faith in their supervision of this bankruptcy case to benefit Bain Capital and to conceal their fraud. The United States Trustee Program is the component of the Department of Justice responsible for supervising the administration of the bankruptcy cases, and the Executive Office of the United States Trustees is responsible for the supervision of the United States Trustees.
As far as this introductory paragraph is concerned, it is all true. I sent the UST's Exec office a fax alleging failure to do their duty a year ago. There are (at least) five (5) bad faith parties once at the Department of Justice, who are in need of federal investigation. They are Mark Kenney, Roberta DeAngelis, Tom O'Brien, Colm Connolly and former EOUST Director Lawrence Friedman.
More about those scoundrels in future D's.
US Trustee Letter to Laser Haas - Paragraph 2
To respond to your inquiry, we reviewed information received from the Office of United States Trustee with responsibility for this case as well as information obtained from the courts' dockets involved with this case and associated appeals. We were an active litigant in this case. We understand the bankruptcy court denied your expense claim and that the district court and Third Circuit Court of Appeals affirmed the bankruptcy court's ruling. We are also aware that the bankruptcy court issued an order on December 6, 2012, stating that your "numerous filings in this case are repetitive, without merit, and border on harassment" and directed the Clerk's office to return, without docketing, any further pleadings you file in the case.
Breaking this Paragraph 2 down, let's start with the first sentence that ends with the word "appeals". What they are stating (when you combine the fact that my fax was back in October 2012; and this EOUST letter is "dated" December 16, 2013) - is that their investigators took an entire year PLUS - to investigate the matter.
As pertains to the next sentence "We were an active litigant in the case" - this is, of course, true; and that is the problem.
Then the EOUST goes on to detail the fact that the DE bankruptcy court denied my expense claim (Please take NOTE - no detail of how and why). This is also true. Then the EOUST goes on to reflect the facts that yours truly had appeals to the District Court and the Circuit Court; and that those courts affirmed the Delaware Bankruptcy Court's ruling. This is also true; but is NOT the final word on the matter.
Now the next sentence should perk up your attention span. It stipulates that the Delaware Bankruptcy Court issued an order on December 6, 2012 that permanently banned my filings, pleadings - in the eToys case.
That is bad - Very BAD!
In what legitimate realm of justice can a court ban a party from seeking redress of grievances. It is a Civil Right, under the Amendments, that a citizen is permitted their right to go to the court to seek addressing issues of Law.
US Trustee Letter to Laser Haas - Paragraph 3 & end sentence
Although we understand that your are not satisfied with the courts' rulings in this case, the United States Trustee Program does not supervise nor posses any power over the courts. Dissatisfaction with the judicial decisions is properly address through the judicial appellate process. Regarding your allegation that Ms. DeAngelis and Mr. Kenney acted in bad faith in supervising the eToys bankruptcy case, after a review of the record and the facts before us, we conclude your allegation is without merit. As to the complaint that Ms. DeAngelis and Mr. Kenney improperly benefited Bain Capital, we find no evidence to support this assertion.
We regret we cannot be of further assistance to you.
As for this paragraph, we are into the heart of the matters at hand. Of course I'm not satisfied with the court's rulings; the justice there is abusing her discretion authority. If "that" court (who is so scared of the facts - it refuses to have a hearing on them) actually did its job properly and disqualified (removed from their positions of trust) the confessed/quilty parties. Then MNAT, Traub's TBF and Barry Gold when they confessed Lying Under Oath to the Court; then yours truly would have nothing to bark about.
But the Court let the liars/thieves continue to Lie and Steal;
and THAT Ain't RIGHT!
This set of particular remarks by the EOUST is what legal scholars call obfuscation. It is a magician's trick by attempting to mis-direct; a Rope-a-Dope! My fax to the EOUST did not ask them to review the court, it asked that office to address the Breach of Fiduciary Duty of their rogue elements within.
I'll let the jury decide the matters. Whereas yours truly has the legal right - that has been asserted - to Demand a Trial by Jury. The very reason I filed a Racketeering case; is because no one else - especially those in the Department of Justice - appears to have any wishes/desires to do their job. A duty, under oath - that requires them to do their tasks, assigned by Congress, with commandments BY LAW - to punish Goldman Sachs, Bain Capital, Mitt Romney and their rogue element attorneys for Breaking the Law.
Proof of DOJ U.S. Trustee Breach of Fiduciary Duty
As stipulated by the EOUST in the letter, the Department of Justice -
- United States Trustee Program is the component of the Department of Justice responsible for supervising the administration of the bankruptcy cases, and the Executive Office of the United States Trustees is responsible for the supervision of the United States TrusteesThis, of course is true. It is also a correct statement upon the U.S. Trustee's website (here) that the
- United States Trustee Program is a component of the Department of Justice responsible for overseeing the administration of bankruptcy cases and private trustees under 28 U.S.C. §586 and 11 U.S.C. §101, et seq..
It consists of 21 regional U.S. Trustee Offices nationwide and an Executive Office for U.S. Trustees (EOUST) in Washington, DC.
Whereas, it is a fact noteworthy that there ae 21 U.S. Trustee's in charge of policing the entire 1.5 million average annual bankruptcy cases. This equates, more or less, to 70,000 cases for each office. And being that the government of the courts aren't on the job during the weekends, this equates to about. This also equates to 600 cases per day.
They nail who they want - mom & pop; and let the big fish get away!
Also stipulated upon the United States Trustee website - on page 2 (here) - is the following apropos maxims;
The primary role of the U.S. Trustee Program is to serve as the "watchdog over the bankruptcy process."1/ As stated in the USTP Mission Statement:
The mission of the United States Trustee Program is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors, and the public.
The U.S. Trustee program is charged with 2 tasks. One is to monitor professionals situations and fees; and the other is to report bankruptcy fraud issues to the United States Attorneys office - as is required by law under 28 U.S.C. $ 586(a)(3)(F).
For 12 years now, yours truly has been reporting the bankruptcy frauds of Goldman Sachs, Bain Capital and associated parties (including Romney, Traub and MNAT); but all to no avail. This is because - in Chapter 11 cases - the U.S. Trustee is a Lassie/Rin Tin Tin; but in Chapter 7 & 13 mom/pop cases - the U.S. Trustee is a pack of wolves.
So, let's look at each Rin Tin Tin effort/action of the Department of Justice's United States Program in our eToys.com and related cases. Especially concerning the fact that the EOUST claims my complaints about Bain Capital benefiting from bankruptcy fraud has no merit; and that Roberta DeAngelis and Mark Kenney are not guilty of failing to do their jobs.
Replacing of Region 3 US Trustee Roberta DeAngelis
The goal of yours truly is to get the DOJ U.S. Trustee's Executive Offices to remove duplicitous parties Roberta DeAngelis and Mark Kenney. In 2004, the first part of that plan was achieved. Whereas, in the fall of 2004, this victim finally found enough Smoking Gun evidences to bring things to a head.
It is significant that Roberta DeAngelis, as Region 3 United States Trustee, has failed to do her duty concerning bankruptcy fraud and conflict of interest issues. After all, she is the purported EXPERT who has represented the U.S. Trustee's office concerning such issues. DeAngelis is a proper name for Roberta, as she is certainly not an angel. In July of 2004, Roberta went before the SUBCOMMITTEE ON COMMERCIAL AND ADMINISTRATIVE LAW - COMMITTEE ON THE JUDICIARY - UNITED STATES HOUSE OF REPRESENTIVES. Where, at that time, Roberta DeAngelis stated many issues (see link - here). Such as the fact of 3.746 formal objections resulted in $44.8 million in fee reductions; which equates to about $13,500 per case.
In eToys, Stage Stores, Petters and Kay Bee - there's more than $100 million in fees!
Additionally, the United States Trustee expert and representative of Region 3 over Delaware, the great Roberta DeAngelis, also pointed out the following issues germane that;
Most importantly, professionals may not be employed without approval of the bankruptcy courtWhich means that Barry Gold could NOT be employed in eToys;
being that MNAT and Traub sneaked him in without court approval!
And DeAngelis also stipulated that;
The applicant must demonstrate that it is eligible for employment. The Bankruptcy Code and Rules impose a burden of full disclosure. The professional is required to submit to the court an application that states the following: the specific facts showing the need for the services to be rendered, the name of the person to be employed, the reasons for the selection, the particulars of the services to be rendered, and the terms of compensation. In addition, a verified statement is required from the professional that sets forth all connections the professional has or had with the debtor, creditors, any other party in interest, their respective attorneys and accountants, the United States Trustee, or any person employed in the office of the United States Trustee. Full and complete compliance requires that the professional report all connections, not just those connections that, in the judgment of the professional, may be relevant.
Furthermore, Roberta DeAngelis stipulated that;
The basic requirements for the employment of a debtor’s professionals are contained in 11 U.S.C. §§ 327, 328, and 101(14). Among other things, professionals “may not hold or represent an interest adverse to the estate [and must be] disinterested.”
In section 101(14), the term “disinterested person” is defined and sets forth five disqualifying conditions
In our eToys case - this is what happened. MNAT works for Bain Capital, Mattel and Goldman Sachs. In 2004 we found proof of the failure to disclose the Goldman Sachs issues and MNAT confessed this. BY LAW - MNAT was required to be disqualified. MNAT lied to become eToys attorney and then benefited Goldman Sachs.
At the same Paul Traub's firm lied about Merrill Lynch, Goldman Sachs, Wells Fargo, Bain, Romney, Michael Glazer, Kay Bee and Barry Gold. In 2004 we found Smoking Gun proof that compelled Paul Traub to confess his failure to disclose connections to Barry Gold. The issue being that Traub's TBF firm was approved as Creditors attorney and Barry Gold was (illegally) inserted inside as President/CEO of eToys by Traub and MNAT.
As reported by DeAngelis, parties cannot have ANY conflict of interest.
Conflicts of interest exists when the attorney for the Creditors of a bankruptcy case is a partner with the man he inserts inside as President/CEO of the Debtor. Barry Gold did NOT apply. Therefore, as DeAngelis herself stated - without court approval - a party cannot be employed in a bankruptcy.
The Law is the Law - Judges and US Trustee's can't ignore the law when they wish!
As a result of our Smoking Gun proofs, an Emergency Hearing was held on December 22, 2004, at the Wilmington, Delaware bankruptcy court. In the transcript (here), the Assistant U.S. Trustee (Frank Perch) stipulated the following;
It is a matter of great concern to the U.S. Trustee that it appears, based upon the papers that have been filed in this case since sometime in mid-November that it may be coming to light there there were connections that were not disclosed.
-- to the extent that it may be that there were connections that should have been disclosed that were not disclosed at any time during this case, all the way through the approval of the final fee applications for the Traub Bonacquist & Fox fiirm, all the way through the confirmation of the plan, and up through times very recent in this case - that is a matter that we believe needs to be looked into.
No, what also happened at that very same moment in time, is the fact that the expert Roberta DeAngelis was replaced; because yours truly was in direct contact with the Deputy Director of the US Trustee's program who promised he would address the issues. (See U.S. Trustee Press release - here). Lawrence Friedman had emailed and spoken to me and provided Kelly B Stapleton as an experienced fraud prosecutor. While it was also stipulated in Stapleton's Press Release that;
The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Roberta DeAngelis was replaced as Region 3 U.S. Trustee on December 22, 2004!
US Trustee MUST Notify & Refer Criminal Matters
As a requirement of law, the United States Trustee MUST report (Notify & Refer) any illegal activity to the local U.S. Attorneys office, when issues of crimes are self-evident. Confessions to lying under oath is admittance of acts of Perjury. The specific Law in question is that of 28 U.S.C. $ 586(a)(3)(F) - which stipulates that;
(a) Each United States trustee, within the region for which such United States trustee is appointed, shall
(3) supervise the administration of cases and trustees in cases under chapter 7, 11, 12, 13, or 15 of title 11 by, whenever the United States trustee considers it to be appropriate
(F) notifying the appropriate United States attorney of matters which relate to the occurrence of any action which may constitute a crime under the laws of the United States and, on the request of the United States attorney, assisting the United States attorney in carrying out prosecutions based on such action
MNAT, Traub & Gold Confess Lies Under Oath and Conflicts
I won't bog you down with providing proof after proof that these guys did wrong. Mainly due to the fact that it is not necessary, they have already confessed lying under oath and concealment of conflicts of interest. This is the link to Traub's January 25, 2005 confession (here); which is referenced in the United States Trustee's Motion to Disgorge of February 15, 2005 (here). MNAT also admitted to failing to disclose Goldman Sachs issues and such was reiterated in the February 9, 2005 Depositions (here).
What is the main beef of this whistleblower is the fact that MNAT, Traub and Barry Gold all - CONTINUE TO LIE - and hide their connections to Romney, Bain Capital, Kay Bee and Michael Glazer. The significance being that eToys sold all its assets to Bain Capital Kay Bee, with Romney as CEO of Bain and Michael Glazer as CEO of Kay Bee.
When MNAT, Traub & Gold
reduced sales prices of eToys to Bain/Kay Bee
- that was Bankruptcy Fraud!
And the problem is (as the EOUST letter so eloquently details) is that the United States Trustee is suppose to police bankruptcy cases; but they are failing (miserably) to do their job and refusing to address this Bain Capital conflict of interest (Bankruptcy Fraud) issue.
Thus, the US Trustee's office is Breaching their Fiduciary Duty for benefit of BAIN!
After the allegations of December 22, 2004, the January 25, 2005 responses of the Defendants (confessions), and the additional admittances during the February 9, 2005 Depositions at the Delaware Bankruptcy Court (Barry Gold's - here) - (MNAT depo - here) and (Traub's partner Michael Fox depo - here).
Having no other choices, due to the confessions, the U.S. Trustee's office puts forth, on February 15, 2005, the
The Disgorge Motion points out certain key facts that make the crimes of Traub and his TBF law firm - extensively heinous & egregious. As iterated by the US Trustee in part 18, it states that;
TBF further asserts that although Traub and Fox considered amending their disclosures in 2003 (as a result of their July 2003 disclosure of the relationship between TBF and ADA in the Bonus Stores case, No. 03-12284 (MFW), they determined that it was not necessary to do so because the eToys plan had already been confirmed and gone effective. Id. at ¶ 3Why this is significant and important, is this is a confession by Traub that he deliberately allowed a lie to stand in place before the court; because they knew they had already gotten away with it thus far.
This is Fraud on the Court by Officers of the Court!
There's no greater sin than that of an attorney at law betraying a client. Not only did Traub betray the Creditors, he also admitted to intentionally deceiving the court.
But wait - it gets better (or - actually - worse)!
What is in parts 19 & 35 of the U.S. Trustee Motion to Disgorge, is another key element of the crime. Whereas the Police of the federal bankruptcy court testifies that Traub was forewarned NOT to do the very crime he went ahead and did in secret. As part 19 stipulates;
In the context of TBF’s experience, the multiple connections between TBF and Gold, and the facts surrounding Gold’s employment, TBF’s failure to disclose any of its three distinct connections with Gold is difficult to understand as inadvertent rather than deliberate. TBF’s partners are experienced bankruptcy practitioners who have filed retention applications in a number of cases in Delaware and other judicial districts. They are not strangers to the court or the retention process, nor are they strangers to the comprehensive and ongoing relationships analysis that any professional must perform when it seeks to be employed by a trustee or official committee in a bankruptcy case. More significantly, TBF was specifically aware in this matter, from discussions with the Office of the United States Trustee, of the UST’s concern about replacing corporate officers with individuals related to any of the retained professionals in the case. TBF Objection, ¶ 10. Finally, Gold’s employment by the Debtor was not something that just happened without TBF’s involvement and caught them by surprise; rather, TBF on behalf of the Committee recommended Gold to the Debtor. TBF Objection, ¶ 11.TBF was aware; but still did the crimes anyway.
is difficult to understand as inadvertent rather than deliberate!
Then, it part 35, the Disgorge Motion reiterated the fact;
Unlike R&R Associates, this case does not involve novice bankruptcy counsel who borrowed a form of Rule 2014 affidavit from another attorney in the firm. It instead involves experienced bankruptcy practitioners who have filed applications to be retained as Section 327 or Section 1103 counsel in numerous large and sophisticated Chapter 11 cases, both in Delaware and elsewhere. TBF’s partners are well-versed in the comprehensive and ongoing relationships analysis required of a professional employed at estate expense. And as discussed earlier in this Motion, TBF had engaged in discussions with the Office of the United States Trustee about replacement officers of the debtors, and was aware of the UST’s concern that the replacement officers not be related to any of the professionals employed in the case. This, it is respectfully submitted, is all of the intent needed to demonstrate that TBF’s Rule 2014 disclosure violation was a fraud upon the court.
Therefore, it is established by the Police of the Bankruptcy system that Traub's TBF law firm failed to disclose the conflict of interest of Barry Gold. Where Gold was inserted into eToys (illicitly) AFTER Traub's firm was warned NOT to do so.
Then Paul Traub's firm knew they could get caught by Bonus Sales case; but decided to take the risk anyway. It is also noteworthy that this vast heinous and egregious assault upon the Constitution of the United States and pee upon the integrity of the judicial process was deliberate;
and the US Trustee concluded that it was Fraud on the Court!
U.S. Trustee Stipulation of Settlement of the Motion to Disgorge
Normally, one would be encouraged that the federal Police (U.S. Trustee) have done their job properly. After all, EOUST Director Lawrence Friedman replaced Region 3 U.S. Trustee Roberta DeAngelis and the United States Trustee's Disgorge Motion sought to punish Traub's law firm to the tune of $1.6 million.
So why is Laser Haas not happy?
Well, for one thing, even the good Assistant U.S. Trustee, (Frank Perch) did fail to do several tasks with his efforts of the Disgorge Motion.
1 - There's NO Disgorge Motion on MNAT (more on this in a little bit).
2 - The Disgorge Motion 1st Footnote (page 4) states Gold didn't need to apply
3 - Failures to disclose conflicts of interest MUST result in disqualification (removal)
You simply don't tell someone not to rob the bank, then learn that they did it anyway - in secret - only to get caught by the bank manager (yours truly); and then see the Police, prosecutor and federal court had the bank robbers the keys - while removing the bank manager and stealing his life savings.
But that's exactly what happened.
4 - Assistant U.S. Trustee Frank Perch then vanished from the US Trustee program.
5 - Less than 10 days after the Disgorge Motion - a Stipulation to Settle arises!
As iterated above, the U.S. Trustee's duty is to monitor professionals and address issues of bankruptcy fraud, for the sake of protecting the integrity of the bankruptcy system of justice.
You can't protect the system by permitting crooks to remain within!
It is a real simple logic. Capone can't ask to rob the bank, be told no, rob it anyway and then keep the keys to the vault he is robbing - once the police arrive; but that is exactly what happened in our eToys case.
Assistant U.S. Trustee Frank Perch provided the Disgorge Motion on February 15, 2005; and then he resigned shortly thereafter. Meanwhile, the bad faith Mark Kenney went to work to free his buddies from investigation, prosecution and arrests.
On February 24, 2005 Mark Kenney provided the following;
UNITED STATES TRUSTEE'S MOTION TO APPROVE SETTLEMENT OF MOTION FOR ORDER DIRECTING DISGORGEMENT OF FEES PAID TO TRAUB BONACQUIST & FOX LLP FOR SERVICES RENDERED AS COUNSEL TO OFFICIAL COMMITTEE OF UNSECURED CREDITORS (D.I. 2195).
Inside that proffer to the Delaware Bankruptcy Court is the following document;
STIPULATION OF SETTLEMENT BETWEEN THE UNITED STATES TRUSTEE AND
TRAUB BONACQUIST & FOX LLP OF MOTION FOR ENTRY OF ORDER
DIRECTING DISGORGEMENT OF FEES PAID TO TRAUB BONACQUIST & FOX
LLP FOR SERVICES RENDERED AS COUNSEL TO OFFICIAL
COMMITTEE OF UNSECURED CREDITORS
Within the Stipulation of Settlement is the one germane remark that is inexplicable, intolerable and UN-Constitutional. To wit, on page 2 of the STIPULATION of SETTLEMENT it states that;
WHEREAS, the U.S. Trustee shall not seek to compel TBF to make additional disclosures;No police and/or prosecutor can simply - of its own accord - toss their job requirements out the window; but this stalwart (Mark Kenney) believes he can. As the only 2 jobs of the Police of the bankruptcy system (US Trustee) is to monitor professionals and report issues of bankruptcy fraud;
How in the Hell can the US Trustee refuse to do their jobs?
What this alerted yours truly to, is the fact that the parties had something more to hide. When police catch vault robbers robbing a vault, they don't give the bank robbers the keys and then tell them "no need to tell us about the other vaults you robbed".
But that is what this WHEREAS not seek to compel line - DID!
Yours truly went ballistic - screamed to the DOJ and got an email fraud!
DOJ EOUST Director Friedman Emails a Promise to Laser Haas
We (eToys shareholder Robert Alber and I) were already miffed that there the US Trustee failed to seek Traub's TBF firm removal. We were also pee'd that there was NO motion - whatsoever - against MNAT. And the failure to seek removal of Barry Gold was intolerable. So this proffer of a Stipulation to Settle enraged me. I called the U.S. Trustee's office - over and over again - and sent email screaming to the DOJ Deputy Director Lawrence Friedman, who ran the Executive Office of United States Trustees ("EOUST"). Mr. Friedman then responded with an email letter (here) - that stated;
Date: 02/25/05 14:49:58
Subject: RE: Item sent to the record today
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
Discovery of $100 Million in Kay Bee Bankruptcy Fraud
Here's where it gets super interesting. Prior to this, yours truly is complaining about my eToys case and getting paid back what crooks stole from me. Therefore, because it serves me the victim, some people may question my motive. But in this new case of Kay Bee Toys, yours truly has no interest; except that I'm a victim watching the crooks who robbed my bank - walk across the street and rob another.
You also must bear in mind that Paul Traub (and purportedly MNAT) are being punished for lying under oath and many conflicts of interest in the eToys case. While that is going on (and the US Trustee's office is fully aware it is going on) - then the there's a $100 million fraud going on in eToys.
MNAT works for eToys that sold its assets to Bain/Kay Bee; hence MNAT is forbidden from being an attorney for Bain/Kay Bee.
Barry Gold worked as a directors assistant for Stage Stores that is owned by Romney. Directors at Stage Stores were Michael Glazer and Jack Bush (who both work for different Bain Capital entities). Romney owned more than 800,000 shares of Stage Stores at the time.
Michael Glazer is now CEO of Stage Stores.
In the fall of 2000, Bain Capital acquired Kay Bee Toys and then Kay Bee jumped on the chance to acquire eToys in 2001. Romney was the CEO of Bain Capital then and Michael Glazer was the CEO of Kay Bee at that time.
MNAT also merged Romney's entity "The Learning Company" with Mattel in 1999; where the investors lost a reported $3 Billion.
Hence, Romney, Bain, MNAT, Glazer, Kay Bee, Barry Gold and Traub are all connected!
Then, MNAT lied about its links to Bain Capital (and others) to become the eToys Debtor's counsel. At the same time Traub's TBF lied to the court in order to become the eToys Creditors counsel. During that time it was the plan of the parties to sell eToys to Romney/ Bain/ Glazer/ Kay Bee for $3 to $5.4 million; and yours truly was hired by the Delaware Bankruptcy Court ordered approval of my company Collateral Logistics, Inc., ("CLI"). (See court order - here).
What is wrong with the eToys case, is the fact that CLI and I sold eToys assets to Romney/Bain/ Kay Bee/Glazer for tens of millions of dollars; which made Traub and MNAT look bad. So they (illegally) inserted Barry Gold and tossed out CLI & Laser Haas.
Then the crooks reduced the prices of eToys to Romney/Bain/Glazer/ Kay Bee
and that's a clear case of Bankruptcy Fraud!
In the eToys case, they offered me what they called an "inducement" to look the other way and let Romney get back the monies CLI forced him to bid higher. The Bribe was turned down and reported to the DOJ (Mark Kenney and others). That is when Romney purportedly resigned as CEO of Bain Capital and the MNAT law firm made one of their partners to be the United States Attorney (Colm Connolly).
What was offered to me is a partnership, being on the board of other companies (like all the other Jack Bush's, Barry Gold's and Michael Glazer's - of Bain Capital). Also, they offered me an extra $850,000 and the chance to befriend a very important person (Romney was going to run for Governor of Massachusetts at the time).
Stick it where the sun don't shine!
Apparently, the stalwarts believed that their bribery failed; because it was too little. So (it would appear) in the Kay Bee Toys case the bad faith racketeers upped the ante a bit. Michael Glazer then paid himself $18 million and Bain Capital $83 million.
Why this stuff is relevant to yours truly, is that "WHEREAS" clause mentioned above. Whereas MNAT is representing Bain Capital in the $83 million (proof - here). Compounding those criminal issues even further, is the fact that (since the US Trustee is on the record stipulating it will NOT SEEK TO COMPEL TBF to make disclosures) - then Traub had no reason to disclose his issues and perpetrated another crime in the Kay Bee Toys case.
Whereas Traub asked to be the one to prosecute Bain and Glazer.
This, of course, is total BS. But that is what happens when you have rogue elements inside the Department of Justice letting their friends off the hook for organized crimes.
So, yours truly, tried to inform everyone at the Department of Justice - what was really going on. I screamed once again - to DOJ Deputy Director Lawrence Friedman; and he simply choose to tuck tail and run. Therefore it was necessary to inform the court of the crimes. In April 2005, this Motion of MisPrision (knowledge of a crime occurring) was submitted to the court presiding over the Kay Bee case.
It is quaint how apropos that dynamic is to the current state of affairs. We now have a letter from the DOJ's US Trustee's EOUST stipulating there's nothing going on and no validity. Back in 2005, that is the same thing that transpired.
Also, in the current Racketeering case, Romney & his RICO gang simply Can NOT answer my Complaint; because they are guilty. Back in 2005, in the Kay Bee case, this was an akin dynamic. MNAT and Traub couldn't answer my Motion; because they are guilty. So the US Trustee's rogue (despotic) elements come to the rescue of the racketeers. Doing so with this (link) item by the;
UNITED STATES TRUSTEE'S MOTION TO STRIKE PLEADING OF
STEVEN HAAS, A/K/A LASER HAAS, STYLED AS "STATEMENT IN SUPPORT
OF BIG LOTS STORES, INC. LIMITED OBJECTION TO THE MOTION OF
THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS TO
PROSECUTE ACTIONS AND REQUEST FOR ALTERNATIVE RELIEF
AS DEFENSE AGAINST MISPRISON [SIC.] OF A FELONY, WHILST
THE PUBLIC ALONG WITH THE COURT IS DECEIVED AND
DEFRAUDED, WITH NO TRUSTWORTHY WATCHDOG (D.I. 2210)
What Mark Kenney asks for, is that the court Strike & Expunge (which it did so order) the filing. On behalf of the US Trustee's office, Mark Kenney points out the fact that Laser Haas is not a party to the Kay Bee case, that yours truly doesn't have any stake in the Kay Bee case (which is NOT entirely true - being that Kay Bee STOLE eToys assets) - and Mark Kenney pointed out that I wasn't seeking any relief.
We simply sought to inform the court of the fraud transpiring before it!
Now here's what else that is also special. Attached to my motion was something that sent shivers down the spine of the racketeers. The former Chairman of the eToys Creditors Committee had signed an Affidavit; which stipulated that Paul Traub's TBF law firm had deceived their client - the Creditors.
The Court did strike the Affidavit and my Kay Bee Toys Motion.
This means that the police of the bankruptcy system have gone tyrannical. Instead of pointing out crimes, perjury and frauds on the court; the Police of the bankruptcy system choose to punish the whistle-blower and defend organized crimes.
And that Ain't Right!
As if all of this skullduggery is not enough already, we have another defection. Going back to the email letter of DOJ EOUST Friedman on February 24, 2005, to yours truly; he promised he was on top of it and his staff could handle the cases. But, when I pointed out the crimes in the Kay Bee case were going on at the same exact time that the US Trustee was (purportedly) punishing Traub in the other case;
Summary - of the many issues - that the EOUST claims did not happen
Attorneys at law are forbidden to betray their Bar Card oaths to protect the interests of their clients. In this case, Traub's TBF firm betrayed "some" of his Creditors. The reason I say "some" - is due to the fact that (being it is an eToys bankruptcy case) a preponderance of the Creditors are from the Toys industry.
Are lawyers allowed to betray "some" of their clients.
Some eToys shareholders requested to affirm their civil right, as provided by law, to have an "equity committee" and an attorney at law for such as is permitted under the bankruptcy Code & Rules. MNAT, Barry Gold and Traub's TBF firm all objected to this; claiming that the shareholders were being protected by "them".
Do you believe the eToys shareholders are being protected? Or gutted!
MNAT was already working for Bain Capital/Romney and Goldman Sachs when it applied for court approval to represent eToys. Being that eToys public offering was a crime by Goldman Sachs and Bain Capital was buying eToys assets; MNAT's representations of eToys (case # 01-706) - via acts of Perjury - is hard to believe as inadvertent, rather than deliberate.
MNAT filed the Finova Case for Goldman Sachs (01-705) and eToys (01-706)!
Both firms wanted Romney's Bain Capital (you know - the POTUS wannabe's company) to get eToys as cheap as possible. After all, eToys would be bankrupt and gone only once; and Bain Capital could be a lucrative employee forever - Correct?
EAAANNNTTT - Not so! Kay Bee and eToys were in bankruptcy more than once!
After confessing to lying under oath to the Chief Federal Bankruptcy Justice more than 33 times; MNAT, Traub's TBF and Barry Gold did Retaliate against this victim/ witness / whistleblower.
MNAT was court ordered to supply my CLI paperworks to the court for process of our fees and expenses; but MNAT only supplied one item after that order - the "Haas Affidavit". The item was Never serviced upon me; and MNAT, Barry Gold/Traub claim that it is a "waiver" of CLI's fees and expenses. It is only a 2 page item; and it stipulates in parts 10 & 11 that my company can seek success fees. So how is a document that grants such - a waiver?
All those who believes I waived being paid; please raise your hands?
The U.S. Trustee testified in the Disgorge Motion that there were discussions by the parties seeking to 'handpick' their very own eToys executive; and that the were told not to do so. But MNAT and Traub did it anyway - Secretly. Doing so in the worse case scenario possible; and obliterating the diametric lines required by Congress. Whereas Debtor and Creditor are supposed to be 100% arm's length, to assure a good faith integrity of the judicial process. By the Creditor's counsel sneaking in his partner as the Debtor's President/CEO - illegally. And Traub confessed that his firm lied to the court intentionally.
Hence - a perpetration of deliberate - Fraud on the Court!
Meanwhile, the other creditors, such as Fedex, utilities, state and federal taxes, landlords, shareholders and the U.S. Post Office; get lied to and stole from. For the sake of making Goldman Sachs and Bain Capital richer.
MNAT, Traub's TBF and Barry Gold's gang gets over $10 million in fees - by Fraud!
But the U.S. Trustee's Roberta DeAngelis and Mark Kenney say this is regular business; and that there's really nothing wrong. Though DeAngelis pointed out to Congress that parties MUST be approved by the courts; it really is no big deal that Traub was told not to hand pick and eToys executive (and Traub inserted his partner Barry Gold).
When the parties do another $100 million fraud in the Kay Bee Toys case; Mark Kenney comes to the rescue. Asking that the court strike and expunge the evidence. Proof - mind you - that included an affidavit from the former Chairman of the Creditors Committee of eToys testifying that Paul Traub betrayed his client (the Creditors).
If you have had time to read the September 2012 cover story of Rolling Stone, written by Matt Taibbi; you'll see bankruptcy fraud and federal corruption remarks by Matt concerning Stage Stores and Kay Bee Toys. It is titled "Greed and Debt" A True Story About Mitt Romney and Bain Capital.
Taibbi missed the fact that Michael Glazer was at Stage Stores (now CEO)!
After the Deputy Director - the number 2 guy under the Attorney General of the United States - of the Executive Office of United States Trustees ("EOUST"), Mr. Lawrence Friedman - emailed a promise that his staff was on top of the case. He decided to choose discretion over valor, when he was informed of the other $100 million in fraud.
DOJ EOUST Director Friedman - took the cowards way out - and RESIGNED!
Then, the US Trustee's office sits idle by when crooks retaliate against this victim/ witness - when MNAT, Traub and Barry Gold claim they really did almost nothing wrong (in spite of confessions to lying under oath 33 times - after they were told NOT to do so); and have stole eToys federal assets, destroying the eToys public company. Doing so for the sake of their SECRET (undisclosed connections/ conflict of interest) clients of Goldman Sachs and Bain Capital.
When yours truly appeals (September 2005) the issues of having my career destroyed, my life savings taken away and my company punished for blowing the whistle; the Delaware Bankruptcy Court decides to help the bandits with its October 4, 2005 Opinion (see the Delaware Court published Opine - here). The Judge says that No Perjury was documented. I guess confessions to lying under oath 33 times - isn't Proof of Perjury (see Opinion pages 50 to 52).
Wonder what Martha Stewart would have to say about that!
Appeals were filed by both myself and eToys shareholder Robert Alber, who had deposed Paul Traub and Barry Gold way back in 2002; about their secret relationship. Everyone in the room sat in silence - while Barry Gold and Paul Traub denied (LIED) about their connections to each other.
Here's the thing. Who do you think was in that room when it was happening? None other than the one and same DOJ US Trustee trial attorney Mark Kenney.
Yours truly found the proof - The Smoking Gun Affidavit - that proved Paul Traub and Barry Gold were lying, in the case titled Bonus Sales. There's an Affidavit by Mr. Traub in the Bonus Sales case that stipulates Barry Gold and Traub are co-principals of Asset Disposition Advisors ("ADA"); which was formed in April 2001 (a full month before Barry Gold was inserted illegally into eToys. Guess whose names are upon the Bonus Sales US Trustee Objection?
None other than Mark Kenney and Roberta DeAngelis (see filing - here).
Roberta DeAngelis is Secretly Promoted
Now we have the resignation of DOJ EOUST Director Lawrence Friedman; and we have the Judge's Opinion approving Mark Kenney's Stipulation of Settlement with TBF. All of this is illegal. A Civil Rights violation under "Color of Law". So what's to be done about it? Yours truly contacted Congressman, Senators, FBI, Public Integrity Section, President's Corporate Fraud Task Force, the SEC, OIG, OGE, OPR and on - and on. Everyone told me to go to the local U.S. Attorney (that would be the problematic MNAT partner Colm Connolly) and the EOUST General Counsel.
Roberta DeAngelis was secretly promoted to be EOUST GC!
I kid you not. Here I am asking Roberta DeAngelis to investigate her own failures to perform her duty. But I did not know that; because it was kept a secret. Usually, such a high level promotion (and/or resignation) is documented by the US Trustee program through a Press Release. But, as anyone can see (here) - from 2005 till 2007 - there were none.
Fortunately, by the gracee of G-d, yours truly became informed about the secret of Roberta DeAngelis being the General Counsel ("GC") for the Executive Office of United States Trustee ("EOUST"). And at the same time, we learned about the MNAT law firm partner of 2001 - who was arranged to become the United States Attorney over the Delaware (the despot Colm Connolly).
Thus, we were asking Capone's 2 Nitti's to investigate and/or prosecute Capone!
Obviously, when it comes to issues of Goldman Sachs and Bain Capital, those parties are treated as if they are above the law. Is there anything anyone can do about it? Only time will tell. Be that as it may, no one has to swallow the babbling, banter Bull Shit that the US Trustee's office is shoveling.
It is possible that one can trick the great "geniuses" of the Department of Justice into exposing themselves. For - you see - this letter is not the first one yours truly has received from the DOJ's EOUST office. Back in 2006, I duped them into responding; by sending them a request from the party of Ledford, Young, Haas, Calloway and Prater.
All of my mom's various men in her life - taken last names.
This is the letter (here) from the 2006 EOUST. If you will take notice there is NOTHING on it with Roberta DeAngelis name or mention. What you can take note of, as you can of the current letter for the US Trustee's Executive Office - is that they have (obviously) put in plenty of effort, review and time over the case. They know the parties name, the case names, the judges name, the appeals cases and more. So they simply can't claim they don't know what is going on.
Then why is the US Trustee afraid of doing their job?
Here could be one answer. In the 3rd Circuit appeals case of 07-2360, the United States Trustee (having been exposed by yours truly) finally comes forth with Roberta DeAngelis openly stating (in our eToys cases) that she is the General Counsel for the EOUST (see the works of the EOUST - here).
Roberta DeAngelis is joined in that "BRIEF OF APPELLEE THE UNITED STATES TRUSTEE" by her significant others within the EOUST organization. It is co-authored by Asst. US Trustee Andy Vara, who took over after Frank Perch left (we ran off Andy Vara too - because of his prior case of Aarque that dealt with similar issues). There's also Mr. Matthen Sutko, another "expert" on the issues. Like DeAngelis, Mr. Sutko is a mouthpiece for the EOUST (see stuff - here - here - and here). There's also our dear, sweet, dedicated (to whom) Mark Kenney. But it is not just the fact there needs to be a whole team of venerates from the United States Trustee's office to respond to a "pro se" appeal case. That's not the issue. What is significant and telltale is the very 1st footnote of the US Trustee's brief -which stipulates that;
The bankruptcy court order which is the subject of Mr. Alber's district court appeal also ordered a partial disgorgement of compensation by debtors' counsel, Appellee Morris Nichols Arsht & Tunnell ("MNAT") in connection with Mr. Alber's January 25, 2005 motion alleging conflicts of interest by MNAT, and approved settlement between the post-effective date committee of unsecured creditors and Goldman Sachs & Co.Here we are again, with the Executive Office of United States Trustee's demonstrating, in expressed detail, the thoroughness of looking at all the relevant issues, filings and such, in play in the eToys case. But that is not what is paramount. For, if you will remember, the United States Trustees office has never - EVER - filed anything against MNAT. This can be summed up in the other Breach of Fiduciary Duty statement by the US Trustee's office, in the finish of the 1st footnote of its 3rd Circuit Brief (akin to the way the Stipulation of Settlement has that unConstitutional Whereas clause). For the EOUST stipulates that;
The United States Trustee did not assert a position in the bankruptcy court or the district court appeal regarding those two matters and does not address them herein.As if on bended knee - the UST said it did not - Will Not - address issues of MNAT!