How many public, tax-paid servants do we really trust? Why are we a land of Sheeple who stand by and witness skullduggery in vast forms and do nothing? Are Matt Taibbi and I the only ones who "get it" - when propoganda pieces like "To Big Too Fail" hit the airwaves? (See Matt Taibbi's Rolling Stone article on the Andrew Ross Sorkin battle (here)).
Just this past week there were additional arrests in the Petters Ponzi scheme debacle. Frank Vennes, who was not touched (surreptitiously so) - for 2 years, was indicted in April 2011 and a superceding indictment transpired also naming Jim Fry of Arrowhead. What the MN Dept of Justice does not make you aware of, is that - under the guise of good faith public servants doing correctly - the Federal REceiver, Courts and Trustee's are fleecing everyone - a Second Time.
First of all, the MSM, nor the local Star Tribune (that speciously wound up in bankruptcy when its greatest influx of readership and monies began in years) - all failed to point out the Ethics and Legal violations of Federal Receiver Doug Kelley. How he worked as Tom Petters law firm, got Petters to sign a Power of Attorney of all his empire over to Wolter of the Kelley & Wolter law firm (see Star Tribune article (here)) - and then Kelley was illegaly made a Federal Receiver of Petters empire - too!
Violating every Ethic in the world and common sense as well.
How does one get away with billions in frauds over a decade.
1. Make a DoJ power player your partner (Paul Traub)
2. Have a man in Witness Protection Program as your partner (Larry Reynolds)
3. A brother of a MN Asst US ATtorney is involved in the scheme (Lackner's)
Matt Taibbi had pointed out how Andrew Ross Sorkin and gang were protecting Goldman Sachs, by Mr. Sorkin failing to disclose the fact that Goldman Sachs had become an investor in DealB%k. As Mr. Taibbi succinctly denoted;
[H]e " did not enjoy the column and let Sorkin and everyone else know it with a rebuttal of his own this week. "I've been trying not to say anything bad about Andrew Ross Sorkin. I even made a point of not watching 'Too Big to Fail' so as not to get upset," he wrote. But Taibbi couldn't resist weighing in on Sorkin's Goldman defence which, he argues, "reads like it was written by the bank's marketing department, which may not be an accident." He explains, "In November of last year, the New York Times announced that 'Dealbook' was entering into a sponsorship agreement with a variety of companies, including...Goldman Sachs."
But that all pales in comparison to what is transpiring in Minnesota, with Douglas Kelley. Beyond the fact that you cannot permit the attorney for Tom Petters, whose partner took total control of Petters - to become the one who is the Federal guard of the assets. The courts did not stop their either.
Crony and Corruption 3 little piggy Judges
Little Piggy Crony Magistrate Judge Montgomery
Magistrate Federal Justice Ann Montgomery was a college classmate of Doug Kelley's (here). With the cronyism going even further, she also worked with Doug Kelley at the MN US Attorney's office. When she appointed him as the Federal Receiver, she knew she was violating ethics and common sense. So she gave him a Get out of Jail Free Card - calling it Judicial Immunity.
One bankruptcy expert said the obvious, he had never heard of Judicial Immunity being assigned to a profiteer. Judicial Immunity exists for the Judge and her staff pertaining to the task of making decisions as a justice. Making it assignable to profiteers - ad hoc - is simply Absurd!
Little Piggy Judge - Bankruptcy Justice Kyle
Compounding the ethics violations, the parties decided to do so on all fronts. After Doug Kelley being Petters attorney, then erroneously becoming the Federal Receiver. Judge Montgomery and Judge Kyle decided to permit Doug Kelley to become the Trustee of Petter's bankruptcy estates.
Even the American Bar Association has penned a long standing principal on the issue that a Federal Receiver is made moot/ void - once a bankruptcy estate is formed. (See ABA PDF that stipulates a Federal Receivership is an alternative to Bankruptcy that is made void - once a bankruptcy is initiated (here)). The Dept of Justice papers concurred on this issue too. But when we pointed this out and gave the DOJ's US Trustee Manual Volume 3 link on the subject, they redacted it (here)). The American Bar Association states;
"In the case of Gilchrist v General Electric Corp 262 F.3d 295 (4th Cir 2001) - the court denoted that;
The federal district court had appointed a receiver and issued an order, like in Petters, that all parties were forbidden to engage in any action.
A week later - over fifty (50) creditors filed an involuntary petition against Gilchrist and it was granted. The District Ct held that the petitioners were in Contempt for violating an Injunction (TRO).
But when the 4th Circuit Ct. reviewed the case, it held that
"[a]t the commencement of a bankruptcy case, the bankruptcy court, pursuant to 28 U.S.C. § 1334(e) - had exclusive jurisdiction and that the Code/Rules of Law in bankruptcy forbade the continuance of a Receivership".
Little Piggy Judge 3 - District Trial Judge Kishel
Not to be outdone, while cronyism and corruption are running amuck in the cases, District Trial Judge Kishel, in charge of the Petters criminal trial and such, joined the fray and approved, with the other 2 Little Piggy Justice(s) - that Doug Kelley could be Receiver and Trustee. That he did enjoy Judicial Immunity and that the creditors and victims of the Petters Ponzi scheme are Forbidden to sue those who plead or were found guilty.
Ritchie Capital - owned by a real Producer - Thane Ritchie
Files US Supreme Ct petition.
This violates Federal Law entitled the Mandatory Victims Restitution Act (MVRA) and forced Ritchie Capital (who gave Polaroid hundreds of millions of dollars in loans right before the collapse) - to file a United States Supreme Court brief (Here).
That's right folks. Tom Petters, Michael Catain, Robert White, Deanna Coleman, Larry Reynolds, Greg Bell, Bruce Prevost and David Harrold - are all forbidden from being sued. Despite the fact they stole billions upon billions. (though the papers and courts keep saying it is $3.7 billion - Michael Catain and Larry Reynolds confessed that they each separately laundered more than $12 billion each. A separate Trustee made the remark that it was over $40 billion in fraud.
Can you imagine what a hooplah would have transpired, if the courts had told Ron Goldman that he could not sue OJ? Or that the victims could not put in a claim in the Madoff case?
But that is what transpired here.
Douglas Kelley as Receiver is like Capone picking Frank Nitti as Prosecutor
What the public is unaware of, is the fact that Goldman Sachs, Bain and their secret little counsel (Paul Traub) - are pulling big strings here - along with JP Morgan.
Many surreptitious dealings are transpiring here.
Paul Traub (pictured above at right) - was a partner with Tom Petters, Marc Dreier and worked both sides of the OKUN 1031 Tax Group case.
Marc Dreier while a partner with Paul Traub, plead guilty - getting 20 years (here).
Tom Petters plead Not Guilty - but had tapes of his confessions - got 50 years (here).
OKUN's IRS fraud by 1031 Tax Group - got him 100 years (here).
Keeping up with the Doug Kelley illegitimate dealings, Mr. Traub's other partner (Michael Fox) worked for the Creditors/Trustee of OKUN's 1031 Tax Group case. While Paul Traub worked the case for OKUN.
Doug Kelley rigs the case against good creditors
We have already established why Doug Kelley cannot work the cases.
Doug Kelley was Tom Petters attorney and in control of his assets. It does not matter that it was a short period of time. Once you are a prosecutor, you surely cannot quit the case and become the defense attorney! This is just as absurd.
If you look at the Judge's Order appointing Doug Kelley - she grants Immunity in Part IV of her original Order
http://petters-fraud.com/...
That is a tell-tale sign right there.
The reason they had to do this, is Paul Traub educated them on what is wrong. Prior to this case - we caught Paul TRaub in criminal (Organized Crime) efforts in the Deal-aware Federal Bankruptcy Court - in the eToys and Kay Bee Toys cases.
Paul Traub was forced to confess, because we caught him and his cohort in crime (Morris Nichols Arsht & Tunnel (MNAT)) law firm - lying more than 34 times to the federal court. Instead of arresting the criminals, investigating them and getting back the stolen property. Paul Traub was given a Dept of Justice illegal Get Out of Jail Free Card in 2005. So Marc Dreier and Tom Petters believed their partner could get away with anything - so their crimes became more bolden and brave.
Armed with the fact that we were trying to get the MN Dept of Justice to go after Tom Petters and Paul Traub long before the arrests. The powers that be decided that Doug Kelley should not be put in the position of lying or facing investigation/ prosecution. So Doug Kelley was given Judicial Immunity.
Doug Kelley as Frank Nitti - helps Capones' steal everything
With that Judicial Immunity under his arm, Doug Kelley loads the deck against the innocents. By this time Doug Kelley and those he has gathered together - have received more than $50 million in fees. But has only turned over $15 million to the US Attorney's office.
During that time, Frank Vennes was allowed to run free - was not charged for 2 years after Petters arrest and Mary Jeffries, David Baer, Michael O'Shaughnessy, Tom Hay, Steve Cammack, Jay Saleman, Jim Fry and Paul Traub enjoyed their DoJ get out of jail free cards.
Jim Fry and Frank Vennes have now been arrested. But Frank Vennes did additional damage as did Jim Fry. Vennes was allowed to give millions and millions of dollars out to "purported" victims. He spent nearly $14 million (that we know of) in a Court approved settlement.
But Frank Vennes gave Charles Chase's company (Chase Holdings) $1.9 million. This is a strange result, being that Chase Holdings and Charles Chase had NO Attorney. But Mr. Chase was Vennes's right hand man. While Petters' trial was going on - Charles Chase was holding meetings with the local folks who lost house, farms and their total Retirement Funds - telling them not to file a claim - and they would get back 85 percent of their money if they did so.
Meanwhile - James Fry and his Arrowhead company stacked the Creditors Committee for Doug Kelley - where they voted against Ritchie Capital and approved the Coordination Agreement and the Judges Order that no one could sue the guilty parties.
This served Jim Fry and Arrowhead well - as he is now charged as being Frank Vennes's partner in crime. Ritchie Capital must be screaming bloodly murder - as Arrowhead was the biggest opponent to Ritchie Capital's legitimate pursuits.
Can you blame them!
MN Asst US Attorney's brother Commits Suicide - involved in the Scam
Another item that the Star Tribune has never reported and the MN Dept of Justice likes to keep silent upon, is the issue of how does Tom Petters get away with it for 10 years or more.
1. Paul Traub is your partner in Polaroid, Fingerhut, UBid and Petters Group Worldwide
2. Larry Reynolds, in WISTEC, launders $12 billion in Las Vegas under IRS view
3. Marty Lackner is involved - his brother is J Lackner MN Asst US ATtorney
Paul Traub's
other clients, Bain, Goldman Sachs, Gordon Brothers, Hilco and Mitt Romney (owner of BAIN) - all use their power to keep you out of trouble.
That power is magnified - thrice over - because Traub's other partner (Harold Bonacquist of Traub Bonacquist & Fox) - works with Dan Quayle. Mr. Quayle is the spokesperson for Cerberus.
If you don't know who Cerberus is - you should - they got your Bailout dollars.
This is the story that is even too big for Matt Taibbi to address.
Cerberus = translates from the Greek into "Guardians of the Gates of Hell"
Remember the guard dogs from Ghostbusters 1? That's them. Cerberus Capital owned controlling ownership of Chrysler and GMAC when the $700 Billion dollar bailout transpired. (Please see WikiPedia article (here)).
Along with Mr. Quayle, their is Steve Feinberg, John Snow, Mondale and clients like Rumsfeld. The GOP master machine. Just to give you further insight, the NY Supreme Court use to list Harold Bonacquist as to be contacted - by calling the US Embassy or Consulate General in the Philippines - to make an appointment with him in Istanbul.
How quaint.
It is also quaint that the NY Sup Ct yanked that down - after we pointed it out.
Cerberus also has another partner - who owns the Gabriel Fund.
A Feeder Fund to Madoff that just so happens to not be under indictment.
N'est-ce pas!
Larry Reynolds
What can one say about Larry Reynolds. He is 65 years old and now in prison for 10 years. But that is not the big issue. Prior to that time, Larry Reynolds was under investigation by the DOJ, SEC and IRS. Since 2001.
So how does such a man manage to get away with $12 billion (He confessed at trial that he laundered that much money for Petters). How does he get away with laundering that much money, under investigation by the IRS - while doing such in Las Vegas.
We may never know - but perhaps it has something to do with the fact that his real name is Larry Reservitz and he was in the Witness Protection Program at the time (see Star Tribune article (here)).
Marty Lackner
By all accounts, Marty Lackner was a good guy. His group even reached out to this web master. He was just an honest business man who talked family and friends into investigating with Lancelot (a very pure name indeed).
But, Marty Lackner had a little secret. Besides being a partner with Greg Bell in Lancelot in Chicago Illinois, that had over $1 billion involved in Petters funding. Marty Lackner had a brother - who is a Minnesota United States Assistant US ATtorney.
We should be able to then question the 2 brothers about the issue. Tom Petters should be pointing it out in his criminal trials and appeals. The Paul Traub, Larry Reynolds and Marty Lackner issues would most certainly make a jury pay attention.
Especially since Marty Lackner - Committed Suicide
http://minnesota.publicradio.org/...
Even in that Minnesota Public Radio story - where they call yours truly a "Conspiracy Theorist" - they fail to mention that Marty Lackner was a brother of MN Asst US Attorney J Lackner. The Star Tribune told me the story was not worthy. So did the WSJ.
But here are the questions NOT addressed.
Did Marty Lackner and his brother as MN Asst US Attorney talk about the case?
Did J Lackner benefit from Marty Lackner in ANY manner WhatSoEver?
Why did Marty Lackner kill himself?
He was the father of young children, with a wonderful wife - under Doctors therapy.
Did his brother warn him of an impending arrest?
Was his brother pressuring him to keep silent?
Did the US Attorneys office know about this all along and keep it silent.
We may never know!
Trustee's and Receivers are NOT to be Trusted
Doug Kelley has proven himself to be the Frank Nitti that Capone (Petters/Traub) wanted to run this case. He has engaged in double dealings, bad faith dealings and even acted as spoke person for the Dept of Justice - when he said Mary Jeffries was not a person of interest by the MN DOJ. Then he took her from her position (where she was Chief Executive of Petters Group Worldwide (PGW)) - and put her in charge of Polaroid.
Kelley utilized Mary Jeffries and Michael O'Shaughnessy (Doug Kelley's law firm Lindquist & Vennum threatened this Blogger - when we pointed out that L&V represented O'Shaughnessy as a direct Conflict of Interst). Michael O'Shaughnessy also was a key component of Polaroid and Element Electronics. Lindquist & Vennum are violating Conflict of Interest laws being Doug Kelley's attorney - but Thane Ritchies - Ritchie Capital attorneys are too gutless to point all this out and scream from the mountains about it.
This blogger received funding from the Ritchie avenues - to put up websites once their http://www.StopThePettersScam.com website went dormant.
So the attorneys think I ought to be loyal to them
FRuuuu ch UUUUUUUUUUUUUUUUU
They are the lamest bunch of weasels on G-d's green earth.
To provide proof of such - all you have to do is look at the fact that Sidley & Austin were approving and letting go a $14 million dollar payment to Quan and DZ Bank of Germany. What Sidley & Austin did not tell Ritchie Capital -is the DZ bank is a client of theirs and so is JP Morgan.
All of these crimes are transpiring - because the Police are willfully blind.
The check n balance is the United States Trustee
But Paul Traub already owns them.
Every time he is even close to an investigation, they shut it down. Paul Traub committed federal bankruptcy fraud in eToys, Kay Bee Toys, Stage Stores, FAO Schwartz, Playco and more.
Do you know who benefited from that Fraud each and every time
Bain and Goldman Sachs.
To let you in on a little secret - the Feds knew Petters was a fraud in mid 2008.
But let it go - as Paul Traub went to Minnesota in July/August 2008 and re aligned ownership in Fingerhut. Where none other than Goldman Sachs and Bain gave a $50 million dollar funding to Fingerhut at that time.
http://minnesota.publicradio.org/...
But Doug Kelley, the 3 little Piggy Crony & Corrupt Judges do not stop there, as Polaroid was sold to the 2nd Highest Bidders of Hilco and Goldman Sachs.
Everyone forbade Ritchie Capital to bid on the entity - worth Billions.
Instead = Polaroid was sold to Hilco - owned by Goldman Sachs n Cerberus
Now Paul Traub - who was partners with Tom Petters when he stole Fingerhut and Polaroid by using Ponzi scheme monies
Where Paul Traub owns Polaroid - with the Original owner Ed Land who funded GB
FOR FREE
Paul Traub is now a managing & principal partner with Gordon Brothers
http://www.jigsaw.com/...
Where the have announced that Polaroid now has $2 billion in license deals!
http://www.hilcodirect.com/...
Amazing how they could not find all that out before hand....
N'est-ce pas!
If not - please take a look at what else happend.
We reported a lot of this cronyism and corruption to the SoCal Public Corruption Task Force and they responded by Shutting it Down and Threatening good career Asst US Attorneys
See Los Angeles Times reporter Scott Glover's story
"Shake-up roils federal prosecutors"
So you see, Matt Taibbi is soooooo correct - he has no idea how much so.
Cerberus, Goldman SAchs and BAIN want Mitt Romney to become President.
If Romney's organized criminal kingpin (Paul Traub) can get away with this much before he gets into the White House;
How much more will we suffer after he gets control of the Dept of Justice?
What Bush did to us will look like Child's Play!