"Everyone asks the question – How could Bernie Madoff get away with it for so long?
The simple answer is - he was not arrested from his bad faith conduct.
It is hard enough – as Mr. Markopolous can tell you – to get the SEC and Feds to even look at the complaints of fraud.
What does a citizen do when you report the fraud and good faith DOJ personnel attempt to address it – only to have other persons within the Dept of Justice become duplicitous?
Here is a real time example, directly on-point with Madoff/Markopolous that goes beyond being mindboggling and shocking ones conscience.
Laser Steven Haas Oath of verity
I, Steven Haas (better known as a/k/a Laser Haas) does state and affirm this the 12th day of July 2009 – Under Penalty of Perjury – that the following is True and Correct;
BACKGROUND
The perpetrators – being “Caught” red-handed – simply confessed to their minor criminal acts and then the Dept of Justice personnel circled the wagons and gave the perpetrators of Perjury & Fraud -
Illegal immunity given to Paul Traub’s firm
Unlawful, implied, blanket immunity and the implied promise of future willful blindness by the Dept of Justice US Trustee’s office.
See pages 8 & 9 of the PDF file drafted and hand signed by Mark Kenney http://petters-fraud.com/US_Trustee_Motion_Feb24_2005_2giveTBF_immunity.pdf
Attorney emails threat to Laser Haas to “Back off” or else!
In the fall of 2004 the Court approved company as Liquidation Consultant for eToys – Collateral Logistics Inc (CLI) received an email from its attorney Henry Heiman.
The email contained Threats from Susan Balaschak of the law firm Traub Bonacquist & Fox (TBF) stipulating that if Haas (the 100% sole owner of CLI) did not “Back Off” from investigating the issues of Barry Gold (President/CEO of eToys) and Paul Traub;
Not only would Haas and CLI not get paid, Laser Haas’s career would suffer and they might even come after Haas for payments previously received.
The email of this threat is a crime by extortion, threats/intimidation of Victim/Witness and most certainly Obstruction.
DOJ Trial Attorney Mark Kenney’s lapse linquae
When Laser informs the DOJ US Trustee’s office (Mark Kenney) of the emailed threat – Mark Kenney responded in anger with the following lapse linquae’s and faux pas;
Mark Kenney stipulated;
“All we had to do was make Traub a special counsel and all of this would have been avoided“as Mark Kenney continued and said ”the matters of Traub and Gold were addressed in Bonus Sales case"
The smoking gun!
The DOJ Trial Attorney in DE – Mark Kenney – did not know at the time that Laser Haas had become weary of parties doing deliberate harm as Haas had begun to study the DOJ website and bankruptcy Code/Rules and specifically the Professional rules, the US Trustee responsibility and the bankruptcy Fraud statutes;
http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title9/41mcrm.htm
Apparently – inadvertently – Mark Kenney named a case that Laser had heard of before; prior to his reviews of the Dept of Justice US Trustee’s website
http://www.usdoj.gov/ust/eo/public_affairs/sig_guidance/index.htm
The newly acquired knowledge of the bankruptcy Code/Rules, along with the realization that the DE DOJ are the police of the Bankruptcy Courts and the fact that Haas had now learned how to search case pleadings sophisticatedly on PACER – led to the discovery of a pleading in the case of In re Bonus Sales03-12284 (DE Bankr 2003) where a vanity letter-head upon an Affidavit by Barry Gold stipulated that Barry Gold was a co-principal of Asset Disposition Advisors (“ADA”) and that Paul Traub was also a co-principal owner.
This was the smoking gun that brought the entire house of cards apart in the eToys fraud case. For Paul Traub’s firm had put in over 17 Affidavits over a period of years stipulating Under Penalty of Perjury (Bankr Rule(s) 2014/2016) that there was NO Conflict of Interest.
Conflict of Interest documentation by US Trustee
Being that Barry Gold was the President/CEO of eToys and placed there by Paul Traub’s firm (the Creditors attorney) – it was THE conflict of interest revelation!
Asst US Trustee Frank Perch
Motions to Disgorge TBF for $1.6 million.
The Director of the Executive Office of US Trustee’s (Lawrence Friedman) had emailed Laser Haas personally giving a promise to handle the situation. His promises appeared valid with the replacing of the Region 3 Trustee ( Roberta DeAngelis )
http://www.usdoj.gov/ust/eo/public_affairs/press/docs/stapleton_release2_12-04.htm
and the
Asst US Trustee Motion to Disgorge TBF
http://petters-fraud.com/DisgorgeMotion_TBF_1_6_Million.pdf
The Disgorge Motion states that the acts by TBF were Deliberate, rather than inadvertent.
While addressing only 3 bad faith acts the Disgorge Motion also concluded that Fraud on the Court had transpired.
Disgorge Motion states parties were Forewarned
The most heinous issue about the crimes and the efforts of Obstruction by Mark Kenney is the fact that the Disgorge Motion stipulates in parts 19 & 35 that the US Trustee’s office forewarned the parties – quoting part 19;
“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″
By TBF and the law firm for the Debtor (MNAT) collaborating to plant Barry Gold within – without disclosing the connections to the Court – this was a deliberate perpetration of fraud on the court – vis-a-vis Perjury and made extensively egregious by the warning and the fact that Traub and MNAT were officers of the court.
Mark Kenney’s Obstruction of Justice
Less than ten (10) days after the Asst US Trustee put in the Disgorge Motion – Mark Kenney proffered the Stipulation to Settle which provided Traub’s firm with the illegitimate blanket immunity all summed up with this one specific clause;’
“WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures –“
Paul Traub immediately commits another $100 million Fraud
We were extremely alarmed by the outrageous actions of the DE Dept of Justice Trial Attorney.
Apparently there were more serious issues that needed to be addressed and the clause of “shall not seek to compel” was obviously an effort to assure futures discoveries of fraud and perjury were of no benefit to Laser or the eToys shareholders who were investigating.
Haas then discovered that MNAT was representing Bain and that Barry Gold and Paul Traub had worked for Bain related issues prior to eToys – especially in Stage Stores bankruptcy in S Texas (00-35078).
The significance of the issues are MNAT, Traub and their plant – Barry Gold – negotiated the sale of eToys assets to Bain/KB Toys for discounts in the tens of millions of dollars.
This is Collusion to Defraud an Estate.
Digging deeper Laser also discovered that Michael Glazer, the CEO of KB Toys – was also a director and stockholder with other Bain parties at Stage Stores.
Haas discovered this Supplemental Affidavit in Stage Stores by Paul Traub – who apparently was trying to explain in that case – in the year 2000 – that he was not violate with his connections to Barry Gold.
http://petters-fraud.com/StageStores_TBF_Supplemental_Affidavit_BarryGold.pdf
Haas company – CLI – was hired because they were going to sell eToys to Bain/KB for $5.4 million.
The auction was halted, CLI was court approved and Laser helped get back over $45 million into the eToys bank accounts. This was also to include a $10 million dollar bid by Bain/KB for eToys.com; that was negotiated down by Traub and MNAT to only $3 million.
Mark Kenney Obstructs Justice in another case
Laser also discovered that Michael Glazer had paid himself and Bain $100 million prior to Kay Bee Toys filing for its own bankruptcy protection in Delaware (DE Bankr 04-10120).
MNAT had failed to disclose to that Court its conflict of interest issues of being an adversary to Bain as eToys Debtor’s counsel. At the same time Traub and Barry Gold worked the Kay Bee Toys bankruptcy – they failed also to inform the Court of their Conflict of Interest issues.
Paul Traub even had the unmitigated gall to petition the KB Toys bankruptcy court for the right to be the one to prosecute the Michael Glazer and Bain $100 million dollar payment.
Sort of like Capone asking to be prosecuted by Frank Nitti.
When we reported these fraud and perjury issues to that court – Mark Kenney once again aided and abeded the perpetrators of fraud and had the Court strike and expunge the proof of perjury.
http://petters-fraud.com/KenneyKB_Obstruction_2228.pdf
Akin to Madoff – Mark Kenney asks SEC to Back Off
We were in communication with Director Friedman of the Exec Office of US Trustee’s (EOUST) as well as the FBI, Delaware Dept of Justice and the SEC Bankruptcy Fraud Division in Atlanta – just to name a few.
Mark Kenney instructed Gordon Robinson of the SEC to refrain from sending in an Official Intergovernmental Letter recommending an Official Investigation!
Mark Kenney Obstructs Justice at Federal 3rd Circuit
The eToys shareholders and Laser Haas appealed the rulings that were permitting the Frauds to continue and the DE Bankruptcy Court’s blessing of the illicit immunity Stipulation of Mark Kenney.
Inexplicably – Mark Kenney and the Removed Region 3 Trustee (Roberta DeAngelis) (who was speciously promoted to Acting General Counsel) of the EOUST – where both parties Obstructed Justice and lied to the 3rd Circuit Court stating that Laser Haas did not have standing to appeal and that the eToys shareholder was not ill.
http://petters-fraud.com/US_Trustee_Obstruction_3rdCir_07_2360.pdf
DE DOJ refuses to investigate MNAT law firm
The footnote within that pleading gives an insight into places that even Mark Kenney and Roberta DeAngelis fear to tread – for it states in the very first footnote therein;
“11 The bankruptcy court order which was the subject of Mr. Alber’s district court appeal also ordered 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 a settlement between the post-effective date committee of unsecured reditors and Goldman Sachs & Co .
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 herei
3rd Cir certifies Fraud on the Court
Citing the 6th Circuit Court -the 3rd Cir certifies the 5 requirements to document Fraud on the Court;
“The United States Court set forth five elements of fraud upon the court which consist of conduct: “1. On the part of an officer of the court; 2. That is directed to the ‘judicial machinery’ itself; 3. That is intentionally false, willfully blind to the truth, or is in reckless disregard for the truth; 4. That is a positive averment or is concealment when one is under a duty to disclose; 5. That deceives the court.” Demjanjuk v. Petrovsky, 10 F.3d 338, 348 (6th Cir. 1993). “
Mark Kenney helps Traub keep Threat against Laser Haas/CLI
Traub’s firm Susan Balaschak had threatened Haas that if he did not back off – he and CLI would not get paid and his career would suffer.
The MNAT law firm submitted a document that Traub and Barry Gold told the Court was a generous waiver by Haas and CLI of $3.7 million dollars in fees and expenses that Mark Kenney and Roberta DeAngelis seek to affirm.
What is so profoundly inane is – if you are going to forge a document to the Court – one should not do so in a half art manner.
Anyone who reads items 10 & 11 of the purported WAIVER can clearly see that it states CLI is entitled to its success fees.
So the big question is – how does a bright legal professional call a document that states Request for Payment of Expenses a Waiver?
http://petters-fraud.com/Haas_Affidavit_816.pdf
Haas discovers DE US Attorney is withholding evidence
One has to wonder how high up the food chain – the protection for Paul Traub goes. Most certainly Mark Kenney cannot keep Organized Criminal acts from prosecution by himself.
Amazingly – looking into the concept led to an immediate discovery that the DE US Attorney (Colm Connolly) whose office was refusing to investigate or prosecute the perjury and fraud – had his own Conflict of Interest.
Turns out US Attorney Colm Connolly was a partner with the MNAT law firm in 2001 – the very year that the Perjury and Fraud by MNAT began.
http://www.justice.gov/archive/olp/colmconnollyresume.htm
Laser reports the Mark Kenney, Roberta DeAngelis and Colm Connolly ethics and felony violations to the US Attorney Public Corruption Unit in CA.
The only thing that transpired apparently was The CA US ATtorney shuts down the Public Corruption Unit and Threatened Career Prosecutors.
http://articles.latimes.com/2008/mar/20/local/me-shakeup20
This is how guys like Bernie Madoff get off with billions in fraud over 10 years. He has help.
Goldman Sachs manipulated eToys from the beginning and Bain benefited as well.
MNAT, Barry Gold and Paul Traub all worked for Bain and Goldman Sachs issues.
Barry Gold and Paul Traub also helped Wells Fargo pull a $100 million dollar fraud as well.
There are over 100 felony violations
Not counting the 34 items of Perjury that MNAT and Paul Traub’s firm have already confessed to.
Including. but not limited to, Collusion, MisPrision of a Felony, Obstruction, Intimidation of Victim/Witness, Extortion, Failure to Disclose an Bankruptcy Asset, False Oath/Declaration, Scheme to Fix Fees, Conspiracy and being that it is more than $100 million, several years, several states, many different parties – RACKETEERING
There is $300 million in fraud in eToys
$100 Million in Fraud in Kay Bee Toys
Possibly a Billion dollars in Fraud in Stage Stores
One of the Reasons this has continued thus far.
Director Friedman of the EOUST Resigned
http://www.usdoj.gov/ust/eo/public_affairs/press/docs/friedman_resignation_4-27-05.htm
Paul Traub was a partner with Marc Dreier and Tom Petters
That is correct – after Paul Traub received his personal DOJ Get out of Jail Free Card – he became a full time partner with Petters Group Worldwide, Fingerhut and UBid as well as with the Marc Dreier firm.
Even if he is the mysterious deep throat there helping bring down the frauds; the Courts and DOJ cannot permit him to continue the crimes in eToys and other cases like Levitz and Domain RDVA.
The New York Supreme Court case 601805/2002 is the case that has been permitted to go forward for Goldman Sachs eToys IPO bad faith deeds.
When eToys went IPO in 1999 for $8 Billion (nearly $78 per share) Goldman Sachs was to get only $1.50 each share and eToys received $16.50
Where did the rest of the money go?
One of the first Motions that MNAT put forward in eToys was docket item 300 – the request for the Destruction of Books n Records – that benefited Goldman Sachs.
MNAT hand picked their fraud partner (Traub) to handle the NY Supreme Court case.
Traub knows that we caught him before by docket items he had long since forgotten.
To make sure the same thing does not happen now -
Nearly 1/2 of the NY Supreme Ct case of eToys (ebc 1 ) v Goldman Sachs
Is Under SEAL!
Source of Post
http://laserhaas.wordpress.com/doj-trial-attorney-mark-kenney-corruption/
US trustee corrupption
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