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eToys Cover-Up

eToys is one of the biggest and clearest bankruptcy fraud scandals involving BigLaw firms and DOJ officials. The story is not going away, and may very well be the straw that breaks the camels back of entrenched corruption in the U.S. legal system.

There are a number of documents featured below.

Documents are related to the eToys bankruptcy and frauds upon the Court, as well as the related cover-up including: conflict of interest by law firms which filed false declarations under oath, orders to disgorge fees by federal judges, communications regarding the failure to make mandatory referal for perjury / bankruptcy fraud regarding the false sworn declarations.

DocumentsDate added

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file icon Emergency Writ for eToyshot!Tooltip 03/22/2009 Hits: 4433
The 3rd Circuit hears questions regarding allegations of Organized Crime in Federal Bankruptcy Courts, particularly in Delaware - the state through which is funneled the majority of the Billions of dollars of fees paid to bankruptcy professionals.  This pleading references Congressional and Judicial acknowledgement of the existence of "bankruptcy rings", collections of operators including attorneys who prey upon justice under the obfuscatory protection of certain attorneys purporting to work in accordance with their sworn duties to the people. But some of these federal judges and U.S. Attorneys have business and professional ties to certain members of these professional bankruptcy rings.  If you are in the mob in the NYC fish business, especially if you are Italian, everyone will know about it.  If you are in the 'bankruptcy professional' mob, you will get filthy rich and the watchdogs will smoke with you.
file icon Criminal Referralhot!Tooltip 03/22/2009 Hits: 3593
This sworn letter to the U.S. Attorney General Michael B. Mukasey clearly identifies and describes criminal conduct by a certain "bankruptcy ring" as well as the willful failure to perform duty by certain U.S. Attorneys.  Most alarmingly, it appears that no federal officer came forth to identify and disarm the conflict of interest caused by allowing the federal attorney holding administrative control over the investigation and prosecution of the perpetrators to be none other than a member of the very same law firm when the crimes were commited

eToys is not a destination.  eToys is a process, the tip of the spear in a revolution by government attorneys and members of the Federal Judiciary against the corruption within which dared to attempt to taint the honor of scores of honest and just public servants, and which abused the freedom won for all U.S. Citizens by the sacrifices of our Veterans.
Federal judge Mary Walrath agrees that there was a failure to make a disclosure in the eToys bankruptcy case, and orders disgorgement of fees from a lawfirm which failed in their disclosure duty.  However, in a perverse abuse of the concept of "professional courtesy", Judge Walrath, for the benefit of her fellow lawyers, ignores the simple fact that each of the failures to disclose were criminal acts.  The acts were criminal as they involved many dozens of false written sworn declarations by lawyers for the law firm.  Thus, Walrath straddles the reality of the conflict failure with one leg as she attempts to balance her own reluctance (refusal?) to refer the perjury & fraud upon the court to the appropriate district attorney.  You can't see one issue without seeing the other.  Such a referral is required by the Judicial Cannons, case law and statutes including explicity Title 18 U.S.C. § 3057.  Furthermore, the Judge is bound by ethical rules to refer the matter to the state bar.  "Prostitution" & "Pornography" may be appropriate labels to describe this outrageous lapse of duty by judge Mary F. Walrath.  In any event, we are compelled to state that we find her position rather unsightly, to see the least.  Yes Virginia, this is called a cover-up.  None other than renowned finance professor Lynn LoPucki at UCLA has done research on the bankruptcy industry and concluded that Federal bankruptcy judges are corrupt.  Just read his book.  Martha Stewart went to prison for  a single fib.  And yet, these lawyers made millions and are alleged to have helped channel some of the disappeared $8 Billion of value from the eToys estate to their own conflicted clients.  The Federal government stands to gain many billions of dollars if it only proceeds with a slam dunk RICO prosecution of the vast neo-sophisticated organized crime hedge funds and lawfirms which dominate and abuse the unique American bankruptcy system.
The DOJ gave an illegal grant of immunity to certain lawyers in the eToys bankruptcy case as described in detail by Laser Haas.
The certificate of service lists the cast of characters in the unfolding eToys scandal.  The eToys case is important because it illustrates how a Department Of Justice and Judiciary works too hard to protect their brothers lawyers, even when they are committing obvious crimes.  Whether these government lawyers are overtly corrupt and seeking personal quid pro quo for their families, or merely incompetent does not matter.  What matters is that the eToys scandal illustrates how government lawyers often protect financial crimes and fraud upon a Court when committed by other lawyers.  This conduct is exactly what has resulted in our current financial crisis.  None of the financial frauds could have become so large without the overt assistance and tacit approval of numerous lawyers at the DOJ, SEC, and judges sitting on the bench.  Only when the American people rise up and demand justice against all financial criminals, not just those unrelated to government lawyers, will the U.S.A. stand a chance at regaining its former glory.
Exhibit 1
exhibit 2 - chairman's affidavit
What do you say, Laser?
file icon Haas Holiday Motion '08hot!Tooltip 03/29/2009 Hits: 5483
Looks like Haas may finally be getting taken seriously in Joe Biden's "CorruptMe" State of Delaware:
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