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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

Order by : Name | Date | Hits | [ Descendent ]
file icon Criminal Referralhot!Tooltip 03/22/2009 Hits: 3999
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
Exhibit 1
What do you say, Laser?
exhibit 2 - chairman's affidavit

For a decade plus, armed with confessions of intentional lies under oath, as the court appointed fiduciary over the eToys federal case, Laser Haas (“Laser the Liquidator”), has been blowing the whistle (see WSJ “eToys investors claim conflict”), all to no avail, on a million dollar bribe offer [to be a roaming manager of Bain Capital {like Jack Bush, Barry Gold or Michael Glazer}] and a billion dollar plus crime spree of The Learning Company, Kay Bee, Stage Stores and eToys.  & Goldman Sachs

What happens when your half of the quid pro quo turns out to be insufficient in light of a controversy that just won't go away?

What a difference a few years make indeed, but apparantly ROBERTA A. DeANGELIS and her boy toy Mark S. Kenney have seen the light, and the sound of a speeding train has them objecting to a blatant attempt to cover up the eToys crimes by covering up the settlement.  Well, the company was long ago liquidated, so who are they trying to protect?

Download  eToys_2013_US_Trustee_Objection_to_SEAL_case.pdf for free from BankruptcyMisconduct.com

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.
file icon Emergency Writ for eToyshot!Tooltip 03/22/2009 Hits: 4781
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.

Oh Brendan, it sucks to be you.

Download eToys_April9_2013_Brendan_McGuire_letter.pdf for free here on BankruptcyMisconduct.com

"There is no cannibalism in the British Royal Navy" claims Judith Appelbaum.  Yet another government lawyer with the effrontery to deny the systemic failure of the DOJ to prosecute the largest form of organized crime (and coincidentally the employer of highest paid DOJ alumnae and their relatives) - our corrupt financial institutions taking advantage of our corrupt legal system.

Leave it to Laser Haas to put Lady Judith in her place.  This letter is jam packed with juicy lines like:

 It is vexes me greatly, how our “Department” takes an entire month to contrive a boasting about inadequacies and stipulates that it is doing a good job; when other eToys victims and I are being Intimidated and Retaliated upon, in violation of 18 U.S.C. §§ 1512 & 1513.  In no small part, due to the “Department” duplicity (via rogue factions within [e.g. DeAngelis, Kenney, Colm F Connolly]).

This fantastic retort to the Fudge Fest also known as Appelbaum's Delusion is available as a free download here on BankruptcyMisconduct.

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