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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 Walrath's Opprobriumhot!Tooltip 11/01/2011 Hits: 6747

Federal U.S. Bankruptcy Court judge Mary F. Walrath is facing the gambler's conundrum.

Take the loss, or double down.

If past is prologue, this tired old sow will double down. Rather than start the unraveling of the mega bankruptcy case with perhaps the most obvious and undeniable web of conflicts and blatant coordinated frauds upon the court, Mary the Greek will likely seek to extend the leaning house of cards we all know as the eToys case.

Rest assured all you readers of BankruptcyMisconduct (this includes all of you at usdoj.gov, at BigLaw firms, from your vacations in the Caribean, and from Washington, D.C. including senate.gov & house.gov): We are humbled by your continuing and growing attention to the issues as presented on our site.

We promise you that judge Mary Walrath will be forever equated with the eToys frauds and cover-up, and her numerous decisions shall define judicial competence in the face of fraud upon the court as it existed at the start of this new, financially precarious century.

Scholarship award contestants should download a free copy of the eToys fraud upon the Court motion filed in October 2001 here: eToys_Oct31_2011_Fraud_on_Court_Brief_FINAL_one1.pdf

file icon Haas Holiday Motion '08hot!Tooltip 03/29/2009 Hits: 5799
Looks like Haas may finally be getting taken seriously in Joe Biden's "CorruptMe" State of Delaware:
The DOJ gave an illegal grant of immunity to certain lawyers in the eToys bankruptcy case as described in detail by Laser Haas.

A Cluster Funk of Senators

How'd you like to be invited to a gang bang when you're the Central Park Jogger and Goldman is woven to the confessors?

The Honorable Bernie Sanders, Carl Levin, Diane Feinstein, Chuck Grassley and Elizabeth Warren are now tied to the eToys cover up.  Not that they wanted to be associated with the unraveling corruption, but then again who would want to be associated with a string of crimes more blatant than Madoff's SEC run?

Download at no chargef from BankruptcyMisconduct the document eToys_April_16_2013_Letter_to_Senators-Bernie_Sanders-Carl_Levin-Diane_Feinstein-Chuck_Grassley-Elizabeth_Warren.pdf which binds a five-way of senators to one of the longest running willful Fed cover ups of hedge fund skulduggery.
The best short version of the eToys crimes with the assistance of the DOJ as described by Laser Haas on one of his websites.  Later sections contain other snippets during this "pre-blossoming" phase of this massive organized crime / public corruption saga, which to date has has drawn the interest of many DOJ employees outside of the Office of the U.S. Trustee as well as certain members of Congressional Committees.  This document snapshot resides here on bankruptcyMisconduct.com to make the evil efforts at censoring and silencing the whistle-blower just that much more difficult for the media control operations of the organized crime operators involved in the underlying eToys crimes and their Cover-Up.  We are also happy to help raise visibility and speed dissemination of the issues to students and concerned citizens.  The file is in .pdf format and can be searched or printed.

So much meat for a prosecutor to read in one place. Barry Gold, were you inspired by the eloquence of John Kerry (”I voted for it before I voted against it”) when you described how you first withheld information from the Court before you decided against withholding it? We can't make this stuff up (pages 2 - 3 emphasis added for humor affect):

In hindsight, Mr. Gold regrets not disclosing his involvement in ADA, not because he did anything wrong, but because there was, and is, no reason not to make such disclosure. Further, such disclosure would have avoided the need for Mr. Gold, and others, to respond to this Emergency Motion, which he believes has no basis.

Of course, Mr. Gold's thoughts are magically converted into lawyer speak, and surrounded by caveats which purport to describe the state of mind of Mr. Gold. What is most ludicrous is that the bankruptcy code does not allow any professional to decided what must be disclosed. The duty is to disclose, and then anyone else can decide whether to object.  There is plenty that Barry Gold and many lawyers that worked with him, literally, did wrong.  "Failing to disclose" understates the reality of a sworn statement "there are no other connections" which is actually a fraud on the court.

This file is available for free on Bankruptcy Misconduct by the name BG_Jan25th_EX_Hiring_Letter.pdf as well as other sites on the internet which refuse to allow the truth to be buried. The court documents contained in this file were filed under penalties of perjury and bankruptcy fraud and can also be found in the official records at the court houses in which they were filed, as well as from PACER.

What not to wear on your face.   OK, simple summary.  Every official counsel in a bankruptcy case must affirmatively swear in a written pleading that they have no conflict of interest with any party in the proceedings, and list all potential conflicts.  These lawyers have an official duty to update the court if there is any change.

Well, how about a circumstance where one counsel had a secret partnership with a liquidator hired in the case?  Naw... couldn't ever happen.

Well, how about this smoking gun which even demonstrates scienter, in the context of a secret agreement which even contemplates the eventual filing of a bankruptcy case, as well as the parties intent to keep the financial relationship secret.

You can't make this stuff up.  But we thank Barry Gold and Paul Traub for having their special Audacity of Dope to actually have reduced their slime agreement to writing.  Did someone say eToys?


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.
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.

"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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