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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: 4193

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: 3643
Looks like Haas may finally be getting taken seriously in Joe Biden's "CorruptMe" State of Delaware:
EMERGENCY MOTION TO ADDRESS NON DISCLOSURE OF CONTINUOUS CONFLICTS OF INTEREST OF FAILING TO DISCLOSE MILLIONS OF PRE AND POST PETITION PREFERENTIALS AND REMOVAL ADMINISTRATOR WHO IS PARTNERS WITH THE ARRESTED CREDITORS FIRM FOR TAMPERING WITH CLIENTS ACCOUNTS AND PERPETRATING FRAUD ON PRO SE HAAS
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.
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.

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.

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.
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.

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.

file icon Emergency Writ for eToyshot!Tooltip 03/22/2009 Hits: 2709
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.
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