"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.

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 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.

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 DOJ gave an illegal grant of immunity to certain lawyers in the eToys bankruptcy case as described in detail by Laser Haas.

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.

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. 

Oh Brendan, it sucks to be you.

Download eToys_April9_2013_Brendan_McGuire_letter.pdf for free here on BankruptcyMisconduct.com

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 do you say, Laser?