The fish stinks from the head down.   What ethics and morals exist at a lawfirm specializing in bankruptcy law when more than one of their female junior associate attorneys is given a date-rape drug at an official firm outing?  How many actual rapes must occur before Bingham McCutchen either investigates themselves, or reports the pattern of illegality to the police?  Would you want such a firm representing any issue on your behalf?  What corporate executive or committee member wants to risk having his/her professional career forever linked with the Bingham McCutchen name, particularly if a date rape drug is used at an event associated with a retained matter?  Jimmy Buffett sang "I don't know where I'm a gonna go when the Volcano blows".

The Judicial Conference of the United States gets it right, finds numerous ethical and criminal violations by Federal Judge G. Thomas Porteous including Bankruptcy Fraud. BankruptcyMisconduct calls this a good start, but hopes that fellow judges don't protect this treasonous pig.  Martha Stewart and rapper Li'l Kim did serious jail time for much less serious obstruction and perjury.  Let's throw the book at him, and have the government pursue a RICO case against all the lawyers who paid him bribes as well as their clients.  The opposing parties need an opportunity to recover as well.  Enough band aid corruption fighting, we need full cathartic elimination and cleansing and full restitution to victims of judicial and prosecutorial corruption.

Anthanassios Katsioulas and the Board of Directors of Ammocore Technology, Inc. object to the Trustee’s Motion to Settle Adversary Proceeding with Cadence Design Systems et al.  We hope to get exhibits to this motion.  There are reports that the BigLaw firm MNAT, famous for their involvement with eToys bankruptcy case, was representing the outside public firm which allegedly exerted de facto control over AmmoCore causing its bankruptcy filing and acquiring certain of its assets.

The docket for the eToys bankruptcy case, showing the retribution against Laser Haas.  Mr. Haas was the original liquidator for the eToys estate.  He relates that he resisted efforts to sell certain of the assets to certain entities at prices he considered too low and arranged for sales at higher prices to different persons.  Mr. Haas says that he was threatened to stop "interfering" with the sales, though he thought obtaining the highest recovery for the estate was his job.  Mr. Haas has made significant efforts to publicize his research that showed these apparrantly favored "low price" buyers to have been undisclosed clients of the same bankruptcy lawyers that were officially employed as DIP counsel to the bankruptcy estate.  Failing to disclose a conflict of interest by a bankruptcy law firm by filing a false affadivit is a serious federal crime.  Engaging in the willful cover up of same is arguably worse.  Just as the sub-prime crisis appears poised to bring down Wall Street, the failure to prosecute obvious crimes by lawyers secretly representing conflicted hedge fund clients, as epitomized in the unfolding eToys saga, will surely awaken the public to the decades long established "corrupt business as usual" masquerade played by revolving door DOJ lawyers pretending  to prosecute crimes all the while these dirty lawyers plot their lucrative moves into multi-million dollar partnership positions at BigLaw law firms.
     The Deferred Prosecution Agreement is a blatantly corrupt device when former government regulators are designated to receive extraordinary payments as part of the process.  Follow the money: Corruption is What Corruption Does.   This depraved tricker was born of the abuse of prosecutorial discretion and existed long before its incredulous emergence out of the shadows, as countless ever greater corporate frauds were ignored by career savvy DOJ lawyers who privately ridiculed their oaths.  The willful failure by DOJ lawyers to incarcerate their private practise bretherin  after Leslie Fay / Bear Stearns was a seed which bore the fruit of Enron and WorldCom.  Similar failures by DOJ lawyers to incarcerate corporate executive criminals established the consequence free playing field upon which was born the sub-prime financial crisis.
   The current financial crisis is not one of laws, but of the failure to enforce the laws on the books.  It doesn't matter how many laws we have or how well written if they are never enforced against the powerfull.  If the prosecutors are corrupt, the criminals run free.  Let's not forget that Eliot Spitzer was a U.S. Attorney, all the while he engaged in business with organized crime violating numerous federal statutes.  There is a saying: "Physician, heal thyself".  Our own Attorney General warned of the existence of more public corruption than we can detect and prosecute, and specifically identified Law Enforcement and the Judiciary as needed a close look.  We are in need of a Federal Special Prosecutor to examine corruption in the DOJ regarding willful failures to enforce the law against law firms representing powerful  hedge funds.

Yawn... yeah, yeah, we know. Another lawyer is caught "failing to disclose a conflict". Actually, that phrase is lawyer talk for the simpler and more accurate phrase - a fraud upon the Court.

Do read this order, it's amazing for how clearly Judge Arthur J. Gonzalez is able to both discern bankruptcy misconduct and also articulate clearly most of the many transgressions established by his facts whilst citing an abundance of case law.  It is almost as if some new unbridled intern wrote the paper thinking it was for a law school class.  Sans any real world sense of finesse or convention.  One can only wonder why in this particular case, the Court sees the issues so clearly as between Black and white, when gray so often defines the muddied muck in which Mega Case bankruptcy law firms and their complicit brother lawyers on official Committees and at the U.S. Trustee pooh pooh conflict of interest.  More on this later?

Be that as it may, how is Artie G. able to find such facts as support his order without making mandatory referrals regarding the lawyers involved, including the U.S. Trustee? Readers of Bankruptcy Misconduct may recognize Judge Gonzalez as the presiding judge in the WorldCom bankruptcy who heard a lawyer admit to advising his client that death threats where legal in a bankruptcy context.

"The fish stinks from the head down"
- Arthur "Artie" Bucco, Jr.

 

This document is available at the USBC SDNY at the courthouse or on PACER under Source Enterprises, Inc., et al.  06-11707(AJG) or on BankruptcyMisconduct under filename 041508gonzalez_USTrustee_conspires_in_fraud_on_the_Court.pdf

 

 

 

Criminal referral by court appointed liquidator to U.S. Attorney Thomas P. O'Brien as against multiple parties including:

U.S. Attorney Colm F. Connolly

Traub, Bonacquist & Fox, L.L.P.

Dreier LLP

Morris, Nichols, Arsht & Tunnell

Martha Stewart is deemed as having told a lie during an investigation.  Even though she corrected it after reviewing her notes of her own volition and prior to any sort of adjudication, she is placed in jail. 

When Jeff Adams was with a lawyer employed by Bettison, Doyle, Apffel & Guarino, P.C. as they sought to be employed by Eagle Broadband, Inc. et al. he filed a blatantly false affidavit of disinterestedness.   

Download this order where judge LETITIA Z. CLARK gently slaps Jeff down.

We've seen Conflict Of Interest problems and false affidavits before, but in this case Jeff Adams was an appointed officer of a few public companies affiliated with Eagle Broadband.

Let's start the clock ticking as to when Mr. Adams gets incarcerated.  Too bad it doesn't look like Jeff has any bargaining leverage in order to help a District Attorney nab a bigger crook, like the otherwise similarly situated Suzzanne Uhland. 

Suzzanne is better off than Jeff because if she plays her cards smart, she could strike a deal while the window is still open...

This interesting file is an affidavit by a brave man named Israel Weinstock, who apparantly holds "Old School" beliefs about Truth &  Justice vis a vis Corruption:

two issues which are fundamental to the functioning of our society and particularly the judicial system: can the rich and the powerful evade and avoid prosecution for their criminal behavior by retaining “prestigious” and “well-connected” attorneys, and can those “prestigious” and “well-connected” attorneys  who participate in fraudulent schemes avoid prosecution because of their “connections”?

 BankruptcyMisconduct.com applauds Mr. Weinstock for deeming his own comfort less important than preserving the honest and noble pursuit of happenstance in the U.S.A.  Please read his affidavit ISRAEL_WEINSTOCK-Affidavit_Motion_Rule_60(b).pdf and let us know if you find the bankruptcy system as the venue in which the alleged cover up of crime seems shocking.