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This page lists some of the most popular documents available on BankruptcyMisconduct.com as of March 2010. There documents are available for download at no charge. You can also search for and retrieve documents directly from our Documents section where they are organized by category.

Do you have documents which expose misconduct or fraud done by or with the support of attorneys, bankruptcy professionals, official committee members or hedge funds?

Let us know, maybe we can host them here on our site.



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Category: SEC

This document lists numerous incontrovertible SEC Violations by a Registrant named Aureal, Inc. in two color coded tables. It details conflicts of interest among numerous professionals in connection with the preparation of clearly false filings to the SEC. The conflict of interest involves a lawfirm simultaneously representing Aureal, Inc. as well as the hedge fund which took control of Aureal - and it's money - to the exclusion of minority stockholders. SEC filings falsely omitted the resignation of directors due to cause, and the appointment of replacement directors who were operatives of the hedge fund. These violations are far worse than the violations which lead to the firing of "Carly" Fiorina when she was CEO of Hewlett-Packard.

In an SEC filing, an artifice was used that tricked minority stockholders into believing that Aureal no longer had to make periodic and current reports to the SEC. During this period of non conformance with SEC filing requirements, the registrant Aureal, apparantly acting as the mere alter ego of the hedge fund, never reported to the SEC that they would be liquidated and all of the remaining cash would go solely to the hedge fund. Even worse, these SEC violations are inextricably intertwined with numerous false declarations sworn and filed by the conflicted lawfirm in the Aureal bankruptcy case. Furthermore, these false SEC filings and false bankruptcy court filings were in furtherance of each other.

The SEC states clearly what their mission is. We should believe that the SEC will not provide any special treatment to any hedge fund, no matter which former DOJ attorneys such hedge fund is employing. If Martha Stewart goes to prison, one can only imagine what will happen to the colluding parties on this one. Word to Linda: You lookin' so fine baby ... You clean up real nice!

( This document entitled SECAURHBDreq1sup.pdf is a supplemental letter delivered to the SEC which expands upon the SEC Violations as originally reported in the letter entitled SECAURHBDreq1.pdf )

Category: Traub & Dreier
Paul Traub and Marc S. Dreier are named together as New York Superlawyers in September 2008.

"Attorneys selected for inclusion in Super Lawyers account for approximately five percent of the New York Bar. Honorees are selected based on a combination of peer voting, a blue ribbon panel review process, and independent research on candidates. All voting attorneys were asked to select only the lawyers they have personally observed in action."

(These peer selection results based upon personal observation are published about two months prior to Dreier's arrest in Canada related to Dreier's scheme to impersonate and defraud some hedge funds and teachers' pension funds. Darn those g-d damned Canadians - they are screwing up the BigLaw equilibrium of "Justice" in the U.S.)
Category: eToys Cover-Up
The DOJ gave an illegal grant of immunity to certain lawyers in the eToys bankruptcy case as described in detail by Laser Haas.
Category: Judge Paul G. Hyman

This is the Judicial Complaint against Judge Paul G. Hyman as prepared by Mary Alice Gwynn, Esquire. Ms. Gwynn had been retained by Eleanor M. Cole in order to assist her in executing her civil judgment against a convicted felon by the name of James F. Walker. As is often seen with certain organized crime families having relations that extend into the bankruptcy bar, the federal bankruptcy courts were used by Walker to protect his ill gotten gains. For reasons not yet fully divulged, Judge Hyman went out of his way to protect all lawyers aligned with the protection of felon Walker. Judge Hyman would sign orders prepared by the felon's lawyer, which included facts and ruling never made by Hyman. These orders were intended to cause harm to Ms. Gwynn in apparent retaliation for her bringing to the Court's attention conflict of interest violations by lawyers associated with felon Walker.

Judge Hyman employed an indefensible double standard regarding mandatory conflict disclosures in the bankruptcy cases of felon James F. Walker and in Baron's Stores. Hyman refused to act as required by the Judicial Cannons, ethics rules, and 18 U.S.C. 3057, to the disclosure violations of the law firm Ferrel Schultz and the lawyer Gary J. Rotella.

This document ( JudgePaulG.Hyman-Walker-gwynn-complaint.pdf ) is supplemented by the exhibits which are also available at no charge from the downloadable documents section devoted to Paul Hyman.

Category: James M. Peck

Lehman Brothers Holdings Inc. case number 08-13555 USBC, SDNY became the largest bankruptcy case every in U.S. history. What are the chances that criminals in lawyer suits would try to steal something?

Does anybody really know what bankruptcy fraud is?
Does anybody really care?

Read about the "undisclosed $5 Billion discount", "Lehman's lawyers are never told about the discount", "Lehman's boards are told that the deals is a wash and approve a transaction on that basis", "Deliberate Understatement Of Assets", "the Inflation of Assumed Liabilities", "The Distortions ... Were Embedded in the Transaction Presented To The Court", "Undisclosed Deal Modifications".

Category: HBD, Oaktree Capital, & Aureal
file icon CA Bar Complainthot!Tooltip 12/28/2005 Hits: 64
CA Bar complaint against the Hennigan, Bennett, & Dorman ("HBD") law firm in connection with their official appointment as counsel to the Debtor In Possession in the Aureal, Inc. bankruptcy proceedings in the Northern District of California. The complaint points out that the law firm failed to make a timely and complete disclosure of all facts and relevant circumstances related to their concurrent representation of their conflicted hedge fund client Oaktree Capital et. al which was indisputably adverse to Aureal as the sole secured creditor and largest stockholder of the Debtor. Thus, every official act performed by HBD in the Aureal proceedings that involved their conflicted client Oaktree was an unwaivable conflicted prohibited by Federal law and in further violated numerous provisions of the California Rules of Professional Conduct (ethics laws), including without limitation CRPC 3-310. False statements and intentionally withheld information in a bankruptcy case constitutes bankruptcy fraud, unless there exists special immunity for acts committed by former DOJ employees or by lawfirms with former partners currently employed within the DOJ.
Category: WorldCom

In the largest ever bankruptcy case - Worldcom - the bankruptcy attorney who was then currently representing one of the largest unaffiliated (unconflicted) claims traders (Next Factors, Inc.) petitioned the Court to be relieved from continuing as Next's counsel. The lawyer admits that his reason for seeking permission to withdraw was that he did not want to follow the instructions of his client in seeking to have all potential conflicts between the multi-hundred million dollar fee earning lawyers and their hedge fund clients exposed. You can't make this stuff up: The lawyer tried to shake his client off by conveying a death threat during a conversation with the president of Next Factors. A transcript of the conversation was attached to this filing and the attorney did not merely tacitly acknowledge that the transcript was accurate, he complained that "apparantly" the conversation was recorded without his knowledge. This is better than a TV show. People ask me: "but, umm, like wouldn't the government do something?" Yes, each and every DOJ official, Judge, and officer of the court which learned of the exchange and underlying facts would have done something, provided that they remained true to their oaths to uphold the law, follow professional ethics codes, and defend the Constitution. Sadly it appears that too many public officials connected to the multi-billion dollar bankruptcy industry hold their allegiances to their own families, bank accounts, racial agendas, and organized crime affiliates above all else.

This document is available at the USBC SDNY at the courthouse or on PACER under docket number (17315) or on BankruptcyMisconduct filename 17315NFObj.pdf

Category: James M. Peck

Judge Peck, The BitchSlapper, gets his own police report.

But have no fear. Any well connencted neo-mafioso can get out of clear crimes like this. Don't be stupid. This ain't not lowly State Senator like Hiram Monserrate, who prosecutors fully pressed charges and got a misdemeanor conviction for pulling his girlfriend by the arm.

This is a Federal Bankruptcy Judge, who sits in power over the apportionment of billions of dollars in disbursements and legal fees.

Who is more powerful. Quiene es mas macho?

Guess who escapes any punishment?

 

Category: eToys: Preet Bharara
file icon Judge, please hide this!hot!Tooltip 10/25/2009 Hits: 60

If you read no other eToys document to Preet Bharara, you must read this one. Not just for what it says, but for what it doesn't say. It doesn't say that any of the allegations written and sworn by Mr. Haas are false. It doesn't say that Mr. Haas did not correctly argue the law, or that the alleged misconduct and crime have no bearing on the matter before the Judge. Significantly, Lawyers of the DOJ fail to address either the truth of the facts in the allegations sworn by Mr. Haas, or the applicable law.

Instead, the DOJ Lawyers seek to have the truth buried by a technicality, and by asking a favor of the Judge to protect the careers of his brethren government lawyers. Remember, DOJ Lawyers and Federal Judges are both just government lawyers, and they swap roles in the revolving door known as the legal industry.

The DOJ Lawyers merely ask that since 1) what Mr. Haas said about the eToys misconduct and crimes could harm the careers of government U.S. Trustee lawyers, and 2) that since Mr. Haas is not technically a creditor of the specific bankruptcy case before the Judge, would the Judge please ignore all Mr. Haas had to say and to delete the information from the official record as if it never happened and so that noone else can read it.

You just can't make this up. Download the whole document at the buttons below. here is an excerpt (emphasis added):

The Haas Statement, filed in this case under docket number 2210, contains impertinent and scandalous matter attacking the various professionals in these cases, including personnel of the United States Trustee Program. The impertinent and scandalous allegations of the Haas Statement carry the potential to injure the reputations and livelihoods of those professionals, and accordingly are not republished in this Motion. However, because Mr. Haas is not a party in interest in these cases and does not have any standing herein pursuant to 11 U.S.C. 1109(b), the Haas Statement serves no legitimate purpose. Accordingly, the Haas Statement should be stricken from the record and expunged from the Electronic Case Filing docket in these cases.

WHEREFORE, for the foregoing reasons, the United States Trustee respectfully requests hat the Court strike the Haas Statement from the record and direct that the Haas Statement be expunged from the Electronic Case Filing docket herein, and grant such other and further relief as is just and proper under the circumstances.

Respectfully submitted,
KELLY BEAUDIN STAPLETON

UNITED STATES TRUSTEE
Dated: May 6, 2005
BY: /s/ Mark S. Kenney
Mark S. Kenney, Esquire

 

Category: Baron's Stores Fraud Upon the Court
Can someone say "Smokin' Gun"? You need not take anyone's word but the experts'. And suddenly the picture is becoming clearer. Not only do we now have proof of the owners' longstanding allegations that they never agreed to the filed plan and never signed it, the disclosure failure crimes are compounded by this fabrication. By the way, fabricating a document which might be used in a legal proceeding is one crime, just one count. Actually filing the false document is another crime.
Read the experts clear and understandable opinion. Then download the documents from bankruptcyMisconduct.com and you can verify it for yourself.
Category: Transcript

A Bankruptcy Attorney states to a creditor in the WorldCom bankruptcy : "I see you, I'm going to kill you." Taken in the full context of the transcript the statement is shocking. The transcript was affirmed as being accurate by this quoted attorney in Federal court before Judge ARTHUR J. GONZALEZ . At "best", this lawyer is advising to his client the legality of issuing death threats and portrays this lawyer's casual acceptance towards the use of extortion by a bankruptcy professional against a creditor in the ordinary course of a "mega case" bankruptcy. Perhaps more accurately we witness the lawyer conveying a death threat to his client: either a thinly veiled warning that other parties will kill the client, or the lawyer himself is threatening his own client.
Either way, there is no possible dispute of the fact that this lawyer brought up the subject of death threats during an increasingly heated discussion in which this lawyer adamantly refused to expose before the court the issue of conflicted relationships with and favoritism towards certain hedge funds. In a Fabulous Flip Flop Fantastique, this lawyer forbade his own associate attorney (his employee) from filing the very same document which his employee drafted for the client at the client's expense. In other words, the client did not prepare a document and tell this lawyer"Put your name on what I wrote and file it". This Lawyer's own associate wrote the document, and then this more senior partner said "I won't let my own employee file the work he prepared at your expense"! (Plus the death threat). Why such a 180 degree change of heart? Why the mention of death threats? The document merely asks the court to direct the official law firms working on behalf of the Worldcom Bankruptcy estate (they earned hundreds of millions of dollars in fees) to update their conflict disclosures, and for Worldcom to identify differences in distributions to creditors as to the timing of payment and the percentage of payment. Such a simple request that the Court orders a party to disclose information is extremely common in bankruptcy cases. What isn't common is that the nations most powerful billion dollar BigLaw firms and their hedge fund clients are the target of the request.

Why bring up death threats? What lawyer in his right mind interjects the subject of death and murder - in the context of extortion - when giving legal advice to a client in a bankruptcy case? Did the remarks by this lawyer constitute a criminal act? Any preliminary investigation would first have to determine if there were any undisclosed conflicts or favoritism in the distributions to the small circle of claims traders holding some $600 Million dollars worth of claims. Such an investigation would be extremely easy given that a special prosecutor could start with a form letter to the few dozen law firms involved, and the 50 or so claims traders Since these 50 or so claims traders shared lawyers in "negotiating" a higher payout thansimilarly situated creditors ( in violation, without limitation, of 11 U.S.C. 1129) they could share lawyers in drafting their responces. Furthermore, Worldcom's complete distributions are maintained in a computer database and each payment amount and date is easily compared to the amounts and dates of payments to "normal" creditors who have never otherwise paid any of these lawyers any money. And while the special prosecutor is investigating, maybe he can figure out why Eliot Spitzer refused to allow New York State to perform any criminal or ethical action against any of the New York lawyers involved, even after his office received a complete copy of the affirmed transcript.
Here is an important point of information and possible explanation: a few special BigLaw firms which make hundreds of millions of dollars from estate fees (such as the fees in the Worldcom bankruptcy) when they seek advantage for certain hedge funds, are both supremely powerful and financially motivated to destroy any small law firm which dared to question the facts of undisclosed conflicts and violations of bankruptcy law which might interfere with their "business model". 300 pound gorillas follow their own set of ethics rules and are otherwise above the law when their organized crime affiliates infiltrate the DOJ and the Judiciary. This is the reality of ACPOC Syndrome and the fact that a small law firm could get detroyed by merely exposing misconduct of more powerful firms. Was a Doug a coward, or a pragmatist?
Category: eToys: Preet Bharara
eToysPreet_Greg_Werkheiser_Declaration_in_KB_Toys_about_Bain_ASM.pdf
Category: Transcript
TESTIMONY of A. JAY CRISTOL, Chief Judge Emeritus, United States Bankruptcy Court before the Subcommittee on Administrative and Commercial Law House of Representatives Judiciary Committee as to the misguided efforts of the DOJ's office of the U.S. Trustee. Judge Cristol referred to these government attorneys as "a pack of dogs" and criticized their misguided focus on punishing individual bankruptcy filers for trivial and technical issues and their related efforts at grandstanding and self promotion built upon the backs of the poor in the bankruptcy courts.

Category: SEC

This letter binds Christopher Cox, then Chairman of the Securities and Exchange Commission - together with previously notified SEC officers Linda Chatman Thomsen, then director of the Enforcement Division, and Marc J. Fagel - to the unforgettable cover up of SEC violations involving the multi billion dollar hedge fund known as Oaktree Capital, and their conflicted professionals.

"I am surprised that enforcement action has not yet been publicized regarding the surreptitious takeover and liquidation of a registrant by and for the benefit of a massive hedge fund."

Sure, it wasn't as big as Bernie Madoff's fraud. But reported violations in these letters were simpler to understand and prove than those by Harry Markopoulos against the Madoff et al Ponzi scheme. There is no reasonable explanation for the SEC failing to address this clear matter without accounting for corrupt motives on the part of some lawyers within the SEC. Only a Federal Special Prosecutor can unravel the Honest Services Fraud by public officials on this one. What other paper trails are out there? What, me Wonder?

This letter was self titled "SECAURCABsen3.pdf" and referenced the previously written and signed complaint letters SECAURHBDreq1.pdf and SECAURHBDreq1sup.pdf.

This document is a letter requested by Marc J. Fagel, the associate Regional Director for the Securities and Exchange Commission, during the course of a phone call which covered failures to comply with the mandatory reporting of the resignation of directors by the public company Aureal, Inc. Such facts being far more egregious than the facts surrounding the enforcement action against HP for failing to disclose the reason behind a director resignation as stated in the press release by Marc J. Fagel and Linda Chatman Thomsen of the SEC. Significantly, this letter details the control relationship over the non-complying Registrant by a multi-billion dollar hedge fund known as Oaktree Capital. The resulting actions of the SEC will indicate whether the bold pronouncements by Ms. Thomsen re: firm regulatory action against hedge funds will truely apply to all such entities, including: hedge funds which hire former U.S. government attorney employees of the DOJ for services related to the acts.

This document is self entitled SECAURHBDreq1.pdf as referenced during subsequent communications. You can download or view a redacted version of which eliminated some personal address and phone information by clicking on the buttons below.

Category: Bar Filings
The exhibits to the appeal (CABAURHBDS157298.pdf) of the decision against investigation and prosecution of the Revised Compaint. These exhibits include flip flop decisions by the CA Bar, communications with them, additional documentation they requested, as well as the original Complaint (CABAURHBD1v5.pdf) and the Revised Complaint (CABAURHBD26.pdf). The Complaint (as revised) was against lawyers who filed numerous false declarations in a bankruptcy court, such false declarations as having been in furtherance of numerous SEC Violations whereby a $30+ Billion dollar hedge fund took control of a public company, replaced its directors, and extracted all of the money - sharing none of it with minority stockholders, and failing to disclose in mandatory SEC filings the entire process. The Original Complaint and the Revised Complaint are exhibit entries to the appeal, but these two documents are also available separately on this site in their original form as .pdf files with their internal document navigation links preserved when viewed with an Acrobat compatible reader.
Prominently featured in the Revised Complaint are conflicted clients of the Respondents: Oaktree Capital et al., Argo Partners and PwC a/k/a PriceWaterhouseCoopers.

This document AURHBDS157298-exhibits.pdf is large file which may require too much memory to "View" within your browser, we suggest that you download a copy to your PC.

Category: Traub & Petters
Hey aspiring Pulitzer Prize winning journalists! Hey pajama wearing internet journalists! Hey kids competing for a college scholarship! These are the official committee members in the Petters bankruptcy, borne out of the apparent massive organized crime operation that certain lawyers and accountants were necessarily employed. Learn the truth. Our financial crisis is this very story repeated over and over again. Lather, Rinse, Repeat.
Category: Judge Paul G. Hyman
JudgePaulG.Hyman-Walker-gwynn-exhibits1-9.pdf
Category: eToys Cover-Up

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.