The bankruptcy blog

4 Responses to The bankruptcy blog

1. Jim says:

   March 22, 2005 at 11:26 am

   I have the most common of names. Since the bankrupcy legislation was enacted, I have recieved almost daily phone call from law firms advising me to call their office to discuss my outstanding debts. I have none. Perhaps the legislation should be tweaked to require the collectors make due dilligence to get the right debtor.
2. Laser says:

   November 18, 2005 at 1:00 pm

   The crimes below made a mockery of the Code/Rule and a rue of me.

   The Act of 2005 will make a rue of us ALL!

   Facts that have occurred, which should peak anyones interest, that occurred after this petitioner placed evidence into the Pacer Public Record, being offered a bribe that this petitioner refused of $750,000.

   RR Donnelley and Goldman Sachs divested themselves of one another Jan 6, 2005 to the tune of $350 million. This petitioner, with eToy shareholders pointed out that the lawsuit of eToys v Goldman Sachs had a non disclosure issue where RR Donnelley could vote as board member of the PEDC during the non disclosure that two members of Goldman were upon the Board of RR Donnelley. (purportedly RR Donnelley is no longer a board member)

   Lawrence Friedman (Wash DC US Trustee Chief) replaced Trustee Roberta DeAngelis with Kelly B Stapleton. (stating Stapleton is vastly experienced in Fraud prosecution)

   Her Honor Mary Walrath permitted myself and an eToys shareholder to depose, at the Federal building in DE, all the counsels involved in the matter.

   Frank Perch (Asst US Trustee) on Feb 15 2005, after that deposition & Lawrence Friedman giving me his personal word the matter would be resolved with jurisprudence, placed a US Trustee Motion to disgorge Traub Bonacquist & Fox $1.6 million (stating such was inadequate due to the draconian Rule 1144 that a Plan cannot be amended even for Fraud after 180 days (great statue of limitations rule that one can do wrong, get away with it for 6 months and be Free)

   Then Frank Perch went on vacation and Mark Kenney/Mrs. Stapleton placed a settlement Motion to reduce that “inadequate” Trustee Motion of Frank Perch, whereby TBF only had to pay $750,000 and receive broad based immunity language.

   Then there was a March 1, 2005 hearing where Traub as counsel for the creditors, did admit under oath, that his firm did place in, without disclosure, his Partner Barry Gold as CEO of eToys after paying Barry Gold 4 separate monthly payments (prior) of $30,000 each.

   Then this petitioner complained to Mr. Friedman, notifying all, including WSJ.

   Mr. Friedman has resigned.

   Frank Perch has resigned.

   The Bankruptcy Court of Delaware and the US Trustee office has turned a blind eye, “ad hoc” in violation of 28 USC 586(a)(3)(F) the Trustee Statutory Duty to “Notify & Refer” along with 18 USC 3057 (a) Judges duty to report to the US Attorney.

   I am not an educated man, never graduating from high school. On the ladder of life I am below lawyers in the joke room, being a liquidator by profession.

   Irregardless, I do honorable work and until this case, had unrelenting faith in the system/rule of Law.

   My soul is bruised as my entire career is now fruitless without any hope in purity or future success (as all dreams/goals are based on purist hope and beliefs).

   The case and issues this petitioner relates to you below are of 50 felony violations, False Oath, False Declaration, MisPrison, Conspiracy, Knowing Disregard of Law or Rule, Racketeering, Scheme to Fix Fee’s etc, by 1 firm with an additional 50 violation by the co-conspirators.

   The reason why this petitioner is given any time of day is that the “proof positive” exists solely within Public Pacer Court records, thereby being irrefutable, however (and unfortunately) not insurmountable if a Chief Judge and Attorney for the US Trustee are your friend.

   The reform Act of 2005 has repealed the requirement for investment bankers (and theirs) to disclose.

   The crimes below occurred in plain view, when disclosure was mandated.

   Please also bare in mind that OCP is a Judge invented doctrine. Irregardless His Honor Farnan, within the very same DE Bankruptcy Court established both the “quantitative” and “qualitative” rules for who must apply.

   They all boil down to autonomy and influence over bankruptcy/estate issues.

   Barry Gold was the sole officer, exec, decision maker.

   The connection to Traub overly mandated disclosure.

   The failure of Her Honor Walrath to rectify this egregious manuever is setting a precedent value that has malpractice and D&O carriers foaming profusely.

   The crimes below made a mockery of the Code/Rule and a rue of me.

   As previously stated –The Act of 2005 will make a rue of us ALL!

   Upon reading the item below, if indeed you do, you will NOT believe that the reflection has merit.

   The documentation hereof can be seen In re: eToys 01-706, In re: KB toys 04-10120 (DE Bankr. Dist)(In re: eToys Oct 2004 till present or you can search top page when in the Pacer record for Haas / CLI /Alber / Traub / Gold / Trustee

   Also in the cases of Stage Store Inc in Texas 00-35080 (which is also Specialty Retailers co-debtor Liquidity Solutions)

   Finally In re: Haas v eToys(PEDC) in the Federal District Court Delaware 05-728

   Where the Judge therein stated “the Fraud is of no consequence and applys in no manner to your issue, I dismiss you as a Pro Se, you cannot raise a new issue of piercing the corporate viel (he was mistaken greatly) and I will not bother to take the time to note the reason for dismissing your appeal in the Order thereof” “I suggest you seek counsel against the firms that failed to represent you properly -case dismissed”!

   Mark Kenney told me in a phone call ” all WE had to do was make Paul Traub special counsel”.

   Mark Kenney appointed Traub as equity holders committee counsel in Kmart.

   The systematic abuse of special counsel and the perversion of the code to dispose of equity shareholders is an issue overlooked because shareholders really have no voice. (eventhough the Janet Reno Reform Act of 1994 tried to address equity holder issues, while furthermore directly addressing the issue of circumventing the code to carve up an estate USC 155 Fee Fixing)

   Kmart dismissing the shareholders and then buying Sears was a deep perversion of Justice!

   ———————————

   Item sent to the FBI on numerous occassions! ( along with the same to the General Counsel of the US DOJ Trustee in Washington DC, to DE AG office, CA AG office, NY AG office (where Andrew Lorin actually called me to discourage my pursuit of truth) to US Attorney Office, to the OIG, OGE, OPR (look them up, it is amazing)

   ———————————————

   in the Bankruptcy cases of In re eToys 01-706, In re KB Toys 04-10120 (both Delaware Bankruptcy Federal District) and In re Stage Stores 00-35080 (Texas District) (Stage Stores and Liquidity Solutions are co-debtors) I have overwhelming evidence of Conspiracy, Perjury, False Oaths, False Declarations, USC 155 Scheme to Fix Fee’s (slam dunk on 1st time prosecution thereof)

   and

   as it is in 3 cases,,, across the nation

   over Years

   and even international issue(s) involved.

   Racketeering!

   Including bribery & Extortion,,,,

   I have been warned to back off!

   As they have caused my financial ruin. (extensively)

   They also have threatened to come after me for monies previously earned, in these and other cases.

   While also promising to see my demise.

   The WSJ came out with an article on July 25, 2005. (joe pereira)

   The Dow Jones Bankruptcy News (peg brickley) reported on the Judge’s Opinion.

   ————————-

   Here are the Facts that I have testified to under “penatly of perjury”!

   1. Foothill loaned eToys $40 million pre bankruptcy petition in November 2000. It was paid off prior to filing. The payments thereof have never come under independent review. Nor has Traub Bonacquist & Fox (TBF), Barry Gold as CEO of eToys Estate post petition (Mr Gold) or CrossRoads LLC (Xroads) (financial consultant for the Creditors Committee) admitted that they have connections to Wells Fargo/Foothill Capital… (I refer you to In re: Bucyrus E Dist Wisc 94-20786 and the results thereof similar to this case — of Gellene/Millbank Tweed)

   2. The Judge handed down an Opinion In eToys,,, which you can see all over the place online (as it sets a great precedent) http://www.deb.uscourts.gov/Opinions/2005/EtoysMNATfees.pdf

   shows a mother hen approach to the more than 50 violations (just in eToys)

   3. Barry Gold and Paul Traub did not disclose that they had a relationship, that said relationship is deep. TBF placed in Mr. Gold, post petition as “wind down coordinator” then CEO and President of the eToys Estate(they did so without disclosure to the Court or parties of interest such as the Chairman of the Creditors Committee- who was a personal friend of Traub). Barry Gold and Paul Traub formed Asset Disposition Advisors LLC in Delaware in April of 2001.

   4. Barry Gold and Paul Traub admitted, on the stand, before her honor that TBF paid Mr. Gold 4 payments of $30,000 each prior to Mr. Gold coming on board eToys.

   5. That admission is all the requirements of 28 USC 155 Fee Fixing. where the issue is in Bankruptcy,,, where it was willful (the Barry Gold hiring letter that he placed in the record after I made the allegations in Oct/Nov 2004 the Barry Gold responded as the Court ordered responses by Jan 25, 2005) It is quite reasonalbe to surmise that Mr. Gold wanted protection from perjury, so his hiring letter gives him, contractual, (drafted by TBF, Morris Nichols Arsht & Tunnel (“MNAT”) (MNAT is counsel for Debtor and Fred Rosner, creditor committee local counsel of TBF) choice to apply, free volition, for Court Approval to be engaged as a professional under 327 (a) 101(14) and 2014, 2016..The final nail in the coffin is that there be benefit of “expressed or implied”, where we have NO Doubt… as both TBF and Mr. Gold have admitted that the payments of TBF to Mr. Gold stopped once Mr. Gold was hired by eToys,,,so we have benefit to TBF,,, yet, furthermore,,, Mr. Gold received $40,000 per month,,, so we have benefit to Barry Gold —- to any first year law student –QED conviction!

   6. Then we have MNAT as counsel for the debtor estate failing to disclose that they worked for Goldman Sachs, GE or Mattel (the number one creditor) needless to say the fact of the conspiracy in allowing the Barry Gold subtefuge to continue non disclosed.

   7. Then we have Xroads, stating in a billing statement to the Court ,, (Docket number 467) that they had phone conversations with the US Trustee office on “primary professional” then it continues to state “awaiting Court approval of the hiring of Barry Gold and retention of D&O insurance ” where Xroads takes credit for acquiring the insurance policy for the Estate of Barry Gold.

   8. Then we have the fact that Barry Gold and Paul Traub did NOT disclose that they worked (pre eToys) with Stage Stores Inc, which is also Liquidity Solutions (co-debtor.). The significance is that Stage/Liquidity is owned by Governor Mitt Romney through his Bain entites,,,,, where Barry Gold also credits that Jack Bush (of Bain) repeatedly acquired him assignments such as Jumbo Sports (where Traub and Gold were also) ,,at Stage Stores Michael Glazer, Jack Bush are directors and stock holders.

   9. Michael Glazer is CEO of KB Toys,,,, Bain and KB Toys purchased eToys assets from TBF, MNAT, Mr. Gold..

   10. Michael Glazer and associates were paid over $100 million pre bankruptcy at KB Toys,,,,,

   11… Paul Traub petitioned the Court in KB to be the one to prosecute Michael Glazer and company.

   12. Regardless of how readily apparent it is that Traub could not be there to begin with,,, I placed a motion to that Court case about the non disclosure.

   13., Mark Kenney (the Attorney for the US Trustee in Region 3) petitioned the KB case to expunge my statements.

   14. The Court did just so,, in a manner so quick the signed Order to Expunge was in the record, before the Court made the ruling.

   15. Paul Traub and Mr. Gold both signed declarations in confirmation of the PLAN in eToys that said Plan (the “PEDC” Post Effective Date Committee)was drafted in “good faith” “arms length” negotiations between Debtor and Creditor. (that is “arms length” between Mr. Gold and Traub)

   16. Mark Kenney and the US Trustee office was already aware of the Gold TBF relationship from In re: Homelife 01-2412 (DE Dist) back in 2001, then Mark Kenney had an “ex parte” meeting with a counsel that is in a Transcript of In re: Bonus Sales 02-12284 (DE Dist) to discuss the “conflicts issues”.

   17. Mark Kenney appointed TBF as counsel for the equity committee in Kmart (TBF is a liquidation bankruptcy professional and has no case I can find of successful intervention for shareholders) The Kmart shareholders got the shaft.

   18. Mark Kenney told me all “we” had to do was have TBF appointed as special counsel….. (I had called Mr. Kenney several times over the years as your research of phone records can show)

   19. Mark Kenney always told me there was no violation. ( I found out about his deceptions when I read the US DOJ website and the US Trustee Handbook in Fall 2004)

   20. Mark Kenney is aware of the timelines, yet he told the Fraud Division of the SEC in Atlanta (mr. Robinson) that he was Not aware of the ADA (Traub / Gold) timeline and he asked Mr. Robinson NOT to send an intergovernmental Official request for investigation.

   21. Mark Kenney is aware that TBF is connected to Bain, Madison, ADA, Nancy A Valente, SPCP(Silver Point) and Liquidity Solutions.

   22. Liquidity Solutions (Stage Stores) also bought extensive claims in the case of eToys.

   23. Barry Gold and TBF drafted the Plan that permitted them to pay items under$1 million without Court approval,,, which includes Liquidity Solutions /Madison claims. while also giving broad based indemnity to all participants in the PEDC.

   24. Fred Rosner has been with 3 different firms during the eToys case,,, the case has traveled with him as if he were TBF local counsel.

   25. There was a claim owned by Liquidity that was about to be expunged by summary judgement.

   26. Rosner rushed in to stopped the summary judgement.

   27. The claim was for over $500,000 (there is no entry of this in the eToys docket –it has been hidden) The attorney for the PEDC (the Plan committee of eToys) was Fred Rosner,,, the Attorney for the claimant and Liquidity Solutions was Jaspen Schlesinger,,,, Rosner is now with Jaspen Schlesinger.

   28. Lawrence Friedman as Chief Administrator in Washington DC of the US Dept of Justice Trustees, gave me his direct word that the issues would be addressed, then Frank Perch placed a Motion in to disgorge TBF, stating that the $1.6 million was inadequate due to the draconian Rule 1144, that a Plan cannot be amended, even for Fraud, after 180 days.

   29. Then Frank Perch went on vacation,,, and Mark Kenney negotiated with former justice (Federal NY) James Garrity a settlement to that “inadequate” Motion for only $750,000 and broad based immunity language.

   30. The Judge (Her Honor Walraths’) Opinion and Order of OCtober 4, 2005 says no harm was done and has Ordered TBF to pay $750,000 and said Mr. Gold did no wrong.

   Summary………

   This petitioner has contacted “X” entity before(FBI) and they told me to go to the DOJ,,, the DOJ told me to go to the Philadelphia US Trustee,,, The Philadelphia US Trustee responded that they have not handled Delaware for 4 years and sent me to Mark Kenney.( you can chuckle or smile)

   I have contacted the US Attorney Office in Wilmington DE (Gray and Sights),, I have contacted the OIG who sent me to the OGE,,, who sent me to the OPR.

   Everyone one of them and your staff (FBI) has dismissed this and basically allowed the Fraud to continue.

   I assume that either you are building case(s) against them, which is the equivalent to allowing a bank robber to go home, spend the money and continue to rob others

   or

   You are endeavoring to build a case against me to assist in hushing me up permanently.

   Either way do the job! ( I need relief)

   For the closer we get to 2008, the more this information needs to be covered up Totally.

   The Chief Federal Judge in Wilmington DE has aligned herself, as has the US Trustee office through “ad hoc” apathy to apply the statutory duty to Notify & Refer with a side.

   Showing prejudice in the extreme against this petitioner as the Court did approve the work this petitioner accomplished. To dismiss more than 50 felony counts of one side that has been paid over $14 million in fee’s, while being extensively experienced bankruptcy professionals and then to reject the payment that was authorized by a Federal Judges signature, of the person who would dare point out these truths’ to the Court.

   IS PREJUDICIAL in the EXTREME!

   Now that I have some proof that Stage Stores/Liquidity owned a Bank,, did not disclose it in the bankruptcy and sold it off shore for $150 million, I assume my end is near.

   The drama is not yet concluded!

   Till the end!
3. David Siegel says:

   March 13, 2006 at 8:10 pm

   It appears that bankruptcy reform is not working as creditors had hoped. I have not had a single client since reform state that they are going to consolidate instead. Debtors are simply put through the ringer again.
4. Eric R says:

   December 13, 2006 at 12:27 pm

   Facts: the time bar under Rule 4004 has passed and a particular creditor had filed a timely complaint under 523 causes but not under 727.
   In a related adversary proceeding in connection with the case with the same parties, the debtor swears to statements which are false oaths and material enough to justify a denial of discharge under 727(a)(4). How is it possible for this to be properly raised and heard by the Court? The judge is very pro-debtor biased and will not permit amendments to the complaint.Further, the judge refuses to adopt or apply equitable principles having determined that under Kontrick v Ryan the USCt has, in her opinion,construed time bars strictly-period.What woould be the proper procedure to bring these allegations? The court actually knows these allegations could potentially deny discharge but will not sua sponte apply 105a.

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