By Aaron Kesel
Ever since the 2016 election, when the DNC super Democrats (delegates) and the Clintons rigged the Democratic Primary against Bernie Sanders, this reporter has spent a lot of time researching the corruption of the Washington, D.C. swamp (that obviously wasn’t drained when Trump was elected).
It has been this reporter’s goal to help save people’s jobs at Toys R Us and protect investors from losing their investments that are being plundered by the Wall Street fraud, racketeering enterprise, which no one seems to want to acknowledge exists.
Beyond any doubt, Goldman Sachs personnel and lawyers were partners with Bain Capital personnel and lawyers in getting questionable, unjust enrichment of more than $5 Billion dollars lost by Mattel, Fingerhut and eToys investors and creditors.
Fortunately, for you the reader and unfortunately for the criminals, this author’s investigations are blessed with an extraordinary plethora of facts provided by a serial whistleblower insider eToys.com top executive, Laser Haas. Haas actually comes from the belly of the beast, and had an office at – 1 Wall Street.
Haas was also offered a bribe to become a part of Mitt Romney’s Vulture Capitalists roaming gangs to destroy companies. However, despite many hardships, Haas turned down the deal and instead whistleblew on the corruption involved to bankrupt eToys.com.
Laser was the court appointed real CEO of eToys.com, which was put into bankruptcy by Morris Nichols Arsht & Tunnell (MNAT) law firm, in Wilmington, Delaware.
MNAT law firm misrepresented several facts to the Delaware Bankruptcy Court, and various creditors, investors and other parties of interest during the case.
Due to the success of MNAT’s numerous deceits, accomplished by more than a dozen lies under oath, Bain Capital, with the aid of their crony, Paul Roy Traub, who also lied under oath, to the Chief Justice, Traub Bonacquist and Fox (TBF) Law firm, became the Delaware Bankruptcy Court approved counsel for the eToys Creditors.
Paul Roy Traub confessed that, in the eToys case, Traub’s law firm deliberately allowed false Affidavits to remain in the record. Laser pointed out that Traub and Barry Gold worked for Romney’s Stage Stores under Director Michael Glazer. Matt Taibbi’s Rolling Stone September 2012 Cover Story “Greed and Debt: A True Story About Mitt Romney and Bain Capital” – Taibbi points out that Glazer paid himself $18 million and Bain Capital $83 million prior to Glazer, as CEO of Kay Bee, filing bankruptcy in 2004.
Laser has documented he is the whistleblower in the Kay Bee case (another reason this reporter calls Laser a “serial” whistleblower.) Laser notes the fact that Taibbi missed key facts that Glazer was CEO of Kay Bee and Director at Stage Stores at the same time.
Meanwhile, MNAT was concealing its numerous conflicts of interests (divided loyalties) of having direct connections to Mattel, GECC, Bain Capital and Goldman Sachs. In a similar deceitful fashion, Paul Roy Traub (TRAUB) and his TBF Law firm were concealing TBF ties to Mitt Romney’s Stage Stores through Traub’s friend Barry Gold.
Gold worked under Stage Store Directors Michael Glazer and Jack Bush of Dallas (rumor has it that Mitt and former President George Walker Bush are distant cousins).
Traub’s TBF was hired for Stage Stores bankruptcy case by Barry Gold.
According to Laser Haas (who this reporter has consistently called a “serial” whistleblower), there were many schemes and artifice to defraud, running amok, throughout the Stage Stores case, which this reporter has detailed in previous articles.
In fact, Traub made an obfuscating effort, in mid-2000, in the Stage Stores case, with a TBF Supplemental Affidavit, endeavoring to explain away TBF’s previous – undisclosed connections – to Barry Gold, Larry Durant, Jack Bush and Ronald Sussman.
As according to law, Bankruptcy Code and Rules mandate that Lawyers who lie under oath, in federal case proceedings, to conceal their conflicts of interests, are to be removed from the case and their bad faith acts are to be reported to a federal prosecutor for prosecution of bad faith.
Unfortunately, in Laser’s eToys case, the federal prosecutor was Colm Felix Connolly; and Colm had his own, very serious, conflict of interest. Connolly was the Delaware United States Attorney presiding over the Mattel, Fingerhut, Kay Bee and eToys cases. The civil servant, however, had one problem: he failed to disclose the fact he was a partner of MNAT from 1999 until August 2nd, 2001. Here’s Connolly’s resume to verify those facts.
Others in Delaware clearly see Colm Connolly was a (very) conflicted federal prosecutor, as Delaware Liberal asks “Did Delaware’s Colm Connolly Run Interference For Romney and Bain Illegalities?”
For those paying attention, 1999 through August 2001 is the same time period that Mitt Romney’s campaign has previously claimed Mitt was “retroactively” retired.
This same time frame, between 1999 and 2001, is also where federal prosecutor, Steven Peikin, enters the eToys case picture.
EToys.com was a Delaware entity turned into a public company via Goldman Sachs taking eToys.com, public, in New York, in 1999, for $85 per share.
As documented by New York Times reporter, Joe Nocera, in his March 2013 article “Rigging the [eToys] I.P.O. Game”, Goldman Sachs did a stock price fixing manipulation of deliberately underpricing eToys.com stock so that GSachs’ handpicked, very rich friends, could “spin” back to Goldman Sachs around 50% of the windfall profits.
Nocera writes, “the documents clearly show that Goldman knew exactly what it was doing when it underpriced the eToys I.P.O. — and many others as well.”
Colm Connolly became a partner of MNAT when Colm’s office neglected to investigate, indict and prosecute MNAT, and MNAT secret clients of Bain Capital (BAIN) and Goldman Sachs (GSACHS).
MNAT and Goldman Sachs aided Bain Capital to rip off Mattel for $4 Billion. Resultant of that scheme, Bain Capital gang reportedly got 12 million shares of Mattel stock. (See this author’s first article in the Wall St Fraud Series: How Goldman Sachs And Bain Capital Defrauded Mattel Investors And Got Off Scot-Free.)
Then Mattel would help put eToys, Kay Bee, FAO Schwarz and Toys R Us in bankruptcy; and, many times, Traub was Creditors Attorney, helping make sure Bain got penny-on-dollar sweet deals.
It was the plot of MNAT and TRAUB/TBF to sell eToys’ billion dollar assets to BAIN/Kay Bee, for $5.4 million, undercutting the company and its shareholders.
Of the many reasons Sachs and Bain needed to destroy Laser via MNAT and Paul Traub – is the fact that Laser compelled Bain/Kay Bee to bid tens of millions of dollars. This was despite the fact that MNAT, Traub and U.S. Attorney Connolly surrounded Laser, nefariously.
MNAT forged a HAAS Affidavit, as TRAUB, MNAT and Barry Gold lied to the court, stating Laser “waived” millions of dollars in fees and expenses.
The Delaware Bankruptcy Court Chief Justice helped the crooks kick Laser out and stiff him $20 million dollars.
Being that Michael Glazer was CEO of Kay Bee at the same time he was a director at Stage Stores, where Traub’s TBF was working for Mitt Romney’s Stage Stores entity – as a matter of Law – Traub’s TBF, Michael Glazer/Kay Bee and MNAT were all commanded by Congress to disclose these relationships.
The Federal Receiver over Tom Petters Ponzi Douglas Kelley stipulated Traub had considerable “control” over Petters. Traub was also involved in Fingerhut which was owned by Traub and Tom Petters with GSACHS and BAIN heavily invested to the tune of $50 million in the company.
Speciously, the feds never seized Fingerhut, despite the involvement of Ponzi monies. That may be because Marty Lackner was a partner of the Tom Petters Ponzi; and Marty’s brother, James Lackner, was the head of the Minnesota United States Attorney’s office, Criminal Division, that was (purportedly) presiding over Tom Petters Ponzi investigation.
We can’t ask any questions to Marty Lackner; because Lackner was found hanging.
Meanwhile, Tom Petters is doing 50 years in Leavenworth, because he hired former Minn. Assistant United States Attorney, Douglas Kelley.
However, when Ritchie Capital, who had loaned Petters Polaroid over $100 million, at the behest of Marty Lackner, sent an Illinois court appointed receiver, to seize Polaroid – then Petters attorney, Douglas Kelley, who switched sides like Colm Connolly, to become the Federal Receiver over the Petters Ponzi case.
Ritchie Capital then got stiffed for $100 million in loans!
Prior to this time, MNAT and Traub’s TBF were embarrassed that they could not stop Laser Haas, who goes by “Laser the Liquidator” from driving the eToys.com sales prices, into tens of millions of dollars.
So MNAT and Traub decided to offer Laser a MILLION dollar bribe, along with a chance to become a roaming managing partner of Mitt Romney’s Vulture Capitalist gangs (like Jack Bush, Barry Gold, and Michael Glazer).
To the surprise of the Racketeers, Laser Haas turned down and reported the bribe to the Delaware United States Attorney’s office.
Unfortunately, nobody informed Laser or the other eToys victims of the fact that United States Attorney, Colm Felix Connolly, had been a partner of the MNAT law firm from 1999 until August 2, 2001. This fact was only learned almost a decade later.
Confident that their conflict of interests dynamics would never be discovered, the conflicted Colm Connolly’s office, via DE Assistant United States Attorney Ellen Slights, kept telling Laser Haas and other eToys victims – that no crimes or law breaking had occurred. Despite evidence of the contrary.
MNAT and Traub then had the eToys Public company deliberately destroyed and, when Laser, who was the real CEO of eToys, wouldn’t take the bribe, MNAT forged a HAAS Affidavit claiming Laser waived millions of dollars in fees and expenses, an unfathomable claim.
The Racketeers knew Laser had put all his money and borrowed cash to handle the eToys case; and the RICO Gang had to make sure Laser couldn’t afford competent counsel.
EToys was ripped off for the sake of Bain Capital and Goldman Sachs personnel and the real CEO was usurped by MNAT and Traub inserting Barry Gold (see WSJ July 25, 2005 article “eToys investor claims conflict at Law firm”).
We have to say “real” due to the fact that Bain Capital and Goldman Sachs lawyers replaced eToys “real” CEO, Laser Haas, with a phony Bain Capital crony named Barry Gold who worked for Romney and Michael Glazer at Stage Stores (another conflict of interest.)
After Laser was locked out of eToys, Barry Gold lied about his connections to Traub, so Barry Gold would become the Delaware Bankruptcy Court newly appointed President and CEO of eToys.
A few years later, Laser managed to ferret out enough smoking gun evidence to compel MNAT to confess that MNAT lied about being linked to Goldman Sachs.
Furthermore, Laser also compelled Traub to confess that Traub and Barry Gold were partners and that Barry Gold was paid four payments of $30,000 each prior to Barry Gold being secretly implanted into eToys. So the corrupt parties could then make a profit bankrupting the company.
After Barry Gold was planted into eToys, MNAT and Barry nominated their partner in crime, Paul Traub, to be the one to prosecute Goldman Sachs in the NY Supreme Court. In essence, Goldman Sachs suing Goldman Sachs in a show trial.
Robert Alber was an eToys shareholder who called Laser “DT” (after the Watergate whistleblower Deep Throat.) Alber joined Laser’s efforts to get justice. Unfortunately, Alber, like Marty Lackner, is unable to answer questions because he too was killed.
Alber directly questioned Traub and Gold on the stand about their relationships.
Both then lied and denied they were affiliated under oath.
As a matter of fact, Barry Gold signed a court Declaration, under penalty of perjury, stating that he and Traub (as debtor and creditors) were at “extensive” arm’s length.
MNAT, Traub and Barry Gold persuaded the Delaware Bankruptcy Court to deny eToys shareholders like Robert Alber, from having their court approved equity committee and their own lawyers; because MNAT, Barry Gold and Traub argued they “had the backs of the eToys stockholders.” An obvious lie as shown by the evidence.
After Romney lost the 2012 election the NY Supreme Court of Appeals ruled eToys v GSACHS billion dollar case could go forward; but Traub rushed to settle the case for $7.5 million.
Traub settled eToys v GSACHS case in the name of his other fraud partner, Marc Dreier; which Dreier had been in jail for 3 years of a 20-year sentence at the time.
This brings us to Steven Peikin’s alleged role and the article title “Is SEC Enforcer Steven Peikin A Goldman Sachs Crony Protecting Corruption?”.
Whilst Colm Connolly, a partner of MNAT (where MNAT was secretly dual representing Sachs) made sure the Delaware DOJ would not prosecute Goldman Sachs – Steven Peikin was working NYC Federal Prosecution office, as SEC Task Force – also making sure NYC DOJ and SEC did not prosecute Sachs.
Of the many evidences brought to my attention by Laser Haas, one of the most coincidental in my opinion was the shutdown of the Justice Department’s Public Corruption Task Force in 2008 – and threatening of career federal prosecutors to keep their mouths shut, about the reasons why (see March 2008, L.A. Times article “Shake-up roils federal prosecutors”).
Outrageously, that major case unit’s shutdown occurred only a few weeks after Laser Haas armed with smoking gun proof of Colm Connolly’s résumé, filed an 18 U.S.C. § 3057(a) Complaint, with the Public Corruption Task Force, in Los Angeles.
Exactly like Colm Connolly getting rewarded for failing to prosecute, as Colm became partner of Sachs Delaware law firm MNAT, Peikin became partners of Sachs NYC law firm, Sullivan Cromwell, representing Goldman Sachs in the New York Supreme Court eToys v GSACHS stock fraud case.
It just so happens when Laser authorized eToys suing Goldman Sachs, in NY Supreme Court – Sullivan Cromwell represented Goldman Sachs.
MNAT and Traub were then able to lie, including lying that eToys shareholders were protected by MNAT, Traub and Barry Gold; because Colm Connolly and Steven Peikin appear to have rigged the cases to assure no (proper) investigation or prosecution took place.
When Donald Trump was elected President, promising to “drain the swamp,” Laser sued Trump to block his nomination of Jay Clayton to become the new head of the SEC.
Jay Clayton was also a partner of Sullivan and Cromwell; and Jay’s wife, Gretchen was a partner of Goldman Sachs mergers division.
Additionally, Jay Clayton’s Sullivan and Cromwell resume boasted that Jay was a Bain Capital investor.
It is clearly obvious Jay Clayton had too many conflicts of interests to be able to act in good faith as a Chairman of the SEC.
Further, when Laser sued, Trump, Clayton, the DOJ, FBI, U.S. Trustee program, on March 22nd, 2016 – the D.C. District Court Clerk illegally refused to clock in the Laser HAAS v. TRUMP case until after his nomination. It seems this was because every crooked party named was afraid the case would go viral.
Laser’s lawsuit was illegally docketed 9 weeks late, on May 25th, 2017; which was 3 weeks after Jay Clayton was confirmed to be SEC head.
If that’s not enough, to make sure Laser would never see justice in the eToys v.s Goldman Sachs NY Supreme Court case – Jay Clayton hired Steven Peikin to be the SEC Enforcer. Mitt Romney’s campaign claims he “retroactively” retired from Aug 2001 – back to Feb 11, 1999; which is the same exact period of time the eToys racketeering crime spree began.
This reporter previously wrote about the Trump Administration Obstructing Justice to protect Mitt Romney/Bain Capital; otherwise, the DOJ also would have to indict Goldman Sachs.
Now that Peikin was hired by Jay Clayton as SEC top enforcer – after Laser sued to block Jay Clayton – it seems that the FBI, DOJ and especially SEC Clayton and Peikin have some s’plaining to do covering up for MNAT and Traub. Otherwise, the rule of law is no longer existent and criminals are now allowed to “retroactively” retire from their organized crimes. As Reuters expressed, these conflicts certainly could complicate efforts to “regulate” Wall St.
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