If you want, you can follow my eToys SEC whistleblower case — from the beginning

…Nitti can’t be the prosecutor of Capone

This is my SEC whistleblower tip on how Goldman Sachs & Bain Capital racketeers ripped off eToys, & others, for billions.

Racketeers have gotten away with over 100 crimes, for 22+ years; because they are aided by willfully blind, crony Federal prosecutors.

Romney claims to be “retroactively retired” from Bain Capital; which is a bunch of horse shit!

■My goal is Sachs & Bain Capital being pu is he’d for organized crimes

Below is my story summary that was given (with much more detail) to the SEC.

After a decade of being stymied — I now have 2 SEC whistleblower case numbers.

There’s no guarantee they will address it; but I choose to believe Chairman Gary Gensler is one of the good guys.

Now the public has a chance to see a major SEC whistle blower case — from start — to finish.

Bain Capital & Goldman Sachs have a bunch of splain’n to do!

It begins with….

Comes now, Steven Haas (a/k/a “’Laser’ the Liquidator"), who, avers, under penalty of perjury, that I’m blowing a whistle on organized crimes, going on for 2 decades.

Movant is a whistleblower in eToys case, after being appointed by Delaware Bankruptcy Court Chief Justice to be head of eToys bankruptcy (DE Bankr. 01-706).

During tenure as a fiduciary, a bribe was offered for me to join a racketeering enterprise which expressly benefited Goldman Sachs & Bain Capital.

For a decade plus, the Department of Justice (“DOJ") has been furtively assuaged from investigating & prosecuting the eToys billion dollar stock fraud fraud case.

It started by public offering stock frauds; then the perpetrators unlawfully put eToys into bankruptcy, to mob up the remains.

■How Bain Capital & Goldman Sachs bribery works

To see how the rackets work, look at the Kay-Bee case.

As head of eToys, removed by fraud, I also blew the whistle on my counterpart, Michael Glazer; who was CEO of Kay Bee.

Glazer accepted his $18 million dollars in bribery (see details that was reported in the September 2012 Rolling Stone cover story “Greed and Debt: A True Story About Mitt Romney & Bain Capital”).

They use victims monies to pay the bribe!

All this was reported to Delaware United States Attorney Colm Connolly.

Turns out Colm Connolly was crony corrupt partner of the racketeers law firm of MNAT (which tends to explain why MNAT, Sachs & Bain Capital have yet to be indicted).

This is Colm Connolly’s resume at DOJ — ( here )

■Listing of eToys case racketeers

1. Goldman Sachs (“SACHS")
2. Sullivan Cromwell (“SullCrom")
3. Barry Gold
4. Bain Capital (“BAIN")
5. Michael Glazer (CEO of BAIN’s Kay-Bee)
6. Claims buyer Liquidity Solutions
7. Wells Fargo/ Foothill Capital
8. Paul Roy Traub (“TRAUB”)
9. Traub Bonacquist & Fox (“TBF")
10. Marc Dreier (a/k/a partner of TRAUB)
11. Frederick Rosner (TBF DE counsel)
12. Toby Lenk – founder of eToys
13. Morris Nichols Arsht & Tunnell (“MNAT")
14. Greg Werkheiser (MNAT partner)
15. Mattel
16. David Haddad (eToys VP from Mattel)
17. U.S. Attorney Colm Connolly (a/k/a MNAT partner)
18. SDNY AUSA Steven Peikin (SEC Task Force)
19. DE DOJ Trial Attorney Mark Kenney
20. MN Assistant US Attorney J. Lackner

■Racketeers seek to avoid indictment by victim blaming

The crooks have cronies who have protected the racketeers by lying to their DOJ bosses; claiming I’m the bad guy.

Ironically, the crony corrupt Feds ignore SACHS & BAIN Gang 100 + crimes – and focus on this guy who turned down a million dollar bribe!

■USAG John Ashcroft noteworthy remarks on bankruptcy case corruption -apropos to eToys

The rackets are counting on the cognitive dissonance of everybody’s refusals to admit corruption exists.

As if U.S.A.G John Ashcroft was addressing this whistleblower’s allegations, directly on point, His Honor John Ashcroft penned remarks about bankruptcy corruption.

USAG John Ashcroft’s remarks that were quoted during the July 2007 “Government in Sunshine Act" hearing; stating -

….”Bankruptcy court corruption is not just a matter of bankruptcy trustees in collusion with corrupt bankruptcy judges.

The corruption is supported, and justice hindered by high ranking officials in the United States Trustee Program.

The corruption has advanced to punishing any and all who mention the criminal acts of trustees and organized crime operating through the United States Bankruptcy Courts.

As though greed is not enough, the trustees, in collusion with others, intentionally go forth to destroy lives. Exemptions provided by law are denied debtors.

Cases are intentionally, and unreasonably kept open for years. Parties in cases are sanctioned to discourage them from pursuing justice.

Contempt of court powers are misused to coerce litigants into agreeing with extortion demands.

This does not ensure integrity and restore public confidence.

The American public, victimized and held hostage by bankruptcy court corruption, have no where to turn.”

■Congress speaks out on the rackets of lawyers “Bankruptcy Rings"

Noting it took 20 years to bring down Bernie Madoff – it is also important to be aware of the the 3rd. Circuit remarks in the case of In re: Arkansas 798 F.2d 645 (1996).

…”The legislative history makes clear that the 1978 Code was designed to eliminate the abuses and detrimental practices that had been found to prevail.
Among such practices was the cronyism of the "bankruptcy ring" and attorney control of bankruptcy cases.
In fact, the House Report noted that "[i]n practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors." H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. Ad. News 5787, 5963, 6053.”…

■ Transitive logic means the crooks & corrupts are one big RICO Gang

When A=B and B=C, then A=C

In other words, Romney bragged about getting 100s of millions from Bain Capital & it is clearly evident that fraud benefited Bain Capital.

Hence, MitTwit benefited from fraud!

■RICO predicate act crimes perpetrated during the eToys case

Our eToys bankruptcy case had its 20th year anniversary on March 7, 2021.

There’s more than 100 law breaks in eToys racketeering/stock fraud/ Bankruptcy Ring cases, still remaining unaddressed; including, but not limited to –

· Public offering stock fraud $1 Billion 1999
· Intimidations of Victims & Witnesses
· John Gellene fraud $100 million
· False statements to public by Toby Lenk
· Placing solvent company into Chpt 11
· Retaliations & Intimidations
· Undisclosed sales in the 10s of millions
· Perjury
· Bankruptcy Fraud conflicts
· Misfeasance by Omissions
· Bribery of public officials
· Grand larceny millions pre & post
· Conspiracies to defraud
· Destruction of Books & Records
· Money Launderings
· Schemes to Fix Fees
· Betrayal of Court approved clients
· Mail & Wire frauds
· Breaches of Fiduciary Duties
· Revolving door willfully blind agents
· Deprivations of Rights by Color of Law
· Frauds on many courts by officers of
· Obstruction of justice for 23 years
· Mayhem & Homicides
· Deliberate destruction of public company
· 2nd instance Billion dollar fraud 2013 thru 2015
All these crimes are violations of the Racketeering Influences Corrupt Organization Act (“RICO").

■ eToys IPO stock fraud “spinning" scheme

On, or before 1999, SACHS was engaged as the lead agent for eToys initial public offering (“IPO").

On opening day, the eToys stock price hit $85; and settled back to around $77.
SACHS had deliberately underprice eToys IPO, for $20 a share.

See this NY Times 2013 article —

……. “Rigging the I.P.O. Game”

Instead of getting billions of dollars in cash flow, eToys only received $160 million.

■ Willfully blind Federal agents serious conflicts of interests

Federal prosecutors, Colm Connolly of DE, in collusion with Steven Peikin of SDNY (who also was SEC Task Force), were key components in protecting SACHS & BAIN from prosecution.

Connolly & Peikin jointly ruled eToys stock fraud & subsequent Bankruptcy Ring cases, shouldn’t be addressed.

Colm Connolly then became partner of SACHS & BAIN Delaware law firm of MNAT. Steven Peikin likewise became partner of SACHS NY law firm of SullCrom.

This Delaware website has detail facts about Colm Connolly conflicts

…. “ Did Delaware’s Colm Connolly Run Interference for Romney and Bain Capital Illegalities?”

Steven Peikin’s SEC resume is self explanatory.

It’s noteworthy that Peikin has returned to Sachs law firm of Sullivan & Cromwell

■ eToys Debtors & Creditors attorneys have many major Conflicts of interests

Despite being ordered by the Delaware Bankruptcy Court, to totally come clean, in 2005, MNAT, Barry Gold & TRAUB continue to hide many of their conflicts of interests!

MNAT, as eToys Debtor’s counsel, has yet to disclose many conflicts of, SACHS, BAIN & Mattel.

TRAUB’s TBF as Creditors counsel, has yet to disclose conflicts of working for BAIN at Stage Stores, prior to eToys.
Whereas, TRAUB’s TBF worked under Barry Gold at Stage; where they worked under Michael Glazer (also CEO of Kay-Bee).

Such is germane due to the fact MNAT, Barry Gold & TRAUB betrayed their court approved clients when then sold (out) their eToys clients assets - to their secret cronies of BAIN / Kay-Bee – for greatly reduced prices!

And TRAUB also was pre-petition lawyer for the eToys case “Unofficial Unsecured eToys Creditors Committee".

Together, Connolly, Peikin, MNAT, SullCrom, TRAUB, TBF, Barry Gold, Michael Glazer & others became associates in fact, are one big gang – doing a billion dollar fraud by more than 100 organized crimes, against eToys - for the unjust enrichment of the SACHS & BAIN RICO enterprise.

■ Mattel was part of eToys RICO conspiracy

Reportedly, BAIN related parties also owned 12 million shares of Mattel.
MNAT helped BAIN get those shares; which paved the way for BAIN’s insider dealings.

A Mattel Credit manager was picked as head of eToys Creditors Committee.
EToys VP David Haddad, who had worked for Mattel, was double dealing both pre & post bankruptcy petition; hiding millions of dollars of eToys overseas cash deposits.

■ Confessions of some eToys conflicts of interests crimes by MNAT, Barry Gold & TRAUB/TBF

There’s no question of guilt here; because MNAT, Barry Gold & TRAUB/ TBF already have confessed failures to disclose a few of their conflicts of interest.

Our conundrum here, is, the parties only confessed 1/100th of their bad faith acts!

Back in 2004/2005, my pro se submittal of a Smoking Gun provided proof that Barry Gold & TRAUB had lied under oath, over a dozen times, in 2001 & 2002.

Subsequently, a series of eToys bankruptcy case court hearings - transpired.

During the Emergency Hearing of December 22, 2004, the Court ordered the parties to respond to my allegations by January 25, 2005 (the “Responses")
Barry Gold responded (eToys docket 2169) confessing Barry had a (secret) Hiring Letter that allowed him to conceal his insertion.

TRAUB’s TBF response (eToys docket 2171) confessed deliberately leaving false affidavits in the eToys record concealing conflicts about Barry Gold.

MNAT did an “Omnibus" response that was vague (eToys docket item 2173).

Resultant of those “Response” confessions – the eToys court held a hearing on February 1, 2005.

The court ordered Barry Gold & TRAUB could be deposed at the courthouse (because of death threats & my daughter having been kidnapped).

Of the February 9, 2005 depositions & February 1, 2005 & March 1, 2005 hearings – the Delaware Bankruptcy Court ordered many proofs & confessions of wrongdoings – were to be entered into the docket record!

■ US Trustee Motion to Disgorge TRAUB’s TBF concludes there was a fraud on the court

After the confessions, Assistant United States Trustee Frank Perch, put forth the

February 15, 2005 Motion to Disgorge TRAUB’s TBF for $1.69 million

(the “Disgorge Motion").

Within paragraph 18 of the Disgorge Motion, the US Trustee acknowledged TRAUB’s TBF had confessed intentionally leaving false affidavits in the case records.

In paragraph 19 of the Disgorge Motion, the US Trustee testified he forewarned the parties not to replace me, with anybody connected to court approved parties.

Notably, in paragraph 35 of the Disgorge Motion – the US Trustee Program reiterated that TRAUB’s TBF was forewarned; concluding that TRAUB’s TBF perpetrated a “fraud on the court"!

MNAT, Barry Gold & TRAUB were the lead insiders, planted into eToys, to guarantee the SACHS & BAIN racketeering enterprise would succeed in the billion dollar IPO fraud.

■ Detailing the Bankruptcy Ring defraud of eToys

After I turned down & reported the bribery by TRAUB, Barry Gold & MNAT – then MNAT forged my resignation papers.

Upon locking me out of eToys, MNAT as eToys Debtor’s counsel helped TRAUB, as eToys Creditors counsel – to insert TRAUB’s secret partner, Barry Gold, – into my chair as the new eToys President & CEO.

▪︎ EToys founder, Toby Lenk, was deceptive

Toby Lenk was the founder of eToys, who made bogus public statements about eToys health; then Lenk resigned!

▪︎ A solvent eToys was placed into bankruptcy

On March 7, 2001 the MNAT firm placed eToys into bankruptcy (DE Bankr 01-706).

In order to maintain the ploy of making eToys appear to be insolvent, MNAT had the Books & Records of eToys - destroyed - at the very beginning of the bankruptcy case!

PRE-Bankruptcy petition schemes

▪︎Wells Fargo did a Gellene defraud of eToys

A John “Gellene" fraud is a “Bankruptcy Ring" scheme by lawyers who conceal links to lenders; where they can bleed out millions in pre-petition excessive fees.

Gellene got caught and did a year in jail!
TRAUB arranged Foothill Capital (sub unit of Wells Fargo) to do a pre-petition loan to eToys – for $40 million in November 2000.

Over $120 million dollars went into a Wells Fargo “lockbox" via Foothill loan.

▪︎Johnson & Johnson schemes to acquire BabyCenter pre-petition.

TRAUB & Barry Gold co-owned Asset Disposition Advisors; with Nancy A. Valente as registry agent.

Nancy A. Valente also worked for Johnson & Johnson.

BabyCenter.com was sold, pre-petition, by TRAUB, to Johnson & Johnson.

■ DOJ willful blindness fosters other frauds like KAY-BEE & Toys”R”Us

This Kay-Bee $100 million in fraud was happening at the very time TRAUB was purportedly being punished in eToys by the Disgorge Motion.

As par for the course, in the Kay-Bee case – the fraud is aided & abetted by MNAT, Barry Gold & TRAUB.

MNAT represented BAIN in Kay-Bee at the same time MNAT was representing eToys against BAIN & Kay-Bee.

When I pointed all this out to Colm Connolly’s Delaware DOJ unit; the U.S. Trustee came to rescue the RICO to have my evidence stricken & expunged.

A dozen companies were bled out by the racketeers; including Toys”R”Us!

■There’s no issues of Statute of Limitations

Normally, there would be a 5 year Statute of Limitations from the date of eToys case closing in 2015.

But the DOJ has been compromised by RICO cronies - like Colm Connolly, Steven Peikin, Andy Vara, Ellen Slights, James Lackner, Mark Kenney – and many more pathetically willfully blind!

The US Trustee February 15, 2005 Disgorge Motion of TBF testified the parties were forewarned; and it concluded TRAUB’s TBF perpetrated a Fraud on the Court.

The Opinion of the eToys Court was published on October 4, 2005; which sanctioned both TRAUB’s TBF & MNAT for failing to disclose conflicts.

In that eToys Opinion it also concluded MNAT had “actual" conflict of interest concerning SACHS!

EToys court opine also provides a comfort order that the eToys case could be reopened - if other conflicts were an issue.

There are dozens of undisclosed conflicts remaining; including the paramount ones of BAIN/ Kay-Bee, Liquidity Solutions’ & SACHS IPO fraud double dealings.

As established by the U.S. Supreme Court, in the case of Hazel Atlas-Glass v. Hartford Empire (cited by both the Disgorge Motion & eToys case Published Opinion) – there’s no Statute of limitations for “frauds on the court" by “officers of the court”!

If the powers that be try to continue to cover up our eToys case — then the organized crimes & corruption — will only get worse!