Laser Haas on the DOJ



The Great Govenor of California
Feb 21, 2001
of Justice Corruption, Crimes perpetrated in eToys | Tagged: eToys, fraud, Corruption, DOJ, deangelis, connolly | No Comments »
Haas allegations against DOJ cover up of $300 million Fraud and Perjury is done Under Penalty of Perjury

Posted on April 9, 2008 by laserhaas
I, Steven Haas, (a/k/a Laser Haas) (HAAS) does state, this 10th day of April 2008, Under Penalty of Perjury that rogue personnel at the Dept of Justice are engaged in treasonous acts to their Oath of Office and Fiduciary Duty to the Public and the Courts.
You can see additional information at Townhall BLog HERE
You can also see the Wall Street Journal Story on the bribery, slap on the wrist, Cover up
at or as well as a Federal Judge who called the US Trustee program a pack of dogs as a US Attorney for the US Trustee’s program said Director White and former Diretor Friedman have done little to promote the Integrity of the US Trustee program (please see Fraud on the Court copy of Judge A J Cristol HERE and additional Congressional items for the hearing on Judicial Ethics reform HERE )
Director Lawrence Friedman of the DOJ EOUST office in Washington DC receives all proofs of fraud, removes the Region 3 Trustee DeAngelis and then, after Asst US Trustee Frank Perch Motions to Disgorge TBF law firm with slap on wrist, another $100 million in fraud is discovered and Director Friedman resigns and becomes big wheel at Bear Sterns.
Attorney for US Trustee, Mark Kenney, gives TBF law firm implied blanket immunity for $300 million in fraud and 17 acts of confessed False affidavits. When the Perjury then continues, after purportedly being Deterred, with the other $100 million in fraud as TBF law firm is found to have been Revoked by the State of NY for several years. TBF disbands as Fox joins Olshan & Fromme, while Traub and gang join Dreier LLP as the fraud and Perjury continue.
Roberta DeAngelis is then, quietly, speciously, promoted to the post of Acting General Counsel of the DOJ US Trustee’s, in charge of her own cases and decisions of prosecutions or referral to US Attorney, where she Defends the US Trustee, being an appellee with the MNAT Law firm in appeals, such as 3rd Circuit 07-2360.
Judge Kent A Jordan hears all 4 Del Dist Ct appeals, Orders all attorneys to be present (instead of just local counsel), during Oct 2006 hearing as he Warns all counsels they are in deep pooh pooh, he is then Promoted to the 3rd Circuit Court of appeals. When the case goes to the 3rd Circuit Court the Court says the Federal Rules of Appellate Procedures does not apply to this Delaware case.
The Corp Fraud Task Force refers the matter to the US Attorney in Delaware, however, Colm F Connolly, the Delaware US Attorney is found to have been partners with the MNAT law firm in 2001, when the fraud and perjury began.
The DOJ and US Trustee, Never Mentions any sanctions for the MNAT Law firm, even though MNAT confessed to more than 17 false affidavits also, like the TBF law firm.
Now Colm F Connolly is nominated to fill the Judge seat left vacant by Kent A Jordan.
So we report all of this to the US Attorney, Tom O’Brien in Central California and that results in Tom O’Brien shutting down a Task Force on Public Corruption (Probably the remaining files from the Debra Yang days) as the L A Times reports on how parties at the Central CA DOJ were threatened not to tell the press any other reason for the disbanding of the fraud and corruption Task force unit.
Bain benefits from the $300 million in fraud and perjury that MNAT and TBF have confessed occurred. But hey, they really didn’t mean to do it.
In the meantime TBF’s Susan Balaschak had HAAS’s own attorney, Henry Heiman email HAAS a threat that if he did not “back off” not only would HAAS and CLI not get paid per the Federal Judge’s signed contract, HAAS career would suffer and additional retaliations would occur.
So, when HAAS proves the other $100 million in fraud and perjury in the KB Toys case, the DOJ defends the fraud and perjury, has the Federal Court strike and expunge HAAS proof of perjury and fraud. (please see Mark Kenney motion to strike and expunge HERE ) (this is the fourth effort of Obstruction of Justice by Mark Kenney) As the Chief Justice MFW reassigns HAAS $3 million Senior Priority Court approved claim to visiting Judge R Baxter who reschedules the claim hearing, allows HAAS counsel to withdraw and refuses HAAS new CLI counsel from speaking on the very day the Delaware Bankruptcy Court tosses out HAAS’s claim hearing.
Now Judge MFW has given Barry Gold permission to Indemnify himself with HAAS’s money after the Judge MFW approved of Destruction of Books and records as the Court stated HAAS does not have any legal right (court’s permission) to bring the issue of fraud and perjury before the Court.
HAAS is threatened that people who chase ghosts become one as the eToys shareholder, Robert Alber is so harrassed to the point of Depression by Johann Hamerski, while MNAT secretly participates in personal and criminal actions brought upon Alber, by Johann Hamerski, who bragged of his connections to Abramoff as Alber stated that he was told by Hamerski, people like you who do not take bribes wake up dead.
It is only a matter of time before HAAS is “got” by the big machine, for they did destroy his career as the court allowed the conspirators to keep HAAS’s life savings of expenses he laid out for the Court approved work.
Robert Alber had brain surgery and is in a state of depression.
HAAS is wondering when it will be time to accept the premise of “the Law does not apply to HAAS” where the contrarian arguendo be that might makes right.
How far down can they kick this dog before he goes out fighting?
For Judge Mary F Walrath said on Feb 27, 2008, Mr. HAAS, I made my rulings and that is the way it is, tough if you are not satisfied with it. (please see 57 page Opinion that headed off HAAS appeal, where MFW says no perjury was documented (even though they have Confessed to filing multiple, intentionally false affidavits) as the Court goes on and on about the snow job of what ADA did and did not receive. ADA is the proof that the parties are connected, TBF Paul Traub confessed that he paid Barry Gold directly and then placed Barry Gold within eToys secretly while drafting a clandestine Hiring Letter that bribed Barry Gold to NOT seek the Court’s permission)( see OPINION here )
Where HAAS replied to the Court, your Honor, how can you say you are going by your Rulings when you Ruled that Clause 3.12 states that there can be No Transactions with Related Persons, as Barry Gold has admitted that he is the Paid Associate of the Credtiors Counsel while MNAT and TBF all have undisclosed connections to Bain that is documented in the KB Toys bankruptcy case. Would the Court please tell me [HAAS] who is in who’s pouch here?
The great Mary F Walrath said excuse me
(wish I could have seen her face)
as HAAS said
Let me be perfectly clear, Who is in whom’s pouch here”
as the Court then disconnected the Telephonic hearing
A Court deserves respect when it adhere’s to the Law, when the Court defends ORganized Crime with the assistance of Dept of Justice personnel who either stay and grant immunity, or tuck tale and get a cushy contract when they leave.
They only deserve then
For they have made WAR on the Constitution.
There is no act that HAAS can committ, that is as heinous as the sedition to their Oath of office, when those paid by American’s to preserve and protect our laws, then engage in Anarchy and an Above the Law mentallity.
Somone has to shoot the wind out of their balloon.
May as well be me!
For it seems the virus of unwillingness to prosecute is now a nationwide affair, as HAAS gives a Citizens Complaint, to the US Attorney, Tom O’Brien in Central California ( see HERE ) as well as supplying it to Robert Mueller of the FBI, Judge Mukasey as new AG and the Office of Professional Responsibility only to see that US Attorney Tom O’Brien shuts down the Public Corruption Task Force as he states that such will make prosecutions of Public Fraud and Corruption more efficient while the L A Times did report that Tom O’Brien threatened his staff not to reveal any other reason for the disbanding of the fraud and corruption unit (please see HERE ).
At the same time the 3rd Circuit Court issues a per curiam Opinion that ignore the fact an Illegal judge issued a shot gun order to the eToys shareholder who was secretly harrassed by MNAT connected parties while Robert Alber was recovering from Brain Surgery as the 3rd Circuit actually, publicly issued and Opinion that States the Federal Rules of Appellate Procedure does not apply to Delaware District Court or Delaware Bankruptcy cases (you must see this for yourself HERE page 7 thereof)
It is said you cannot fight City Hall.
How then, can one fight a corrupt Judge (several), a US Attorney who was a partner with the law firm that is quilty of perjury and fraud. The Circuit Court of appeals who promotes Judges who might make a ruling against the nefarious horde or a US Attorney who has the Attorney’ General’s blessing when he disbands the Public Corruption Fraud Task Force?
People say this is a David v Goliath battle,
Crap, if I had G-d, a sling shot and a giant that would stand in front of me, that would be a promotion.
I am a poor, wrong side of the tracks, peon, who is so unworthy of this battle, these guys do not even have to bother with shooting me or trumping up charges like they did with Alber.
I am the ant, that David stepped upon, when he looked for a rock in put in his sling and they are the Big Uncle Sam to the Giant that David did make stiff. David had to become a King and have G-d protect him to go through life rewarded for his stance against the evil foe.
I have enough trouble paying for another hotel room each week, while my cars keep getting stolen at night.
Bus fare anyone?
This whole affair is funny, if you are watching me skirm!

Filed under: 1 | Tagged: connolly, Corruption, cronyism, deangelis, eToys, fraud, jordan, MNAT, o'brien, perjury, TBF, walrath | No Comments »

Crimes Committed that DOJ refuses to prosecute

Posted on April 4, 2008 by laserhaas
The Law firms of Morris Nichols Arsht & Tunnel (MNAT) and the now defunct law firm of Traub Bonacquist & Fox (TBF) have already confessed to supplying more than 34 false affidavits to the Federal Bankruptcy Court in Delaware.
MNAT has confessed that it neglected to disclose it represents Goldman Sachs in Delaware and TBF has confessed that it paid four (4) payments of $30,000 each to Barry Gold prior to placing Barry Gold within the eToys estate by false affidavits and a secret Hiring Letter that gave Barry Gold permission to Circumvent the Law and the Court.
When Barry Gold was in danger because of his perjury acts he provided the Hiring Letter as his defense on January 25, 2005.
MNAT and TBF have confessed to drafting the Hiring Letter but state that it is no big deal as Barry Gold was not really required by law to apply to the Court.
MNAT also refuses to remember who drafted the Hiring Letter.
MNAT is either guilty of drafting an item for eToys (whom MNAT represents) where MNAT did not bill for the item or MNAT did bill for the item and has purged the Docket in some manner of the facts.
All those who believe that MNAT has forgotten who drafted a letter that gives willful permission for the new “wind-down coordinator” who joined eToys post petition, the right to Circumvent the Court and the Code by his own volition, Please raise your hand?
The Dept of Justice has joined in the Fraud and Perjury by giving Illegal immunity to TBF to circumvent Code 327(a) with the following obvious unlawful language
WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures
There are more than 3 serious non-disclosure items that such a clause seeks to cover up.
1. MNAT, TBF and Barry Gold all have undisclosed conflicts of interest with Bain /KB
2. MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/KB for discounts in the tens of millions of dollars.
3. TBF, Barry Gold and Xroads LLC all have undisclosed connections to Wells Fargo Foothill Capital $40 million dollar loan that transacted more than $100 million prior to eToys filing bankruptcy.
4. eToys went Public in 1999 for $8 billion and was bankrupt by Dec 2000, where did the equity go and why did MNAT, TBF and the Dept of Justice allow the Court to approve the Order in a Bankruptcy Estate to Destroy Books n Records.
You can also read items at
The US Attorney in Delaware, Colm F Connolly, that has thus far refused to prosecute the case is now nominated for a Judge and his resume reveals that he was a partner with the MNAT law firm in 2001, when the fraud and perjury began.
When we informed the US Attorney in California of this he shut down the Public Corruption Task Force saying it would be better for the Dept of Justice to re allocate that personnel.
At the same time the US Attorney Tom O’Brien threatened his subordinates that if they revealed the real reason he shut down the Task Force he would punish them.,1,7868966.story

Filed under: 1, Bankruptcy Fraud Dept of Justice Corruption, Crimes perpetrated in eToys | Tagged: bankruptcy, colm, connolly, Corruption, cronyism, DOJ, eToys, fraud, justice, MNAT, perjury, TBF | No Comments »

FBI begins investigation into eToys saga

Posted on April 4, 2008 by laserhaas
When those that are paid to protect and serve, seek to abuse that esteemed position of power and trust for the benefit of cronies you have not a measure of law and civility, you have the recipe of disaster that begins as anarchy that ultimately has to foster deep civil unrest!
Hopefully anarchy will not find itself halted in its tracks due to the one entity that is questioned from time to time, but the American public still believes is true blue.
The FBI!
It is not in contention that false affidavits, by sophisticated bankruptcy counsels were supplied to the Federal Court. For they have confessed to the fact. Both the MNAT and TBF law firm have confessed to filing multiple false affidavits.
Upon the discovery of the fraud and perjury issues, Lawrence Friedman the Director of the US Trustee program in Washington DC did remove Roberta DeAngelis as Region 3 Trustee over Philadelphia and Delaware (please see the press release of Kelly B Stapleton here
What is neglected in the confessions to the multiple (and some admitted as intentionally left false) affidavits, is the documentation that they have admitted to more than 34 false affidavits.
Additionally, TBF and Barry Gold have confessed to drafting the egregious, Hiring Letter that gave Mr. Gold illegal authority to Circumvent the Code and the Court by his own volition. While MNAT states that they cannot remember who participated in the drafting of the letter at their firm.
Either MNAT did not draft the letter and has a fiduciary duty to its client (the eToys bankrupt estate) to report the item to the court.
MNAT did participate in the drafting of the Hiring Letter and has to explain how in the world they did work for eToys that they did not bill for. For the very notion that they drafted the Hiring Letter and made the billable hour not appear is a criminal prima facie evidence of mens rea by an actus reus item.
More importantly, the Dept of Justice testified that the “parties” had discussions with the US Trustee’s office concerning replacing key personnel of the eToys Debtor and the US Trustee testified that the Trustee’s office warned the “parties” not to replace key personnel of the Debtor with anyone connected to the retained professionals of the case. As this would violate the “unambiguous” language of Bankr Code 327(a).
After the Dept of Justice testified about this item, the Dept of Justice attorney for the new Region 3 Trustee, specifically Mark Kenney, did sign a Stipulation to Settle that gave TBF law firm implied, blanket, Illegal, immunity with the following unlawful language;
WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures“.
This clause is illegal as the US Trustee’s office is the policing “watchdog” for the sake of public equity protection, as per the Janet Reno Reform Act of 1994 as well as the fact that the whole design of the US Trustee program, as part of the Dept of Justice, is noticed upon every single press release of the US Trustee program, that states the following;
The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws
Yet, somehow, for an inexplicable reason, the Dept of Justice is utilizing the US Trustee program to give implied, blanket, immunity to Organized Criminal activity that is not in contention. The parties have confessed to their acts that disregarded the US Trustee warning.
Barry Gold submitted the Hiring Letter that was never revealed nearly 4 years after the date it was purportedly signed. Being supplied, in what has to be one of the great attorney slip up’s of this case, as a defense exhibit by Barry Gold himself.
The Hiring Letter documents willful intent to circumvent the Court and the Code by a collaborative effort. Being provided by Barry Gold himself, it is irrefutable.
Combined with the fact that Barry Gold testified, on the stand, that he was not connected to TBF, while both TBF and MNAT have confessed that they filed multiple false affidavits, where the Hiring Letter now demonstrates motive and purpose. One has to ask what is the motivation and reasoning for the Dept of Justice to breach its fiduciary duty.
Cui Bono?
The fact remains, even if the US Trustee states it will deliberately fail to perform its fiduciary duty, is no justification for the Court to jump on the band wagon of lawlessness and agree that such “breaking of the law” is O K.
Doing so is an act of sedition to ones Oath of Office and grounds for impeachment.
Additional reasons why the Dept of Justice is seeking to Cover Up the whole affair, may be due to the more recent discovery that the US Attorney in Delaware, Colm F Connolly was a partner with the MNAT law firm in 2001.
At the barest of minimums, Colm Connolly’s office is guilty of conflict of interest, protocol violations, ethics violations and Model Rule of Conduct violations for not referring the matter to an independent prosecutor or the Public Integrity Section.
Combined with the fact that the US Trustee disgorge motion only mentions the TBF law firm, even though the MNAT law firm confessed to filing multiple false affidavits also and had to participate in either covering up the Hiring Letter or fostering the scheme to defraud the court.
Made more morose by the fact that the Dept of Justice attorney, Mark Kenney, also does not mention MNAT issues when it seeks to give implied, blanket, Illegal, immunity to TBF.
An immunity issue that has apparently become wholesale and adopted by all as we have now also discovered that one of the items the “not seek to compel” clause desires to cover up is the fact that TBF, MNAT and Barry Gold all have undisclosed connections to Bain.
MNAT, TBF and Barry Gold all negotiated the sale of eToys assets to Bain/ KB for discounts in the tens of millions of dollars, while not only remaining undisclosed about their connections to Bain and KB, they also now have confessed to filing more than 34 false affidavits stating they had no conflict of interest issues.
MNAT is now also discovered to have been working with Mattel , Learning Co merger (also a Bain party connection) and being less than candid about the Learning Co issue, MNAT convienently neglected to disclose the issue that the Learning Company merged with Mattel as doing so would have automatically disqualified MNAT representation of eToys Debtor.
Now we have the Dept of Justice breaching their fiduciary duty so maliciously that the US Trustee program, with the General Counsel from Washington DC is acting as an appellee, defending Barry Gold, TBF and MNAT in the 3rd Circuit appeal case 07-2360.
By the way, the Acting General Counsel for the Dept of Justice EOUST office in Washington DC is the former removed Roberta DeAngelis as Region 3 Trustee.
DeAngelis is now apparently promoted to the position of being in charge of investigating her own cases.
Lawrence Friedman had replaced DeAngelis with a press release that occurred Dec 22, 2004, the significance of the date is it was the very day of the Emergency hearing in eToys where the Court Ordered the parties to answer the allegations by January 25, 2005, in accordance with Local Rules.
They, the parties of MNAT, TBF and Barry Gold had no choice but to admit to the false testimony, for the proof provided by Laser Haas was Court docket affidavits of the TBF and Barry Gold. They therefore could not continue to deny their own handwriting that had been previously hidden, now discovered by a lapse linguae and the Public Access to court docket records that began in 2001.
Then a hearing on Feb 1, 2005 occurred where the Court then Ordered that Haas and the eToys shareholders could depose TBF, MNAT and Barry Gold on Feb 9, 2005.
The US Trustee told the Delaware Federal Court that it would make its position on the issues known, prior to Frank Perch’s scheduled travel of Feb 16, 2005.
After the Depositions provided additional proof of fraud and perjury, Frank Perch emailed the US Trustee motion to Disgorge on Feb 15, 2005 as promised. (eToys docket item 2195)
Then, less than 10 days later, Mark Kenney made moot the Disgorge Motion for $1.6 million and supplied the Illegal immunity provisio to TBF (and the rest purportedly) on Feb 24 2005 as a Stipulation to Settle the US Trustee Disgorge Motion (eToys docket item 2201)
Then, the March 1, 2005 hearing occurred to address the issue of fraud and perjury, where the Court speciously Ordered that Laser Haas could no longer speak and that they would not enter the Chairman of the Creditor Committee affidavit into the record that day. (asthe Chairman was who TBF was engaged by, the affidavit testimony that TBF defrauded the Creditors Committee would dam TBF to criminal liability).
However, during the March 1, 2005 hearing, the transcript of which is in the record as eToys docket item 2228. Paul Traub of TBF not only confessed again to filing the false affidavits he also admitted to the Court that TBF paid Barry Gold 4 separate payments of $30,000 each prior to placing Barry Gold within eToys as a “wind-down coordinator” who then became President, CEO and now confirmed Plan Administrator. Where Barry Gold has authorized more than $12 million in payments to TBF, MNAT and other connected parties illegally.
Laser Haas had received a direct email from Lawrence Friedman that he would address the issues of the case by his staff appropriately. Where the removal of Roberta DeAngelis and the Disgorge Motion seemed to provide proof that Lawrence Friedman was performing his fiduciary duties when others would not.
Then, the Stipulation to Settle occurred.
Then, Paul Traub gave the additional testimony of paying Barry Gold prior to placing him “in secret” within eToys.
Then, we discovered the MNAT, TBF and Barry Gold connections to Bain/ KB Toys and the Collusion to Defraud the Estate.
Then Laser Haas also learned that Scott Henkin of Fir Tree Value Fund had approved, “off the record” of the Barry Gold and Paul Traub connections.
Then Laser Haas discovered that MNAT, Barry Gold and TBF were also attempting another $100 million dollar cash fraud in the KB Toys bankruptcy case.
Then, Mark Kenney, the Dept of Justice attorney for the Region 3 Trustee, defended MNAT, TBF and Barry Gold by successfully getting the Delawre Federal Court to strike and expunge HAAS’s testimony.
You can see the written proof of this Obstruction of Justice Here
Then Laser Haas informed Lawrence Friedman of the additional perjury and fraud efforts with Mark Kenney’s overt acts of Obstruction of Justice.
Then Lawrence Friedman resigned (Please see Dept of Justice press Release here )
Also Frank Perch quietly did exit or resign at the same time.
Speciously, you will not find any press release by the Dept of Justice about Roberta DeAngelis promotion to General Counsel for the EOUST office in Washington DC. (you can see all press release by the Dept of Justice HERE
The Delaware Bankruptcy Court then held a hearing as the Wall Street Journal had reported on the TBF disgorge settlement HERE
The Delaware Bankruptcy Court visiting Justice Randolph Baxter refused Laser Haas new CLI counsel from speaking after Randolph Baxter allowed the parties to reschedule the CLI claims hearing, allowed CLI counsel to withdraw and did forbid the new counsel for speaking the very day Baxter did strike and expunge CLI and HAAS Court approved Senior Priority Admin claim for more than $3 million.
Then Haas appealed.
Then, speciously, after being silent for more than 6 months after TBF confessed to paying Barry Gold. The Court did enter an OPINION that vindicates TBF, MNAT and Barry Gold as the Delaware Bankruptcy Court, going into the Twilight Zone, stated that now perjury had been documented. Despite the Fact that the US Trustee had already testified to the Court that the US Trustee had warned the parties against violating the law where TBF And MNAT have already confessed to filing more than 34 false affidavits.
The Judge continued going off the deep end of logic with a 57 page Opinion that refused to refer the $300 million in fraud and perjury to the US Attorney’s office as is required by the Judicial Canon’s of Conduct ( specifically 3(B)3 ) and 18 USC 3057(a). (please see OPINION by Judge Mary F Walrath Here )
This is just as well, we suppose, with the newly discovered evidence that the US Attorney in Delaware, Colm F Connolly, was a partner with the MNAT law firm in 2001. Referring the matter to Colm Connolly office then did not matter as Laser Haas had been informing the Delaware US Attorney, specifically Asst US Attorney Ellen Slights and Deb for quite some time.
Now with the newly discovered evidence that Colm F Connolly was a partner at the MNAT law firm in 2001, when the fraud and perjury began (Please see Dept of Justice notice HERE )
Wherefore, Laser Haas realized a long time ago that the rule of Law was non existent in Delaware, as even the 3rd Circuit has stated that the Federal Rules of Appellate Procedure does not apply to Delaware Bankruptcy Cases (please see 3rd Circuit per curiam Opinion Here ) Where it says on page 7 that the Federal Rules of Appellate Procedure does not apply to this instant case.
Why even both with the mockery.
Just issue a nationwide Memo, all matter of Haas v eToys are prejudged against HAAS, QED!
Despite that readily apparent efforts of cronyism, to protect the Banrkuptcy Ring of Delaware, Haas did file a Citizens Complaint with the California US Attorney’s office Tom O’Brien.
Please see Citizens Complaint HERE
We were supposed to receive an answer from the US Attorney’s office of Tom O’Brien this week, the answer seems to have come in another form of message as the L A Times reported that last week Tom O’Brien did disband and dismantle the Public Fraud and Corruption Task Force.
More importantly, Tom O’Brien apparently threatened his own Asst US Attorney’s that if they revealed any other reason why the Task Force was disbanded, including bad mouthing their boss, that the Asst US Attorney’s would pay a penalty.
You can see the actual threat in the L A Times Store HERE
Upon receiving that news, Laser Haas began calling all the Asst US Attorney’s he could to get a comment.
No comment has been given, However, the Asst US Attorney’s did refer the matter “officially” to the FBI and the FBI did intake the information and has passed the case up the proverbial ladder within.
May it be that the FBI is really true blue and patriotic enough not to be corrupted by the Delaware and Washington DC corruption of Organized Crime referred to by Congress as a Bankruptcy Ring.
We will try to keep you informed.

Filed under: 1, Bankruptcy Fraud Dept of Justice Corruption, Crimes perpetrated in eToys | Tagged: eToys, fraud, MNAT, TBF, Corruption, DOJ, cronyism, bankruptcy, perjury, justice, connolly, colm, criminal, organized, crime, attorney, laser, haas | 2 Comments »

DOJ efforts to cover up MNAT perjury and Fraud now receives national attention

Posted on March 5, 2008 by laserhaas
The Law firm of Morris Nichols Arsht & Tunnel (MNAT) has confessed to filing multiple, false, Rule 2014 and Rule 2016 affidavits, in order to be paid millions in fees in the eToys case.
.MNAT was the Court approved counsel for the Debtor of eToys. Traub Bonacquist & Fox (TBF) was the court approved counsel for the creditors of eToys.
Barry Gold was the “wind down coordinator” , then President, CEO and now Plan Administrator of eToys.
.The Law firm of TBF also confessed to filing multiple, false, affidavits to the federal court in eToys.
Today we focus on the issue that has gained national attention recently, as can be seen at the WSJ Law Blog here
Where the Wall Street Journal noted that the Wilmington Journal had begun to review the serious issue that Congress is intent upon looking into Delaware Courts bias decisions that disfavor the public shareholders and bless Executive or inner circle elite. ( to see the Wilmington Journal article here )
What is at stake is Delaware’s dominance of corporation filings that has blossomed into a Delaware bankruptcy Courts and attorney bonanza at the expense of the public at large by rulings contrary to Congressional mandates and common decency.
It was not my desire to be at odds with rogue personnel within the Dept of Justice. (at least we hope they are a rogue element and not the norm). Nor was it my desire to pick upon powerful, esteemed elites of MNAT, TBF or US Attorney Colm F Connolly.
To the contrary, my desire is that this all go away with proper remedy.
I did not seek their incarceration or demise, however, they cannot steal from a company I was sworn to protect, whether they take away my right to be paid or not, the fiduciary duty Remains!
It is their arrogance and belief that they are Above the Law, that shall either assure their success in the criminality or assure their demise.
However, they, MNAT, TBF, Barry Gold and the rogue personnel within the Justice Dept, choose little ole me (actually I am a big person :0) ) as the enemy worthy of their disdain and efforts for destruction.
My own attorney, Henry Heiman, a former Trustee in Delaware, after I had been offered inducements, warnings and more, where Heiman, feeling no worries, due to the “good ole boys” network in Delaware, Heiman emailed me a threat from Susan Balaschak of TBF. That if I did not back off, not only would HAAS and CLI not be paid, my career would end and they would come after me.
My response was to blow the whistle. While many said I should have found a way to take the $800,000 bribe and adapt my views. Be the silly person I am, I reported the bribes and threats to the Dept of Justice.
This blowing the whistle, initially, resulted in confessions. TBF and MNAT confessed to filing multiple, false, affidavits to the Courts. (more than 35, to be exact).
TBF confessed that Barry Gold was his paid associate, that TBF had paid Barry Gold four (4) separate payments of $30,000 each.
TBF, MNAT and Barry Gold also confessed that they drafted a Barry Gold Hiring Letter.
The Hiring Letter contains language that rewards Barry Gold if he does not apply to the Bankruptcy Court for persmission to be hired.
The reason the parties drafted the clandestine Hiring Letter (the letter remained hidden until Jan 25 2005 even though it was signed in June 2001) where MNAT, TBF were warned by the US Trustee’s office not to violate Section 327(a) of the Bankruptcy Code. (the US Trustee testified to this in the Motion to Disgorge TBF for $1.6 million on Feb 15, 2005, eToys docket item 2195) as they were warned not to do a crime, the only chance they had, to get away with crimes, that were already ongoing, was to seize control of the entire estate. The Hiring Letter would have guaranteed their success, if they had not chosen to stiff HAAS and CLI just because they had the power to do so.
The issue at hand for Delaware Courts, MNAT and the US Attorney, Colm F Connolly. Is that, despite the confessions, the Disgorge Motion and Stipulation to Settle, never, Ever, mentions MNAT. This testifies, as prima facie evidence, being an actus reus act in and of its own existence, to the very fact that MNAT is enjoying a spirit of no prosecution.
The Stipulation to Settle is an ILLEGAL document,
where the Dept of Justice in Delaware, apparently in an effort to protect MNAT, has given TBF improper, Illegal, permission to Circumvent the Code. This implies that willful circumvention of a Code or Rule, a crime in any sense of the word, has become systemic in Delaware.
The exact words in the Stipulation to Settle, flagrantly defy the Code/Rule of Law and the Dept of Justice’s fiduciary duty to the public and the courts.
WHEREAS The United States Trustee shall not seek to compel TBF to make additional disclosures
Every counsel in the world can tell you they would LOVE for such a clause to be legal. In essence that clause and setting the precedent that such is permitted, single handedly, wipes out the statutes and intent of Congress.
We do not have to prove anything else in this case, that clause, documents, by the Dept of Justice own signature, the intent to willfully circumvent the Code.
In re Middleton Arms Ltd Partnership 934 F.2d 723 (6th Cir 1991) has been affirmed by the US Supreme Ct and the 3rd Circuit. “courts cannot disregared the clear and “unambiguous” mandate of Section 327(a)”.
When any non disclosure of conflict of interest is discovered, after the fact, the Courts must disqualify. Not is not even within the authority of a Federal Justice to Circumvent the Law. Because that is called, in any public citizens realm, Breaking the LAW!
Bonds, Martha and Clemens are citizens who made a false statement and all are paying through the nose for such self protection efforts.
MNAT, TBF, Barry Gold, Colm Connolly, Mark Kenney, Roberta DeAngelis, Kelly B Stapleton, Andrew Vara and anyone else in this case are “officers of the court” and thereby are held to a higher standard. They are given their esteemed levels of trust and above average pay days, due to the fact that they are required and swear an oath to be of the highest integrity.
When they violate that level of trust, the crimes or heinousness of the highest kind. Again, it is their arrogance and Abuse of power that is the testimony of their character. I am just the messenger.
Now Colm F Connolly is nominated to be a Delaware District Court Judge. Where Connolly’s resume became public information. By revealing that Colm F Connolly was a partner at MNAT in 2001, many ethical questions are automatically obvious.
Why has Colm F Connolly’s office refused to investigate MNAT?
Why has Colm F Connolly failed to refer the MNAT matter to the Public Integrity Section as is required by Dept of Justice protocol when the US Attorney has any connection, whatsoever, to an issue?
Did Colm F Connolly assign a case number to the issue, as the protocol of the Dept of Justice mandates, when more than one hour of time is expended on an issue?
MNAT, TBF and Barry Gold are utilizing the Stipulation to Settle permission to circumvent the law to keep quiet about the MOST important issue. Barry Gold, TBF and MNAT all have “undisclosed” connections to Bain/KB Toys.
MNAT, TBF and Barry Gold all negotiated the sale of most of eToys assets to Bain/KB. This is Collusion to Defraud an estate.
It breaches their fiduciary duties to their respective clients, it breaches their Oaths, Declarations and Affidavits to the Court and violates Model Rules of Condcut, SarOx, SEC Regulations, Delaware State Corporate Law and many other platforms.
It is THE most serious betrayal of trust that can occur. For MNAT, TBF and Barry Gold “sold out their client for their own benefit”.
Colm F Connolly, Mark Kenney, Roberta DeAngelis, Kelly Stapleton, Andrew Vara and everyone else knows the LAW and their fiduciary duties are to the public and the Constitution.
We do not have to prove the benefit that the Dept of Justice personnel received in their efforts of nolle prosequi (refusal to prosecute).
The failure to prosecute obvious criminal acts and the overt manner that the Justice Dept has engaged upon, in order to defend the criminality and punish this whistle blower, speaks for itself.
It is plain dumb, to continue this charade any further. It is obvious that they have reached the end of their power center. If they desire to mitigate their own demise, it would be wise to effort a honorable remedy now, to demonstrate good faith.
All their calls to the WSJ to shut down my statements had to send a message that things are heating up.
Senator Biden was informed of this stuff for years. He is at risk also.
They are the ones who choose to go all or nothing, when they already had it all, they could have given back a little, to everyone and made this issue go away.
Instead, they used their power and influence with the Dept of Justice and the Delaware Courts, going TOO FAR!
They have stolen a public company and even if you toss out Bankruptcy Code and Rules, by Delaware’s own Corporate Laws, the sale of assets is rescindable, as it fails the “bona fide” requisite.
The push, the hard push, to make Colm Connolly a Judge, is that he then, cannot be removed, unless he is impeached.
If Delaware wants cronyism as the main character trait within its Systems, it will get what it asks for!
However, the fact remains is that this is multiple cases, multiple years, multiple parties, multiple states, involving hundreds of millions of dollars. All being done contrary to the Law.
If this was a powder substance instead of the stroke of a pen, it is obviously Racketeering. Because they are doing such by abuse of power and you have yet to see a body in the streets, some are inclined to permit the leniency.
It is obvious however, that those that desire leniency are not the ones who lost their money in eToys.
When the RICO efforts involve those the country pays salaries of $100,000 or more per year, to defend us from racketeers, then you do not have the law, you have anarchy and cronyism.

Filed under: 1 | Tagged: bankruptcy, colm, congress, congressional, connolly, Corruption, Courts, cronyism, disgorge, disqualification, eToys, fraud, integrity, justice, MNAT, OGE, OIG, OPR, rings, sanctions, TBF | No Comments »

Law Blog Pro Se battles includes fights against corrupt DOJ

Posted on February 11, 2008 by laserhaas
In Shawshank Redemption, one of the Law Blog’s favorite buddy flicks, there’s a plot-line in which Tim Robbins - who plays the wrongly-convicted accountant, Andy Dufresne (pictured) - uses his education to help fellow inmates — Laser Haas utilizes this well published Blog issue to legal counsels to point out manifest injustice
read more | digg story

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Concise statement of the criminality and DOJ efforts to cover up!

Posted on February 11, 2008 by laserhaas
Justice Dept rogue personnel cover up $300 million in fraud and 40 acts of perjury!
The Law firms of TBF and MNAT have confessed to supplying the Delaware Federal Courts with more false affidavits concerning non-disclosure of conflict issues! (Though they are coy about it being 40 acts).
The United States Attorney resource manual stipulates that US Trustees are appointed to police bankruptcy Courts under 28 U.S.C. § 581. They are obligated to report criminal offenses and assist prosecutions by 18 U.S.C. § 3057(a); 28 U.S.C. § 586(a)(3)(F). Such is a mandate, not discretionary.
Although the statute requires DOJ to police and prosecute mendacity, the Justice Dept personnel in Delaware are staunchly refusing to prosecute inner circle elite law firms and the US Attorney in Delaware has failed to disclose his connection to the MNAT law firm. While the courts are willfully blind.
This criminality is compounded by the fact that the US Trustee has reported in the Motion to Disgorge TBF $1.6 million, that the US Trustee office warned the parties against violating the non-disclosure and conflict of interest laws in the eToys bankruptcy case. This demonstrates the quest/intent to do immoral.
Despite the authoritative warning, TBF and MNAT conspired to place Barry Gold within eToys without disclosing that he was a paid associate of TBF. MNAT and TBF drafted a clandestine Hiring Letter that rewarded Barry Gold if he choose not to seek the Court’s approval of his hiring. At which time he became President and CEO of eToys. This is willful, conspired, circumvention of the Court and Code.
At the same time MNAT, TBF and Barry Gold negotiated the Sale of eToys assets — for discounts in the tens of millions — to their regular client Bain, as Bain owned KB Toys this was collusion to defraud
Inexplicably the attorney for the new US Trustee voided the Disgorge Motion of TBF by the Asst US Trustee giving implied, blanket immunity, while permitting TBF permission to circumvent the Law.
All Senators and Congressmen should be aghast as we complained to the EOUST in Washington DC, he resigned and the Asst US Trustee who drafted the Disgorge Motion resigned as well.
The list of crimes that the Stipulation seeks to cover up include:

Ø Perjury, as 40 separate false affidavits were “intentionally” supplied to the CourtØ Scheme to Fix Fee’s as TBF caused eToys to pay Barry Gold instead of TBFØ Collusion to defraud the Estate as MNAT, TBF & Gold sold eToys to their client BainØ Intimidation of Victim/Witness as TBF and others warn the whistle blower to “back off”Ø Obstruction of Justice as TBF, MNAT and Gold submitted a false document to defraudØ Willful circumvention of Code or Rule as MNAT, TBF and Gold signed the Hiring LetterØ Failure to declare $2 million in cash deposits by Exec VP of eToysØ Vote rigging of the Plan of eToys by non-disclosure of claims acquisition by insiders Ø Misprison of a Felony, as all law firms refused to report the malfeasance to the CourtsØ Breach of Fiduciary duties, as all firms are busy defending each other, at harm to clientsØ Racketeering as this involves several cases, several states, several years and many firms
As morose as the aforementioned acts are, the germane issue of great consequence is that the parties are so entrenched in their ability to corrupt the system. Key personnel of the Dept of Justice, the SEC and US Attorneys office have resigned rather than fight the inexplicable, power and influence.
The criminality remains overwhelmingly readily apparent and irrefutable as Court docket records. Even the Chairman of the Creditors Committee has supplied affidavits of the deceits. The amount of willful blindness and overt complicity by theDOJ in the refusal to prosecute has made the Justice Dept complicit in organized crime. The US Trustee is not only refusing to officially refer the matter for prosecution, the DOJ is utilizing Taxpayer dollars as an appellee, aligned with the fraudulent parities asking the courts to expunge[defraud] the whistle blower! Mocking justice “ad hoc”!
Senators, Congressmen, Counsels and US Government agencies should be aghast at the shere audacity and boldness of the Delaware Federal Court and Justice Dept personnel who would dare abuse the due process and assault our Constitution in such a flagrant manner mocking justice. As the recent Circuit Court opinion stated that the Fed R App Proc do not apply to our case. If the courts can throw out the Law openly, what is going on behind closed doors.
This remains an issue of national importance, we thank the entities of and for assisting the efforts to be concise and efforts to fax (daily) the issues to Congressmen , US Attorneys and persons of interest and accomplishment in efforts to halt the anarchy that seeks to devour our system of justice as its own personal vault to fleece America!
Additional details can be seen at our other blogs such as
———–Laser Steven Haas

Filed under: 1 | Tagged: eToys, fraud, interest, Bain, KB, MNAT, bankruptcy, perjury, justice, deangelis, conspiracy, collusion, conflicts, Court, Circuit, Kenney, criminal | No Comments »

US Attorney refuses to prosecute $300 million fraud of his former Law firm MNAT that works for Romney’s BAIN entity

Posted on January 1, 2008 by laserhaas
We proved $300 million in fraud and perjury.
You can see additional information at
The Law firms of TBF and MNAT have confessed to supplying over a dozen false affidavits to the Federal Delaware Court. Despite the confessions to acts, that are Perjury, the Dept of Justice has declined to prosecute for several years.
More amazing is the fact that rogue Justice Dept personnel have actually sought, by overt acts, to give clemency to the fraud. Now it is discovered that the US Attorney in Delaware, Colm F Connolly was a partner at the MNAT law firm in 2001, when the $300 million in perjury and fraud began. At that time Mitt Romney was still a managing partner and owner of Bain.
Now MNAT represents Bain in the KB Toys bankruptcy where Bain and Michael Glazer paid themselves $100 million in cash before KB Toys filed bankruptcy.
You can see many online affidavits, including a WSJ story about the implied blanket immunity as well as resignations by Justice Dept officals at and and the new study given to Congress on Bankruptcy “rings” of Cronyism and corruption at
This email was received when we had only discovered 20 acts of perjury and 1/3 of the fraud issues
<TABLE cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD style="PADDING-RIGHT: 0px; PADDING-LEFT: 0px; BORDER-LEFT-COLOR: #ece9d8; BORDER-BOTTOM-COLOR: #ece9d8; PADDING-BOTTOM: 0px; WIDTH: 100%; BORDER-TOP-COLOR: #ece9d8; PADDING-TOP: 0px; BACKGROUND-COLOR: transparent; BORDER-RIGHT-COLOR: #ece9d8" width="100%">From:
Date: 02/25/05 14:49:58To: ‘’Cc: Kelly.B.Stapleton@usdoj.govSubject: RE: Item sent to the record today

You most assuredly have our attention and my personal commitment that we will act in every case where action is required and we are aware of it. Please understand however, that like any prosecutor, we must exercise appropriate discretion in carrying out our responsibilities which while sometimes in a particular case may seem unjust, it is done with perspective to ALL matters we handle. I sympathize with your frustration and again assure you that my staff is extremely competent to handle this matter and will exercise appropriate judgment.

Lawrence A. Friedman, Director
Executive Office for US Trustees
United States Department of Justice
Washington, DC

Director Friedman did replace the Region 3 Trustee, Roberta DeAngelis and the Asst US Trustee, Frank Perch did motion to disgorge Traub Bonacquist & Fox (TBF) for $1.6 million.

Then, less than 10 days later, right after we receive the email of assurance from Lawrence Friedman, even after confessed acts of false affidavits, Perjury violations that benefits fraud, the US Attorney Mark Kenney for the New US Trustee, Stapleton, puts in a motion to give clemency to the Perjury and immunity from disclosing all other acts of fraud. When we research why and discover and additional $200 million in fraud and inform Director Friedman,
he and Asst US Trustee Frank Perch resign, we also inform Debra Yang and Alberto Gonzales, they resign also, while the SEC Bankruptcy Fraud Div, Gordon Robinson, states that Mark Kenney instructed the SEC to refrain from sending an official Intergovernmental Letter for Official Investigation.

Now, we hope His Honor Mukasey, though he had no idea rogue elements such as Craig Morford and Colm F Connolly, were being unethical and DeAngelis, Kenney, Stapleton and others have gone beyond unethical, into the realm of using taxpayer dollars to defend organized crime. We hope His Honor Mukasey will stand tall against corruption. Only time will tell.

[SIZE=+0]This Letter was over nighted to His Honor Mukasey as person from around the country and around the world are now contacting us about Bain, Romney and other frauds that are likely to be good candidates for a new entity formed by a group to report fraud and corruption, that includes the former managing editor from the Wall Street Journal at[/SIZE]
December 31, 2007

His Honor Michael B. Mukasey
U S Attorney General
Department of Justice
950 Pennsylvania Avenue,
NWWashington, DC 20530-0001
Dear Attorney General;
This letter is to inform you of the many complaints against fraud and corruption within the Dept of Justice, specifically related to the Federal Bankruptcy issues in Delaware.

The Director of the EOUST replaced the Region 3 US Trustee, Roberta DeAngelis on Dec. 22, 2004 as Trustee over Wilmington DE. We had direct correspondence with Mr. Lawrence Friedman who assured us that the matter would be handled.

On Feb 15, 2005 the Asst US Trustee Frank Perch then did place in a Motion to Disgorge Traub Bonacquist & Fox (TBF), for $1.6 million. This is attached with this letter as “Exhibit 1” (D.I. 2195). The Asst US Trustee has testified, multiple times, that he had discussions with the officers of the courts in the eToys bankruptcy case (Del 01-706), as he specifically warned TBF and the Debtors counsel, Morris Nichols Arsht & Tunnel (MNAT), against breaking the law of § 327(a) and Rule 2014 of the bankruptcy statutes.

Despite this warning the Law firm of MNAT and TBF, along with other parties did draft a Hiring Letter for Barry Gold (a direct paid associate of TBF [confessed]). This Hiring Letter was kept hidden, in a clandestine manner, as it directly ignored the caution of Frank Perch as Asst US Trustee. The Hiring Letter is already in the court docket record of eToys as docket item 2169 and is attached here as “Exhibit 2”.

It specifically gives Barry Gold, under the “guise” that he is arms length, permission to Circumvent the Code and the Court. While it proves, conclusively, Scheme to Fix Fees (18 USC 155 Janet Reno Reform Act of 1994), it becomes a full blown “conspiracy” to perpetrate “fraud on the court” by “officers of the court” as they were [fore]warned and then did the subterfuge in a “collaborative” manner.

Less than ten (10) days after we were told by Director Friedman that the matter would be handled, the attorney for the “new” US Trustee, Kelly B Stapleton, then did sign a letter giving implied clemency to the admitted acts of perjury and fraud. The Stipulation to Settle is eToys docket item 2201 and is attached here as “Exhibit 3”. It contains the following [obvious] illegal clause,

WHEREAS the United States Trustee shall not seek to compel TBF to make additional disclosures; “

Then, documenting that the clemency is totally erroneous and destroyed any “sufficient deterrent” value, Paul Traub of TBF then perpetrated another $100 million fraud in the KB Toys bankruptcy case in Delaware. (04-10120) Where Mark Kenney stepped up to the plate and defended the fraud and obstructed justice by asking the Court to strike and expunge us. (KB Toys D.I. 2228). This is attached as “Exhibit 4”.

Immediately thereafter Asst US Trustee Frank Perch and Lawrence Friedman resigned from their office. Other resignations connected to this case include Debra Yang of the Corp Fraud Task Force, Ellen Slights as AUSA in Delaware, Gordon Robinson of the SEC Bankruptcy Fraud Division and your predecessor, Alberto Gonzales, who we informed, right prior to his resignation, about knowledge of his complicity in promoting the removed Roberta DeAngelis to the post of General Counsel of the Dept of Justice EOUST office. DeAngelis and Kenney are now involved, in the criminal conspiracy, asking the 3<SUP>rd</SUP> Circuit Court, (case 07-2360) to dismiss the case, while they defend their efforts to give clemency to the fraud and perjury.

Finally, just a few weeks back, we placed in the Public Record out here in California, the newly discovered evidence that the US Attorney office in Delaware, Colm F Connolly, whose office has refused to prosecute the affair, is also guilty of bad faith acts and non disclosure. Colm F Connolly was a partner with the MNAT law firm in 2001 when the fraud and perjury began. Over $300 million, all Court Docket record proofs, of fraud has occurred that benefited Bain.

The US Sup Ct decision In re Hazel Atlas Glass (1944) has been affirmed by the 3<SUP>rd</SUP> Circuit and states, specifically, that there is no statute of limitation of Fraud on the Court by “officers of the Court”. We have also attached a copy of the clocked item given to the US Attorney’s office in California.

This mess and corruption of the Dept of Justice is most certainly a rogue element, not of your making. We hope and pray that you will not resign, as the others have, who have chose discretion rather than valor. We seek the American spirit of Truth and Justice. Hoping, earnestly, that you are the person who will stand tall against corruption.
Testified to you this dayUnder penalty of perjury Steven Haas (a/k/a Laser) 100% owner Collateral Logistics Court approved consultants of eToys

Filed under: 1 | No Comments »

Criminal acts exposed

Posted on December 28, 2007 by laserhaas

1. Quoting the US Trustee in their response to Robert Alber’s initial brief, this appeal involves a core proceeding (as defined in 28 U.S.C. § 157(b)(2)) arising under title 11 of the United States Code, over which the United States Bankruptcy Court for the District of Delaware had jurisdiction pursuant to 28 U .S.C. § 157(b)(1). The United States District Court for the District of Delaware had jurisdiction over Appellant Robert K. Alber’s appeal from the bankruptcy court’s October 4, 2005 order pursuant to 28 U. S.C. § 158(a)(l), as it was an appeal from a final order of the bankruptcy court. Mr. Alber timely filed a notice of appeal of the district court’s February 27, 2007 final order dismissing his appeal to the district court. Accordingly, this Court has jurisdiction over Mr. Alber’s appeal pursuant to 28 U.S.C. § 158(d). This Writ also states such as well as various other, serious issues, that make the instant appeal a matter that this honorable body needs to address at the request of this “pro se” petitioner Steven Haas (“Haas”), the Court approved liquidation company sole owner whom the bankruptcy Court also gave standing[1] to.

II Extraordinary Circumstances dictating the need for Writ of Mandamus

2. This Emergency Motion seeks a Writ of Mandamus that may be utilized when the system refuses to address matters of recusal or comply with unambiguous statutory mandates of disqualification. Fraud is continuous, even today, in eToys and the authorities thus far have engaged in staunch acts of “nolle prosequi”. A Writ of Mandamus[2] is “drastic remedy that a court should grant only in extraordinary circumstances in response to an act amounting to a judicial usurpation of power” (In re: Mwanze, 242 F.3d 521, 524 (3d Cir. 2001)). This court has jurisdiction and is about to make a decision in the eToys case that is germane to Emergency[3] issues and this Court should be informed of the facts documented below to avoid any further wasting of the Court’s efforts of justice. It is imperative to inform the Court that serious criminal “defensive” posturing is occurring in a possible effort to pervert justice for the benefit of “unclean hands”. They are doing preemptive efforts to thwart the appeal outcome Jan 2nd.

3. This Circuit has addressed the issue of “bankruptcy rings” before. (In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986)). This Circuit remarked upon the fabric of the stabs to clean up errant efforts, after the fact, to circumvent the Code, concerning offending applications of § 327(a) and Rule 2014 affidavits. This Circuit remarked;

“[W]e reject the notion that a complete and thorough post-application review may substitute for prior approval in most cases. This approach would render meaningless the structure of the Bankruptcy Code and Rules, which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”.

4. It is undisputed that errant, false Rule 2014 affidavits[4] have occurred. This instant appeal originates from disputing the US Trustee signing of a Stipulation as the Court refused to disqualify parties who admitted mendacity. The illegality being readily apparent as the Court and US Trustee seek judicial usurpation of powers by the Court approving an illegitimate clemency clause;

WHEREAS, the United States Trustee shall not seek to compel TBF to make additional disclosures

5. There is no legal basis for the Bankruptcy Court to use such “clause” as a qualitative or quantitative measure of “judicial usurpation” of the integrity of the judicial process. Chiefly important, manifest injustice is continuous, within the jurisdiction of this Circuit by willful blindness, “pretense” and “color of law”, benefiting a “bankruptcy ring” that is becoming incestuous organized crime within the Delaware court system.

6. The Matter of Arkansas was concerning a much less ruthless effort, being a “nunc pro tunc” employment, yet this Circuit felt it necessary to remark upon Cronyism and “bankruptcy rings” in the Arkansas matter to send a clear message and warning that the Circuit was aware of such nefarious possibilities, so that those that would engage in any efforts of end runs around the law and the Court’s auspice would think twice. Where this Circuit specifically remarked;

It is significant that Congress chose to place the requirement of court approval for the employment of an attorney, accountant, or other professional by the creditors committee directly in the Bankruptcy Code in 1978. 11 U.S.C. § 1103(a). 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 “in 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 5963, 6053”

7. On Dec. 14, 2007, this Circuit scheduled the mattes for Trial on January 2, 2008. Then on Dec. 18, 2007 a motion by the “planted” party of Barry Gold[5] who has implied he will, or has, withdrawn as CEO/ Plan Administrator occurred. The perpetrators and Mr. Gold are seeking payment of legal defense funds, at the same time the KB Toys case[6] (which owes the eToys Debtor tens and maybe hundreds of millions) is rushing to a close, while the NY Supreme Court trial of tens of millions remains in serious question of fraudulent peril.

8. The Asst US Trustee testified to the fact that the parties sought permission concerning placing a connected party in as sole bankruptcy authority. Despite the warning the counsel for the Creditors and for the Debtor placed a connected party in as a “wind-down coordinator” (Barry Gold), who has been the Plan Administrator since November 2002 till present. Now the parties seek to maintain control by ruse[7] in replacing Mr. Gold.

9. While this movant does not desire to interrupt the current proceeding that is scheduled for January 2, 2008. Such may be necessary, at least for a few days, to give opposing parties the chance to respond. The fact remaining is the US Trustee and the other appellee’s have refused to give this movant [Haas] proper notice, repeatedly, even after being forewarned[8] against such malevolent behavior. The perpetrators are in total, nefarious control of the estate, within and throughout, seeking to maintain safe control.

10. It is a fact, not in contention, that the Creditor and Debtor’s counsel have confessed to supplying, multiple false Rule 2014 affidavits to the bankruptcy court[9]. The counsels submitted monthly items to the Court and have provided over 19 false affidavits. Including two (2) false testimonies by the Plan Administrator. Yet, despite Court docket proofs of this perjury, the US Trustee and the bankruptcy court have stated no perjury has been documented being contradictory to its own Opinion[10] while approving the US Trustee’s clause. Once one confesses of perjury nothing they say has value or verity.

11. This instant appeal also concerns the issue that no disentitlement has occurred as the bankruptcy court went on the record in the Opinion of October 4, 2005 refusing to disqualify,[11] also refusing to refer the matter to the US Attorney’s office. Now the parties seek to pull a fast one on the Circuit’s authority by replacing the Plan Administrator with a party hand picked to assure the continued success of their schemes.

III Issues presented

12. In the current debate of whether the district court abused its discretion in dismissing Mr. ALBER’s appeal under Poulis, multiple parties requested to amend the appeal concerning Steven Haas (a/k/a Laser) (hereafter referred to as “Haas”) and the parties sought also to amend the appeal headings concerning Kelly B Stapleton. MNAT law firm has specifically named Haas specifically in the MNAT cross appeal[12] of 05-831.

13. This Court denied requests to amend parties, yet the parties of the US Trustee and various appellee’s have refused to serve “proper” notice to party Haas. Haas notified the appellee’s, when Haas sent out the Haas response brief in this instant appeal, warning the appellee’s not to ignore Haas, or any other parties of interest[13]. That setback now presented, Haas also brings to this Court these other issues as well, for review,

a. Does Haas have standing as person aggrieved and/or appellee

b. Must the parties give notice to Haas and abstain from bad faith

c. Under Fed. Rules of Evidence - Judicial Notice 201[14]

1. Was Barry Gold required to apply per § 327(a)

2. Is the US Trustee Stipulation to Settle circumvent of 327(a) valid

3. Did the Bankr. Court errs in stating no perjury occurred.

4. Did the Bankr. Court err in stating no disqualification

5. Did the Bankr. Court err in refusing to refer to the US Attorney

6. Did the Bankr. Court err in denying Haas standing

7. Did the Dist Court err in dismissing Robert Alber under Poulis

8. Will this Court void Barry Gold, ab initio, per 327(a) or Plan 5.2

9. Was the Ordered response of January 25, 2005 a total come clean

10. Will this Court rule that “fraud on the court” has occurred, intentionally and make official referral to the US Attorney office

d. Can this Court order that Haas or CLI be Plan Administrator in place of the voided Barry Gold, for the sake of rectifying fraud & the Plan protection[15].

e. Due to the abundant skullduggery overwhelming documented; will this Court maintain authoritative watch over the case or Order a change of venue to assure integrity of the judicial process, including the “extraordinary” method of “Quo Warranto” as this criminal conspiracy warrants.

f. Will this Court take notice that the Plan has extraordinary circumstances that exists that the Debtor’s estate can be made whole by a comfort order

IV This brief is submitted by Oath “under penalty of perjury”.

14. These facts are brought to you this day, by Steven Haas (a/k/a Laser Haas) (hereafter referred to as “Haas”). Whereby I, Steven Haas, this 26<SUP>rh </SUP>day of December 2007, “under penalty of perjury” testify to all items above as well as the following items below;

15. Accordingly the questions that we pose to you, or any reader of this criminal saga, shall simply be, - do you mind? Does one mind that officers supplied the court with sworn affidavits that were false, intentionally? Does one mind that the Dept of Justice has chosen to crush a whistle-blower while defending the perpetrators of fraud instead of protecting the public’s trust as they are sworn to do[16]? Are you incensed by the fact that the Court itself, sought to be lenient on behalf of well-established colleagues[17]?

16. Is it upsetting to know the bankruptcy court’s leniency is complicit in defrauding creditors and whistle-blowers[18]? Can anyone sit inactive while our system of justice, the US Trustee’s bureau and US Attorney’s office engage in a cover up that seeks to keep every authority from knowing that their acquaintances are involved in a plot of $300 million in fraud? Where the “police” of the Courts are defending versus arresting malfeasance as a “syndicate” has reared its ugly head and dares anyone to question why!

17. They have given implied, blanket, immunity to their well-established colleagues! Is this mockery of justice to continue? Can we stop people who state, with legal fraud, that they are Above the Law? Can we stop Organized Crime in our Courts?

V Background and Statement of the War of Fraud

A simple desire to destroy books n records and the next thing $300 million disappears.

18. One is bound to be astonished, and cynical, at the same time. The amount of subterfuge in the eToys saga makes it necessary to present this chronicle in a manner that will cure the doubter within. Haas is “pro se” after having hired eight different counsels, (even though the Debtor’s estate is contractually obligated[19] to provide defense), where all counsels refused, despite 18 USC § 4 MisPrison and 18 USC § 3057(a), firmly declining to report fraud on the court, by officers of the court, to any authority. As a result Haas and CLI was an abandoned client and was forced to become “pro se”.

19. It is a moral & legal imperative that verification of the facts occurs. (To assure the purity of the System of Justice). Self-dealings, being illegal, are profuse[20]. They are enjoying the qualm that such cannot be, taking advantage of the unwillingness to hear.

20. It is necessary to review the three key court docket items,[21] the US Trustee and Bankruptcy Court provided, which will substantiate the actual criminality and a give anyone all the tangible evidence needed to know something is seriously wrong.

21. The firm of Morris Nichols Arsht & Tunnel (MNAT) was the Court approved counsel for the eToys bankruptcy case in Delaware (Bankr.# 01-706) (the “Debtor”). The firm of Traub Bonacquist & Fox (TBF) was the Court approved counsel for the Official Committee of Unsecured Creditors in eToys. The firm of Collateral Logistics, Inc., (CLI) was the Court approved, “sole” liquidation consultant of the Debtor. (Haas is the 100% sole owner of CLI). Robert Alber is an eToys public equity shareholder. The Post Effective Date Committee (the “PEDC”) is the court approved Plan committee.

22. Abundant proofs of vast felony violations, including $300 million in fraud & voluminous acts of perjury (several acts already confessed[22]), have already been documented by the Bankruptcy Court[23]. The lawful authority[24] of the system has become void and rogue parties of the system making efforts to cover up an OOPS are now caught!

23. The management team that had originally formed eToys and went public in 1999 decides to file bankruptcy in 2000 and then declared that they were going to vacate the estate. The Court approved an Order to destroy[25]books n records” (D.I. 300) after the eToys Debtor filed bankruptcy around March 7, 2001, leaving a void by a paperless trail.

24. Thus you have an uncanny situation where the Court should appoint a US Trustee; in opposition, Delaware is notorious for its disinclination to do so. Paul Traub the founder of Traub Bonacquist & Fox, as counsel for the creditors, being an opportunist, seized upon this perfect scenario as a pioneer of coarse ways to take advantage of the bankruptcy system. All the evidence of Court docket records demonstrates that TBF continuously became more brazen and flagrant[26] in disregard of § 327 and Rule 2014.

25. The fact is they (TBF & MNAT) admitted to acts of filing false Rule 2014 affidavits in eToys[27], stating, in a cheeky[28] manner, that it was inadvertent. While fiendishly the truth is they admitted to a small amount of illegal acts, as they continuously remain silent about $300 million in fraud. They are also unfettered in major threats of retaliation, obstruction of justice and racketeering because of implied immunity[29].

26. The Asst US Trustee originally responded with a Motion to Disgorge[30] TBF. Which was then inexplicably followed by a Stipulation to Settle, by Mark Kenney (the attorney for the US Trustee). Additional fraud occurred in the KB Toys case, in March 2005, that Haas whistled upon, as TBF had threatened Haas to “back off” or CLI would not get paid and that Haas and/or CLI would suffer additional retaliations[31].

27. The eToys Bankruptcy Court then retaliated, expunging and dismissing Haas & CLI, wiping out CLI/ Haas’s Senior priority admin claim for $3 million. That Haas did appeal in September 2005. The bankruptcy court then issued an Opinion and corresponding Order that approved the Stipulation to Settle on October 4, 2005.

28. Haas and Robert Alber immediately appealed this approval, while MNAT also cross-appealed. Multiple appeals, petitions for rehearing, including requests for en banc rehearing occurred, that were all dismissed without adjudication upon the merits of Haas, CLI issues or proper review of the matter of Fraud on the Court. (Many by Judge Kent A Jordan[32] which demands recusal under §455 and additional appeal rehearing).

29. Subsequently the most recent appeal currently being reviewed by this Court, as the Dist. Ct. used the extreme of a prejudicial Poulis Std., to dismiss Robert Alber, where the dismissal by Poulis, to be utilized last, is in debate as the Judge used it as a first.

30. Everyone, including more than four (4) parties from the US Trustee’s office have submitted briefs, response briefs and letters to this Third Circuit Court seeking to expunge Haas and Robert Alber, while the Justice Dept has refused to prosecute the case[33].

31. The lack of action by the Dept. of Justice parties, (that have breached their fiduciary duties), are thereby forcing the question[34] of “Quo Warranto”! As the scheming parties of TBF, MNAT & Barry Gold can only succeed by ploy and plot, with the blind eyes of the police (US Trustee), as they are now conniving to replace the position of Plan Administrator with another of “their” own and justice dictates that this cannot be allowed.

VI. The 3 court documents that prove the intent to do a Cover Up

32. The proof of perjury and fraud is the Asst US Trustee’s Motion to Disgorge TBF for $1.6 million[35]. (The Disgorge Motion) (D.I. 2195 in eToys Bankr) (Feb. 15 2005).

33. The Asst US Trustee did not seek the mandatory disqualification, required by law and falsely concluded that a “planted” party by the Creditors attorney (Barry Gold) (a “wind down coordinator”) was kosher, being opposite to the Code mandates.

34. This false premise of stating Barry Gold was not required to apply per § 327(a) is a requisite in order to hoodwink inquiries[36] and to defeat Haas and Alber.

35. The Disgorge Motion occurred because Haas proved and Alber joined Haas regarding “undisclosed” conflict of interest existing between TBF and Barry Gold (as well as many other items of non-disclosure).

36. Then, less than 10 days later, on Feb 24, 2005, the Dept of Justice attorney, Mark Kenney, made that Disgorge Motion void impiously. Mark Kenney supplied a Stipulation to Settle, (D.I. 2201) to give new leniencies to TBF as it concluded that TBF only would pay $750,000 sanction for TBF’s transgressions, with abatement of disclosure.

37. This act to Settle can only be described as subversion to an oath of office.

38. Finally, the third document, that pulls the wool over the eyes of the public, is the Bankruptcy Court’s Opinion[37] of October 4, 2005 (D.I. 2319). That had a corresponding Order attached (D.I. 2320). Despite the fact that Paul Traub of TBF confessed[38] to the Court, in a March 1, 2005 hearing to multiple statutory violations, the court refused to disqualify or refer for prosecution. Even after TBF admits it paid Barry Gold four (4) payments of $30,000 each prior to TBF placing Barry Gold, in a clandestine manner, as the bankruptcy Court clearly errs in remarking no wrongdoing occurred.

39. The Opinion headed off Haas’s appeal stating the Court finds the no criminal acts occurred. (A statement made in comfort as everyone keeps striking and expunging Haas). Then the Court also remarked, in a flagrant manner of Mark Kenney’s Stipulation to Settle, that it refused to refer[39] the matter to the US Attorney’s office[40].

VII The Dept of Justice warned TBF not to violate Section 327(a) and 101(14)

40. Congress was aware that undisclosed conflicts are dangerous, which was affirmed by this Circuit, concerning the bankruptcy realm[41]. Therefore the Laws of 101(14)definition of disinterested person”, Code 327(a)Employment of Professional Persons” and the affidavit requisite, to confirm that a court approved professional is in compliance, Rule 2014, was formed to assure judicial as well as professional integrity. The Asst US Trustee Disgorge Motion stated that he [fore] warned the parties[42]. (D.I. 2169 ¶19 & ¶35). Yet the Disgorge Motion and bankruptcy Court Orders refuse to disqualify.

41. Despite an authoritative instruction against an obvious unlawful act, the parties nefariously conspired to commandeer control of the estate. Whereby both the Debtor and Creditor’s counsel (MNAT & TBF) drafted a clandestine Hiring Letter[43] (D.I. 2169) to place a connected party (Barry Gold of TBF) within eToys as the “sole” bankruptcy authority of the estate. They simply kept one exec on the payroll, to assure an appearance of a Debtor, (David Gatto) even though they were in essence, void of a client. The Hiring Letter documents duplication of CLI approved work by Barry Gold, who was a “wind down coordinator[44]” (an effort to flip flop on what duties he was performing).

VIII Dept of Justice refuses to prosecute confessed perjury and obvious fraud

42. As the Asst Trustee remarked upon in the Disgorge Motion, the US Trustee is charged with overseeing Chapter 11 cases within the Delaware Judicial District in accordance with 28 U.S.C. § 586. The US Trustee’s office was designed by Congress to protect the system and public from “bankruptcy rings” and cronyism. The US Trustee is the “policing” authority of Chapter 11 bankruptcy matters as the Disgorge Motion pointed out in referencing Morgenstern v. Revco D.S., Inc. (In re Revco D.S., Inc.), 898, F.2d 498, 500 (6 th Cir. 1990) (describing the US Trustee’s office as a “watchdog”).

43. When we shouted and screamed to all the authorities concerning the profuse frauds, the Delaware US Attorney, Mr. Colm Connolly’s staff failed to tell us then (3 years ago) that Mr. Connolly was a partner with MNAT in 2001, when the bulk of the offenses occurred. (It is perceptible that any honorable review of the facts, will kismet many).

IX Trustee warned them not to do wrong as Fraud begins with a Hiring Letter

44. The Hiring Letter was submitted into the record, three years after it was drafted, along with their confessions to false affidavits. (D.I. 2169) as many false items are verified by the Disgorge Motion (D.I. 2195[45]). The exact verbiage of the Hiring Letter circumvention of the Code by offers, states the following;

you shall retain such position – (i) the approval of your employment as an officer by Order of the U.S. Bankruptcy Court”–

That was then made invalid by a bold, willful, circumvention and inducement –

–you have waived the condition in clause(i) you shall be appointed as President and Chief Executive Officer of the Company –

45. At such time Barry Gold was then paid $40,000 per month (for two days work every two weeks) and a promise of a bonus at the end of the case if he chooses willfully to evade the auspice of the Court. (The letter was a scheme by TBF & MNAT).

46. So restrictive is the statutory requisite on disqualification it is beyond the flexible powers of a Federal judge to circumvent the mandate, as is confirmed by In re Middleton Arms, Ltd. Partnership, 934 F.2d 723 (6th Cir. 1991). This Circuit has affirmed that disqualification is a Code mandate when non-disclosure violations occurs.

47. The failure of counsels to not independently review disbursed million dollar preferential cash transfer items, is a crime. (In re Bucyrus 94-20786 (E D Wisc.) Matter of Gellene, Milbank & Tweed, Gellene imprisoned for perjury, total disgorgement of Milbank as they lost a $30 million lawsuit as a result of one instance of perjury to cover up a loan).

48. Allowing the parties who engaged in subterfuge to keep their $14 million in semi -approved fees in eToys is the least of the criminal acts that has occurred in this saga. The US Trustee attorney, Mark Kenney now allows the parties to keep control of the vault of eToys, which the parties have seized nefariously by duping the Court’s through perjury.

X The efforts of deny Haas standing are preemptory efforts to conceal Fraud

49. The Debtor was scheduled to hold an auction to sell the bulk of eToys assets to several parties in March 2001 for $5 million. Haas efforts helped the estate to accumulate over $45 million for liquidation assets. Instead of being appropriately compensated for such triumph, CLI is being punished as the good faith sale efforts -harmed the scheme to sell the assets to connected parties. TBF, MNAT & Barry Gold are all hiding, under the guise of immunity from disclosing clause; of their relationship to Bain that acquired the eToys assets. They are all also connected to Bain’s Liquidity Solutions[46].

50. MNAT, TBF and Barry Gold (TBF’s direct paid associate) refused to compensate Haas or CLI at the end of 2001 and entered a document into the record, (purportedly on behalf of CLI), entitled the HAAS Affidavit in November 2001. The Certificate of Service document proves that MNAT did not give notice to Haas and CLI[47]. 51. The parties had collectively discouraged Haas from seeking independent counsel for CLI; (as a cost saving benefit to the estate). The Court approved the Order that stated the paperwork of CLI would be supplied to the Court with the “assistance of Debtor’s counsel” while waiving Rule 2016. This is corroborated by the Court Orders approving CLI (D.I 253 & 523) and the multiple affidavits of the Chairman of the Creditors Committee. So every time the scheming parties mention that CLI failed to file paperwork, they are testifying against their own failure to perform a fiduciary duty.

52. The Chairman also testified within multiple affidavits[48], to the fact that MNAT, TBF and Barry Gold deceived the Chairman when TBF and MNAT placed Mr. Gold in as eToys “wind-down coordinator”. At all times Barry Gold was supplied by TBF, Traub stated Mr. Gold was as an “arms length” entity, unconnected to anyone, as another court approved, Xroads LLC submitted a bill stating[49], “ awaiting court approval of Gold”.

53. When the eToys shareholders questioned Mr. Gold about his TBF connections in a hearing on the Plan confirmation (transcript D.I. 1394). Mr. Gold denied[50] connections to TBF while on the stand and many in the room, (including the Dept of Justice), knew the statement was false at that time. Mr. Gold cemented the ruse by a Plan Declaration - Affidavit, where Barry Gold falsely stated, perjuring himself, that all the negotiations were done by “good faith” “arms length” parties (D.I. 1312) (Gold &TBF).

XI HAAS always had counsel until the Court expunged CLI in retaliation
54. From the time of the Haas Affidavit, once the defiant parties established goals in unethical behavior, until August 2005, Haas had engaged more than 8 counsels for CLI. All of who refused, despite the duty mandated under 18 USC § 4 MisPrison, to report the acts of non-disclosure of conflict of interest to the Court or US Trustee. During the August 2005 hearing where the Bankruptcy Court expunged the CLI and Haas Senior priority Admin claims, His Honor Baxter refused a new counsel from speaking (Transcript D.I. 2322) where Haas had to go out of the Delaware system and seek new counsel to put in a “pro hac vice” as Judge Baxter made all counsel efforts moot expunging CLI claims.
55. Haas had informed, continuously, Mark Kenney, (the Dept. of Justice, Wilmington DE, attorney for the Region 3 U.S. Trustee’s office), of the issues at hand. The responses by Mr. Kenney[51] were always dismissive until one day, in a fit of irritation; Mark Kenney did a “lapse linguae” as Mark Kenney stated that the conflict of interest issues of TBF & Barry Gold was resolved in the Bonus Sales case(DE Bankr 03-12284).
56. Researching how one case could cross collaterally solve the issues in another case led to the discovery of the Bonus Sales proof that inadvertently brought down their house of deceptive cards. Bonus Sales and the similar case of In re Homelife 01-2412 both had addressed the issues of TBF, Barry Gold their entity ADA and ineligibility due to conflicts of interest. TBF, Gold and Fleet Bank had already been addressed multiple times by the US Trustee. Fleet Bank remains a non-disclosed issue, even to this day, in the eToys matter by TBF and Barry Gold, along with many other “hidden” issues of the parties.

XII. The perpetrators are permitted retaliation as the Court expunges Haas

57. Enigmatically the Dept of Justice personnel, the perpetrators, and the Court’s, have stated that Haas does not have permission to bring the issues of Fraud on the Court to the attention of the Court. The haughtiness to infer that one needs permission to point out fraud is disgraceful! This illegitimate denial of Article III standing is disingenuous, having no basis in statutory Law. The ardent horde does take advantage of loopholes or ambiguity. (A policeman can refuse to halt a robbery, if your money is ??)
58. It is only through this “color of law” that the parties are able to dodge prosecution by denying Haas or CLI standing. This is despite the fact that the Court did approve the CLI contracts, which state the eToys Debtor is directly responsible for all labor and expense “to be paid for by eToys” (eToys D.I 253 & 523). Thus the nine (9) months of labor by Haas for eToys gives pecuniary interest. As well as Code 503(b) Substantial Contribution, if for no other contribution than that which has resulted in the disgorgement of $750,000 that TBF has agreed to pay. Courts are required to give adjudication upon the merits of § 503(b)[52]. It is reprehensible unfairness, the worst manifest injustice that one could perpetrate, to punish a whistle-blower, while parties gain by collusion and perjury –(thus far there has been no equitable justice in the eToys case)!
59. MNAT, TBF and Barry Gold, did connive to persuade Haas, parties of interest and the Creditors, to “trust them” where they persuaded Haas not to obtain independent counsel for CLI as a cost saving measure to the estate, beguiling everyone. It is extremely specious that the only item that MNAT, TBF or Barry Gold supplied to the Court is the HAAS Affidavit of November 2001, which the parties falsely state it is a waiver. Who believes anyone would work a year and then say don’t pay for the good faith work? Why would anyone fight for something given away? Rule 2016 let off is specious!
60. A court cannot tender rewards to conflicted attorneys[53], who have gained unjust enrichment, with admitted “unclean hands”, while the integrity of the court has been intentionally defiled. Any equitable justice has become a vacant notion in Delaware fraud.

XIII Asst US Trustee Frank Perch states that Fraud on the Court was intentional

61. As a result of finding Court docket (Bonus Sales) irrefutable proof of an ongoing, non-disclosed, relationship between TBF and Barry Gold, Haas placed such information into the Court docket record in the fall of 2004. After requests for an Emergency hearing the following acts occurred,
1. Two members of Goldman Sachs sat on the board of RR Donnelley while Donnelley voted on eToys/Sachs an issue, (including the $300 million lawsuit of the Debtor in NY Supreme Ct against Goldman Sachs) RR Donnelley and Goldman Sachs divested themselves of each other in Dec. 2004.
2. Lawrence Friedman the Director of the Dept of Justice EOUST office replaced the Region 3 Trustee; Roberta DeAngelis with Kelly B Stapleton and a DOJ UST press release was issued on December 22, 2004[54].
3. An Emergency hearing to address the non-disclosure/conflict issues occurred on December 22, 2004. At which time the Asst US Trustee stated to the Court it was apparent that non-disclosures occurred, (Transcript docket item 2151)
4. The Court Ordered responses to the allegations to occur by Jan 25, 2005.
5. The confessions to the non-disclosure occurred in the responses, also during a Feb 1, 2005 hearing and confessions during depositions taken per court approval on Feb. 9, 2005. (Transcript of February 1, 2005 docket item 2191).
6. The court rescheduled February 4, 2005 trial, for the CLI and Haas claims.
7. Asst US Trustee Frank Perch was to travel on Feb. 16, 2005 and informed the Court he would make the US Trustee’s position on the issues known prior to.
8. On Feb 15, 2005 the Disgorge Motion of TBF for $1.6 million occurred.
9. The Disgorge Motion Feb. 15 2005 (D.I. 2195) stated that a. The US Trustee had [fore] warned the retained professionals against replacing key personnel of the debtor with anyone connected to TBFb. That therefore the acts were deliberate, rather than inadvertent.c. There was material adverse harm.d. That the [diametric] lines between debtor and creditor were destroyed.e. TBF was vastly experienced bankruptcy attorney in national casesf. Fraud on the Court had occurred.g. To disgorge anything less than $1.6 million of the $3.5 million TBF had acknowledged receiving - would lack deterrent value
h. The Disgorge Motion erroneously stated Barry Gold did not have to apply as a “post-petition” “wind-down” coordinator [per 327(a)]

10. Less than 10 days later Mark Kenney issued a Stipulation to Settle (D.I. 2201) containing the illegitimate clause “shall not seek to compel – disclosure
11. Speciously neither the Disgorge Motion nor the Stipulation to Settle mentions MNAT. The crimes of MNAT non-disclosure issues are vastly understated.
12. On March 1, 2005 a hearing was conducted where Paul Traub of TBF confessed to the Court that he placed Barry Gold within the Debtor after TBF had paid Barry Gold four (4) payments of $30,000 each. (D.I. 2228)
13. We investigate why the “no seek to compel” clause was necessary and find an additional $100 million fraud item in KB Toys which Mark Kenney obstructs justice of when he asks the courts to expunge our proof . (KB Toys D.I. 2228)
14. We inform Frank Perch and Director Lawrence Friedman of the additional $100 million in Fraud[55] and Frank Perch, along with Lawrence Friedman resign[56].
15. The Court retaliates by rescheduling CLI trial date, expunges CLI, refuses CLI new counsel and denies Haas standing as “person aggrieved”.

XIV A double-minded US Trustee’s office proffers immunity for intentional fraud

62. The Stipulation to Settle (D.I. 2201) went way beyond Frank Perch’s initial efforts of leniency with the improper permission to circumvent the Code.
63 This effort by Mark Kenney ignores the Law. As well as it smears the US Trustee’s office by breach of fiduciary duty to protect the Courts from malfeasance. Here, we have extensive effort by TBF to abuse such an esteemed level of trust[57] flagrantly. With direct overt protective acts by the “policing” US Trustee on behalf of perjury and fraud.

V TBF confesses to four (4) payments of $30,000 each to CEO of eToys

64. On March 1, 2005 a hearing was conducted where Paul Traub of TBF was under direct Court examination (Transcript D.I. 2228) while the Court ordered, that as Haas’s counsel refused to be present; Haas shall be denied standing per Article III. (one would think the Court should have Ordered Haas’s counsel to be present).
65. Again, Haas must be silenced in order to hide the facts of their crimes.
66. During the March 1, hearing Paul Traub of TBF confessed to the fact, under direct Court examination, that TBF, as Creditor’s counsel paid Barry Gold four (4) separate payments of $30,000 each, prior to placing Barry Gold secretly within the Debtor. Yet the Court and US Trustee totally disregard this issue and the Hiring Letter furtively!
67. These acts of perjury and fraud are made extensively heinous, as the Asst US Trustee Frank Perch testified, in the Disgorge Motion of warnings (¶ 19 & ¶35).
68. The Justice Dept and the Court are defending the perpetrators. Is it any wonder why Haas and CLI cannot find a lawyer? Anyone with common sense can see that the Law is now not being applied. Speaking to over 1323 firms and attorneys all said no.

XVI Dept of Justice persons is acting as defense counsel for perpetrators

69. Further investigations by Haas and the eToys shareholders led to the discovery by Haas that TBF and MNAT had ongoing relationships with Bain/KB Toys. The significance being that MNAT, TBF and Barry Gold negotiated the sale of the Debtor’s assets to Bain/KB Toys for discounts in the tens of millions.
70. As morose as that is, TBF further compounded their nefarious acts by petitioning the KB Toys court for the right to prosecute the $100 million cash that Bain and Michael Glazer had paid themselves pre petition. At which time Mark Kenney engaged in his 3<SUP>rd</SUP> overt act to obstruct justice by asking the KB Toys Court (successfully) to strike and expunge Haas (KB Toys # 04-10120)(D.I.2228).
71. The US Trustee office has persistently aligned themselves with the perpetrators as an appellee asking the Courts to expunge Haas and the eToys shareholders.
XVI Haas own counsel forwards threats by TBF to “back off” or else
72. Previously Haas attorney, Henry Heiman had passed on a threat by TBF’s Susan Balaschak, doing so by email[58]. Whereupon TBF warned Haas that if he did not “back off” not only would CLI and Haas not be paid for the work, Haas’s career would suffer greatly and additional retaliations would occur.
73. The outcome speaks for itself, as probability and result, where the court threw away Haas and CLI without any proper review upon quantum meruit!XVII A pre-petition loan of $40 million and over $100 million fraud continues.
74. Haas also discovered that TBF and Barry Gold also had an ongoing undisclosed relationship with Wells Fargo/Foothill Capital. An entity which loaned the Debtor $40 million in November 2000 and transacted over $120 million[59] in withdrawals prior to the March 7, 2001 bankruptcy petition filing (again see In re Bucyrus 94-20786 - Gellene/ prison – The case of Bucyrus is exactly on point with eToys fraud).
75. Haas discovered overseas-undeclared cash deposits in excess of $2 million. (The Court stated it had no authority over international cash deposits). More assets are hidden by the conspired petition of the court for destruction of books and records in the very beginning of the case (approval D.I. 300).

XVIII Contacting authorities results in Obstructive run-arounds by DOJ personnel

76. The Court remarked that it had warned Haas against any further notices to the Court and had also warned of sanctions on July 26, 2005[60].

77. Haas had also contacted the OIG, the OGE, the OPR and the FBI (especially after physical threats occurred.) Also informing the Public Integrity Section and Pres Bush Corp Fraud Task Force, all of which referred Haas and the eToys shareholders back to the General Counsel (currently Roberta DeAngelis) of the EOUST office in Washington D.C and the US Attorney in Delaware.
78. Roberta DeAngelis in violation of protocol and ethics is now in charge of reviewing her own cases. The Opinion and Order were also immediately appealed and denied due to the US Trustee aligning themselves with TBF & MNAT .
79. Referring items to the US Attorney’s office has had similar results. As the US Attorney in Delaware has now been nominated for the position of Delaware District Court Judge, his resume became public, upon which it is now discovered that Colm F Connolly was a partner with the MNAT law firm in 2001, when the fraud and perjury began. Not appointing an independent prosecutor is a disgraceful ethics violation.
80. The Opinion and corresponding Order of October 4, 2005 aids the readily apparent efforts to cover up as it is a 57-page testimony vindicating the parties with off-point remarks on ADA.. The Opinion also stated, errantly, that Barry Gold was not required to apply per § 327(a). (They fraud needs this deceitful concept maintained). The Court and US Trustee simply ignored a Dec. 1, 2005 Motion to Recuse under Rule 5004 and a Motion to Review Failure to Act by US Trustee under Rule 2020.
XIX The US Trustee is extensively instructed and knows the Law has been broken
81. Multiple appeals have been filed and there is now this appeal in the Third Circuit appeal (case# 07-2360). The US Trustee’s office is acting as an appellee with TBF, MNAT and Barry Gold defending the right to proffer the illegitimate settlement and immunity clause. Even the new Asst US Trustee Vara has joined violates his own actions.
82. The new Asst Trustee Vara handled the case of In re Cold Metal 02-43619 (E D Ohio Bankr 2002) where Trustee Andrew Vara addressed, extensively, the on-point issue of § 327(a) as the brief signed by Trustee Vara cited the accurate case of Stahl v Bartley Lindsay Co. (In re Bartley Co.,) 137 B.R. 305, 309 (D. Minn. 1991) stating “financial advisor or workout consultant is considered a professional subject to retention”. (Barry Gold was required to apply and even Asst US Trustee is aware of it).
83. At the same time former Region 3 Trustee Roberta DeAngelis, in a report to the Subcommittee on Commercial and Administrative Law” which was to the Committee on the Judiciary cited cases demonstrative of Her and the US Trustee’s office detailed knowledge of Barry Gold scenarios, as DeAngelis quoted In re: Harnischfeger, case 99-02171 (Bankr. D. Del. 1999) The US Trustee [successfully] moved to disqualify the [financial advisor] firm for failure to disclose.
84. Mr. Gold is guilty of participating in the conspiracy to deceive the Creditors by participating in the Hiring Letters and his false testimony on the stand and the Plan Declaration. While there is also abundant “prima facie” evidence that the acts of perjury, etc., were “deliberate, rather than inadvertent” (D.I. 2195 ¶19).

XX. Barry Gold 327(a) issue is a deception under the “color of law” false premise.

85. The whole illegitimate premise of no prosecution is based upon the specious seed of pretense that Barry Gold was not required to apply per § 327(a). Such “color of law” pretense is a fallacy as Mr. GOLD complies with the factors to determine whether an entity to be employed by a debtor is a professional within the meaning of 327(a).In re Martin 817 F 2d 175 180 (1<SUP>st</SUP> Cir. 1987) addressing both the “unclean hands” doctrine and listing the 12 factors to consider in application of who must apply and disclose by 327(a)[61]. In re Kraft v Aetna 43 B.R. 119 Bankr. Ct. Dec (MD Tenn 1984) ([Trustee] cannot bypass 327(a) by stating mechanical services.) All Circuits have adopted “autonomy” as the key.86. The US Trustee is instructed from the onset, by a Handbook & Guidelines which can be found online at the US Trustee’s website under the heading “Significant Guidance Documents” (please see Handbook[62]). All evidence aptly demonstrates the extensive knowledge they have on the issue at hand concerning Barry Gold per § 327(a). Having such vast experience and expertise in the matter, one must therefore conclude that they know their fiduciary obligations and choose to do otherwise. Why, who knows? XXI. Summary of criminal acts that have been confessed
`1. It is undisputed that TBF placed Barry Gold in as “wind-down coordinator
of the Debtor without disclosure. (D.I. 2195 ¶17)
2. TBF has confessed to multiple false affidavits including TBF’s intentionally overt act permitting the false affidavits to stand, even after Traub and Michael Fox discussed the issue that their relationship became apparent (publicly visible) in the Bonus Sales case, yet they surreptitiously choose to remain silent demonstrating “mens rea”. (D.I. 2195 ¶18).
3. It is a fact that MNAT has confessed to supplying multiple false affidavits, which is Perjury. (While MNAT has failed to totally “come clean” on other false items such as Bain and Mattel). TBF alone submitted over 15 pledges.
4. Barry Gold supplied additional “actus reus” items by the clandestine Hiring Letter (D.I. 2169), which contains the illegitimate clause that bribed Mr. Gold if he would intentionally choose not to apply to the Court [§ 327(a)]
5. Barry Gold “scienter” is documented by the perjury, on the stand, when questioned by Alber about undisclosed connections to TBF (D.I. 1394)
6. Barry Gold “actus reus” act of committing perjury was also the Plan Declaration/Affidavit, which stated that the Plan was negotiated in “arms length” negotiations between Debtor and Creditor’s. (Perjury as Mr. Gold is testifying “arms length” Between Barry Gold and TBF)(D.I. 1312).
7. A Rule 2014/2016 certification is required every time a fee application is submitted. More than a twenty such fee applications were submitted by TBF, MNAT & others knowledgeable about non-disclosure acts, these acts also compound the perjury violations. Where even the Scheme to Fix Fee statute (18 USC 155) while being a misdemeanor in nature, has become a format of a conspiracy felony when both the Debtor and Creditor’s counsel conspire to draft the Hiring Letter to circumvent the court & the Code. (It is absurd how MNAT refuses to state which partner did the drafting).
8. Asst US Trustee Frank Perch also testified in the Disgorge Motion that TBF had discussed the issue, prior to doing the bad faith act, of anyone replacing key personnel of the Debtor with persons connected to retained lawyers in the case. (D.I. 2195 ¶19 &¶35). This is sufficient “scienter” requisite.
9. The Asst US Trustee documented additional “bad faith” acts of complicity when TBF sought to handle the conflicted issue of Goldman Sachs because MNAT was also non-disclosed. Whereby TBF compounded the original acts of “non-disclosure” by a supplemental affidavit, affirmatively misrepresenting TBF had no “conflict of interest” issues (D.I. 2195 ¶17).
10. The parties committed the crime of Intimidation of Victim/Witness when TBF warned Haas to “back off”, or else Haas would see how high TBF was “connected”. MNAT has done similar efforts against Robert Abler nefariously in working with a party that sued Alber in many instances.
XXII. Dept of Justice breaches duty as it is not permitted discretion to give immunity

87. The US Trustee is the “watchdog[63] for public equity entities per the Janet Reno Reform Act of 1994. When the policing entity turns against the public’s trust and engages in acts that defy statutory requisites, betraying Oaths of office, for the sake of felons, the whole system collapses and anarchy becomes the controlling factor.
88. The duty to Notify and Refer criminal acts is statutory for US Trustee’s per 28 USC § 586(a)(3)(F) and 18 USC 3057(a). So restrictive is the mandate to refer that the US Trustee’s Handbook & Guidelines state that if a US Trustee desires that no prosecution occur, a Memo of Declination must be sent with a history of the events to the US Attorneys office. This was a Congressional mindset to protect against indecency; even a US Trustee is barred from any latitude of prosecution. The US Trustee cannot pic n choose whom to review for tribunal; it is the US Trustee’s job to report and let others decide.
XXIII Justice Dept personnel continue efforts to Cover up their fiduciary breach.
89. Mark Kenney told this petitioner that a bribe or threat to “back off” was not a crime until the bribe was accepted or an act of documented harm had occurred (nice try)!
90. TBF was assisted by Mark Kenney’s Motion to Strike and Expunge this whistle-blower (please see KB Toys case 04-10120 docket item 2228). (Taxpayers paying for the US Trustee’s office to defend criminal acts – now that is a real budget breaker).
91. Email notices have also been sent to Kelly B. Stapleton. As the Region 3 Trustee that replaced Roberta DeAngelis the fact remains Stapleton’s electronic signature is upon all Trustee documents in the eToys matter since Feb. 2005. Including the erroneous Stipulation to Settle.
92. Roberta DeAngelis seeks to bring the full clout of the Washington DC office to the Third Circuit appeal, where she has signed her name to the brief, along with 3 other members of the United States Trustee Dept, to defeat “pro se” parties.
93. Spuriously the US Trustee is an appellee, hand in hand with the perpetrators, defending the right to proffer the illegitimate clause that circumvents § 327(a). While defrauding Haas/CLI with the efforts to improperly dismiss Haas

XXIV. It is a criminal conflict that theUS Attorney in DE was a partner at MNAT

94. Finally, the saga of the failure to prosecute can only be successful if a prosecutor, after being informed of the crimes, chooses to decline prosecution. Given the overwhelming amount of court docket evidence of perjury and fraud of MNAT, TBF and Barry Gold, the issue of selling the assets of one client (eToys) to their other “continuous” client (Bain) remains unaddressed. Begs the question, if Colm F Connolly handled the Bain/eToys/MNAT issue while he was a partner at the MNAT law firm?
XXV The criminal acts the shameful “not seek to compel” clause desires to Cover-Up

95. Having been enraged by the audacity of the Dept. of Justice double-mindedness, where we were already upset that the Disgorge Motion erroneously stated in the very first footnote thereof, remarking that Barry Gold was not required to apply[64] [per § 327(a)]. Failing to seek the mandatory disqualification[65] of conflicted attorneys as required by Law. Even the CLI attorney at the time, Brad Brook said it was insulting and gave this petitioner the Norton books to see in black n white, case histories about requisites & Law.
96. It dawned on Haas that there must be something very important that would have one arm of the US Trustee’s office endeavor to go against another arm. What could be so important as to necessitate such a dichotomy? The answer was found in research and the obvious, syndicated effort to protect ones cronies from additional, prosecution harm.
97. The US Trustee is instructed from the onset; by the Handbook & Guidelines[66], on who is required to apply as a professional person and how the US Trustee must protect the Court and public from such harms[67]. So many harms one is mind-boggled. No principled person can dismiss without extensive review, the following items,
1. The Debtor’s estate sold the bulk of eToys assets to Bain/KB Toys. The $10 million was reduced to $3 million by TBF, MNAT and Barry Gold.
2. TBF, MNAT and Barry Gold are connected to Bain. Bain and their affiliated owner(s) controlled Stage Stores/Liquidity Solutions Where TBF and Barry Gold was engaged, prior to and during eToys work. Michael Glazer, the CEO of KB was at Stage Stores. (Southern TX Bankr 00-35078)
3. Mitt Romney owns a lot of stock in Stage Stores at the time the offenses transpired. Toby Lenk the CEO of eToys vacated the Debtor and went to work for a Bain affiliated. We now have Dave Gatto’s resume of Bain.
4. MNAT is also connected to Bain; MNAT brazenly represents Bain in the KB Toys bankruptcy case (as the cat is now out of the bag). MNAT was less than candid in its disclosure discussions about the Learning Company. The Learning Company was a Bain, affiliated entity merging with Mattel.
5. While much has been discussed about the issue, the fact remains, though the Court and US Trustee have acknowledged reading the Hiring Letter, the criminality thereof has simply been ignored, TBF and Barry Gold are connected to Wells Fargo/Foothill Capital, Foothill loaned eToys $40 million in Nov 2000 and transacted over $100 million in cash transactions prior to eToys filing bankruptcy in March 2001.
6. TBF, MNAT and Barry Gold were all working in the KB Toys bankruptcy the same time they are working in the eToys bankruptcy, which is contemptible. TBF petitioned the KB Toys court to be the one to prosecute the $100 million cash pre petition transfer to Bain/Michael Glazer.
7. When we notified the Court, Mark Kenney motioned to strike us, instead of prosecuting the crime.
8. MNAT, Barry Gold, Ellen Gordon of Xroads and TBF refused to engage in purchase discussions with parties that sought to acquire the public entity of eToys. This is an SEC violation of the highest order.
9. The parties also refused to assist the shareholders to have an equity committee, which compounds the crimes when a sale is not sought by collusive efforts to gain sizeable control of the estate.
10. Xroads also had non-disclosed connections to Wells Fargo.
11. TBF and Barry Gold have undisclosed connections to Fleet and Merrill Lynch as well, huge causes of action and other matters of fiduciary duties.
12. TBF and Barry Gold also have non-disclosed connections to Goldman Sachs (In re: Cosmetics Plus).
13. CLI had a potential merger/acquisition of Playco International. TBF and Barry Gold declined to consider the offer. TBF did not disclose TBF was creditors counsel in Playco.
14. TBF did not disclose in eToys or Playco that TBF was connected to the secured lender Wells Fargo (Wells Fargo was involved in both Playco and eToys matters).
15. TBF did not disclose connections to Paragon Capital that was co-owned by OZER and Wells Fargo in Playco.
16. TBF was of revoked status in the state of NY for several years, until Alber informed the Courts. (The bankruptcy court acknowledge blue ink copy).
17. TBF, MNAT and Barry Gold handpicked the counsel of eToys and TBF is co counsel for the eToys lawsuit against Goldman Sachs (a $300 million dollar issue that the Supreme Ct of NY has permitted to go forward. (case # 601805/2002)).
18. Susan Balaschak has supplied a false affidavit within (D.I. 216) stating that TBF has informed the eToys case “parties of interests” of everything. Including the Creditor’s Committee.
19. Susan Balaschak has speciously offered Ellen Gordon of Xroads as a key witness of the fact.
20. TBF neglects to tell the NY Court that Scott Henkin of Fir Tree Value Fund already confessed to being part of the conspiracy to place Barry Gold in the Debtor, knowing that Barry Gold and TBF were connected.
21. Scott Henkin is guilty of conspiracy and seems to have been rewarded, as he is now a senior exec at D E Shaw who owns the “new” public entity of on NASDQ (symbol KIDS).
22. At the same time the other Committee person that was assisting Haas to solve the eToys issues, (Jim Brown of Fisher Price), has been speciously removed from office.
23. TBF and Barry Gold entity ADA was formed by Nancy A Valente, who also works for Johnson & Johnson. J&J acquired the assets of from eToys pre petition, (purportedly for $10 million).
24. As a pre petition preferential the J&J issue is also a crime, even without the Valente issue, when not independently reviewed.
25. Stage Stores is co-debtor with Liquidity Solutions, Liquidity Solutions deceptively began to acquire the bulk of eToys claims, without disclosure after Barry Gold was placed on board eToys in mid 2001. All claims therefore are equitable subordinates under Code § 510(c).
26. While at the same time the sale of the Debtor’s assets to Bain/KB having “undisclosed” connections to the counsels and CEO of eToys results in the sale of failing the “bona fide” requisite of the Code. This makes all sales to Bain/KB rescindable as fraudulent transactions or equitable subordinates. is now public again on NASDQ as KIDS.

XXVI The acts of “nolle prosequi” seek to outclass the acts of perjury & Fraud

98. The US Trustee’s guidelines states the United States Trustees is instructed by 28 U.S.C. § 586(a)(3)(F). (In the same manner the courtis instructed by 18 U.S.C. § 3057) The trustee must also (a) investigate the debtor’s financial affairs, 11 U.S.C. §§ 704(4), 1106(a)(3); (b) oppose discharge where appropriate, 11 U.S.C. §§ 704(6), 1202(b)(1), 1302(b)(1); and (c) furnish information concerning the estate as requested by party in interest, 11 U.S.C. § 704(7). (i.e. Books n Records to the Court approved CLI.)

XXVII Denial of standing is a criminal attempt to conceal fraud with no legal basis

99. Haas has sought, prior to this time, requests for Fed.R.Civ.Proc. 23.1Derivative rights of shareholders”, Fed.R.Civ.Proc Rule 24Right to Intervention” and Fed.R.Civ.Proc Rule 25Right to Substitution of Parties” because the Courts would inappropriately allow CLI’s counsels to abstain from the issue. Rule 23.1, 24 and 25 are even given validity in Bankruptcy Rules as 7023.1, 7024 and 7025 respectively. The denial of Article III has no foundation in Law, it only benefits the “malum in se”!
100. Also Haas had the qualified right offered to anyone (even a janitor or person off the street) under §503(b) Substantial Contribution. No one can suitably argue that the US Supreme Ct would sustain that such latitude to restrict “due process” can be use as a tool to defeat a whistle-blowers efforts to halt manifest injustice of fraud on the court, by officers of the court, who commit willful perjury and intentional, schemed fraud!
101. Be that as it may, TBF, MNAT and Barry Gold, along with the US Trustee/Court’s have repeatedly denied Haas the ability to bring forth the proof of fraud. Even if, arguendo, you allow such perverse logic some fundamental basis, the fact remains it is now discovered that what is occurring is the Court, US Trustee and the perpetrators are finding fault with the Debtor’s breach of a contractual fiduciary duty that the Court itself approved by the “indemnification” clauses that were drafted by MNAT, TBF, Irell & Manella & Barry Gold. The Indemnification clauses specifically provide that the Debtor is to DEFEND, indemnify and hold harmless CLI and Haas. Finding fault of no counsel is finding fault with the Debtor, as is stated in Amended CLI order, the clause verbatim;
Indemnification. The Debtors shall defend, indemnify and hold CLI and its affiliates, the officers, directors, agents and employees of each, harmless from and against any and all claims, suits, damages, losses, liabilities, obligations, fines, penalties, costs and expenses (whether based in tort, breach of contract, product liability or otherwise), including reasonable attorneys fees and expenses, arising out of or based on any loss of the Remaining Collateral other than any such loss arising from or in connection with CLI’s, its agents and/or employee’s negligence or intentional misconduct.
102. Anyone can point out a crime. It is only for the benefit of criminals that one would deny any person the right of standing during issues or efforts to point out fraud.
103. It is established that “Fraud upon the Court” is a serious issue that the Circuits and the Supreme Court have established the “doctrine” of extended timing, which all seem to find their genesis in Hazel-Atlas Glass Co. v Hartford-Empire Co., 322 U.S. 328 (1944) (“Hazel-Atlas”) where it has been established that an Order is made void “ab initio” as stated in the In the matter of Kenner v. Comm’r Of Internal Revenue, 387 F.2d 689, 691 (7th Circuit 1968) “a decision produced by fraud on the court is not in essence a decision at all and never becomes final.” This precedent has been affirmed by the Circuits and was also quoted by the Court (MFW) in the Opinion of October 4, 2005. Yet, when it concerns Haas, the Court simply ignores its own advice in the Opinion, including the statements that “extra-ordinary” circumstances exist where the Court said “that to hold otherwise [concerning TBF & MNAT] would only serve to punish [plaintiffs] and reward conflicting attorneys” (please see Opinion by Her Honor Walrath pg 16) (D.I. 2319).

Conclusion and prayer for relief

104. So far any authoritative party must either face the discretion is better than valor pathway, by resignation, or; any public servant that remains is faced with an overwhelming hedge of power, influence and the blue wall of silence truism. Leaving one with a choice to rule against one’s esteemed colleagues or join in the deceit, (a dilemma to say the least)! Extraordinary circumstance needs many “extraordinary” remedies.
105. We therefore seek honorable public servants who will refuse to stand idle while corruption; cronyism and criminal acts of a “bankruptcy ring” pervert the entire justice system so blatantly that it ensnares everyone who the government assigns to the case. We need the undeniable spirit that seeks Truth, Justice and the American way.
106. The recent Dist Ct. case in Michigan dealt with a similar refusal to classify fraud as Fraud upon the Court (please see matter of M.T.G. In re Matrix Tech Grp 95-48268). However, unlike the Matrix case, where the question of “intent” is in debate, this case does have concrete proof of intentional circumvention with the written collaborative Hiring Letter. The case of Baron’s in Florida (S FL Dist Ct 07-60770) cited the eToys & Matrix issues, concerning Fraud on the Court - and Baron’s successfully reopened the closed case. (It is amazing that other cases can accomplish remedies where the cited case is woefully lacking.)
107. The N Y case of the US Trustee Paul Banner v Cohen Estis and Assoc, cited eToys as a case precedent for the denial of all fee’s for non-disclosure. (The Balco/Estis case involved only 1 non-disclosure issue, where eToys has over 20 failures to disclose). To date there has been no adequate remedy in eToys, with sufficient deterrent, by proper disqualification and disgorgement, to conspired acts of willful, Fraud on the Court, accomplished via “officers of the Court”. It appears that the whole Delaware court system is in disarray and that no one in the system of justice has the fortitude to stand tall.
108. One should only have to point out the egregiousness of the “shall not compel” clause and that item alone should send a shockwave through the system of justice. Anyone with any sense of decency should be aghast at the audacity of Mark Kenney and his cohorts. When a public servant betrays their oath of office and then engages in overt acts of obstruction contrary to ones fiduciary duties, against whistle-blowers, in order to cover up malfeasance by ones cronies. Such is instilling civil unrest by the destruction of the integrity of the judicial process for the sake of persons who consider themselves to be Above the Law. This is overwhelming demonstrated! One need only look at the facts, which we have placed online, in affidavit form, for everyone to see[68].
109. I, Steven Haas, (a/k/a Laser) testifies to these statements, throughout this brief, under the “penalty of perjury”. We said we would provide you with a few items of criminal, felony violations. We have provided you with more than 30. Without going into the many, many more, such as Sarbanes Oxley, failure to disclose overseas cash assets, the SEC being instructed to refrain from making an official investigation occur. Every single time the court was told that CLI had waived all claims against the estate, was an act of perjury and collusion to defraud CLI and Haas. (Does anyone really believe that a person would wave $3 million in fees/commissions earned over 9 months?)
110. It is really a simple question. Was the nomination of a new head of the Dept of Justice a real change toward restoring the integrity of the Justice Dept? Or, being that a Presidential hopeful, Mitt Romney, owned Bain, a potential future boss, will such cause the Justice Dept. to maintain the status quo?
111. The parties of MNAT, TBF and Barry Gold have engaged in vote rigging, Plan rigging, perjury, fraud, deception and voluminous schemes that are as reprehensible as anyone can imagine. They state the PEDC does this or that, when the fact is, they, the perpetrators of fraud, are the PEDC. (An independent counsel must review all the facts).
112. Thus far the system of justice has shown no integrity? The evidence, the facts at hand, and the effort to remedy fraud in a manner befitting justice can only answer the question. Thus far in this eToys matter, it has been proven, that there is a double standard of justice. This case is the poster child to prove that there are those that there is a “bankruptcy ring” by those that are “Above the Law”.
113. As stated originally, the issues presented are clearcut, as such we pray this Court utilize the Fed Rules of Evidence of Judicial Notice 201 and put a halt to the organized crime that seeks to corrupt the entire system. Therefore we beseech that this Court state that Haas has standing as a “person aggrieved”. That from this date forward the parties shall be sanctioned if the dare to effort to fail to notice Haas.
114. We feel it is readily apparent by every standard established within the Circuit that Barry Gold had to apply per § 327(a). It is also practical that a declaratory remark of the disdain of all efforts to circumvent the Code by the Stipulation to Settle occur. The Courts must halt all efforts to give implied immunity in the “not seek to compel” clause. As the Court and US Trustee are errant in the finding of fact and conclusion of Law, which the Opinion of October 4, 2005 states that no perjury has been documented. Many disqualifications are therefore required.
115. We also pray this Court acknowledge that there is overwhelming documentation that warrants the disqualification of MNAT, TBF, Barry Gold, Frederick Rosner, Irell & Manella, Xroads LLC, Richard Cartoon, Scott Henkin and any other person, party or entity that had complicity in the intentional deceptions. That all must disgorge, at a minimum, 100% of all fees and expenses. That a comfort Order be given to permit proper Plan compliant causes of actions and pursuits. Including the remedies permitted due to the avoidable preference treatment afford KB/Bain acquisition of eToys assets. As well as the issues of equitable subordination of Liquidity Solutions, etc.
116. The Dist. Ct. was totally errant in dismissing Robert Alber by the Poulis Standard. As such this case is to be remanded to a Bankruptcy Judge to adjudicate properly the merits.(The shareholders should be granted an equity committee standing and counsel).
117. We especially pray this Court find that the original responses Ordered by the Bankruptcy Court for January 25, 2005 were to be a totally “come clean” affair. Lest the Courts send a message that officers of the court can continue deceptive practices due to the inability to ferret out all statutory violations that are continuously cloaked.
118. Given the abundant amount of skullduggery involved, we beseech this honorable body to maintain a heavier than average hand of authority to assure the integrity of the judicial process. If such is not prudent due to the need to keep each Court separate in duties, may it please the court to either change venue to California (the physical presence of the Debtor) or, in the pursuit of equitable justice and good faith efforts of Plan compliance it is therefore necessary to appoint a special independent Justice, above reproach.
119. Especially given the abundant bias shown against Haas and CLI by multiple judicial parties. As the recent case of Dickie Scruggs in Alabama demonstrates, it is sometimes necessary to recuse an entire Judicial body who would be faced with the dilemma of Ruling against a life long colleague. Especially since Haas filed a Judicial Misconduct complaint against the Bankruptcy Court for the abundant acts of bias.
120. Being that the Bankruptcy Court has ignored review request concerning Books n Records, a Rule 2004 fishing expedition should be permitted by Haas and the shareholders, totally at the Debtor’s expense. The Xroads LLC entity has been paid over a million dollars to handle the financial accounting of the Debtor and cannot state legitimately, that it will take time to detail all financial records.
121. The Bankruptcy Court also simply ignored the December 1, 2005 requests for Recusal under Rule 5004 and Review of Failure to Act by US Trustee under Rule 2020. Therefore it is necessary, combined with the abundant efforts that are contrary to the statutory mandates of the US Trustee, that “Quo Warranto” be considered to remove the parties of Mark Kenney, Roberta DeAngelis, Colm F Connolly, Kelly B Stapleton, Andrew Vara, Her Honor Mary F Walrath, His Honor Randolph Baxter, His Honor Donald Sullivan and His Honor Kent A Jordan from this case. For most certainly we are parties with interest and extraordinary circumstances are already acknowledge, now being documented in abundance. Their honor is not a question, but their actions dictate a must.
122. Wherefore we ask that the Court make an official recommendation for a special US Attorney and prosecutor with official request for a statement from the SEC Bankruptcy Fraud Division whom Mark Kenney instructed not to send any official requests. That the Court void Barry Gold, ab initio, as is provided in the Plan clause 5.2 for willful misconduct and gross negligence. Barry Gold also had Plan clauses that forbade him from dealing with connected parties (clause 3.12). As such all payments, post-plan confirmation to MNAT, TBF, Frederick Rosner and/or any other connected issue, such as Bain, Liquidity Solutions, Richard Cartoon, etc. are void “ab initio”.
123. As the parties schemed to defraud Haas and CLI, where Barry Gold was muscled in to do the duties of CLI and Haas. (Wind down coordinator being the same thing as “sole” liquidation consultant), to place Haas in, nunc pro tunc, as CLI and Haas were Court approved complies with every thing that is decent and correct, including Plan Administrator as this is in compliance and duties as liquidation consultant, already going above and beyond the call to halt organized criminal efforts to fleece the estate. As the perpetrators are engaged in efforts, anticipating this Circuits rulings, where they shall seek to replace Barry Gold with one of their own “hand picked” parties under the guise that the PEDC is a purely, honorable, framework. It is only prudent that the Courts do “extraordinary” remedies to assure the fraudulent acts do not continue.
124. The only parties that will object to the monies being returned to the estate, are those that took it and will lose it. Barry Gold has now motioned for his legal defense fund to be paid by the Debtor and his motion infers that the PEDC, which was till this date, Barry Gold’s cronies, where Barry Gold hints, at the item Haas has known would come. The perpetrators of fraud can protect themselves by hand picking the PEDC and new Plan Administrator parties. Which will in essence assure their success in the criminal efforts, by proxy. The NY Supreme Court case of ebc1, Inc (Debtor) vs Goldman Sachs and others, was also a TBF ploy and all parties thereto, hand picked by TBF are subject to scrutiny even if they are the promised child, due to the association with TBF and the failure thus far to point out the frauds to the NY Supreme Ct. (we have been emailing all parties).
125. Susan Balaschak of TBF has falsely informed the NY Supreme Court that they have kept everyone informed and TBF seeks to offer the former Xroads LLC party Ellen Gordon as proof. Without disclosing to the NY Court all the issues prevalent and that Ellen Gordon is most likely no longer with Xroads LLC as Xroads LLC contacted Haas about the fraud, perjury and Xroads billing issue.
126. The KB Toys case, which owes this Debtor money and is rushing to close is a matter of tens to maybe hundreds of millions of dollars. The NY Case is a $300 million issue. Which at the barest of minimums needs a new independent counsel to review and that Court to be officially informed of the jeopardy of all rulings being void, ab initio, due to the fraud on the court that is ongoing. A comfort order is highly warranted as this Debtor, with honorable Plan Administration, can become whole. Courts are required to act differently when a company can be made whole again.
127. We do not ask that the hearing scheduled for January 2, 2008 be delayed. We only ask that this Court permit Emergency relief, allowing shortened notice (email should suffice) and chance for reply, as an email notice is more good faith treatment, than those afforded Haas by the perpetrators who refuse to give notice to Haas.
128. We seek, Haas begs, for your conscience and nobility. Please agree to have valor against organized crime? We do not even ask that you solve the CLI senior admin claim or Haas claims issue(s). (Though they have assisted in making this petitioner itinerant and bereft of career or funding). For we will gladly let those items stand on their own once the fraud issues have been properly pursued.
129. It is not the eToys case or claims thereof that is the priority here. For Haas, CLI, eToys and even the defrauded shareholders is not an American quest. The issue here is key personnel at the Dept. of Justice would rather resign then force a remedy to occur, this should exasperate anyone with a conscience. If the Justice Dept personnel, the US Trustee’s attorney, can arbitrarily betray their Oath’s of office and design to defraud the entire integrity of the judicial process, for the sake of ill gotten gains & perverted acts of justice on behalf of esteemed friends as if no one cares anymore? (Anyone would be hard to find a case more reprehensible, with more fraudulent efforts, than eToys).

130. We seek someone’s American spirit within. The sense of goodness and righteousness that is intolerant to insidious acts of bad faith by those we assign with authority over us controlling the system of justice in our Federal Courts. They can only get away with the schemes, which has stolen a public entity and corrupted our Dept of Justice nefariously, if we permit them free reign to do so. As it has always been stated;

All that is required for evil to prevail is that good people remain at rest
131. For though it is our cookies that the attorneys and others have stolen, it is the American Jar of Justice whose lid was removed and tossed away for the benefit of those that have proven the Law has no authority over them.Prima facie evidence that a “bankruptcy ring” and Cronyism exists as this Circuit has already acknowledged such exists. (see Arkansas Supra). We pray the Court forgive our briefs length, our request for short notice and hope the Court is sympathetic to the plight of our pursuit for justice. On Feb. 25, 2005 the Director of the EOUST emailed us that we had his specific attention and that his staff will exercise appropriate judgment. The result was the Stipulation to Settle and then the resignation of the Director and Asst US Trustee. We hope and pray, that this Court has extensive resilience to go well beyond such exercises and judgments.
We humbly await the Court’s response.
/s/ Steve Haas (a/k/a Laser)
100% Sole owner of Collateral Logistics, Inc.
CLI being the Court approved company
Haas the Court approved employee of eToys
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Sep 22, 2004
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New member
Aug 21, 2008

hey Are Directly from America Not long after an old Chinese women came back to china from her visit to her daughter in the Sates, she went to a city bank to deposit the U.S. dollars her daughter give her . At the bank counter ,the money was real.It mady out of patience.At last she couid not hold any more, uttering :“trust me, Sir, and trustthe money .They are real U.S. dollars. They.are directly from America. ” dispersant


New member
Jun 19, 2008
eToys Fraud by Goldman Sachs - BAIN - and DOJ

In the age of conspiracies run amuck - one would be Extremelyyyyy hard pressed to find a story detailing corruption through the entire American system like eToys.

Goldman Sachs takes eToys IPO where the stock soars to above $75 dollars per share opening day. Yet only $16.50 per share went to the company and Goldman Sachs does not want to reveal where the rest of the money went.

So eToys files bankruptcy by leaping from two 100,000 sg ft facilitys' to 800,000 sg ft facilities in Ontario CA and "BLAIRS" Va.

Then Bain/KB come up with a plan to corner the entire independent retail toy industry.

Bain buys KB Toys for a promise of a hundred million or so more to Consolidated (Big Lots) - who lost money on the Toy biz ever since Brady Church bid against Laser Haas in the Wisconsin Toy deal a decade earlier.

What most people do not know is that Paul Traub is the brown bag (bribe by cash) king of the federal system. Both Traub and his long time associate Barry Gold were working for Stage Stores bankruptcy in S TX (BK 00-35078). Where it was later revealed that Barry Gold rec'd much employment over many years from Bain's Jack Bush (a stock holder/Director at Stage Stores).

Also stockholder and director at Stage Stores in January 2001 - Michael Glazer.
Mr. Glazer also was CEO of Kay Bee Stores. also had a secret relationship with Bain (Mitt Romney was Bain's cofounder and manager). MNAT helped merge The Learning Company with Mattel.
MNAT never reported any of those relationships completely to the DE Fed CT (including hiding the fact that MNAT was Goldman Sachs local counsel in DE).

The very first act that MNAT did - was to petition the DE Bankruptcy Ct as eToys Debtors counsel - for the permission to DEstroy Books n Records.

That's right - Goldman Sachs and Bain's attorney asked (and Rec'd) the DE Bankruptcy Court's permission to DEstroy Evidence from the very beginning of the case.

This crime was covered up by the DE Dept of Justice that Not only refused to investigate and prosecute MNAT; the DOJ went before the 3rd Cir Fed Ct of Appeals - making the statement that it did Not and Will Not pursue MNAT issues.

What was not revealed is that the Senior Justice of the 3rd Cir is Walter K Stapleton - who was a partner with MNAT previously.

The Clerk for Walter K Stapleton was Colm Connolly

Colm Connolly then became US Attorney in Wilmington DE - AFTER he was partners with MNAT in 2001 (the very year the eToys fraud and perjury began).


New member
Nov 8, 2006
reason for the delay must be that it took people 2years and 3months to read the damn thing.

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