One can skip reading all the detailing of the facts and go straight to the summary at the end of this Diary. You can also click upon the links to see the Proof of Goldman Sachs organized crimes and how it is getting away 'Scot Free'.
Meanwhile, yesterday I posted a Diary about the absurdity that the Department of Justice levied a 39-count indictment against Real Housewives stars Teresa Giudice and her husband Giuseppe ("Joe") Giudice for Mail, Bank, Wire and Bankruptcy Fraud and the fact that GSachs has done far, far worse. (See Real Houseswife Gets 39-counts: Goldman Sachs Gets 'Scot FREE' ).
For those who have been following the saga of our case of eToys/ebc1, in that one instance alone Goldman Sachs has perpetrated Perjury, Obstruction, Intimidation of Victim/ Witness, Retaliation, Mail Fraud, Bankruptcy Fraud and Frauds upon 3 or more courts). But Goldman Sachs has been and is getting away totally "Scot Free" with more than 100 counts of statutory violations; doing such even after confessions to lying under oath.
So I placed a POLL on the prior D proffering the apropos question of "Whom do you wish to see prosecuted more - Real Housewives stars - or Goldman Sachs"? More than 80% responded that they wanted to see Goldman Sachs go down (with one person asking me why I didn't give him the choice of both - and my very own personal troll patrol taking their snipes with the "who cares" choice [you'd think the troll'ps would thank me for always giving them their very own Laser Hater button - oh well]).
Therefore, I'm going to lay out the case below the fold, solely against Goldman Sachs this time (where I usually lay out the case against Romney & Bain Capital). So that reader can see just how perverse our federal system of justice is, when it comes to issues of the Above the Law entity Goldman Sachs.
Goldman Sachs is Suing Goldman Sachs!
Lying Under Oath is Perjury/ a Crime
There are those among us, including legal eagles, who hate anyone who points out and/or says anything bad about what attorneys do. So they make snide remarks and are very successful in nixing the discussion based upon calling us all layman and implying we are dummies who know nothing about the law. (As if all attorneys at law are geniuses). Be that as it may, the fact of the matter is anyone can study the Law online (as I've done at the Department of Justice's website).
The LAW is our friend and I love the law.
(
It's the cronyism & corruption to not use it against Goldman Sachs that is our problem).
Fortunately, this TMZ type affair helps to educate the reader on the true issues at play. In bankruptcy you are forbidden to lie under oath - it's called False Oath/ Declaration and/or Perjury. It is also against the Law to conceal assets and/or do any type of scheme, conspiracy or collusion to defraud innocent parties (such as creditors).
As the 39-count indictment denotes in the Real Housewives saga - Bankruptcy Fraud is a CRIME and that is what Goldman Sachs is doing (and worse). In the Real Housewives indictment (here) it points out that violations of Title 18, United States Code, Sections 152 & 157 are CRIMES. Then the DOJ list the various offenses of counts 12, Bankruptcy Fraud Section 157, then counts 13-18, Concealment under Section 152, then counts 19-24 False Oaths (again under Section 152) and finally counts 25-34 False Declarations (also under Section 152). That's 23 out of the 39 counts are just for Bankruptcy Sections 152 and 157. In our eToys case with Goldman Sachs we also have a TON of times where the crooks paid each other ten million dollars out of the eToys Debtor's estate in a Scheme to Fix Fees (Bankruptcy Fraud Section 155).
Now that we have it well settled that Bankruptcy Fraud is a crime - let's begin;
New York Times March 2013 Article on Goldman Sachs eToys IPO Fraud
On March 9, 2013 the New York Times came out with the story
"Rigging the I.P.O. Game" as reporter Joe Nocera discussed the issues of Goldman Sachs eToys fraud and how Nocera was accidentally given files from the NY Supreme Court case he wasn't supposed to receive.
BACKGROUND
In mid-1999 Goldman Sachs was the fiduciary agent who tooks eToys went public for $85 per share; but eToys received less than $20 per equity share sold. This is a classic "Pump-n-Dump" type fraud (see Wikipedia - HERE).
Goldman Sachs Fraudulently Pump-n-Dumped eToys Stock.
What has recently emerged, is evidence that Goldman Sachs KNEW that the eToys stock was going to go above $80 and the lead agent over the eToys Initial Public Offering ("I.P.O.") - Lawton Fitt - had placed bets about the stock going above $80. At issue is the fact that Goldman Sachs "spun" the eToys stock by giving certain institutional investors and parties the chance to buy eToys at around $20; with the understanding that the parties would "spin" back 1/2 the profits they made to Goldman Sachs. Meg Whitman, the CEO of eBay settled on her part of the "Spinning" schemes (see CalBuzz story - HERE).
eToys sued Goldman Sachs in NY Supreme Court
It was yours truly's job at eToys to maximize returns at minimum expense. The reason why Goldman Sachs did not settle with the Feds on its eToys "Spinning" fraud - is the fact that we sued Goldman Sachs before the DOJ settled with them.
Unfortunately the eToys case in New York Supreme Court #601805/2002 failed - initially; because the court said the attorneys failed to prove a case against Goldman Sachs for Breach of Fiduciary Duty. Thus the NY Supreme Ct eToys (renamed ebc1 when we sold eToys.com to Bain Capital/Kay Bee) case was closed, then Appealed and Closed Again.
eToys lost because Goldman Sachs perpetrated massive frauds!
The veToys (ebc1) v Goldman Sachs case began in 2002 and then it was enigmatically placed entirely Under SEAL by the New York Supreme Court after Judge Moskowitz was promoted off the case.
Justice Moskowitz was going after the counsels (especially Paul Traub's firm) for lying to her directly. Thus she had to go and the next justice wanted no part of open debate, so she hid the evidence from public view. Fortunately for us eToys concerned parties - the New York Supreme Court of Appeals re-Opened the case September 7, 2012 (see Law360.com story - HERE). That case was heard on May 29, 2013 and the decision is now pending.
Goldman Sachs is Suing Goldman Sachs
This one issue is real easy to follow. First of all, there's no debating the issue. In 2005 Goldman Sachs secret law firm of Morris Nichols Arshst & Tunnell ("MNAT") did confess that it lied under oath to the Chief Bankruptcy justice over the eToys bankruptcy case in Wilmington, Delaware (In re eToys 01-706 (DE Bankr 2001)). You can see the Judge's Opinion of October 4, 2005 (here) where the Delaware Bankruptcy Court also added a corresponding ORDER that;
ORDERED that Morris Nichols, Arsht & Tunnell SHALL DISGORGE all fees received by it for work performed in connection with any matter relating to GECC or Goldman Sachs & Co.;
NOTE: there's no added emphasis the court made BIG & BOLD those remarks....
MNAT Lied About Goldman Sachs to Become eToys Debtor Counsel
What is at issue and was confessed by MNAT in 2005, is the fact that MNAT lied upon its original (Rule 2014) Affidavit about its relationship to Goldman Sachs (and actually continues to lie to this very day about its relationship to Bain Capital). Being that Goldman Sachs is the one who took eToys IPO and illegally kept the lion share of the monies generated by the IPO, it is a Conspiracy CRIME for Goldman Sachs counsel to lie and become eToys counsel.
Thus, when eToys sued Goldman Sachs, in essence, Goldman Sachs sued itself!
Now, those various issues mentioned above are - in and of themselves, enough of a reason for a Federal investigation, arrest and prosecution of the parties involved. Arguably, if you or I (or the Real Housewives stars) had done just 1/100th of those type of schemes - we would be facing a Madoff sentence of 150 years.
But Goldman Sachs has Always Been Above the Law!
Matt Taibbi asks "Why Isn't Wall Street In Jail"
I don't know if any of you paid attention when Goldman Sachs CEO (Blankfein) lied to Senator Carl Levin (see Blog of Legal Times article -
HERE). Did you see the follow up of/ as to what the results were? Though Blankfein did hire a criminal attorney and that got some press (see Reuters story -
HERE) - and Senator Carl Levin is retiring.
I'm just sayin.......
What Rolling Stone activist and dear to my heart reporter Matt Taibbi said in his story "Why Isn't Wall Street In Jail"?
"Is that the Financial crooks [nearly] brought down the world's economy - but the feds are doing more to protect them than to prosecute them".
Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer.
"Everything's fucked up, and nobody goes to jail," he said. "That's your whole story right there. Hell, you don't even have to write the rest of it. Just write that."
I put down my notebook. "Just that?"
"That's right," he said, signaling to the waitress for the check. "Everything's fucked up, and nobody goes to jail. You can end the piece right there."
And Senator Carl Levin is now retiring!
Goldman Sachs Frauds Assisted by its MNAT Law Firm
One has to wonder if the New York Supreme Court is going to make a proper ruling on the eToys (ebc1) v Goldman Sachs. Empirical evidence and common sense would say NOPE - Goldman Sachs is going to be found Not Guilty - AGAIN.
But then - why even open back up the NY Supreme Court case?
Here's a list of crimes that can add up to over 100 counts of fraud benefiting Goldman Sachs. The difference between this case and the Real Housewives debacle is that Teresea and Joe Giudice aren't attorneys at Law or Bankers or bankruptcy professionals. Goldman Sachs's MNAT law firm is vastly more sophisticated, experienced and has bankruptcy expertise extraordinary.
Goldman Sachs's MNAT Law Firm Knows Not to Break the Law.
Be that as it may MNAT DO'd it in a grand fashion. MNAT is breaking the law openly, without remorse or relent; because - HEY - if you could rob a bank tomorrow and not EVER get punished - wouldn't you?
List of crimes by Goldman Sachs/ MNAT
- GSachs took eToys public and kept lion shares of monies
- MNAT lied to become eToys Debtor's counsel (more than 15 times confessed)
- GSachs Attorneys conspired to Retaliate against whistleblower (yours truly)
- MNAT, received permission (by Perjury) to Destroy eToys Records (here).
- MNAT nominated Paul Traub to Prosecute Goldman Sachs NY Sup Ct
- Paul Traub and MNAT conspired to put in Barry Gold as CEO eToys
- Barry Gold, MNAT and Traub agreed to pay each $10 million from federal case
- MNAT represents Bain in Kay Bee case $83 Million
- Paul Traub asked to be the one to Prosecute Bain and Michael Glazer Kay Bee
- Dept of Justice (as Taibbi said) helps the crooks in Kay Bee case (here).
- MNAT's partner (Colm Connolly) became Delaware U.S. Attorney
That's Colm Connolly's picture above next to MNAT!
Did you read the list and see that last one in the list; where a Goldman Sachs law firm partner (Colm Connolly) became the United States Attorney in Delaware? You can see Connolly's Resume at the Dept. of Justice Office of Legal Policy website (
here). Obviously, if you own the chief federal prosecutor who should be investigating you - that's one sure fire way to guarantee you won't be investigated, arrested or go to jail (Sorry Matt Taibbi - that's the story - in a nutshell). You also may have notice that the SEC hires many senior persons from Goldman Sachs and Goldman Sachs hires former heads of the SEC (See Revolving Door stories - CBS vast listing
HERE & other news like Zerohedge
HERE).
Let's not forget that the SEC admitted destroying case files (here).
SUMMARY of Goldman Sachs Crimes
As noted by the Real Housewives 39-count indictment, lying under oath, false declarations and other types of bankruptcy frauds are serious crimes.
It is confessed that MNAT is Goldman Sachs law firm. MNAT lied to become eToys Debtor's counsel to make sure Goldman Sachs crimes would not be exposed. When yours truly turned down their bribe and the crimes became exposed the culprits compensated by making a MNAT law firm partner (Colm Connolly) the United States Attorney in Delaware. For his entire 7 years as chief federal prosecutor, even with confessions of lying under oath as part of the public docket record, Colm Connolly refused to investigate and/or prosecute MNAT and its clients Bain Capital and Goldman Sachs.
Meanwhile, MNAT (benefiting from Perjury) asked the Delaware Bankruptcy Court for permission to Destroy eToys Books & Records. MNAT also helped place a Goldman Sachs/ Bain Capital associate (Barry Gold) illegally inside eToys as President/ CEO. Then Barry Gold and MNAT nominated Paul Traub (Barry Gold's admitted partner) to be the party to sue Goldman Sachs in the New York Supreme Court.
When that appeared to be back firing the bad faith conspirators had the entire New York Supreme Court case of eToys (ebc1) v Goldman Sachs placed entirely under SEAL from public view.
It all can best be summed up with the following end notes. If you will take a look at the Federal Police (the Dept. of Justice U.S. Trustee's) response in the 3rd Circuit appeal case of eToys shareholder Robert Alber (who had undergone Brain surgery and was recovering at the time - and they KNEW it) - the Dept. of Justice is on the record stating in the very first footnote that;
"The bankruptcy court order which was the subject of Mr. Alber's district court apeal also ordered a partial disgorgement of compensation by debtor's counsel, Appellee Morris Nichols Arsht & Tunell ("MNAT") in connection with Mr. Alber's January 25, 2005 motion alleging conflicts of interest by MNAT, and approved a settlement between the post-effective date committee of unsecured creditors and Goldman Sachs & Co.
The United States Trustee did not assert a position in the bankruptcy court or the district court appeal regarding those two matters and does not address them herein".
DOJ staunchly stated it DID Not and WILL Not pursue Goldman Sachs/MNAT issues!
In 2007 it was discovered that MNAT's law firm partner - Colm Connolly - had become the Delaware United States Attorney in charge of investigating/ prosecuting the MNAT confessions to bad faith faith; and that Colm Connolly never informed anyone about his very own Conflict of Interest issue. This was reported to the Public Corruption Task Force in Los Angeles - and they SHUT IT DOWN. Threatening career federal prosecutors to keep their mouths shut Or Else! (Please see Los Angeles Times story "Shake-up roils federal prosecutors".
"Everything's fucked up, and nobody goes to jail".
NOTE: eToys (ebc1) v Goldman Sachs Ruling Imminent
You may notice that I've got a "We wanna see Sacks win and Laser lose everything he owns to them" Patrol below. They are the ones (for the most part) voting "who cares".
Previoulsy, I did inform all my decent FB/ DK/ Twitter and DU friends that we are planning to file a Civil RICO Indictment of Romney/ Bain/ Goldman Sachs.
However,
-- neither myself, nor the former U.S. Attorney who has offered to help me file the RICO Complaint - were made aware that the New York Supreme Court held a secret "Under SEAL" case hearing of eToys (ebc1) v Goldman Sachs on May 29, 2013.
http://www.nycourts.gov/...
What is germane about this is - the eToys case was previously closed and then (enigmatically) RE-opened on September 7, 2012 (see Law360.com story - HERE).
Usually, I'm the own pushing for main stream media to come out with a story about our cases and the obvious issues of federal corruption. However, the New York Times came out with one all on its own, not consulting me or seeking a quote from me. This is the March 2013 story "Rigging the I.P.O. Game".
Shortly thereafter Bain Capital cancelled the I.P.O. for Toys R Us (here).
Now, ordinarily, one would get excited about all this action/ review of the matters without even consulting me. This means that the powers that be might be (finally) paying attention to how much is going on wrong here - Correct?
I don't know!
In April 2013, the Department of Justice Public Corruption Task Force and I were speaking more heavily than I've spoke to anyone about these cases in 12 years.
Now that was exciting.
However, though it is the first time that I've ever had an "exchange" of emails, dialogues and Q&A on the issues at hand, another set of bizarre circumstances did transpire. The man at the SEC who was part of the task force unit assigned to the eToys Goldman Sachs matter - simply retired from the SEC.
And No One Else was Assigned the case!
As for the Chief Federal Investigator over the New York Public Corruption Task Force, he too - left. The difference is, he was promoted to a brand new division office set up in New York - all for himself. I would take that to mean, in a legitimate world, that he took the case with him and is bird dogging all the mountains of evidence with a handpicked team. Truth is I have no idea and will have to wait and see what the New York Supreme Court of Appeals rules.
But the fact is -that lead investigator changed his email address!