Senators Fight Wall Street Corruption With Kid Gloves
By Aaron Kesel
Bernie Sanders, John Cornyn and Elizabeth Warren are three very outspoken United States senators concerning bad faith judicial rulings and failures of our watchdog agencies to do their jobs in arresting and prosecuting the perpetrators of Wall Street frauds – including issues of bankruptcy court corruption.
Unfortunately, justice is hindered due to standards of political correctness and way too much (undeserved) respect for lawyers, judges and federal agents, trusted far more than they should be.
The fact of the matter is, the senators are not allowed to speak out about other states’ individual cases; which is resulting in the senators barking and not taking any bites out of Wall Street crimes.
Another factor that the senators are too gentle to speak about is the dynamic that, in 2016, Transparency International named Delaware as one of the world’s worst examples of grand corruption (see Salon reporter Robert Hennelly “How Delaware became an American haven for ‘grand corruption’”).
There’s more going on than ordinarily meets the eye, and the senators aren’t going to resolve the problems with kid gloves. They need to put on the boxing gloves if they hope to fix the corruption problem plaguing everyday Americans that is Wall St.
Venue Shopping Bill is Little Action with Kid Gloves
Wall Street racketeering stalwarts are emboldened by the weakness of the soft touching “professional courtesy”; and the bad guys continue to make progress with their incestuous and systemic infiltration of our federal systems of justice through revolving doors.
You won’t defeat organized crime by ignoring it exists!
Being far too nice is what brought America Trump. Nice people believed that a pathological bullshitter, a touter of misogyny, hate, and bigotry had no chance of winning the election.
Similarly, senators addressing the dynamics of corruption as being mere results of – venue shopping – is obtuse to the very serious nationally significant and important economic threats.
Senator John Cornyn worked with Elizabeth Warren before she became the spearhead for the Consumer Fraud Protection Bureau (“CFPB”). At that time, Senator Cornyn spoke out in 2005 on the Blog of Legal Times about the fact that picking a venue (Forum Shopping) was the same thing as picking a verdict.
Way back then, Senators Cornyn and Elizabeth Warren also worked with UCLA Law Professor, Lynn LoPucki. Professor LoPucki has published a book and papers of the fact that competition for large fee bankruptcy cases is corrupting our courts.
Professor LoPucki also co-authored a paper on “Routine Illegality,” which details the sagas of judges who are – routinely – ruling contrary to the law (most times, to grant local firms, success in schemes and artifice to defraud).
There are a more than a million bankruptcy cases each year, which adds up to a hundred billion dollars in highly lucrative revenues; and many cases with questionable rulings.
Somehow, the senators seek to upset the status quo; but they aren’t pointing out the real reasons why a “shake-up” is warranted.
For instance, 20 years ago Goldman Sachs partnered up with Bain Capital in “The Learning Company” saga, which defrauded Mattel of $4 billion. (See the details in my story – here.)
Around the same time, Goldman Sachs scammed their client (eToys) for hundreds of millions of dollars.
Prior to that time, Mitt Romney was allowed to keep hundreds of millions of dollars from Michael Milken junk bonds fraud for Stage Stores’ dealings. It appears the funds may have remained (unusually so) in place, because the judge presiding on Milken’s case had his wife as a key executive of the Stage Stores deals (see Matt Taibbi’s Rolling Stone story “Greed and Debt”).
Resultant of the success of Romney and Goldman Sachs’s success in their racketeering enterprise – it is expanding.
One of the keys to the racket’s success is undue power and influence over our courts and the federal systems of justice, and it is not only an issue of corruption in Delaware.
Colm Connolly was a bad faith federal prosecutor who breached his fiduciary duty in his betrayal of the public’s trust, as a “revolving door” federal agent/racketeer (see my detailed story on Colm Connolly – here).
Sadly, a whistleblower (Laser Haas) in the eToys bankruptcy case was tricked by Romney’s gangs, including United States Attorney Colm Connolly.
For 7 years Laser Haas continued to blow the whistle on the Mattel, KB, Stage Stores, Fingerhut and eToys cases to Colm Connolly’s federal prosecutor’s office in Delaware. Ironically, Laser found out in 2007 that Colm Connolly was a partner of Bain Capital and Goldman Sachs’ Delaware law firm of MNAT (and MNAT was colluding with Paul Traub).
The thing is, MNAT was both eToys & Laser’s court-approved counsel; which means MNAT has no compunction about betraying a client’s trust.
Do the senators really believe that the switching of venue choices will stop lawyers from doing wrong and breaking their oaths, when billions of dollars are at stake?
As reported by Taibbi’s “Greed and Debt” story, KB’s CEO, Michael Glazer paid himself $18 million and KB $83 million prior to Glazer filing bankruptcy of KB.
Surely the senators don’t believe Delaware is the only state where bribes may occur!