Will Bankruptcy Venue BILL Bankrupt Delaware?
By Aaron Kesel
This reporter has been doing an ongoing series about Wall Street frauds aided & abetted by federal corruption; which includes issues of Goldman Sachs & Bain Capital partnerships in “Bankruptcy Rings” spearheaded by crooked attorney at law, Paul Traub (see here – here and here).
Due to a sudden illness, our story on judicial corruption benefiting Sachs & Romney’s “Bankruptcy Rings” has been delayed (coming real soon). It looks like the delay is somewhat fortuitous, because Senators Elizabeth Warren and John Cornyn introduced a Bill of Law S.2282, on Monday, January 8, 2018 that seeks to close a loophole some say has fostered corruption.
The ultimate question is does President Trump care what goes on in Delaware?
Will Donald the Great (Destroyer) quash the loophole? If the loophole is closed, Delaware law firms will likely lose a billion dollars a year in fees. However, the more important question is, will the senators’ Bankruptcy Forum Bill cause Delaware to lose its corporate dominance; subsequently, as a result, could this cause Delaware to go bankrupt?
Our series on Wall Street fraud, protected by corruption, comes from the eToys case whistleblower (Laser Haas) who claims the entire Delaware system of justice, including the federal courts, is infested with tax-paid federal servants betraying their oath of office and, in turn, the public’s trust.
Giving credence to Laser’ s contentions, are UCLA Law Professor Lynn LoPucki’s book Courting Failure; which reported on the corruption of our courts (especially Delaware and NY), due to large fee bankruptcy cases.
In 2005 the eToys whistleblower caused Paul Traub and Delaware’s MNAT law firm to confess failures to disclose their conflicts of interest; but the Delaware courts and Department of Justice refused to investigate or prosecute the perpetrators.
Coincidentally, in 2005, DOJ Deputy Director Lawrence Friedman resigned because of the eToys case. Around the same time, Senator Cornyn sided with Professor LoPucki when Senator Cornyn put forth an article up on the blog of Legal Times – titled: “They Owe Us” (archived)
In Senator Cornyn’s “They Owe Us” article, it quotes Professor LoPucki and Senator Warren’s works (before she became a senator); and Senator Cornyn affirms the fact that…
Corporate debtors are able to pick venues that are likely to rule in their favor.
Laser blew the whistle in eToys, KB and other cases; but – despite confessions – Delaware courts and federal agencies personnel, continually found in favor of the perpetrators.
Speciously, each and every time the parties finding favorable outcomes were Goldman Sachs, Bain Capital and their crooked Delaware lawyers.
It was also pointed out in Senator Cornyn’s “They Owe Us” article, the fact that UCLA Law Professor LoPucki and Elizabeth Warren fought to stop these schemes and how they resulted in over 50% of bankruptcy cases failing.
As a matter of fact, Romney’s KB and eToys were in bankruptcy, multiple times, winding back at Bain Capital, under Toys “R” Us; which is now, also, in bankruptcy.
Thing is, the purported reasons companies form in Delaware is due to low corporate taxes; but this corporate dominance issue has come under scrutiny, also.
Actually, in many cases, the argument of less taxation has little merit, because (most states) still tax companies for doing business in their venue.
Delaware, a state built on no sales tax, reportedly gets 80% of its revenues from the “low” business tax; and its law firms rely heavily on the fact that 50% of most major business bankruptcies are – venue shopped – to Delaware.
With this new legislation closing that loophole, then there is a question about whether or not Delaware will remain solvent.
Most assuredly, the bankruptcy lobby of Delaware lawyers is likely to take a huge hit if this bill passes.
Former USAG John Ashcroft is also on public record remarking that there are corrupt federal judges in collusion with high-ranking members of the system of justice keeping bankruptcy cases open and retaliating against victim/witnesses (please see previously hidden remarks now posted upon the U.S Courts. Gov website – here).
According to eToys whistleblower Laser Haas, Delaware can thank wicked Bankruptcy Judge, Mary F. Walrath, many stalwarts in the federal system of justice (such as AUSA Ellen Slights, trial attorney Mark Kenney), along with former Delaware federal prosecutor Colm Connolly, who aided & abetted rogue lawyers Paul Traub, Frederick Rosner, and MNAT firm, who all worked, crookedly, to protect Goldman Sachs & Bain Capital racketeering billions of dollars in unjust profits.
Senator Cornyn is also on the record stating:
after all, picking a court isn’t far from picking a verdict.
Victims of KB, Mattel, Fingerhut and eToys frauds, and many more, are hoping the corruption of venue shopping is now at an end.