JP Morgan involved in Stealing Millions of Bankruptcy Assets - Rubber-Stamped by Judge Beatty..and Between Alan Nisselson and Marc Goldberg

Again the US Trustee was Advised in Wrong Doing, Corruption
and Illegal Behavior and they Did nothing...

The US Department of Justice Bankruptcy Trustee system has serious flaws... room for Error and lots of Room for Corruption with No Accountability. Where is the Attorney General, where is the Law, is there No Checks and Balances what so ever - has there EVER been?
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This Story Sent in Today to our Whistleblower Network
Exposing the Corruption in the US Bankruptcy Courts.
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a Woman - a Family Suffering, fighting injustice in the US Department of Justice Bankruptcy Courts and US Trustee System for 20 Years. Have We as Tax Paying Citizens of the US .. no Rights What So Ever?
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Here is Today's Story..
though 20 years in the making
we just got it Today...
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"Bankruptcy Fraud Involving JP MORGAN’S Theft of Millions of Bankruptcy Assets and Collusive Settlement Between Alan Nisselson (the Bankruptcy Trustee of Bernard Madoff) AND MARC GOLDBERG

TO FRAUDULENTLY STEAL ASSETS
IS RUBBER-STAMPED BY JUDGE BEATTY
OF THE US BANKRUPTCY COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK
NEW YORK, NY

On Thursday October 28, 2009, The Law Offices of David H. Relkin, on behalf of Donna A. Sturman, applied to retiring Bankruptcy Judge Prudence Beatty, to have the Court “finally do justice” and order JP Morgan and the Trustee to turn over Millions of Dollars of stolen assets—which the Judge flatly denied by claiming Donna “had no standing.”

This case is virtually a tale ripped from the pages of the Trustee’s Manual of Bankruptcy Fraud and Abuse.

On Thursday, the Court having never required an accounting of his collections and distributions in the case, the Trustee finally disclosed that he had taken in over $41 Million Dollars, still leaving the mystery of where the money went, although most of it found its way into the coffers of JP Morgan.

Prior to the Bankruptcy, the Bank chased after Donna’s brothers to lend them Millions for a hostile takeover of The Cooper Companies, Inc. and, due to its theft of assets, JP Morgan is now one of Cooper’s largest shareholders.

Once the Bank became aware that, what the brothers called their silent partner, Donna Sturman, had commenced an action against them for waste, dissipation and fraudulent transfers of the Sturman Family properties, which were being used by the brothers as their private piggy bank, the Bank frantically began illegally acquiring security interests in the Family assets to secure the brothers’ personal loans with property owned by their sister, including the Southeast Corner of 86th Street, leaving the properties empty shells.

In furtherance of its unlawful conspiracy, the Bank then filed Bankruptcy Petitions against Donna’s three brothers, and installed its handpicked Trustee and law firms, who were counsel the Bank as well as all the other major creditors in the Bankruptcy—which conflict of interest, under the Bankruptcy Code, requires disgorgement of the attorneys’ enormous fees.
Thus, the Bank was able to play both sides of the table by making all the major decisions in the Bankruptcy, while its own officers negligently left a trail of brazen correspondence of the Bank’s collusive and corrupt instructions to the Trustee.

Judge Beatty repeatedly approved the Bank’s unlawful acquisition and sale of non-debtor assets, allowing her Court to satisfy fraudulent claims over a 20 year period.

Under her supervision, the Bank, the Trustee and his law firms were able to rape the assets of the Sturman Family—none of which were in bankruptcy—and to line their pockets with millions of dollars of stolen money.

Judge Beatty blatantly and improperly dismissed Ms. Sturman’s action against the Bank for “lack of prosecution,” after the action was fully briefed, while keeping in place an injunction prohibiting Donna from taking any discovery of the Banks.

The complicity in fraudulent conduct did not stop there during this 20 year old case (perhaps the longest running bankruptcy in New York).

Although the US Trustee was repeatedly advised and supplied with evidence of these crimes, it inexplicably sat on its hands, despite its legal obligation to supervise and investigate Trustee misconduct.

To force the brothers to help the Bank go along with its embezzlement, it threatened the brothers with criminal prosecution, and after the Bank got it, had the brothers indicted anyway for submitting false financials, spending thirteen months in federal prison. Unsurprisingly, the Bank officers testified with immunity.

Despite Orders obtained by Donna preventing sales of the properties, the Trustee was allowed by Judge Beatty to simply ignore them, allowing one of the most valuable assets of the Sturman Family Enterprises to be “abandoned” so the Bank could acquire the property for free without using up any of its debt—a lender fraud called “double dipping.”

The Bank and its hand-picked Trustee then took control over the other non-bankrupt properties, used them as cash cows, and after bleeding them dry, sold them for the asking to third parties (including one by the Trustee to his own employee) while the Trustee took in $1.0 Million Dollars a year for seven years on just one property.

Where the money went is still a mystery.

The United States Trustee Program is a component of the Department of Justice that, according to its website, “seeks to act as the watchdog over the bankruptcy process to protect the integrity of the Federal bankruptcy system.”

In addition the Department of Justice has the responsibility to ensure compliance with applicable laws and procedures and to identify and investigate bankruptcy fraud and abuse in coordination with United States Attorneys and the FBI.

The Attorney General is charged with the appointment of United States Trustees and Assistant United States Trustees.

On Thursday, after Judge Beatty awarded the Trustee a cumulative amount of over $8 Million Dollars in fees to him and his law firms (which Judge Beatty fittingly called “Blood Money”), Judge Beatty characterized the negligent failure of the Trustee to do anything in the Bankruptcy case for the last ten years by saying, “I understand how busy people can get.”

It is counsel’s opinion that such award of fees was a transfer of stolen money.

In attempting to fight Judge Beatty’s indifference to the criminal activities committed in her Court, Donna retained Helen Chaitman, who coined the phrase “lender liability” but who, like so many of Donna’s attorneys walked away when Donna’s money ran out.

So “successful” in their control of the Bankruptcy, the Bank and the Trustee blocked all of Donna’s income, forcing the heiress to be locked in handcuffs by Judge Beatty, evicted over seven times with her three young children, once in the middle of a winter blizzard, and then thrown into a fraudulent bankruptcy by one of her own law firms whose debt to the Bank was wiped off the books.

Once forced into Bankruptcy, Alan Nisselson, who now supervises the Madoff Bankruptcy, was appointed as Donna’s Trustee to clean up Ms. Sturman’s dangerous claims once and for all.

Without any notice to Ms. Sturman, he settled all of Donna’s claims in the brothers’ bankruptcy in a collusive and illegal agreement in which the Trustees even released each other—a violation of law and the Code of Professional Responsibility—which settlement was immediately rubber-stamped by Judge Beatty.

Mr. Relkin is now analyzing the case in order to determine what appropriate actions to take to vindicate Ms. Sturman’s rights.

For further information contact:
David H. Relkin, Esq.
Law Offices of David H. Relkin
575 Eighth Avenue
New York, NY 10018

David@RelkinLaw.com

212.244.8722

Links: www.DavidRelkinLaw.com
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Click Here For Press Release PDF Document
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More on the Corruption of US Bankruptcy Attorneys, US Bankruptcy Department of Justice Trustees and the Whole Liquidation Process....
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www.ObsidianFinanceSuck.com
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www.LiquidatingTrustee.com
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www.Summit1031BkJustice.com
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Bankruptcy Courts - a High Level of Seemingly Legal Organized Crime. STOP Corruption in the US Bankruptcy Courts.

Ample Evidence that Organized Crimes Exists in DE Bankruptcy Courts.

DE US Attorney unethically refused to investigate the MNAT law firmdespite their confessions to 15 acts of perjury that deceived the DE Courts Connolly was a partner with MNAT in 2001 (Goldman Sachs & Bain)(the year of $300 million perjury/fraud).

This Affidavit is from I, Steven Haas, (a/k/a Laser Haas) who does hereby testify this day - November 3, 2009 - Under Penalty of Perjury - that more than 100 felony violations have transpired in the DE bankruptcy case(s) beginning with eToys (01-706) in 2001 and the DE Dept of Justice is vested in Covering Up the entire debacle.Whereas my company (CLI) received DE Federal Court approval to be the eToys liquidation consultant and I was offered a bribe of $800,000 to look the other way. Saying no cost me my life savings, career and more.DOJ Trial Attorney Mark Kenney told me it was not technically a bribe until I accepted it - then I can bring the evidence to the DOJ. Nice Try!

Paul Traub's associate Susan Balaschak threatened me again in 2004, to "Back Off" from initiating an further investigation or they had enough power to make sure we would not get paid our fees & expenses, our career would suffer and other retaliations might transpire.The parties were so well protected my own attorney (Henry Heiman) was brazen and flagrant enough to actually email me the threat.

This was then reported to the DE DOJ Trial Attorney Mark Kenney, who responded in anger (as well as incongruously implying one case can protect another) that the issues of Paul Traub and Barry Gold (the post-petition CEO of eToys) had been handled In re Bonus Sales.Mark Kenney was not aware that I had begun to study the Law on the DOJ website and had learned the Congressional mandates on disclosures of conflicts of interest. Researching Mark Kenney's lapse linguae led to the discovery of the smoking gun that provided irrefutable proof that Paul Traub and Barry Gold had schemed to deceive the DE Federal Court and parties of interest.

Where we found an affidavit on a vanity letter-head stating that Paul Traub and Barry Gold were co-principals of Asset Disposition Advisors (see Bonus Sales pleading (here))The Smoking Gun of that affidavit in Bonus Sales provided incontrovertible proof that Paul Traub and his firm had submitted more than 17 false Rule 2014/2016 Affidavits over a period of several years where he and Barry Gold testified that they were "arms length" from one another.

Being that Paul Traub was the eToys creditors counsel and Barry Gold was placed secretly within the Debtor as a post-petition President/CEO this meant that they had nefariously seized control of a bankruptcy estate of a public company. Paul Traub later testified that MNAT drafted the clandestine Hiring Letter (see pg 12 of pdf (here)) of Barry Gold that permitted him to illegally circumvent the Court's auspice (and therefore dodge [initially] any perjury violation).

An Emergency Hearing was Ordered to occur on December 22, 2005 where Asst US Trustee Frank Perch stipulated to the DE Bankruptcy Court that it was now obvious a serious violation had transpired from the beginning of the case in 2001. DOJ Deputy Director Friedman replaced the Region 3 Trustee Roberta DeAngelis with a press release coincidently timed Dec. 22, 2004 (here)

Paul Traub was the partner to both Marc Dreier and Tom Pettersafter he received his illegal immunity in 2005.He also handled Adelphia and Okun 1031 Tax Group where Adelphia owners went to jail and Okun just recently received 100 years.How long will the Dept of Justice continue to protect Paul Traub

DOJ Director Friedman replacedRegion 3 TrusteeRoberta DeAngelisthe very day of our Emergency hearing in eToys on Fraud(Dec 22, 2004 pr (here))

For Much More on this Story Click Below
http://www.petters-fraud.com/DOJ_Cover_UP.html
fraud and corruption in the US Bankruptcy Courts

The Bankruptcy Courts are Corrupt there is no doubt about it

There is too much room for too many people to make money. And it is FREE Money.

Meaning the Creditors Committee, the Bankruptcy Court System, the Judges, the Trustees and all who are on the Bankruptcy Courts Payroll they get to make money, and get to claim it is a needed and legitimate expense and the Creditors just get to Eat It.

Which makes the Creditors ( real estate consumers, investors) really mad.. it makes them feel violated and fill with hate… but that Rage is directed at the company that went bankrupt and not at the company, the attorneys, the courts, the “System” that is the real party taking all their money. So they get to make the money with NO Accountability to anyone.

Money freely flows to all parts of the system and the Original Company as well as their Consumers, Investors.. Creditors… well they get screwed. But it really is party time for the Court System and all the players that get to share the proceeds from your life’s work. And this is seemingly all legal.

There is too much room in the current Bankruptcy Court System and Liquidation Process to give favors to friends, investors that will “favor you back” in the future, hide money for you, create companies or investments for the future or many – MANY other ways to create a diversion while hiding plenty of YOUR MONEY for their future.

There is tons of money to pay high wages to friends, lawyers, and anyone that they think may be able to help them liquidate in such a way that all their Cronies get big pay offs now and in the future.

Rules are Broken, Laws are Ignored, Judges sign off on certain circumstances in the name of the Highest Fiduciary Responsibility and no one seems to really pay attention to the real High Finance Fraud, Corruption, Theft and total disgrace of the lives and investments of the Real Estate Consumer – the Investor – the Creditor…

Meanwhile the original victims, such as the Real Estate Consumer, Real Estate Investor they get pennies on the dollar and though angry seem to think that there is nothing they can do about it and they blame the company that went bankrupt instead of the fallacies of the Bankruptcy Court System and the Severe Lack of Accountability of the US Depart of Justice Trustee that is Supposedly Looking of the Case. As well as the total lack of investigating or admitted knowledge of the affiliation of all the players involved in any particular Bankruptcy or Liquidation Process.

The Original investor, or real estate consumer, well they Do Care that their money is gone, however with the controlled media on the issue, the news articles that go out on that particular company or bankruptcy situation, what you have is the creation of the perfect storm of illusion. In this the Consumer (Creditor) really believes that the company who is going bankrupt is Evil, Ignorant, Thieves, Criminals, and in this they simply bend over and by in to the illusion that it is in the Justice Courts now and they will get justice someone.

They buy into the thinking that there is nothing they can do and that they are simply powerless as millions of their dollars is spent on unnecessary gibberish. They continue to blame the Original Company that Went Bankrupt while the wolf in sheep’s clothing is running off with their life’s work.

www.LiquidationTrustee.com
my Site on the Severe Problems with the Bankruptcy Courts

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the Bankruptcy Court System is a Constant, Fraudulent, Blatant attack on the Real Estate Consumer and the Only way to Fix what is Broke is Accountability. The Only way to Real Accountability is for you the Consumer, the Investor, the Creditor... YOU to Expose them and to hold them accountable for the harm they do to you.

Do not Look the Other way while this continues to happen. It seems to be an endless - LEGAL - cycle of High Finance - Greed and Corruption and all on your Dime.

Crystal L. Cox
Real Estate Whistleblower
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www.ObsidianFinanceSucks.com
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www.RealEstateIndustryWhistleblower.com

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