No conviction could have been simpler to obtain than one for the theft of massive amounts of wiretap information and other protected law enforcement materials ... that was engineered, for Bear Stearns benefit, by local bankruptcy insiders and Bear Stearns senior management.
Convictions of senior Bear Stearns managing directors Mark Lehman and Daniel Taub would have been so simple. And, through the leverage of Bear Stearns senior management facing long prison terms, have led to a successful outcome — instead of the notorious botched result — in the Bear Stearns Cayman Islands CMO Hedge Fund trial ... a trial that otherwise had to rely on ambiguous emails.
In 2006, Paul S. Singerman of Berger Singerman confessed to being instrumental in funneling a flood of illegal wiretap results and other extensive protected law enforcement materials (he euphemistically termed "discovery") to Bear Stearns:
"one of the purposes of Title Ill is to prevent unlawful communications intercepts being used for "private financial gain" .... Sharing the contents of the discovery ... with Lawrence's largest creditor— Bear Stearns & Co. ... was entirely appropriate so that they could determine what, if anything, in the discovery obtained might be useful to them"
The open and shut simplicity of a prosecution of Bear Stearns senior management — for serious violations of federal wiretap law — would have prevented Bear Stearns' later 30 billion dollar sale of worthless CMO's from their Cayman Islands hedge funds to the U.S. taxpayer. That sale would have been politically impossible.
From late 2004 on, even before Paul S. Singerman's confession was made, I had filed extensive documentation, including hidden bills, that plainly showed the thefts were routinely occurring. The documentation showed how Bear Stearns was regularly funneled the massive amount law enforcement material they were illegally receiving. It was that documentation then led to the confession by Mr. Singerman in court papers.
A successful prosecution of Bear Stearns insiders was a much simpler matter than the Raj Rajaratnam conviction — itself, the Wall Street Journal identified as having a "simple" prosecution theory as the reason for its success — because the theory was basic and so easy to prove since a confession already existed.
The means to convict senior Bear Stearns management had been filed (and sent to the local U.S. Attorney's Office in Florida) in more than enough time to prevent the greatest con in US financial history: the 30 billion dollar sale of worthless CMO's held in Bear Stearns' Cayman Islands hedge funds — the very CMO's Bear Stearns insiders made billions creating — to the US taxpayer.
This far dwarfed the 20 million dollar insider case of Raj Rajaratnam.
Of course there is much more to this story, as hinted at in the Paul Singerman confession. Particularly the strange manner, theories, and events by which the illegal wiretapping was obtained and justified. All of these matters, presenting a far different picture than previously publicized about the longest civil contempt case in US federal court history, has begun to be fully documented in this blog.
Confession by Paul S. Singerman that Bear Stearns illegally obtained federal law enforcement tapes
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