In a previous post, I examined the incestuous relationship between Paul Singerman and other Berger Singerman insiders and Gibraltar Bank (see also here). Berger Singerman is the lead law firm for the trustee in the Rothstein Rosenfeldt Adler bankruptcy. It has spearheaded the "immunization" of Gibraltar and those associated with Gibraltar, in the Gibraltar Bank scandal — a scandal that parallels the TD Bank scandal. The Gibraltar immunization extends to Berger Singerman itself, its insider co-investors with Rothstein in Gibraltar, and to others who aided in orchestrating the purchase of Gibraltar Bank ... the bank Scott Rothstein said was essential to carrying out his scheme.
Rothstein testified that a major reason for his participation in the purchase of Gibraltar Bank was that inquiries into his Gibraltar accounts would then be stopped. So the "carrot" to Rothstein joining with Berger Singerman insiders in the Gibraltar purchase was a cessation of inquiries into the Ponzi scheme; and the "stick" was continued inquiries at Gibraltar, which could result in the quick collapse of the Ponzi scheme. Not much of a choice.
In my March 9, 2012 post, I stated the following:
"Everyone following the Scott Rothstein bankruptcy case should recognize what is really happening:
Berger Singerman is making many quick "pennies on the dollar"
settlements. Those paltry settlements all have buried clauses that
immunize the targets from victim lawsuits — the real "carrot" to settle.
A large part of those paltry settlements then go to Berger Singerman
for legal fees — and Berger Singerman is thereby able to protect
themselves (and friends) from many embarrassing questions and potential
civil claims, including aiding and abetting and civil RICO claims,
regarding Gibraltar"
A few days ago, Civil RICO claims were permitted by U.S. District Judge Joan Lenard to be added to Emess Capital's complaint against TD Bank, thereby showing the viability of filing such claims against Gibraltar Bank and those connected to the Rothstein scheme — claims I pointed out were apropos in Gibraltar's case.
The still open issue is why haven't Civil RICO claims been used against Gibraltar Bank yet? Is it because Berger Singerman obtained immunization for Gibraltar and those connected to Gibraltar, thereby protecting themselves and their own multimillion dollar investments in Gibraltar? Civil RICO claims against Gibraltar, along with aiding and abetting claims, could enmesh Berger Singerman insiders as co-defendants based on allegations they played a crucial role in carrying out Scott Rothstein Ponzi scheme.
Showing posts with label Scott Rothstein. Show all posts
Showing posts with label Scott Rothstein. Show all posts
Saturday, May 5, 2012
Friday, March 9, 2012
Scott Rothstein - TD Bank Wins One
TD Bank just won a victory before Judge Marra in federal district court. Judge Marra ruled TD Bank has the right to have a jury trial conducted in the district court, not the bankruptcy court, because it did not consent to a bankruptcy court jury trial.
The only question is if they want to go before a jury ... and I don't only mean TD Bank. The elephant in the room throughout the whole Scott Rothstein bankruptcy is that Berger Singerman insiders, including Paul Singerman, partnered with Rothstein to buy Gibraltar Bank, arguably a bank more important to Rothstein's schemes then TD Bank.
Clearly, Berger Singerman insiders are presumed to have inside knowledge of Rothstein's scheme — through due dilligence and similar efforts used in evaluating their Gibraltar investment and their partner, Rothstein, who they were investing with.
At the time of the purchase all the warning signs were in place, including the many internal complaints about Rothstein's accounts. Rothstein has already testified that the key reason for his investing in Gibraltar Bank was to block all internal investigations of his accounts.
The conflict problem — so the public was informed and it was dutifully reported — was "solved" by hiring another law firm to sue Gibraltar. The problem then disappeared from public view, as "solved."
But, the conflict problem was never solved because Gibraltar played a central role in the Ponzi scheme. Berger Singerman had retained such a degree of control over the bankruptcy estate that Paul Singerman negotiated the sweetheart Gibraltar bankruptcy settlement that immunizes Gibraltar from other claims by Rothstein's victims — and protects Berger Singerman insiders' investment in Gibraltar.
The ploy of hiring another firm to give the appearance of a "solved" conflict, worked very well indeed.
TD Bank's "Best Defense" - What Happened To The In Pari Delicto Defense ... It Worked In The Madoff Case?
It is so far very strange that the issue of "in pari delicto" has not yet hit any headlines in this case (See my previous post on this subject). Remember, that well settled defense theory says, in essence, that if two parties work together on a scheme, then one of those schemers (in this case the bankruptcy estate) cannot sue third parties on behalf of innocent victims.
To make the in pari delicto concept clearer: picture two muggers assaulting a victim. One of the muggers sues another alleged accomplice to the mugging to compensate the victim. The sued alleged accomplice raises the in pari delicto defense claiming an accomplice cannot sue him to compensate the victim.
This very important defense issue, a few days ago, became the subject of an appeal in the Second Circuit in the Bernie Madoff bankruptcy case. The appeal came after two Madoff bankruptcy trustee lawsuits against financial institutions were thrown out based on the in pari delicto defense. Those cases parallel the Scott Rothstein case against TD Bank.
Everyone following the Scott Rothstein bankruptcy case should recognize what is really happening:
Berger Singerman is making many quick "pennies on the dollar" settlements. Those paltry settlements all have buried clauses that immunize the targets from victim lawsuits — the real "carrot" to settle. A large part of those paltry settlements then go to Berger Singerman for legal fees — and Berger Singerman is thereby able to protect themselves (and friends) from many embarrassing questions and potential civil claims, including aiding and abetting and civil RICO claims, regarding Gibraltar.
The only question is if they want to go before a jury ... and I don't only mean TD Bank. The elephant in the room throughout the whole Scott Rothstein bankruptcy is that Berger Singerman insiders, including Paul Singerman, partnered with Rothstein to buy Gibraltar Bank, arguably a bank more important to Rothstein's schemes then TD Bank.
Clearly, Berger Singerman insiders are presumed to have inside knowledge of Rothstein's scheme — through due dilligence and similar efforts used in evaluating their Gibraltar investment and their partner, Rothstein, who they were investing with.
At the time of the purchase all the warning signs were in place, including the many internal complaints about Rothstein's accounts. Rothstein has already testified that the key reason for his investing in Gibraltar Bank was to block all internal investigations of his accounts.
The conflict problem — so the public was informed and it was dutifully reported — was "solved" by hiring another law firm to sue Gibraltar. The problem then disappeared from public view, as "solved."
But, the conflict problem was never solved because Gibraltar played a central role in the Ponzi scheme. Berger Singerman had retained such a degree of control over the bankruptcy estate that Paul Singerman negotiated the sweetheart Gibraltar bankruptcy settlement that immunizes Gibraltar from other claims by Rothstein's victims — and protects Berger Singerman insiders' investment in Gibraltar.
The ploy of hiring another firm to give the appearance of a "solved" conflict, worked very well indeed.
TD Bank's "Best Defense" - What Happened To The In Pari Delicto Defense ... It Worked In The Madoff Case?
It is so far very strange that the issue of "in pari delicto" has not yet hit any headlines in this case (See my previous post on this subject). Remember, that well settled defense theory says, in essence, that if two parties work together on a scheme, then one of those schemers (in this case the bankruptcy estate) cannot sue third parties on behalf of innocent victims.
To make the in pari delicto concept clearer: picture two muggers assaulting a victim. One of the muggers sues another alleged accomplice to the mugging to compensate the victim. The sued alleged accomplice raises the in pari delicto defense claiming an accomplice cannot sue him to compensate the victim.
This very important defense issue, a few days ago, became the subject of an appeal in the Second Circuit in the Bernie Madoff bankruptcy case. The appeal came after two Madoff bankruptcy trustee lawsuits against financial institutions were thrown out based on the in pari delicto defense. Those cases parallel the Scott Rothstein case against TD Bank.
Everyone following the Scott Rothstein bankruptcy case should recognize what is really happening:
Berger Singerman is making many quick "pennies on the dollar" settlements. Those paltry settlements all have buried clauses that immunize the targets from victim lawsuits — the real "carrot" to settle. A large part of those paltry settlements then go to Berger Singerman for legal fees — and Berger Singerman is thereby able to protect themselves (and friends) from many embarrassing questions and potential civil claims, including aiding and abetting and civil RICO claims, regarding Gibraltar.
Thursday, March 1, 2012
Raj Rajaratnam Convicted ... But Local Bankruptcy Insiders Helped Bear Stearns — the "Big One" — Get Away
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
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
Wednesday, February 29, 2012
Scott Rothstein Redux 4: - What's Behind the Razorback Gibraltar Settlement; More Trojan Horses in the Bankruptcy Gibraltar Settlement
Rothstein victims must surely believe they are being forced to own the equivalent of underwater Florida swamp land — toxically polluted to boot — in the form of the "50 million" in Gibraltar Bank insurance claims forced on them in the pending Gibraltar bankruptcy settlement. The insurance claims are virtually worthless and the Razorback settlement neatly avoided the Trojan horses inserted into the bankruptcy settlement.
The largest Trojan horse in the bankruptcy Gibraltar "settlement" is, of course, the blanket waiver protecting from lawsuits all Gibraltar related targets — the real deep pockets for Rothstein victim recovery:
Deep pocket recovery targets include: Berger Singerman honchos (and Berger Singerman itself — the bankruptcy powerhouse controlling the trustee's bankruptcy case) who partnered with Scott Rothstein to buy Gibraltar, their still unidentified Florida "movers and shakers" purchase partners — who are also possible criminal targets — , Boston Private and other sundry parties associated with the purchase and running of Gibraltar. Berger Singerman's "claims waiver" provision in the bankruptcy settlement protects them all.
The real reasons the Razorback settlement was only for 10 million:
Gibraltar Bank is a "zombie bank." It's dead ... but walking. Barely.
Razorback plaintiffs know it is worthless win jury awards of potentially up to 1/2 billion dollars (based on recent the TD Bank results) because Gibraltar will immediately fold. Gibraltar is basically a shell with no equity left after depositor claims, the FDIC steps in, and the true value of its enormous loan portfolio is disclosed. Gibraltar was in deep financial trouble (and under investigation for money laundering for which it was ultimately cited) even before Rothstein liability became clear.
That is why the Gibraltar "claims waiver" provision in the bankruptcy "settlement" is so large a Trojan horse. Only deep pocket targets — Berger Singerman honchos, their unknown Gibraltar purchase partners, Boston Private and others — can cover even part of Gibraltar's liability. But they all escape liability because of the tainted provision.
To further understand: picture a piranha (Razorback) leading a pack attacking the "deep in the water" "zombie bank" (Gibraltar). It must pick the size of its bite very carefully. It must make sure the "zombie bank" still appears to be "walking" after the bite, otherwise, it chokes and must regurgitate the chunk when the FDIC steps in.
In reality, Gibraltar Bank is "owned" by: 1) depositors (most of whom are largely uncovered by FDIC insurance because Gibraltar specializes in "wealth management"), and 2) Scott Rothstein's victims.
Gibraltar's true value is 100's of millions less than the money "due" these two groups. So Berger Singerman honchos and the other Scott Rothstein purchase partners lost their equity long ago.
Even without the 100's of millions in Rothstein victim liability, Gibraltar was is serious trouble because of chronic over reporting of bank loan asset values (a nationwide problem) and financial and loan problems, unique to Gibraltar, that have been regularly occurring as "surprises."
The hidden bankruptcy chess game — Gibraltar's stealth receivership:
In effect, Gibraltar Bank's future is being decided now through a stealth receivership, in which there are four party groups: 1) depositors (eventually represented in part by the FDIC) (creditors); 2) Rothstein victims (creditors); 3) insurers (targets); and 4) Scott Rothstein's purchase partners (include Berger Singerman honchos) and still unknown others, Boston Private and others (targets).
Berger Singerman, through control of the Rothstein bankruptcy, is using all of their considerable bankruptcy insider power and influence to assure the fourth group (including themselves) is completely removed as targets in a later receivership. The fourth group is the largest potential recovery group. The tainted bankruptcy settlement clause, baring all claims against Gibraltar related targets, accomplishes Berger Singerman's goal.
How the Razorback group avoided other Trojan Horses in the bankruptcy Gibraltar settlement:
The real value of the Gibraltar insurance claims can be seen just by looking at the principal insurance carrier defenses: Gibraltar lied in its insurance applications; Gibraltar management knew, or should have known, a massive Rothstein fraud was occurring and concealed that information in their insurance applications, which invalidated coverage.
If the carrier defenses looks familiar, they should be. They are similar to the Rothstein victims' strong claims against Gibraltar Bank.
In light of the explosive testimony recently given by Scott Rothstein, an active insurer defense exposes Gibraltar management and others to exposure of information relevant to further possible civil and/or criminal claims.
So, Gibraltar has good reason to dump their insurance claims — and the legal costs to pursue those claims — on the backs of the Rothstein victims, as specified in the tainted bankruptcy settlement. The Razorback plaintiffs did not fall into this trap. Gibraltar must pursue their own insurer claims in the Razorback settlement.
By assigning the insurance claims to the bankruptcy estate, those claims will be then controlled by Berger Singerman, who will collect legal fees from the victims (not from Gibraltar) to pursue those claims while keeping tabs on exactly what information is disclosed.
For their part, the insurers will have the silent advantage of knowing of Berger Singerman reluctance to have information harmful to them disclosed at trial and use that information to reduce even the minimal expected recovery. A cynic would predict: there will be no trial, only a sealed "settlement" after a suitable period of fee "milking" has occurred.
Equally important, the bankruptcy "settlement" means Gibraltar (and its insiders) turn the tables on the victims by forcing them to repudiate their position of Gibraltar wrongdoing. The victims must now vigorously defend Gibraltar management and bankruptcy insider shareholders — their alleged victimizers — to recover any losses from the carriers.
Rothstein victims can certainly be excused for believing that forcing them pay millions in legal fees to defend Gibraltar management and Berger Singerman honchos' Gibraltar actions — that they allege resulted in defrauding them — is adding insult to injury by, yet again, victimizing them.
The next post will tie together the issue of claims against Gibraltar insiders, show why they are primary targets for recovery and point out some unexplored areas that require further investigation.
The largest Trojan horse in the bankruptcy Gibraltar "settlement" is, of course, the blanket waiver protecting from lawsuits all Gibraltar related targets — the real deep pockets for Rothstein victim recovery:
Deep pocket recovery targets include: Berger Singerman honchos (and Berger Singerman itself — the bankruptcy powerhouse controlling the trustee's bankruptcy case) who partnered with Scott Rothstein to buy Gibraltar, their still unidentified Florida "movers and shakers" purchase partners — who are also possible criminal targets — , Boston Private and other sundry parties associated with the purchase and running of Gibraltar. Berger Singerman's "claims waiver" provision in the bankruptcy settlement protects them all.
The real reasons the Razorback settlement was only for 10 million:
Gibraltar Bank is a "zombie bank." It's dead ... but walking. Barely.
Razorback plaintiffs know it is worthless win jury awards of potentially up to 1/2 billion dollars (based on recent the TD Bank results) because Gibraltar will immediately fold. Gibraltar is basically a shell with no equity left after depositor claims, the FDIC steps in, and the true value of its enormous loan portfolio is disclosed. Gibraltar was in deep financial trouble (and under investigation for money laundering for which it was ultimately cited) even before Rothstein liability became clear.
That is why the Gibraltar "claims waiver" provision in the bankruptcy "settlement" is so large a Trojan horse. Only deep pocket targets — Berger Singerman honchos, their unknown Gibraltar purchase partners, Boston Private and others — can cover even part of Gibraltar's liability. But they all escape liability because of the tainted provision.
To further understand: picture a piranha (Razorback) leading a pack attacking the "deep in the water" "zombie bank" (Gibraltar). It must pick the size of its bite very carefully. It must make sure the "zombie bank" still appears to be "walking" after the bite, otherwise, it chokes and must regurgitate the chunk when the FDIC steps in.
In reality, Gibraltar Bank is "owned" by: 1) depositors (most of whom are largely uncovered by FDIC insurance because Gibraltar specializes in "wealth management"), and 2) Scott Rothstein's victims.
Gibraltar's true value is 100's of millions less than the money "due" these two groups. So Berger Singerman honchos and the other Scott Rothstein purchase partners lost their equity long ago.
Even without the 100's of millions in Rothstein victim liability, Gibraltar was is serious trouble because of chronic over reporting of bank loan asset values (a nationwide problem) and financial and loan problems, unique to Gibraltar, that have been regularly occurring as "surprises."
The hidden bankruptcy chess game — Gibraltar's stealth receivership:
In effect, Gibraltar Bank's future is being decided now through a stealth receivership, in which there are four party groups: 1) depositors (eventually represented in part by the FDIC) (creditors); 2) Rothstein victims (creditors); 3) insurers (targets); and 4) Scott Rothstein's purchase partners (include Berger Singerman honchos) and still unknown others, Boston Private and others (targets).
Berger Singerman, through control of the Rothstein bankruptcy, is using all of their considerable bankruptcy insider power and influence to assure the fourth group (including themselves) is completely removed as targets in a later receivership. The fourth group is the largest potential recovery group. The tainted bankruptcy settlement clause, baring all claims against Gibraltar related targets, accomplishes Berger Singerman's goal.
How the Razorback group avoided other Trojan Horses in the bankruptcy Gibraltar settlement:
The real value of the Gibraltar insurance claims can be seen just by looking at the principal insurance carrier defenses: Gibraltar lied in its insurance applications; Gibraltar management knew, or should have known, a massive Rothstein fraud was occurring and concealed that information in their insurance applications, which invalidated coverage.
If the carrier defenses looks familiar, they should be. They are similar to the Rothstein victims' strong claims against Gibraltar Bank.
In light of the explosive testimony recently given by Scott Rothstein, an active insurer defense exposes Gibraltar management and others to exposure of information relevant to further possible civil and/or criminal claims.
So, Gibraltar has good reason to dump their insurance claims — and the legal costs to pursue those claims — on the backs of the Rothstein victims, as specified in the tainted bankruptcy settlement. The Razorback plaintiffs did not fall into this trap. Gibraltar must pursue their own insurer claims in the Razorback settlement.
By assigning the insurance claims to the bankruptcy estate, those claims will be then controlled by Berger Singerman, who will collect legal fees from the victims (not from Gibraltar) to pursue those claims while keeping tabs on exactly what information is disclosed.
For their part, the insurers will have the silent advantage of knowing of Berger Singerman reluctance to have information harmful to them disclosed at trial and use that information to reduce even the minimal expected recovery. A cynic would predict: there will be no trial, only a sealed "settlement" after a suitable period of fee "milking" has occurred.
Equally important, the bankruptcy "settlement" means Gibraltar (and its insiders) turn the tables on the victims by forcing them to repudiate their position of Gibraltar wrongdoing. The victims must now vigorously defend Gibraltar management and bankruptcy insider shareholders — their alleged victimizers — to recover any losses from the carriers.
Rothstein victims can certainly be excused for believing that forcing them pay millions in legal fees to defend Gibraltar management and Berger Singerman honchos' Gibraltar actions — that they allege resulted in defrauding them — is adding insult to injury by, yet again, victimizing them.
The next post will tie together the issue of claims against Gibraltar insiders, show why they are primary targets for recovery and point out some unexplored areas that require further investigation.
Monday, February 27, 2012
Scott Rothstein Redux Part 3: - The Trojan Horses in the Gibraltar Bank "Settlement"
The quick foxes are amok in the chicken coop — or similar such thoughts — must be in the minds of the Rothstein victims who actually read the terms of the tainted Rothstein - Gibraltar Bank bankruptcy "settlement."
Rothstein victims have so far recovered 1/4 billion dollars from TD Bank — 67 million from a recent jury award and from a reported settlement of 170 million. There is more to come.
Recovery from Gibraltar Bank could easily be 1/2 billion dollars ... without the tainted bankruptcy "settlement," because the Rothstein victims' case against Gibraltar Bank is stronger than the case against TD Bank (see below).
Yet, the bankruptcy "settlement" only costs Gibraltar a few million dollars (see previous post) and bars Rothstein victims from any greater recovery from Gibraltar!
The "settlement" enriches the head honchos of local bankruptcy power house Berger Singerman, including Paul Singerman, by protecting their many millions invested in Gibraltar as partners (co-shareholders) with Scott Rothstein. Berger Singerman, as lead attorneys for the bankruptcy estate, for all practical purposes control the bankruptcy estate. Furthermore, public reports about the "settlement" have ignored the similar protection given to the unidentified 50.
Who or what is the 50? It isn't a movie. They are the unidentified 50 Florida "movers and shakers" who partnered with Berger Singerman honchos and Scott Rothstein to buy control of Gibraltar. Entry into that exalted inner circle implied very close personal and/or business relationships with Berger Singerman honchos and Rothstein because the investment was a private placement. The investment was made with great secrecy and a deliberate concealment of the identities of the 50. The reasons for concealing the identities of the 50 are now very clear.
The SunSentinal reported Rothstein testified: "We were involved in public corruption with law enforcement. We were involved in activities with mob-related individuals. We were involved in activities involving the physical threats of other individuals. We were involved in the public corruption side of purchasing of political positions. We were involved in the manipulation of the judiciary."
Surprisingly, reporters have made no attempt to identify the 50 ... a list that is a "brass ring" goal for investigative reporting. The list will reveals who Rothstein may have been referring to in his explosive testimony. Floridians have a right to know which officials and/or prominent individuals were in bed with Rothstein.
Moreover, as things now stand, the unidentified 50 — which likely includes public officials — owe Paul Singerman, and the other unidentified Berger Singerman honcho Gibraltar owners, a great debt (presumably to be later paid back) for protecting their Gibraltar investments and their identities.
The case against Gibraltar is stronger than the case against TD Bank:
The essence of the recently won jury case against TD Bank was straightforward. A short summary of the case was that TD Bank knew of the Scott Rothstein fraud because of the fraud's size, its longevity and normal banking controls raised many red flags that TD Bank should have reacted to; all of the signs were there for TD Bank to see a massive fraud was occurring; it is impossible to believe that TD Bank official didn't know of the fraud but allowed it to continue because it was profitable to do so. See Business Week article TD Bank Aided Rothstein Fraud, Investors’ Lawyer Tells Jury
The case against Gibraltar is stronger than that against TD Bank because Berger Singerman honchos and Paul Singerman were multi million dollar investors in Gibraltar. The victims, at trial, would argue that it is impossible for Gibraltar management and owners to not have been aware of Rothstein's schemes — more so than TD Bank — because Berger Singerman is a local bankruptcy power house firm that claims to have extensive experience in uncovering complex financial frauds. They would argue that it is impossible to believe Berger Singerman, with their extensive "expertise" in ferreting out complex financial fraud, did not see the warning signs of the massive Rothstein fraud when they conducted due diligence for their multi million dollar Gibraltar investments. In addition, the government has cited Gibraltar Bank for extensive money laundering violations. These arguments would carry great weight with a jury and it is not unreasonable to project awards of upwards of 1/2 billion dollars against Gibraltar in light of the TD Bank verdict and settlement.
See the next post for the undisclosed and extraordinary hidden "Trojan horses" that are contained in the tainted bankruptcy Rothstein - Gibraltar settlement. Those Trojan horses further benefit and protect Berger Singerman honchos ... at the further great expense of the Rothstein victims.
Rothstein victims have so far recovered 1/4 billion dollars from TD Bank — 67 million from a recent jury award and from a reported settlement of 170 million. There is more to come.
Recovery from Gibraltar Bank could easily be 1/2 billion dollars ... without the tainted bankruptcy "settlement," because the Rothstein victims' case against Gibraltar Bank is stronger than the case against TD Bank (see below).
Yet, the bankruptcy "settlement" only costs Gibraltar a few million dollars (see previous post) and bars Rothstein victims from any greater recovery from Gibraltar!
The "settlement" enriches the head honchos of local bankruptcy power house Berger Singerman, including Paul Singerman, by protecting their many millions invested in Gibraltar as partners (co-shareholders) with Scott Rothstein. Berger Singerman, as lead attorneys for the bankruptcy estate, for all practical purposes control the bankruptcy estate. Furthermore, public reports about the "settlement" have ignored the similar protection given to the unidentified 50.
Who or what is the 50? It isn't a movie. They are the unidentified 50 Florida "movers and shakers" who partnered with Berger Singerman honchos and Scott Rothstein to buy control of Gibraltar. Entry into that exalted inner circle implied very close personal and/or business relationships with Berger Singerman honchos and Rothstein because the investment was a private placement. The investment was made with great secrecy and a deliberate concealment of the identities of the 50. The reasons for concealing the identities of the 50 are now very clear.
The SunSentinal reported Rothstein testified: "We were involved in public corruption with law enforcement. We were involved in activities with mob-related individuals. We were involved in activities involving the physical threats of other individuals. We were involved in the public corruption side of purchasing of political positions. We were involved in the manipulation of the judiciary."
Surprisingly, reporters have made no attempt to identify the 50 ... a list that is a "brass ring" goal for investigative reporting. The list will reveals who Rothstein may have been referring to in his explosive testimony. Floridians have a right to know which officials and/or prominent individuals were in bed with Rothstein.
Moreover, as things now stand, the unidentified 50 — which likely includes public officials — owe Paul Singerman, and the other unidentified Berger Singerman honcho Gibraltar owners, a great debt (presumably to be later paid back) for protecting their Gibraltar investments and their identities.
The case against Gibraltar is stronger than the case against TD Bank:
The essence of the recently won jury case against TD Bank was straightforward. A short summary of the case was that TD Bank knew of the Scott Rothstein fraud because of the fraud's size, its longevity and normal banking controls raised many red flags that TD Bank should have reacted to; all of the signs were there for TD Bank to see a massive fraud was occurring; it is impossible to believe that TD Bank official didn't know of the fraud but allowed it to continue because it was profitable to do so. See Business Week article TD Bank Aided Rothstein Fraud, Investors’ Lawyer Tells Jury
The case against Gibraltar is stronger than that against TD Bank because Berger Singerman honchos and Paul Singerman were multi million dollar investors in Gibraltar. The victims, at trial, would argue that it is impossible for Gibraltar management and owners to not have been aware of Rothstein's schemes — more so than TD Bank — because Berger Singerman is a local bankruptcy power house firm that claims to have extensive experience in uncovering complex financial frauds. They would argue that it is impossible to believe Berger Singerman, with their extensive "expertise" in ferreting out complex financial fraud, did not see the warning signs of the massive Rothstein fraud when they conducted due diligence for their multi million dollar Gibraltar investments. In addition, the government has cited Gibraltar Bank for extensive money laundering violations. These arguments would carry great weight with a jury and it is not unreasonable to project awards of upwards of 1/2 billion dollars against Gibraltar in light of the TD Bank verdict and settlement.
See the next post for the undisclosed and extraordinary hidden "Trojan horses" that are contained in the tainted bankruptcy Rothstein - Gibraltar settlement. Those Trojan horses further benefit and protect Berger Singerman honchos ... at the further great expense of the Rothstein victims.
Thursday, February 23, 2012
Scott Rothstein Redux Part 2: - More On The Gibraltar Bank "Settlement"
Either nobody read the Rothstein/Gibraltar Bank settlement ... or really cares that the Rothstein victims are being so freely victimized again.
Look closely at the reported Gibraltar - Rothstein "settlement" terms:
1. Gibraltar Bank will pay ten million dollars to the trustee. A large part of that amount will go into the pocket of Berger Singerman — controlled by Gibraltar stockholders Paul Singerman and other still unidentified Berger Singerman honchos (co-shareholders with Scott Rothstein in Gibraltar) — to pay for legal fees to Berger Singerman. That ten million is the maximum cap Gibraltar will be responsible for because the "settlement" bars victims from suing Gibraltar and part of the recovery from the insurers will be kicked back to Gibraltar! Berger Singerman double dipping not only protects their honchos' multimillion dollar holdings in Gibraltar, but they will collect more millions in legal fees from the "recovery."
2. Ten million dollars will be paid by Gibraltar's insurers — not Gibraltar, of course.
3. And here's the Berger Singerman triple dip: The Gibraltar bank's $50m claims against its liability insurers will be litigated by Berger Singerman because those claims are being assigned to the bankruptcy estate!
How sweet it is ... to be a bankruptcy insider like Paul Singerman!
There really is no shame here. The Rothstein victims are being victimized a second time through the stroke of a bankruptcy insider's pen ... by no less than Scott Rothstein's Gibraltar co-shareholders!
For the paltry sum of 10 million dollars — an amount that is a maximum cap and which will most likely be substantially reduced by recovery from insurers because of the recovery kick back to Gibraltar bank — hundreds of millions in Gibraltar (and Berger Singerman honcho shareholder) liability to Rothstein victims is evaded by the "settlement."
Toronto-Dominion Bank was not lucky enough to have bankruptcy connected insiders, such as Berger Singerman honchos, as shareholders. TD Bank was recently hit with a $67m judgment and more claims are moving through the pipeline.
Look closely at the reported Gibraltar - Rothstein "settlement" terms:
1. Gibraltar Bank will pay ten million dollars to the trustee. A large part of that amount will go into the pocket of Berger Singerman — controlled by Gibraltar stockholders Paul Singerman and other still unidentified Berger Singerman honchos (co-shareholders with Scott Rothstein in Gibraltar) — to pay for legal fees to Berger Singerman. That ten million is the maximum cap Gibraltar will be responsible for because the "settlement" bars victims from suing Gibraltar and part of the recovery from the insurers will be kicked back to Gibraltar! Berger Singerman double dipping not only protects their honchos' multimillion dollar holdings in Gibraltar, but they will collect more millions in legal fees from the "recovery."
2. Ten million dollars will be paid by Gibraltar's insurers — not Gibraltar, of course.
3. And here's the Berger Singerman triple dip: The Gibraltar bank's $50m claims against its liability insurers will be litigated by Berger Singerman because those claims are being assigned to the bankruptcy estate!
How sweet it is ... to be a bankruptcy insider like Paul Singerman!
There really is no shame here. The Rothstein victims are being victimized a second time through the stroke of a bankruptcy insider's pen ... by no less than Scott Rothstein's Gibraltar co-shareholders!
For the paltry sum of 10 million dollars — an amount that is a maximum cap and which will most likely be substantially reduced by recovery from insurers because of the recovery kick back to Gibraltar bank — hundreds of millions in Gibraltar (and Berger Singerman honcho shareholder) liability to Rothstein victims is evaded by the "settlement."
Toronto-Dominion Bank was not lucky enough to have bankruptcy connected insiders, such as Berger Singerman honchos, as shareholders. TD Bank was recently hit with a $67m judgment and more claims are moving through the pipeline.
Wednesday, February 22, 2012
Scott Rothstein Redux: - The Gibraltar Bank "Settlement" ... He Lives In Spirit!
The spirit of Scott Rothstein is alive and well ... in a local bankruptcy court as shown by the just announced "settlement" of the bankruptcy estate of Rothstein Rosenfeldt Adler with Gibraltar Private Bank & Trust. Unfortunately, its what you don't read in public reports that really counts since there are several "elephants in the ointment" in this so-called "settlement."
For the inquisitive, do a quick search for "in pari delicto in bankruptcy". Or simply look at the Eleventh Circuit case Official Com. of Unsecured Creditors of PSA, Inc. v. Edwards, 437 F. 3d 1145 (11th Cir. 2006).
Even quicker, in layman's terms, the concept of "in pari delicto" means the Rothstein Rosenfedt estate cannot sue, let alone settle, claims for damages to Rothstein's victims because Rothstein Rosenfedt was a perpetrator of the crime.
So what's going on here? The answer is to first remind oneself of a cardinal rule of local bankruptcy ethics: there aren't any when large $$$ are at stake. And the corollary rules: things are rarely what they seem; and follow the $$$.
Principal owners of Gibraltar bank are Berger Singerman honchos Paul Singerman and other unidentified Berger Singerman partners. Their investment in Gibraltar runs into the many millions but the full amount and degree of ownership is guarded with a level of secrecy that Iranian nuclear honchos can only envy. Berger Singerman is the lead attorney for the Rothstein estate.
Paul Singerman et al were Scott Rothstein's partners (co-shareholders) in Gibraltar bank. Because of normal due diligence standards, including the knowledge of Gibraltar owners of the extensive money laundering activities and who knew what and when, and recent Scott Rothstein's deposition disclosures on Gibraltar, it is clear Singerman honchos have a wealth of information about the involvement of Gibraltar bank's owners and employees ... and their liability. Of course, not a single Berger Singerman honcho has been deposed to get to the bottom of the Gibraltar fiasco.
In the "there is no shame" category:
The "settlement" includes a key provision that the Rothstein victims cannot sue Gibraltar bank! The Berger Singerman multi million dollar Gibraltar investments are now safe!
The "settlement" fine print also contains provisions that may ultimately bolster Berger Singerman honchos Gibraltar investments by millions.
It was just announced that the Rothstein estate is suing to block Rothstein's victims from suing Gibraltar bank in Broward county.
Lastly, for anyone who is gullible enough to believe the public announcement of a 65 million dollar potential "recovery" for Rothstein victims ... the check is in the mail.
For the inquisitive, do a quick search for "in pari delicto in bankruptcy". Or simply look at the Eleventh Circuit case Official Com. of Unsecured Creditors of PSA, Inc. v. Edwards, 437 F. 3d 1145 (11th Cir. 2006).
Even quicker, in layman's terms, the concept of "in pari delicto" means the Rothstein Rosenfedt estate cannot sue, let alone settle, claims for damages to Rothstein's victims because Rothstein Rosenfedt was a perpetrator of the crime.
So what's going on here? The answer is to first remind oneself of a cardinal rule of local bankruptcy ethics: there aren't any when large $$$ are at stake. And the corollary rules: things are rarely what they seem; and follow the $$$.
Principal owners of Gibraltar bank are Berger Singerman honchos Paul Singerman and other unidentified Berger Singerman partners. Their investment in Gibraltar runs into the many millions but the full amount and degree of ownership is guarded with a level of secrecy that Iranian nuclear honchos can only envy. Berger Singerman is the lead attorney for the Rothstein estate.
Paul Singerman et al were Scott Rothstein's partners (co-shareholders) in Gibraltar bank. Because of normal due diligence standards, including the knowledge of Gibraltar owners of the extensive money laundering activities and who knew what and when, and recent Scott Rothstein's deposition disclosures on Gibraltar, it is clear Singerman honchos have a wealth of information about the involvement of Gibraltar bank's owners and employees ... and their liability. Of course, not a single Berger Singerman honcho has been deposed to get to the bottom of the Gibraltar fiasco.
In the "there is no shame" category:
The "settlement" includes a key provision that the Rothstein victims cannot sue Gibraltar bank! The Berger Singerman multi million dollar Gibraltar investments are now safe!
The "settlement" fine print also contains provisions that may ultimately bolster Berger Singerman honchos Gibraltar investments by millions.
It was just announced that the Rothstein estate is suing to block Rothstein's victims from suing Gibraltar bank in Broward county.
Lastly, for anyone who is gullible enough to believe the public announcement of a 65 million dollar potential "recovery" for Rothstein victims ... the check is in the mail.
Wednesday, April 20, 2011
How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate
In my earlier posts (with more to follow), I began to show how Bear Stearns, using various bankruptcy insiders and a local bankruptcy court, had installed a self-proclaimed Israeli "assassin" cum secret agent, Juval Aviv (who had been previously indicted and prosecuted by the US Government), to "supervise" the local US Attorney's Office in extensive illegal, secret wiretapping of myself, my attorneys, my friends, my family and reporters I communicated with.
In 2006, I obtained the confession by Paul S. Singerman, of Berger Singerman, that protected law enforcement materials, including the results of the wiretapping, were then secretly funneled to Bear Stearns for their own private use. Bear Stearns was involved in extensive civil litigation in Florida state and federal courts with myself and my family. Anthony Pelicano — the infamous Hollywood P.I. who, similarly, was conducting wiretapping to get information for civil court cases — received 15 years in federal prison for these very actions.
The communications surveillance occurred throughout pending appeals in federal court and ongoing proceedings in Florida state court. It was done without notice — either before, during and after the (still ongoing?) surveillance — to myself, my attorneys, all reviewing courts, and the many other victims. This was completely hidden until late 2004, when the district court ordered the bankruptcy court to disgorge its extensive sealed and off-the-docket court record. Some of that record still remains concealed, despite the order.
To pay Berger Singerman and the extensive crew of secret "officers of the court" (complete with a "black bag" crew) — who were ostensibly retained by trustee Alan Goldberg — a scheme was orchestrated: Bear Stearns would pay the millions in fees, using a phantom "loan." In that way, Bear Stearns superficially protected itself and its agents from investigations into illegal activities, under the rubric of being "officers of the court."
The phantom "loan" funds never passed through any bankruptcy estate accounts or were reflected on any estate financial statements.
Since Bear Stearns paid the secret officers of the court directly, there were no traces in the bankruptcy court record (sealed or public) of their fee payment applications or fee approval orders. Also, the US Trustee was never served with any retention documents for the secret hirees and the key billing records of secret hirees still remain hidden, including those of Juval Aviv and P.I. William Riley.
Even the disclosed billing statements for the "public" hirees, e.g., Berger Singerman attorneys and attorney Michael Budwick, contain no reference to what took place during the secret hearings, or in England. Those statements never disclosed that fees were billed for illegally passing law enforcement tapes and other protected law enforcement materials to Bear Stearns senior managing directors, Mark Lehman and Daniel Taub.
Two of the key documents evidencing this scheme are: 1) the unsigned accounting statement for the bankruptcy estate filed yearly, and 2) the sham "loan" agreement:
This is one of the sham "Independent Estate Property Record and Report" accounting statements that was filed yearly:
Sham bankruptcy estate balance sheet filed by Paul Singerman of Berger Singerman for Alan Goldberg in October 2009.
Never, during a long career as an financial analyst on wall street, have I seen a filing more fraudulent than the above filing. Some reasons for this conclusion are:
— There is no signature or other identification of who actually prepared the accounting report. The only accountant the estate had, was employed for only a few days, early in the bankruptcy case. The accounting firm then immediately left the case ... without issuing any reports. No explanation was given for its removal.
— There is no entry for any part of the sham "loan" purportedly made by Bear Stearns to the estate to pay fees and expenses ... which totaled about $5 million dollars. The statement is a clear admission that no debt was ever owed to Bear Stearns — showing the "loan" agreement was a sham.
— The estate is valued at $20 million dollars. However, it provides no explanation how that value was arrived at. This is a fraudulent valuation since the estate had no asset value for several reasons:
First, Federal District Judge Lawrence King, during earlier litigation with Bear Stearns, ruled in 1996 that the trust had to be directly sued under Federal and Florida law. After that order was issued, Bear Stearns impleaded the trust as a defendant in 1997. So, Florida law was already being applied to the trust and that law required the trust be sued directly. Judge Herbert Stettin (the trustee of the Scott Rothstein bankruptcy estate) represented the trust in federal court.
Because the bankruptcy trustee, Alan Goldberg, refused to sue the trust, the estate's only asset was a worthless claim.
What had occurred in the bankruptcy was that a single line "finding" of estate property was inserted at the end of a discovery sanction order (written entirely by Berger Singerman) that was issued in a bankruptcy discharge objection proceeding held under 11 U.S.C. § 727. Liability in a discharge objection proceeding is legally impossible because the only matter at stake in such proceeding is the denial of a bankruptcy discharge.
In addition, during the secret bankruptcy hearings, Berger Singerman disclosed that Goldberg was suing, in England, the same trustees who were already represented by Judge Stettin in federal court before Judge King. This confirmed that the only estate "asset" was a claim of indeterminate value in England since Goldberg refused to sue in the U.S.
The hidden bankruptcy court transcripts further disclosed that Goldberg was seeking a Mareva Injuction in the England litigation. An English Mareva Injunction is a pre-judgment injunction issued while a claim is litigated. A few months earlier, the U.S. Supreme Court, in Grupo Mexicano de Desarrollo, SA v. Alliance Bond Fund, Inc., 527 US 308 (1999), had ruled that Mareva Injunctions (pre-judgment injunctions) were not permitted in U.S. Courts. Berger Singerman, thereby, secretly admitted that all they had was a claim and not a judgment against either myself or the trust.
Goldberg lost his ligation in England, so the value of his "asset" ... was zero. This confirmed that I was in prison to pay a judgment debt that never existed; and that Berger Singerman withheld critical information from myself, my attorneys, and reviewing courts throughout my appeals.
This is the phantom loan agreement between Goldberg and Bear Stearns, dated mid June 1998:
the still-used sham 1998 Bear Stearns-Goldberg finance agreement
One reason the $5 million in payments made by Bear Stearns were not listed on the bankruptcy estate accounting report is that even such a debt could give rise to criminal charges as fraudulent fee claims against the bankruptcy estate, for the theft of law enforcement materials.
Moreover, since none of the secret officers of the court submitted bills for approval, no orders for submitted bills were issued, and no service was made on the U.S. Trustee's Office (required by law to review all bills), the Bear Stearns fee payments were not an estate debt.
Also, even though the loan agreement claims it was reached in mid June, Bear Stearns had already secretly funneled funds to Goldberg's ostensible professionals before that date. See this post.
The "professionals," who received fee payments from Bear Stearns, fall into two categories. First were Goldberg's publicly disclosed professionals, e.g., Berger Singerman attorneys, attorney Michael Budwick.
Mr. Budwick, co-counsel with Berger Singerman, has stated in court filings that he never knew of the secret hearings or the communications surveillance.
The second group were those "professionals," who were ostensibly hired by Goldberg under "seal." This second group included Juval Aviv, P.I. William Riley, Coudert Brothers, and others.
The latter (secretly hired) group all had backdated (nunc pro tunc) individual "sealed" applications filed, and at the related "retention" hearings still undisclosed "results" were reported without the presence of a court reporter.
None of these sealed retentions were lawful because: none of the applications were served on the U.S. Trustee's Office, so they could not be reviewed, as required by law; none of the secret hirees filed their bills, even under seal, (the single exception being Coudert Brothers, which filed bills years later — but Coudert didn't seek approval for payments to it by Bear Stearns and its bills listed Bear Stearns as its client); none of the secret hirees sought or received approval for bill payments. These missing prerequisites to legitimacy invalidated employment by Goldberg and instead the group was employed by Bear Stearns, which paid them.
The "public" group never submitted or released bills that described their actions taken "under seal," even after the record was unsealed.
In 2006, I obtained the confession by Paul S. Singerman, of Berger Singerman, that protected law enforcement materials, including the results of the wiretapping, were then secretly funneled to Bear Stearns for their own private use. Bear Stearns was involved in extensive civil litigation in Florida state and federal courts with myself and my family. Anthony Pelicano — the infamous Hollywood P.I. who, similarly, was conducting wiretapping to get information for civil court cases — received 15 years in federal prison for these very actions.
The communications surveillance occurred throughout pending appeals in federal court and ongoing proceedings in Florida state court. It was done without notice — either before, during and after the (still ongoing?) surveillance — to myself, my attorneys, all reviewing courts, and the many other victims. This was completely hidden until late 2004, when the district court ordered the bankruptcy court to disgorge its extensive sealed and off-the-docket court record. Some of that record still remains concealed, despite the order.
To pay Berger Singerman and the extensive crew of secret "officers of the court" (complete with a "black bag" crew) — who were ostensibly retained by trustee Alan Goldberg — a scheme was orchestrated: Bear Stearns would pay the millions in fees, using a phantom "loan." In that way, Bear Stearns superficially protected itself and its agents from investigations into illegal activities, under the rubric of being "officers of the court."
The phantom "loan" funds never passed through any bankruptcy estate accounts or were reflected on any estate financial statements.
Since Bear Stearns paid the secret officers of the court directly, there were no traces in the bankruptcy court record (sealed or public) of their fee payment applications or fee approval orders. Also, the US Trustee was never served with any retention documents for the secret hirees and the key billing records of secret hirees still remain hidden, including those of Juval Aviv and P.I. William Riley.
Even the disclosed billing statements for the "public" hirees, e.g., Berger Singerman attorneys and attorney Michael Budwick, contain no reference to what took place during the secret hearings, or in England. Those statements never disclosed that fees were billed for illegally passing law enforcement tapes and other protected law enforcement materials to Bear Stearns senior managing directors, Mark Lehman and Daniel Taub.
Two of the key documents evidencing this scheme are: 1) the unsigned accounting statement for the bankruptcy estate filed yearly, and 2) the sham "loan" agreement:
This is one of the sham "Independent Estate Property Record and Report" accounting statements that was filed yearly:
Sham bankruptcy estate balance sheet filed by Paul Singerman of Berger Singerman for Alan Goldberg in October 2009.
Never, during a long career as an financial analyst on wall street, have I seen a filing more fraudulent than the above filing. Some reasons for this conclusion are:
— There is no signature or other identification of who actually prepared the accounting report. The only accountant the estate had, was employed for only a few days, early in the bankruptcy case. The accounting firm then immediately left the case ... without issuing any reports. No explanation was given for its removal.
— There is no entry for any part of the sham "loan" purportedly made by Bear Stearns to the estate to pay fees and expenses ... which totaled about $5 million dollars. The statement is a clear admission that no debt was ever owed to Bear Stearns — showing the "loan" agreement was a sham.
— The estate is valued at $20 million dollars. However, it provides no explanation how that value was arrived at. This is a fraudulent valuation since the estate had no asset value for several reasons:
First, Federal District Judge Lawrence King, during earlier litigation with Bear Stearns, ruled in 1996 that the trust had to be directly sued under Federal and Florida law. After that order was issued, Bear Stearns impleaded the trust as a defendant in 1997. So, Florida law was already being applied to the trust and that law required the trust be sued directly. Judge Herbert Stettin (the trustee of the Scott Rothstein bankruptcy estate) represented the trust in federal court.
Because the bankruptcy trustee, Alan Goldberg, refused to sue the trust, the estate's only asset was a worthless claim.
What had occurred in the bankruptcy was that a single line "finding" of estate property was inserted at the end of a discovery sanction order (written entirely by Berger Singerman) that was issued in a bankruptcy discharge objection proceeding held under 11 U.S.C. § 727. Liability in a discharge objection proceeding is legally impossible because the only matter at stake in such proceeding is the denial of a bankruptcy discharge.
In addition, during the secret bankruptcy hearings, Berger Singerman disclosed that Goldberg was suing, in England, the same trustees who were already represented by Judge Stettin in federal court before Judge King. This confirmed that the only estate "asset" was a claim of indeterminate value in England since Goldberg refused to sue in the U.S.
The hidden bankruptcy court transcripts further disclosed that Goldberg was seeking a Mareva Injuction in the England litigation. An English Mareva Injunction is a pre-judgment injunction issued while a claim is litigated. A few months earlier, the U.S. Supreme Court, in Grupo Mexicano de Desarrollo, SA v. Alliance Bond Fund, Inc., 527 US 308 (1999), had ruled that Mareva Injunctions (pre-judgment injunctions) were not permitted in U.S. Courts. Berger Singerman, thereby, secretly admitted that all they had was a claim and not a judgment against either myself or the trust.
Goldberg lost his ligation in England, so the value of his "asset" ... was zero. This confirmed that I was in prison to pay a judgment debt that never existed; and that Berger Singerman withheld critical information from myself, my attorneys, and reviewing courts throughout my appeals.
This is the phantom loan agreement between Goldberg and Bear Stearns, dated mid June 1998:
the still-used sham 1998 Bear Stearns-Goldberg finance agreement
One reason the $5 million in payments made by Bear Stearns were not listed on the bankruptcy estate accounting report is that even such a debt could give rise to criminal charges as fraudulent fee claims against the bankruptcy estate, for the theft of law enforcement materials.
Moreover, since none of the secret officers of the court submitted bills for approval, no orders for submitted bills were issued, and no service was made on the U.S. Trustee's Office (required by law to review all bills), the Bear Stearns fee payments were not an estate debt.
Also, even though the loan agreement claims it was reached in mid June, Bear Stearns had already secretly funneled funds to Goldberg's ostensible professionals before that date. See this post.
The "professionals," who received fee payments from Bear Stearns, fall into two categories. First were Goldberg's publicly disclosed professionals, e.g., Berger Singerman attorneys, attorney Michael Budwick.
Mr. Budwick, co-counsel with Berger Singerman, has stated in court filings that he never knew of the secret hearings or the communications surveillance.
The second group were those "professionals," who were ostensibly hired by Goldberg under "seal." This second group included Juval Aviv, P.I. William Riley, Coudert Brothers, and others.
The latter (secretly hired) group all had backdated (nunc pro tunc) individual "sealed" applications filed, and at the related "retention" hearings still undisclosed "results" were reported without the presence of a court reporter.
None of these sealed retentions were lawful because: none of the applications were served on the U.S. Trustee's Office, so they could not be reviewed, as required by law; none of the secret hirees filed their bills, even under seal, (the single exception being Coudert Brothers, which filed bills years later — but Coudert didn't seek approval for payments to it by Bear Stearns and its bills listed Bear Stearns as its client); none of the secret hirees sought or received approval for bill payments. These missing prerequisites to legitimacy invalidated employment by Goldberg and instead the group was employed by Bear Stearns, which paid them.
The "public" group never submitted or released bills that described their actions taken "under seal," even after the record was unsealed.
Wednesday, April 13, 2011
A Letter to The Editor - South Florida Business Journal To Correct Errors
This post is a copy of a letter to the editor at the South Florida Business Journal to correct some errors in a story originally published on my case. It is self-explanatory and corrects substantial factual errors that keep showing up in reports.
Editor,
South Florida Business Journal
Sir:
In searching your website I found several articles on my case that, unfortunately, continue to pop up during Google searches, which is the reason for this letter.
The key article you published was in December 2007 titled: “20-year fight over millions in offshore money isn't over yet”
Because I believe there are serious inaccuracies in the article I would like to have published the following response as either a response to the article or a comment to the article:
“I am the principal, Stephan J. Lawrence, of the article you published titled: “20-year fight over millions in offshore money isn't over yet”.
I am writing this comment in response to its significant inaccuracies and omissions. Unfortunately, I did not have an opportunity to speak with the author before its publication and have no doubt misinformation was provided to the author, which I seek to correct, as stated below.
First, for the full history of this bizarre case of the longest civil contempt sanction in US federal court history please visit my blog. It significantly differs in scope and tenor than that presented in the article. For a condensed history follow this link to my Petition for Writ of Certiorari filed with the United States Supreme Court.
Here are a few brief responses to some of the factual errors or omissions in the article.
— The 1993 and 1995 litigation details with Bear Stearns, omits the key ruling that Federal District Judge Lawrence King made in his 1996 order: that Bear Stearns could not sue me as a proxy for the trust, since the trust had to be directly sued under Florida law. After that order, Bear Stearns impleaded the trust as a defendant in 1997. So, Florida law was already being applied to the trust ... and that law required the trust be sued directly.
— The trust was represented by Judge Herbert Stettin (the current trustee of the Scott Rothstein bankruptcy estate) before Judge King.
— Goldberg's position was similar to that of Bear Stearns. His two choices were: he could take over Bear Stearns' lawsuit or sue under a similar type bankruptcy avoidance provision. Goldberg did neither. Nowhere in the article is there mention of a judgment ever being entered for liability by either myself or the trust for the trust settlement. Goldberg had declined to sue for liability or to intervene. No such judgment ever existed.
— The article does not explain how the 'liability' element — the required precursor to execution (turn over) — was arrived at. In short, what occurred was a single line was inserted into a discovery sanction order that was issued in a bankruptcy discharge objection proceeding under 11 U.S.C. § 727. Liability in a discharge objection proceeding is legally impossible because the only matter at stake in such proceeding is the denial of a bankruptcy discharge. In addition, there is no basis to appeal such a line on the theory that liability had been assigned since liability was never at stake. Indeed, to even attempt to raise such hypothetical future liability in a discharge appeal could be met with sanctions. A basic tenet of bankruptcy is that liability for pre-bankruptcy transfers can only come from actions under both 11 U.S.C. § 550 (to establish who is liable) and under the 'avoidance provisions' of the bankruptcy code (to establish amounts liable for). Both must occur.
— There was no $20 million margin deficit with Bear Stearns. The margin call given was substantially less and was also vastly inflated. The final arbitration award was for about $16 million plus interest. There is no relationship between a margin call amount and any ultimate debt; most margin calls result in no debt owed after liquidation.
— The trades Bear Stearns was given credit for, by the NASD arbitration panel, never existed and were backdated. No explanation was given how an award for non-existent trades, using what has come to be called 'flash prices,' could occur ... since it couldn't. The SEC did nothing to prevent this and a fruitful investigation by a single FBI agent, who took and interest, was quickly shut down. The Options Clearing Corp (OCC) and The Chicago Board Options Exchange (CBOE), after much litigation, both later admitted the trades never occurred. The OCC/CBOE admissions are posted here.
— Florida was not my “new home state.” I became a Florida resident in the early 1980's, long before the 1987 crash. Florida's on line database shows that my main company, Pompano-Windy Partners, Ltd, had myself as its agent along with my home address almost two years before the 1987 crash. I was a Florida resident for years before that date.
— The statement that Goldberg hired Juval Aviv simply to "track down offshore activities" completely omits the incredible scope of what really occurred, all in secret and away from sight of myself, my attorneys, all reviewing courts, and the public. The unsealed documents and transcripts paint a far different picture. See my 2006 Wiretap and Civil Rights Complaint here. It is simply impossible, in this short response, to describe those events, however, my blog will do so. See also Certiorari Petition.
— I have posted excerpts from some of the astounding transcripts of the few secret hearings at which a court reporter was present.
— The bankruptcy record is devoid, except for a single "application" filed secretly in January 2000, of any trace of Aviv's billings statements, applications for payments, orders approving actual payments, or records of payments by Goldberg to Aviv. These are the minimum prerequisites for Aviv having actually been working for Goldberg. Indeed, even the secret"application" for employment by Goldberg was never served on the U.S. Trustee's Office.
— Your description of my wiretap and civil rights complaint omits the key claims, made under Title 3 (the "Wiretap Act"), for illegal and extensive wiretapping done by Bear Stearns through the theft of law enforcement tapes illegally obtained by Goldberg. The article has no mention of the phone surveillance (fully documented in the sealed record and transcripts), how it was done, or that it forms the foundation of my complaint.
Lastly, it is unfortunate my former attorney, Robert A. Stok, was interviewed without my having a chance to respond. The 1997 discovery sanction order — the single line in which was used to imprison me for over six years and assign an over $40 million dollar liability to me — was appealed by Mr. Stok at my direction. At the hearing resulting in the Order, all of my witnesses (including Judge Stettin) were ejected and I was forbidden to present evidence. Mr. Stok then defaulted my appeal; District Court Judge Donald Middlebrooks ruled the default was "at worst, bad faith ... or at the very least, negligence or indifference." After Mr. Stok defaulted my appeal, Goldberg's attorney, Berger Singerman, prepared a subordination agreement between Mr. Stok's law firm and Bear Stearns, in which Bear Stearns subordinated their prior lien on my homestead in favor of Stok's law firm for no identifiable consideration and Stok's law firm immediately attempted to foreclose on my homestead … using the subordination agreement. There were other serious matters of dispute between myself and Mr. Stok that are beyond the scope of this limited comment.”
Friday, April 8, 2011
A Tale Of Two Pedophiles — A New Explanation For Jeffrey Epstein's Sweetheart Treatment
A comparison of Jeffrey Epstein's case, and another case, U.S. v. Kent Frank 599 F.3d 1221 (11th Cir. 2010), shows that Roy Black's statement, that Epstein was only facing a 'low-ball' number of 10 years in federal prison, was not accurate. If the Government had pursued Epstein, with the same zeal it pursued Frank, Epstein was facing at least the same 40 years Frank received. In addition, if consecutive sentences were applied, that number increased dramatically. In the Frank case, to reach the 40 years, the 11th Circuit applied a definition to "purchase," under 18 U.S.C. §2251, that included the solicitation of underage girls — the same claims made against Epstein.
I met Mr. Frank at the FDC Miami. And along with 100's of other cases I was requested to look at, I briefly looked at his case. The case against Frank was far weaker than that reported in the press against Jeffrey Epstein.
The Frank case involved an American who traveled to Cambodia as a "sex tourist." Frank was arrested and charged in Cambodia. The age of consent in Cambodia has been reported as being either 15 or 16. Frank was found innocent in Cambodia and released. He was later arrested in Vietnam and extradited to the U.S. on the Cambodian charges. Rights groups have disputed the willingness of Cambodian courts to convict in such cases.
In the U.S. Frank trial, none of the four victims appeared as witnesses. The evidence against Frank was a statement given by Frank in Cambodia in which he admitted he met the girls at bars, paid the girls for sex and to photograph them, and had seen them on multiple occasions. A large number of pornographic photos of the girls, sexual paraphernalia, and DVDs found in his possession were also used as evidence.
Unlike Jeffrey Epstein's case, the ages of the four girls were in dispute. Because Cambodia does not maintain birth records, and without witnesses, the victims ages were determined at trial through the use of expert witnesses viewing the photos taken by Frank. While the 11th Circuit does not specifically mention the theory the experts used to determine age, from what I remember from my brief exposure to the case was that the 'Tanner scale' was used, a measure used in such cases. As Wikipedia describes: "The Tanner scale (also known as the Tanner stages) is a scale of physical development in children, adolescents and adults. The scale defines physical measurements of development based on external primary and secondary sex characteristics."
One criticism of the Tanner scale is that the scale is unreliable for residents of third world countries because poor nutrition delays development. The Tanner scale is not 100% reliable and has been successfully disputed. Wikipedia links to one dramatic case where the alleged victim appeared, as reported in Radaronline: Adult Film Star Verifies Her Age, Saves Fan From 20 Years In Prison! (“Lupe walked into the courtroom and it was like a courtroom drama movie,” Assistant Public Defender Hector L. Ramos-Vega said.) The prosecution, in the Carlos Simon-Timmerman case above, proceeded based solely on possession of a purchased pornographic DVD. Obviously, while the Frank case was much stronger than that against Carlos Simon-Timmerman, it was far weaker than the reported case against Epstein, which was proceeding at about the same time. In Epstein's case there where 30-40 potential victims identified whose ages could be confirmed. Indeed, the Carlos Simon-Timmerman case alone — based on a single DVD — makes it clear Jeffrey Epstein received special treatment.
My interest in the Jeffrey Epstein case arose because I don't believe in the type of coincidences I saw:
As I previously posted, the accused chief intimidator of the underage Epstein victims, as identified by the Palm Beach Police Department, was a P.I. named William Riley. It turned out that Riley was also an officer of the local bankruptcy court, who was illegally appointed at a secret off-the-docket hearing that was concealed for many years. In addition, he and a host of other, still not fully identified characters, were afforded a strange and illegal status as a type of federal law enforcement official that permitted them access to protected law enforcement materials. Those materials, which included protected law enforcement tapes (protected under the "Wiretap Act" (Title 3)) were then illegally passed on to Bear Stearns senior managing directors.
A common denominator with Epstein, is the Bear Stearns Companies, Inc. The Bear Stearns Cayman Island Hedge Fund managers were being brought to trial at the time of the sweetheart deal with Jeffrey Epstein. There was no dispute about the critical information in Epstein's possession concerning the Bear Stearns hedge fund trial, particularly since key records were hidden in the Cayman Islands. Epstein's lawyers touted his importance to the Government's case against Bear Stearns as the reason for his special treatment. That treatment included almost daily — and hotly criticized — "furloughs" to his attorneys offices to "help" in the Bear Stearns prosecution. Bear Stearns had enormous incentive to shield Epstein from the threat of a long sentence.
Compare Epstein's case to that of Raj Rajaratnam, the now proceeding Wall Street insider trading case. In the Rajaratnam case, the government obtained pleas from numerous insider witnesses, who were facing long prison sentences, and thereby turned them into damning witnesses against Rajaratnam, as reported in the NY Times. In the Bear Stearns hedge fund trial, the main evidence was email — no insider witnesses were used. Yet, without sweetheart treatment, many witnesses could have been obtained — starting with Jeffrey Epstein and finishing with the senior managing directors of Bear Stearns who had orchestrated the theft of protected law enforcement tapes and other materials.
Bear Stearns was far more effective than Epstein in demonstrating its ability to receive sweetheart treatment — treatment that would also extend to Jeffrey Epstein. Incredibly, Bear Stearns had succeeded in placing Juval Aviv, a discredited self proclaimed Israeli assassin who had been prosecuted by the Government, in control of the local United States Attorney's Office to direct illegal communications surveillance (see earlier posts). Thereby, a flood of protected law enforcement material began secretly flowing to Bear Stearns senior managing directors. The fact that the identity of Bear Stearns, as the ultimate recipient of the materials was carefully concealed, did not excuse what occurred. In late 2004, after I obtained access to the sealed record, I informed the USAO of what I had learned. In 2006, I secured a confession to the crimes.
A key player is Florida local bankruptcy power broker Paul Singerman — himself "Teflon coated" in brushing off his involvement in and ownership of Gibraltar Private Bank & Trust, a Florida private bank found to be violating money laundering laws. Gibraltar was a key player in convicted Ponzi schemer Scott Rothstein's money laundering scheme.
In 2006, I laid out the clear evidence showing how the protected law enforcement materials were being stolen and passed to Bear Stearns. In response, Paul Singerman confessed to passing the law enforcement tapes and other materials to Bear Stearns. Indeed, in April 2006, he brazenly flaunted his activities by stating in a court filing: "according to Lawrence, 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 obtained by court order 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." See p3 here
I met Mr. Frank at the FDC Miami. And along with 100's of other cases I was requested to look at, I briefly looked at his case. The case against Frank was far weaker than that reported in the press against Jeffrey Epstein.
The Frank case involved an American who traveled to Cambodia as a "sex tourist." Frank was arrested and charged in Cambodia. The age of consent in Cambodia has been reported as being either 15 or 16. Frank was found innocent in Cambodia and released. He was later arrested in Vietnam and extradited to the U.S. on the Cambodian charges. Rights groups have disputed the willingness of Cambodian courts to convict in such cases.
In the U.S. Frank trial, none of the four victims appeared as witnesses. The evidence against Frank was a statement given by Frank in Cambodia in which he admitted he met the girls at bars, paid the girls for sex and to photograph them, and had seen them on multiple occasions. A large number of pornographic photos of the girls, sexual paraphernalia, and DVDs found in his possession were also used as evidence.
Unlike Jeffrey Epstein's case, the ages of the four girls were in dispute. Because Cambodia does not maintain birth records, and without witnesses, the victims ages were determined at trial through the use of expert witnesses viewing the photos taken by Frank. While the 11th Circuit does not specifically mention the theory the experts used to determine age, from what I remember from my brief exposure to the case was that the 'Tanner scale' was used, a measure used in such cases. As Wikipedia describes: "The Tanner scale (also known as the Tanner stages) is a scale of physical development in children, adolescents and adults. The scale defines physical measurements of development based on external primary and secondary sex characteristics."
One criticism of the Tanner scale is that the scale is unreliable for residents of third world countries because poor nutrition delays development. The Tanner scale is not 100% reliable and has been successfully disputed. Wikipedia links to one dramatic case where the alleged victim appeared, as reported in Radaronline: Adult Film Star Verifies Her Age, Saves Fan From 20 Years In Prison! (“Lupe walked into the courtroom and it was like a courtroom drama movie,” Assistant Public Defender Hector L. Ramos-Vega said.) The prosecution, in the Carlos Simon-Timmerman case above, proceeded based solely on possession of a purchased pornographic DVD. Obviously, while the Frank case was much stronger than that against Carlos Simon-Timmerman, it was far weaker than the reported case against Epstein, which was proceeding at about the same time. In Epstein's case there where 30-40 potential victims identified whose ages could be confirmed. Indeed, the Carlos Simon-Timmerman case alone — based on a single DVD — makes it clear Jeffrey Epstein received special treatment.
My interest in the Jeffrey Epstein case arose because I don't believe in the type of coincidences I saw:
As I previously posted, the accused chief intimidator of the underage Epstein victims, as identified by the Palm Beach Police Department, was a P.I. named William Riley. It turned out that Riley was also an officer of the local bankruptcy court, who was illegally appointed at a secret off-the-docket hearing that was concealed for many years. In addition, he and a host of other, still not fully identified characters, were afforded a strange and illegal status as a type of federal law enforcement official that permitted them access to protected law enforcement materials. Those materials, which included protected law enforcement tapes (protected under the "Wiretap Act" (Title 3)) were then illegally passed on to Bear Stearns senior managing directors.
A common denominator with Epstein, is the Bear Stearns Companies, Inc. The Bear Stearns Cayman Island Hedge Fund managers were being brought to trial at the time of the sweetheart deal with Jeffrey Epstein. There was no dispute about the critical information in Epstein's possession concerning the Bear Stearns hedge fund trial, particularly since key records were hidden in the Cayman Islands. Epstein's lawyers touted his importance to the Government's case against Bear Stearns as the reason for his special treatment. That treatment included almost daily — and hotly criticized — "furloughs" to his attorneys offices to "help" in the Bear Stearns prosecution. Bear Stearns had enormous incentive to shield Epstein from the threat of a long sentence.
Compare Epstein's case to that of Raj Rajaratnam, the now proceeding Wall Street insider trading case. In the Rajaratnam case, the government obtained pleas from numerous insider witnesses, who were facing long prison sentences, and thereby turned them into damning witnesses against Rajaratnam, as reported in the NY Times. In the Bear Stearns hedge fund trial, the main evidence was email — no insider witnesses were used. Yet, without sweetheart treatment, many witnesses could have been obtained — starting with Jeffrey Epstein and finishing with the senior managing directors of Bear Stearns who had orchestrated the theft of protected law enforcement tapes and other materials.
Bear Stearns was far more effective than Epstein in demonstrating its ability to receive sweetheart treatment — treatment that would also extend to Jeffrey Epstein. Incredibly, Bear Stearns had succeeded in placing Juval Aviv, a discredited self proclaimed Israeli assassin who had been prosecuted by the Government, in control of the local United States Attorney's Office to direct illegal communications surveillance (see earlier posts). Thereby, a flood of protected law enforcement material began secretly flowing to Bear Stearns senior managing directors. The fact that the identity of Bear Stearns, as the ultimate recipient of the materials was carefully concealed, did not excuse what occurred. In late 2004, after I obtained access to the sealed record, I informed the USAO of what I had learned. In 2006, I secured a confession to the crimes.
A key player is Florida local bankruptcy power broker Paul Singerman — himself "Teflon coated" in brushing off his involvement in and ownership of Gibraltar Private Bank & Trust, a Florida private bank found to be violating money laundering laws. Gibraltar was a key player in convicted Ponzi schemer Scott Rothstein's money laundering scheme.
In 2006, I laid out the clear evidence showing how the protected law enforcement materials were being stolen and passed to Bear Stearns. In response, Paul Singerman confessed to passing the law enforcement tapes and other materials to Bear Stearns. Indeed, in April 2006, he brazenly flaunted his activities by stating in a court filing: "according to Lawrence, 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 obtained by court order 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." See p3 here
Tuesday, April 5, 2011
Pedophile Jeffrey Epstein's Accused Intimidator Was Also A G-Man; And About What Happened To The 'Pesky' FBI Agents
We all know that designated federal law enforcement agents — the FBI, US Attorneys, DOJ employees, etc. — are carefully trained (Quantico is world famous), vetted, identified and under constant scrutiny to uphold the highest standards. Don't we?
Not really ... there is a back door ... a back door so wide that federal law enforcement "badges" were, PEZ mint like , dispensed willy nilly, in secret, to unidentified federal indictees, con artists, and the like.
Any corrupt company or individual can use this back door ... as long as they have: a very fat wallet (a few spare million to begin); enormous insider clout (Bear Stearns of Cayman Islands CMO hedge fund scam/fame); and a very special and politically powerful "insider" man to make it all happen (Paul Singerman, of Berger Singerman P.A., of Gibraltar Private Bank & Trust money laundering fame).
My last post showed how accused chief Jeffrey Epstein intimidator, P.I. William Riley, had become a secret, protected "officer of the bankruptcy court." However, that was just the beginning. He also became a federal law enforcement agent.
In late 2005, over a year after the district court ordered the bankruptcy court to disgorge the secret bankruptcy record and after repeated denials, the court reporter "found" transcripts of four of the secret hearings held 5 years earlier.
The secret hearings and filings exposed a bizarre amalgam of wiretap and trial hearings. No bankruptcy court has ever been publicly known to conduct a wiretap hearing or issue communications surveillance orders. All communications surveillance is controlled by the Wiretap Act ("Title 3"), a criminal statute. The Government clearly and repeatedly stated this fact throughout the hearings. Through those hearings, P.I. Riley and others became "federal law enforcement agents."
In addition, the hearings were part of a secret trial in which unidentified "confidential agents" testified against me ... not in person, but through the mouths of Berger Singerman attorney James Fierberg (the sworn secret witness against me in the off-the-docket hearing described in my last post) and the self-proclaimed Israeli "hit-man," Juval Aviv ( who I never knew existed until years after he secretly testified against me). Mr. Aviv testified "over the phone," in this "anything goes" secret trial — without being sworn in. He testified, HUAC style, that he had in his hands my secret bank accounts! Every attempt I later made, to obtain the papers, that Mr. Aviv had so effectively waved "over the phone," was met with complete, stonewalled silence. Those obviously fictitious papers were never placed in the sealed record.
Some Background:
The wiretaps came about shortly after I was imprisoned at the FDC Miami for civil contempt. The basis for my long imprisonment has always been euphemistically based on "a finding of the bankruptcy court" — a carefully cultivated phrase designed to give the false impression that there was an actual judgment for liability for a completely lawful and disclosed 1991 trust settlement. In reality, the "finding" was a single sentence tacked to the end of a discovery sanction order in a bankruptcy discharge proceeding. It never could, under any known law, be considered a basis for liability to a bankruptcy trustee for a legal transfer made 7 years earlier (see US Supreme Court Petition for Writ of Certiorari). I never had even the remotest inkling or warning that I could suffer such liability from a discovery hearing in a discharge proceeding.
The "finding" order resulted from one of the most abusive hearings ever conducted in a U.S. courtroom (the complete details, with transcript, will be fully laid out in a further post). Unsurprisingly, the sanction order was entirely written by Paul Singerman, James Fierberg et.al.. At the discovery hearing, held on no notice, all of my witnesses were ejected from the hearing, including Judge Herbert Stettin (the trustee in the Scott Rothstein bankruptcy) who was the Trust's attorney in the long pending Bear Stearns federal lawsuit that began in 1993. I was completely prohibited from introducing any evidence or witnesses. Thereby, Berger Singerman's "factual findings" in the order were the opposite of actual evidence and, in critical instances, completely fabricated — including the totally bizarre "finding" that I had concealed the existence of the Trust.
In mid 1993, years before my bankruptcy case and only weeks after a Bear Stearns judgment first became final, Bear Stearns named the 1991 Lawrence Family Trust in Federal Court when it began execution on their judgment. In that lawsuit, critically, Federal District Court Judge Lawrence King ruled that under Federal and Florida law, the Trust must be sued to affect its assets. Bear Stearns then impleaded the Trust, which was represented by Judge Herbert Stettin. A simple examination of Judge King's order (including its very existence) explains why the source of the bankruptcy "finding" has been so carefully and continuously obscured ... the Trust was already in federal court and all Berger Singerman had to do was enter the case or sue — if they really had a case. The federal court case against the Trust was so weak that it was eventually closed for lack of prosecution.
THE ILLEGAL WIRETAPPING, NEW G-MEN, AND INFILTRATION OF THE UNITED STATES ATTORNEY'S OFFICE:
The roadblocks, to Berger Singerman (and Bear Stearns indirectly) obtaining the wiretaps and other protected law enforcement materials, were unsurmountable. Just one of those requirements was that access to the material was limited to law enforcement officers and certain Department of Justice employees. Alan Goldberg, the bankruptcy trustee, is a private trustee and is not considered a law enforcement officer or a part of the DOJ. The Government made that very point at the secret hearings.
Moreover, the Government repeatedly stated that: providing tapes of my recorded phone calls and law enforcement records to Goldberg violated multiple laws and regulations, including the Wiretap Act ("Title 3"), privacy laws and related regulations; that the phone tapes were recorded only for legitimate Federal Bureau of Prisons (FBOP) security concerns and were only accessible to designated law enforcement personnel; and that the bankruptcy court had no authority to issue rulings on communications surveillance matters:
"MR. DEAGUIAR (Attorney for FBOP): ... Your Honor, the Government feels that compliance with the Trustee's request would violate both the Privacy Act found at 18 USC 552 (a), I have copies of that statute as well if you would like, Title 5, and also Title 3 of the Omnibus Crime Control and Safe Streets Act of 1968 found at 18 USC Sections 2510 through 2522, and I have copies of pertinent sections with me as well." Page 7 here.
THOSE PESKY FBI AGENTS:
Mr. Fierberg bitterly and successfully complained that FBI agents had to screen the tapes: "I have been advised this morning that it is, unfortunately, the law enforcement officers themselves, the F.B.I. agents, or whoever, come in and sit down and go through the tapes" (Page 10 here) — Mr. Fierberg was clearly looking ahead. So the pipeline of tapes torrentially flowed directly to Berger Singerman, Juval Aviv, the other unidentified agents (which would include Jeffrey Epstein's P.I., William Riley) ... some of whom then funneled the contents to Bear Stearns senior managing directors Daniel Taub, Mark Lehman, and others.
The pesky FBI — who might ask embarrassing and serious questions about who was actually getting the tapes and how — had been surgically removed from the loop. The Government, without control, ended up conducting illegal wiretapping for Bear Stearns while they were involved in extensive Florida state and Federal court civil litigation against myself and my family.
Moreover, by removing trained law enforcement officers as screeners for the tapes, Mr. Fierberg, Juval Aviv, Paul Singerman, and unknown others collectively became the tape "translators" at the secret hearings. Nobody could verify if they were lying. During the hearings, Mr. Fierberg and Aviv freely, without question, insinuated "discoveries" in the tapes that, according to them, were essential in British and other foreign litigation. Of course, they always needed more (for "European litigation" of course) — even though my attorneys and myself were constantly discussing strategy over the phone for my contempt appeal then in the Eleventh Circuit (with oral argument coming up), my failed habeas corpus attempt (it was ruled I had no right to present a habeas claim!), and the extensive Florida State Court civil litigation with Bear Stearns and Berger Singerman. This was pure hoax. None of the tapes were ever filed or sealed — just one of the many ignored requirements of the Wiretap Act (Title 3). It is no wonder that Berger Singerman didn't want proper law enforcement officers screening the tapes — and questioning why the tapes were going to Berger Singerman, in a civil case ... who then funneled the tapes, their contents, and other protected law enforcement materials to Bear Stearns. Anthony Pelicano, the infamous Hollywood P.I. who was conducting wiretapping to get information for civil court cases, received 15 years in federal prison for these very actions.
Years later, after I finally learned of some of the foreign litigation (to be related about in a further post) I could not find a single direct or indirect reference to the tapes. When I raised the matter, Berger Singerman admitted the tapes were never used in British or other foreign litigation — confirming that Bear Stearns was always the intended recipient of the stolen tapes. To this day, I have been stonewalled in every attempt to obtain the British Court records (which would confirm the tapes were never used in Europe and much more), my own phone tapes, or a list of the protected information about me (and everyone I communicated with) that was funneled to Bear Stearns. All I ever saw, in limited foreign court documents I had independently obtained, was a perjured affidavit by Juval Aviv in which he, again, falsely swore he had identified my (fictitious) secret bank accounts.
Two or more off-the-docket wiretap hearings were held, and at least one order was issued between the November 16 and December 5 secret hearings. On December 4, 2000 Paul Singerman filed a sealed motion. It was not served on the Government.
The same day the motion was filed, an off-the-docket hearing was held without a court reporter, as stated in the resulting sealed order from that motion.
However, Berger Singerman had made a colossal blunder when they filed the motion. They had foolishly tacked on to the end of the motion the very phone logs they claimed to be seeking at the hearing held the next day!
The next day, December 5, at the transcribed hearing for the bungled motion, a script was followed. Mr. Fierberg repeatedly stated he and his firm had not seen the very phone logs they tacked on to the motion being heard! The bankruptcy judge conducted the hearing as though Berger Singerman did not have those phone logs ... even though the motion, filed under seal, had those logs attached (docket entry #1074 Case No 97-14687-BKC-AJC). In late 2004, under order, Mr. Fierberg delivered to me an incomplete copy of the sealed record and for the motion — the incriminating phone logs had been ripped off.
On November 16, the Government had refused to turn over the phone logs and had provided a copy of the logs to the bankruptcy judge. There were only two ways Berger Singerman could have gotten those logs by December 4: 1) the bankruptcy judge gave them to Berger Singerman through an off-the-docket secret order issued between November 16 and December 4 (when the motion was filed with the logs), or 2) the Government delivered the logs under an off-the-docket sealed order. Either way, the logs were delivered and findings were made that addressed all objections raised by the Government.
A key objection raised by the Government, was a private bankruptcy trustee's status respecting the Department of Justice so that he and everyone associated with him could be considered a law enforcement official entitled to access to government tapes. The off-the-docket order had to resolve that issue in Berger Singerman's favor for Juval Aviv, alleged Epstein intimidator William Riley, and all other unnamed "investigators" to come under the umbrella of being government law enforcement officers entitled to access protected law enforcement tapes. So the "investigators" had all become secret government law enforcement officers and thereby entitled to the tapes.
Throughout the Jeffrey Epstein fiasco, everyone was aware of the importance of the Epstein - Bear Stearns connection to building a case against Bear Stearns insiders and the pending Bear Stearns Cayman Islands Hedge Fund trials. Epstein's constant "furloughs" to his attorney's office was supposed to be for that very purpose. Yet, publicly unknown and concealed, were the events that allowed Bear Stearns the extraordinary special treatment of taking control of the USAO and FBOP, to illegally wiretap and steal protected law enforcement materials. This was at least as embarrassing as the reported threats made by Epstein's attorneys to the USAO lawyers and the simultaneous exposure of these events would have had heightened impact and further charges of sweetheart deals for anyone connected to Bear Stearns.
Not really ... there is a back door ... a back door so wide that federal law enforcement "badges" were, PEZ mint like
Any corrupt company or individual can use this back door ... as long as they have: a very fat wallet (a few spare million to begin); enormous insider clout (Bear Stearns of Cayman Islands CMO hedge fund scam/fame); and a very special and politically powerful "insider" man to make it all happen (Paul Singerman, of Berger Singerman P.A., of Gibraltar Private Bank & Trust
My last post showed how accused chief Jeffrey Epstein intimidator, P.I. William Riley, had become a secret, protected "officer of the bankruptcy court." However, that was just the beginning. He also became a federal law enforcement agent.
In late 2005, over a year after the district court ordered the bankruptcy court to disgorge the secret bankruptcy record and after repeated denials, the court reporter "found" transcripts of four of the secret hearings held 5 years earlier.
In addition, the hearings were part of a secret trial in which unidentified "confidential agents" testified against me ... not in person, but through the mouths of Berger Singerman attorney James Fierberg (the sworn secret witness against me in the off-the-docket hearing described in my last post) and the self-proclaimed Israeli "hit-man," Juval Aviv ( who I never knew existed until years after he secretly testified against me). Mr. Aviv testified "over the phone," in this "anything goes" secret trial — without being sworn in. He testified, HUAC style, that he had in his hands my secret bank accounts! Every attempt I later made, to obtain the papers, that Mr. Aviv had so effectively waved "over the phone," was met with complete, stonewalled silence. Those obviously fictitious papers were never placed in the sealed record.
The "finding" order resulted from one of the most abusive hearings ever conducted in a U.S. courtroom (the complete details, with transcript, will be fully laid out in a further post). Unsurprisingly, the sanction order was entirely written by Paul Singerman, James Fierberg et.al.. At the discovery hearing, held on no notice, all of my witnesses were ejected from the hearing, including Judge Herbert Stettin (the trustee in the Scott Rothstein bankruptcy) who was the Trust's attorney in the long pending Bear Stearns federal lawsuit that began in 1993. I was completely prohibited from introducing any evidence or witnesses. Thereby, Berger Singerman's "factual findings" in the order were the opposite of actual evidence and, in critical instances, completely fabricated — including the totally bizarre "finding" that I had concealed the existence of the Trust.
In mid 1993, years before my bankruptcy case and only weeks after a Bear Stearns judgment first became final, Bear Stearns named the 1991 Lawrence Family Trust in Federal Court when it began execution on their judgment. In that lawsuit, critically,
Moreover, the Government repeatedly stated that: providing tapes of my recorded phone calls and law enforcement records to Goldberg violated multiple laws and regulations, including the Wiretap Act ("Title 3"), privacy laws and related regulations; that the phone tapes were recorded only for legitimate Federal Bureau of Prisons (FBOP) security concerns and were only accessible to designated law enforcement personnel; and that the bankruptcy court had no authority to issue rulings on communications surveillance matters:
"MR. DEAGUIAR (Attorney for FBOP): ... Your Honor, the Government feels that compliance with the Trustee's request would violate both the Privacy Act found at 18 USC 552 (a), I have copies of that statute as well if you would like, Title 5, and also Title 3 of the Omnibus Crime Control and Safe Streets Act of 1968 found at 18 USC Sections 2510 through 2522, and I have copies of pertinent sections with me as well." Page 7 here.
THOSE PESKY FBI AGENTS:
Mr. Fierberg bitterly and successfully complained that FBI agents had to screen the tapes: "I have been advised this morning that it is, unfortunately, the law enforcement officers themselves, the F.B.I. agents, or whoever, come in and sit down and go through the tapes" (Page 10 here) — Mr. Fierberg was clearly looking ahead. So the pipeline of tapes torrentially flowed directly to Berger Singerman, Juval Aviv, the other unidentified agents (which would include Jeffrey Epstein's P.I., William Riley) ... some of whom then funneled the contents to Bear Stearns senior managing directors Daniel Taub, Mark Lehman, and others.
The pesky FBI — who might ask embarrassing and serious questions about who was actually getting the tapes and how — had been surgically removed from the loop. The Government, without control, ended up conducting illegal wiretapping for Bear Stearns while they were involved in extensive Florida state and Federal court civil litigation against myself and my family.
Years later, after I finally learned of some of the foreign litigation (to be related about in a further post) I could not find a single direct or indirect reference to the tapes. When I raised the matter, Berger Singerman admitted the tapes were never used in British or other foreign litigation — confirming that Bear Stearns was always the intended recipient of the stolen tapes. To this day, I have been stonewalled in every attempt to obtain the British Court records (which would confirm the tapes were never used in Europe and much more), my own phone tapes, or a list of the protected information about me (and everyone I communicated with) that was funneled to Bear Stearns. All I ever saw, in limited foreign court documents I had independently obtained, was a perjured affidavit by Juval Aviv in which he, again, falsely swore he had identified my (fictitious) secret bank accounts.
Two or more off-the-docket wiretap hearings were held, and at least one order was issued between the November 16 and December 5 secret hearings. On December 4, 2000 Paul Singerman filed a sealed motion. It was not served on the Government.
The same day the motion was filed, an off-the-docket hearing was held without a court reporter, as stated in the resulting sealed order from that motion.
However, Berger Singerman had made a colossal blunder when they filed the motion. They had foolishly tacked on to the end of the motion the very phone logs they claimed to be seeking at the hearing held the next day!
The next day, December 5, at the transcribed hearing for the bungled motion, a script was followed. Mr. Fierberg repeatedly stated he and his firm had not seen the very phone logs they tacked on to the motion being heard! The bankruptcy judge conducted the hearing as though Berger Singerman did not have those phone logs ... even though the motion, filed under seal, had those logs attached (docket entry #1074 Case No 97-14687-BKC-AJC). In late 2004, under order, Mr. Fierberg delivered to me an incomplete copy of the sealed record and for the motion — the incriminating phone logs had been ripped off.
On November 16, the Government had refused to turn over the phone logs and had provided a copy of the logs to the bankruptcy judge. There were only two ways Berger Singerman could have gotten those logs by December 4: 1) the bankruptcy judge gave them to Berger Singerman through an off-the-docket secret order issued between November 16 and December 4 (when the motion was filed with the logs), or 2) the Government delivered the logs under an off-the-docket sealed order. Either way, the logs were delivered and findings were made that addressed all objections raised by the Government.
A key objection raised by the Government, was a private bankruptcy trustee's status respecting the Department of Justice so that he and everyone associated with him could be considered a law enforcement official entitled to access to government tapes. The off-the-docket order had to resolve that issue in Berger Singerman's favor for Juval Aviv, alleged Epstein intimidator William Riley, and all other unnamed "investigators" to come under the umbrella of being government law enforcement officers entitled to access protected law enforcement tapes. So the "investigators" had all become secret government law enforcement officers and thereby entitled to the tapes.
Throughout the Jeffrey Epstein fiasco, everyone was aware of the importance of the Epstein - Bear Stearns connection to building a case against Bear Stearns insiders and the pending Bear Stearns Cayman Islands Hedge Fund trials. Epstein's constant "furloughs" to his attorney's office was supposed to be for that very purpose. Yet, publicly unknown and concealed, were the events that allowed Bear Stearns the extraordinary special treatment of taking control of the USAO and FBOP, to illegally wiretap and steal protected law enforcement materials. This was at least as embarrassing as the reported threats made by Epstein's attorneys to the USAO lawyers and the simultaneous exposure of these events would have had heightened impact and further charges of sweetheart deals for anyone connected to Bear Stearns.
Friday, March 25, 2011
What You Don't Know Will Hurt You -- What Really Occurred and the Effect of the Longest Running Civil Contempt Case in US Federal Court History
This blog is about the true, undisclosed history and the current state of the longest running civil contempt case in U.S. Federal Court history — now running over 11 years. It is far different from what has been publicly disclosed.
Some the events that occurred during an ongoing thirteen year scandal are presented in the following court documents:
U.S. Supreme Court Petition for Certiorari
Lawrence Appellee Brief #0710295 Eleventh Circuit Court of Appeal
Petition for Reconsideration/Rehearing Eleventh Circuit Court of Appeal
The above documents disclose just a small part of the extraordinary and bizarre events that took place. Much of the information previously published on this contempt case has been distorted and inaccurate because most of the actual events and procedural history have been left out or misrepresented. The events described on this site will all be fully documented with previously sealed or off-the-docket court papers, other documents, and hearing transcripts — many of which are from secret hearings that were concealed for many years.
For example, posted will be the details of the many, now known of, secret trial proceedings conducted in the local bankruptcy court — the total number remains undisclosed, but four hearings were discovered years later to have been transcribed and are posted; and how those hearings were so successfully hidden from myself, my attorneys, and all reviewing courts. Only the four known transcribed hearings were attended by the US Attorney's Office (USAO). Those four hearings — some of the strangest in Federal Court history — will be described in detail in later posts.
The posts on this site will fully document shocking events, none of which were ever publicized, including:
— how and why a self-proclaimed Israeli 'hit man' cum assassin, Juval Aviv, was secretly hired by Bear Stearns for the bankruptcy judge controlling my case — who solicited, indeed ordered, his hidden hiring; how Paul Singerman, of Berger Singerman, arranged that secret hiring; how that relationship and the Aviv's extensive illegal activities were concealed; how, using sham court papers, Aviv became an hidden officer of the bankruptcy court ... shortly after being prosecuted by the US Government; how a secret domestic/international plumbers/goon squad was created, operated, and its activities; how — in true Nixonian style — it was concealed for many years from myself, all reviewing courts, and the public.
— how Juval Aviv infiltrated and exercised direct control over the local US Attorney's office; how Bear Stearns' senior management and Paul Singerman, of Berger Singerman, admittedly used Aviv and others to secretly, illegally pass extensive amounts of protected law enforcement material for years to Bear Stearns for their private use.
— the bizarre methods used to trick the US Attorney's Office into taking orders from Juval Aviv, which included extensive illegal wiretapping of myself, my attorneys (including my appellate attorneys), my friends, my family, reporters, and others — including throughout appeals
— how the flood of stolen federal law enforcement materials were continually funneled to Bear Stearns Senior Managing Directors Daniel Taub and Mark Lehman while extensive Florida State Court and Federal Court litigation with Bear Stearns was continuing with myself and my family.
— the background of the 'officer of the court' Juval Aviv including: his prosecution by the US in New York just months before he began supervising the local USAO; his extensive reported relationships with mob connected and convicted Congressman James Traficant, Lyndon LaRouche, and an accused mysterious cult.
— of the bizarre, surprising connections with the Scott Rothstein bankruptcy, and with the Palm Beach Police Department's investigations and allegations against one of the many other secret "officers of the bankruptcy court" (who's existence and "officer of the court" status was also concealed for many years) for organized intimidation of the child victims of convicted pedophile and billionaire former Bear Stearns insider, Jeffrey Epstein.
— how a five million dollar gravy-train of fees, paid to Berger Singerman and others, was fueled by fraud, hoaxes and the secret hearings, in a Ponzi like manner. How the US taxpayer eventually paid those fees as part of the 30 billion dollar bill when Bear Stearns went belly-up because of the collapse of their Cayman Islands CMO hedge funds. How a worthless bankruptcy estate was used for what most citizens would consider to be the money laundering of many millions in payments for bribes, obstruction of justice, fraud, theft of protected government law enforcement material, illegal wiretapping and other serious federal and state crimes.
— why millions in payments were excluded from sham, unsigned, unverified official bankruptcy estate accounting statements filed every year — yes ... Lewis Freeman and Marika Tolz were not alone; why the bills of secret 'officers of the court', including those of Juval Aviv, were never filed, served on the U.S. Trustee's Office or the USAO. Why the bankruptcy estate's accountant stopped working for the estate just weeks after his hiring and produced no known reports. Why Paul Singerman and James Fierberg made sure no other accountant reviewed or prepared the bankruptcy estate's books and sham accounting statements.
— of the extensive, still undisclosed secret British Court and other foreign litigation. And why that litigation was concealed ... and still remains concealed.
More information will be provided about how Berger Singerman engineered a fictitious money judgment out of thin air — to benefit Bear Stearns (see the above filings for some details). How the money "judgment" was written as a single line at the end of a September 1998 discovery sanction order that came from one discovery hearing in a bankruptcy discharge proceeding — an event that is supposed to be completely impossible (and illegal), by law. How "execution" on the non-existent judgment, resulted in an illegal imprisonment for over six years, and a continually mounting 'fine' now totaling over $40,000,000 to enforce the "judgment" that never existed.
Other disclosures will be the details of what really transpired during and after the crash of 1987 and how those events were the precursors to the ongoing financial collapse of our economy, including:
— how Bear Stearns embezzled 10's of millions of dollars from my companies and other clients, in a Bernie Madoff type manner, by using backdated fictitious trades during the 1987 crash.
— how the Options Clearing Corp. and the Chicago Board Options Exchange, in written admissions, stated those trades never occurred, yet, along with the SEC, never stopped Bear Stearns. How similar, ever escalating frauds by Bear Stearns continued until the current collapse.
— how Bernie Madoff's decades long protection extended, on a much larger scale, to Bear Stearns.
— what really transpired at the arbitration at the NASD (Bernie Madoff was the NASD Chairman of the Board) that created a never explained judgment for backdated fictitious 'trades.' Including, why the former Chairman of the Chicago Board Options Exchange was prohibited from testifying — he was ejected from the arbitration when he appeared for testimony and it was disclosed he would testify that Bear Stearns was criminally liable. Why the arbitration panel refused to explain its award to Bear Stearns for the backdated, non-existing trades.
— how Bear Stearns' 1987 pricing embezzlement repeated and grew in size ... culminating in the largest Ponzi scheme in US history: the 2008, 30 billion dollar scam where the U.S. Government bailed out Bear Stearns insiders. Remember the Government's 30 billion 'non-recourse' loans for then known to be virtually worthless CMOs Bear Stearns had parked in their Cayman Islands Hedge Funds? Of course, Bear Stearns was a principal creator of those very same CMOs that inflicted such devastating damage to our economy — but created the billions in profits and bonuses Bear Stearns insiders pocketed.
— and much more
Some the events that occurred during an ongoing thirteen year scandal are presented in the following court documents:
U.S. Supreme Court Petition for Certiorari
Lawrence Appellee Brief #0710295 Eleventh Circuit Court of Appeal
Petition for Reconsideration/Rehearing Eleventh Circuit Court of Appeal
The above documents disclose just a small part of the extraordinary and bizarre events that took place. Much of the information previously published on this contempt case has been distorted and inaccurate because most of the actual events and procedural history have been left out or misrepresented. The events described on this site will all be fully documented with previously sealed or off-the-docket court papers, other documents, and hearing transcripts — many of which are from secret hearings that were concealed for many years.
For example, posted will be the details of the many, now known of, secret trial proceedings conducted in the local bankruptcy court — the total number remains undisclosed, but four hearings were discovered years later to have been transcribed and are posted; and how those hearings were so successfully hidden from myself, my attorneys, and all reviewing courts. Only the four known transcribed hearings were attended by the US Attorney's Office (USAO). Those four hearings — some of the strangest in Federal Court history — will be described in detail in later posts.
The posts on this site will fully document shocking events, none of which were ever publicized, including:
— how and why a self-proclaimed Israeli 'hit man' cum assassin, Juval Aviv, was secretly hired by Bear Stearns for the bankruptcy judge controlling my case — who solicited, indeed ordered, his hidden hiring; how Paul Singerman, of Berger Singerman, arranged that secret hiring; how that relationship and the Aviv's extensive illegal activities were concealed; how, using sham court papers, Aviv became an hidden officer of the bankruptcy court ... shortly after being prosecuted by the US Government; how a secret domestic/international plumbers/goon squad was created, operated, and its activities; how — in true Nixonian style — it was concealed for many years from myself, all reviewing courts, and the public.
— how Juval Aviv infiltrated and exercised direct control over the local US Attorney's office; how Bear Stearns' senior management and Paul Singerman, of Berger Singerman, admittedly used Aviv and others to secretly, illegally pass extensive amounts of protected law enforcement material for years to Bear Stearns for their private use.
— the bizarre methods used to trick the US Attorney's Office into taking orders from Juval Aviv, which included extensive illegal wiretapping of myself, my attorneys (including my appellate attorneys), my friends, my family, reporters, and others — including throughout appeals
— how the flood of stolen federal law enforcement materials were continually funneled to Bear Stearns Senior Managing Directors Daniel Taub and Mark Lehman while extensive Florida State Court and Federal Court litigation with Bear Stearns was continuing with myself and my family.
— the background of the 'officer of the court' Juval Aviv including: his prosecution by the US in New York just months before he began supervising the local USAO; his extensive reported relationships with mob connected and convicted Congressman James Traficant, Lyndon LaRouche, and an accused mysterious cult.
— of the bizarre, surprising connections with the Scott Rothstein bankruptcy, and with the Palm Beach Police Department's investigations and allegations against one of the many other secret "officers of the bankruptcy court" (who's existence and "officer of the court" status was also concealed for many years) for organized intimidation of the child victims of convicted pedophile and billionaire former Bear Stearns insider, Jeffrey Epstein.
— how a five million dollar gravy-train of fees, paid to Berger Singerman and others, was fueled by fraud, hoaxes and the secret hearings, in a Ponzi like manner. How the US taxpayer eventually paid those fees as part of the 30 billion dollar bill when Bear Stearns went belly-up because of the collapse of their Cayman Islands CMO hedge funds. How a worthless bankruptcy estate was used for what most citizens would consider to be the money laundering of many millions in payments for bribes, obstruction of justice, fraud, theft of protected government law enforcement material, illegal wiretapping and other serious federal and state crimes.
— why millions in payments were excluded from sham, unsigned, unverified official bankruptcy estate accounting statements filed every year — yes ... Lewis Freeman and Marika Tolz were not alone; why the bills of secret 'officers of the court', including those of Juval Aviv, were never filed, served on the U.S. Trustee's Office or the USAO. Why the bankruptcy estate's accountant stopped working for the estate just weeks after his hiring and produced no known reports. Why Paul Singerman and James Fierberg made sure no other accountant reviewed or prepared the bankruptcy estate's books and sham accounting statements.
— of the extensive, still undisclosed secret British Court and other foreign litigation. And why that litigation was concealed ... and still remains concealed.
More information will be provided about how Berger Singerman engineered a fictitious money judgment out of thin air — to benefit Bear Stearns (see the above filings for some details). How the money "judgment" was written as a single line at the end of a September 1998 discovery sanction order that came from one discovery hearing in a bankruptcy discharge proceeding — an event that is supposed to be completely impossible (and illegal), by law. How "execution" on the non-existent judgment, resulted in an illegal imprisonment for over six years, and a continually mounting 'fine' now totaling over $40,000,000 to enforce the "judgment" that never existed.
Other disclosures will be the details of what really transpired during and after the crash of 1987 and how those events were the precursors to the ongoing financial collapse of our economy, including:
— how Bear Stearns embezzled 10's of millions of dollars from my companies and other clients, in a Bernie Madoff type manner, by using backdated fictitious trades during the 1987 crash.
— how the Options Clearing Corp. and the Chicago Board Options Exchange, in written admissions, stated those trades never occurred, yet, along with the SEC, never stopped Bear Stearns. How similar, ever escalating frauds by Bear Stearns continued until the current collapse.
— how Bernie Madoff's decades long protection extended, on a much larger scale, to Bear Stearns.
— what really transpired at the arbitration at the NASD (Bernie Madoff was the NASD Chairman of the Board) that created a never explained judgment for backdated fictitious 'trades.' Including, why the former Chairman of the Chicago Board Options Exchange was prohibited from testifying — he was ejected from the arbitration when he appeared for testimony and it was disclosed he would testify that Bear Stearns was criminally liable. Why the arbitration panel refused to explain its award to Bear Stearns for the backdated, non-existing trades.
— how Bear Stearns' 1987 pricing embezzlement repeated and grew in size ... culminating in the largest Ponzi scheme in US history: the 2008, 30 billion dollar scam where the U.S. Government bailed out Bear Stearns insiders. Remember the Government's 30 billion 'non-recourse' loans for then known to be virtually worthless CMOs Bear Stearns had parked in their Cayman Islands Hedge Funds? Of course, Bear Stearns was a principal creator of those very same CMOs that inflicted such devastating damage to our economy — but created the billions in profits and bonuses Bear Stearns insiders pocketed.
— and much more
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