I            Opening Remarks

            Court docket records, (now publicly viewable online), provides proof, irrefutable, of 34 separate false affidavits utilized to perpetrate premeditated fraud upon the DE Federal Court. The parties, being in flagrante delicto (“caught red-handed”) in falsehood; simply confessed and provided a trifling excuse of “oops” we didn’t mean to do it (the 34 lies), “sorry Your Honor”!

            The 34 acts of perjury consummated in excess of $300 million in fraud by 100 felonies, of collusion, via preferential transactions and sales to “undisclosed” connected parties for tens of millions in discounts. The grand larceny has fleeced an entire public entity. Instead of halting the malfeasance the Federal Justice System in DE speciously provided one firm (TBF) unlawful, implied, immunity while refusing to even mention the other [guilty] law firm’s name (MNAT).

            Rogue personnel within the DE Federal System of Justice seek to obfuscate the issues by “color of law” in an arbitrary & capricious manner, vis-a-vis reckless disregard of the facts, being grossly negligent to their fiduciary duties & breaking the Law, for the benefit of protecting the MNAT Law firm from review. The powerful connections reached across the country and influenced the closing of the Public Corruption Unit in central CA. Thwarting any investigation into the malfeasance of the MNAT law firm and the Dept of Justice in Delaware!

            The crimes are obvious & profuse, without any honorable remedy! The perpetrators of fraud are now allowed to keep the keys to the vault they are fleecing such as the $500 million dollar issue outstanding in the NY Supreme Court (Case # 601805/2002). The issue has been left in the dubious hands of the perpetrators as direct collateral damage of the cronyism & corruption.

            Today, September 1, 2008, I, Steven Haas, (a/k/a Laser Haas) (“Haas”) states and avers this day, Under “Penalty of Perjury” that the items and allegations within this are true and correct. /s/ Laser S Haas _ date /s/ Sept 1, 2008

III        Issues Presented of Federal Justice Corruption

            Bringing cronyism and corruption by Federal personnel to the attention of any authority is a mountainous task. Especially for any “pro se” party! Though it is readily apparent that this petitioner (Haas) is more sophisticated than the average layman (due to the sweet existence of MS Word), it is a fact that Haas lacks formal education, including the requisites of College English and Writing classes necessary to portray the issues in a whimsical, urbane or essayist manner. The strength of this brief is its veracity! The fact remains the law is being violated – extensively – by the DE Federal Justice System and a cure must be found. Therefore the primary issue presented is the quest for an honorable public servant who shall not stand idle while corruption and criminality are running rampant & destroying the integrity of the Federal System of Justice.

            The proof provided by Haas of “non-disclosure” of “conflicts of interest” of the TBF and MNAT law firms was irrefutable court docket records. The issue being that the offending Law firms were forced to confess to statutory violations and the DOJ US Trustee’s office refused to seek the mandatory disqualification of the two firms as is required by Section 327(a).

            Section 327(a) commands that court approved Professional Persons are to be a “disinterested persons” with no “materially adverse” “conflicts of interests”. The 3rd Cir and Delaware Federal Courts have dealt with the Code 327(a) issues extensively and affirmed the precedent that Section 327(a) is “unambiguous” requiring disqualification and disgorgement for any/ all “non-disclosure” of “conflicts of interest’s”. An issue presented is cui bono? What motivates the DE Federal Courts and the Circuit Court to rule opposite to their own Precedents in a manner totally contrary to the Law? Why breach- flagrantly – one’s fiduciary duty?

            The Law firm for the Creditors (“TBF”) of the eToys estate (the “Debtor”) has confessed to supplying false affidavits and deceiving the Court. This is perpetration of Fraud on the Court by acts of Perjury. The only way “non-disclosure” (deception) of a “conflict of interest” (divided loyalty of competing clients) can occur in a bankruptcy related matter - is the approved counsel supplied a false Rule 2014 Affidavit. The fact that TBF is guilty of supplying false affidavits is not in contention – they confessed and the BK Court entered the evidence into the record.

            The US Trustee’s Motion to Disgorge the TBF law firm for $1.6 million affirmed their admittance to statutory infractions. Therefore an issue presented is how can the DE Federal Courts’ lay claim to any level of competency when more than fifteen (15) false affidavits are confessed and the Court rules in its Opinion and corresponding Order of October 4, 2005 that no perjury has been documented? This is absolutely absurd & intolerable - as the finding of facts and conclusions of law are incompatible with reality.

            The law firm for the Debtor –that being the MNAT law firm – also confessed to supplying false affidavits and deceiving the Court. While the Court did remark within the Opinion and corresponding Order of October 4, 2005 that MNAT’s actions were deliberate – the Court also ruled contrary to the Law and concluded that no Perjury was documented and slapped the wrist of the MNAT law firm as well. It is inappropriate as it is a fact that MNAT had confessed to supplying more than sixteen (16) false affidavits over a period of two years and deceptions on serious items. Absurdity appears to be the controlling dynamic within the Delaware Federal System of Justice when illegalities of the MNAT law firm are involved!

            Another issue presented is the bizarre item that the “policing” body of the DE Federal Bankruptcy Courts is the Dept of Justice US Trustee’s office. The US Trustee’s sole function is to enforce the laws and monitor the violations of Professional Persons per Section 327(a). So why has the US Trustee’s office breached its duty and failed to comply with 28 USC § 586(a)(3)(F) (Notify & Refer) that mandates referral of the matter to the US Attorney’s office?

            The statutory commandment to Notify & Refer requirements are also within 18 USC § 3057(a) and specifically requires a Judge to inform the US Attorney’s office of any law breaking by attorneys or judges that can be perceived or documented. The latitude taken by the civil clout of Dept of Justice and the Bankruptcy Court concerning these criminal acts is terribly vexing. There are “no” exceptions to the Rule of Law in/of Section 327(a) and the autonomous dicta that is being endeavored here is fracture of law by anarchism – they are seizing opportunity by wayward authority inferring discretionary criminal capability where none exists.

            Therefore the question remains - why did the Delaware Chief Justice of the Bankruptcy Court state within her Opinion of October 4, 2005 that she declines to refer the matter to the US Attorney’s office – directly contravening 18 USC § 3057(a)?

            More importantly the liberties taken in the efforts of the refusal to prosecute (“nolle prosequi”) appears to know no boundary within the Delaware Federal System of Justice. The Director of the US Trustee’s office replaced the Region 3 Trustee (Roberta DeAngelis) with a press release dated December 22, 2004. The press release coincidently occurred on the very day of the Emergency hearing of the eToys Perjury and Fraud issues by the DE Bankruptcy Court. The parties were then Ordered by the Court to respond before January 25, 2005.

            At that time, the “Responses” by the MNAT and TBF law firms emerged. Also, the President and CEO of eToys – Mr. Barry Gold – supplied a response. The responses of the parties directly addressed the issue that Barry Gold was a direct paid associate and partner of Paul Traub (the owner of the TBF law firm) – (a heinous criminal act of Collusion to Defraud)!

            A hearing was held on February 1, 2005 where the Court permitted Haas and the eToys shareholders the highly unusual “pro se” ability to Depose the law firms of TBF & MNAT as well as permission to depose Barry Gold. Additional evidence occurred during the Depositions, which were at the Federal Court house – to assure the safety of Haas and the eToys shareholders.

            The Asst US Trustee Frank Perch, complying with his February 1, 2005 promise to the Court (that the US Trustee’s position on the issues would be clarified before his scheduled travel of February 16, 2005) – being armed with the incontrovertible evidence within the responses, the December 22, 2004 and February 1, 2005 hearings, that were affirmed by the Depositions on February 9, 2005 – tied the hands of the Asst US Trustee to respond accordingly. Whereupon Mr. Perch sent out to Haas, the Court and other parties of interest the Motion to Disgorge the TBF law firm $1.6 million. (Please see eToys DE Bankruptcy Court case 01-706 – docket item 2195) (the “Disgorge Motion”) (February 15. 2005).

            A wacky issue presented is why did the US Trustee’s office only seek to disgorge the TBF law firm and essentially declined to mention anything about MNAT? For both firms confessed to supplying false affidavits (Perjury) and deceiving the court on multiple issues (Fraud)! The pattern of power, influence and corruption for MNAT is well documented here.

            Furthermore, all-embracing egregiousness transpired and was documented by the US Trustee’s office. The Disgorge Motion stipulated that the parties had engaged in prior conversations with the US Trustee’s office about replacing key executives of the Debtor with someone connected to the retained professionals of the estate and were told not to do so. The Disgorge Motion stipulates to this fact “twice” in ¶19 and ¶35. The severally heinous issue being that the US Trustee’s office is testifying that the parties asked if they could do an end run around Section 327(a) and were instructed not to. Thereby making the “planting” of Barry Gold, a paid associate of TBF - placed within the Debtor by TBF and MNAT - an extensively egregious act directly defying the straight warning and authority of the Dept of Justice US Trustee’s office.

            How can the Chief Justice and US Trustee’s office engage in efforts of “nolle prosequi” when official documents within the record are stipulated and affirmed to such profuse mendacity of direct, premeditated defiance of the Court and Dept of Justice?

            Creating a total mockery of the entire Congressional framework to assure propriety, (as the Bankruptcy Code is designed to assure a diametrically opposed Creditor v Debtor akin to a Republican v Democrat type scenario). Less than ten (10) days after the Disgorge Motion was entered into the record - on February 24, 2005 – a Dept of Justice Attorney (Mark Kenney) then signed an illegal Stipulation to Settle (the “Stipulation to Settle”) of the Disgorge Motion.

            Making the entire situation extensively morose – as they line of propriety/ ethical behavior had already been transgressed with the ad hoc application of the Law being - the Stipulation to Settle contains a leap across morality by an illegal provision that grants the TBF law firm the unlawful right not to be pursued by the US Trustee’s office. Mark Kenney stipulates intentional refusal to comply with Section(s) 327(a), Section 101(14) and Rule 2014. He simply tosses out all fiduciary duties and provides the TBF law firm with the following obvious, illicit, implied, blanket, immunity, proviso;

            “WHEREAS The United States Trustee shall not seek to compel TBF to make                             additional disclosures--”

            By supplying such illegitimate impunity the Dept of Justice was stating – in advance – that it declines to comply with Section 327(a) requisites concerning TBF (implying that same graciousness to MNAT and Barry Gold). An issue presented is – where does one go to effort equitable justice when the very authorities of the Federal system have clearly demonstrated extensive, elaborate intent to be willfully blind in an arbitrary & capricious manner to the profuse criminality in this particular case?

            Also noteworthy (and our contention of the “true” source of all the cronyism and corruption) is the fact that neither the Disgorge Motion nor the Stipulation to Settle mentions anything – whatsoever – about the MNAT law firm. Subsequently the Dept of Justice actually gathered together, along with their cronies MNAT, in the proverbial “blue wall” to strike and expunge Haas, with all proofs provided by Haas from the record. One overt act of obstruction by Mark Kenney included the request to strike and expunge the affidavit of the former Chairman of the Creditors Committee from the record. Totally intolerable and absurd in the extreme!

            The explicit actions against Haas, coupled with the willful blindness by the Dept of Justice has made them complicit in the criminal conspiracy against Haas and the eToys shareholders for the sake of burying the investigation of MNAT issues.

            Brazenly and flagrantly the Dept of Justice US Trustee’s and EOUST office are an appellee with MNAT in the 3rd Circuit case (07-2360) as the Dept of Justice seeks to expunge the eToys shareholders appeal and Haas. The Dept of Justice rogue personnel actually have the unmitigated gall - to place in writing within the 3rd Circuit brief - that they did not address the MNAT bankruptcy court violations and will not address the MNAT issues in the appeal cases – as if such were a cardinal sin!

            The way of thinking to suggest going higher up the ladder in the Federal System of Justice needs to be aware of the next issue(s) presented.

            We had the direct email correspondence with the Director of the US Trustee’s office in Washington DC (Mr. Lawrence Friedman) who promised his staff would handle the matter accordingly. His promises appeared to be pure as he did replace the Region 3 Trustee, Roberta DeAngelis, with Kelly B Stapleton via a press release that noted Ms. Stapleton was vastly experienced in fraud prosecution matters. This was then followed up with the additional, yet trifling effort, of the Disgorge Motion.

            However, immediately after the Disgorge Motion, the Stipulation to Settle occurred. Then, amazingly, Paul Traub of the TBF law firm went on the stand during the March 1, 2005 hearing and confessed that the TBF law firm had paid Barry Gold four (4) separate payments of $30,000 each prior to placing Barry Gold (secretly) within the Debtor – where Barry Gold then ceased receiving the stipend from the TBF law firm as MNAT and TBF arranged for the Debtor to pay Barry Gold $40,000 per month.

            The series of events of refusal to prosecute, the declination to Notify & Refer and the indulgence in rejecting any notion or mention of the bad faith acts by the MNAT law firm would seem to infer that the parties had a one-time chance to get away with anything confessed – therefore the perpetrators did not feel unrestrained in providing damming evidence.

            Albeit a sweetness to the guilty, the culpable could not help themselves. They either planned to remain silent on more serious fraud matters or inherently the rogues were afraid of noting all the mendacity that had really transpired. It can even be that the rascal personnel at the Dept of Justice were duped into believing the “now” disclosed items were all there was.

            Since that time we have discovered additional criminal acts that occurred and some that are continuous, including, but not limited to, Bribery, Extortion, Perjury, Collusion to Defraud, Intimidation of Victim/ Witness, Willful Circumvention of Code/Rule, Failure to Declare cash assets and great probability of a Racketeering prosecution.

            Allowing the perpetrators to get away with confessions to minor criminal endeavors while high crimes remain deliberately unaddressed is a serious cause for concern about the integrity of the Judicial Process and the policing ability of the Dept of Justice.

            In the continuous manner to outdo all other criminal acts prior, armed with the illegitimate Stipulation to Settle, all the parties, TBF, MNAT and Barry Gold endeavored another $100 million dollar cash fraud in the Kay Bee Toys bankruptcy case (DE Bankr 04-10120).

            When we informed Director Friedman of the additional organized criminal activity and our disdain for the wayward Stipulation to Settle he simply resigned. It also appears that the Asst US Trustee Frank Perch, who did effort the Disgorge Motion, departed from his official position around the same time as Director Friedman.

            Complicating such inexplicable bizarre events even further, mysteriously, the removed Region 3 Trustee, Roberta DeAngelis was quietly and speciously promoted to the post of Acting General Counsel of the EOUST. The protocols within the Federal System of Justice stipulates that all impediments concerning the functionality of the Dept of Justice US Trustee program are to be referred to the General Counsel of the Executive Office of United States Trustee’s (the “EOUST”) and the local US Attorney’s office.

            The quandary being that everyone we informed, the FBI, the SEC, the Office of Professional Responsibility, the Office of Special Counsel, the Office of Governmental Ethics, President Bush’s Corporate Fraud Task Force, etc., etc. They would all therefore, as a standard protocol, send the items and issues of malfeasance to the UST GC (Roberta DeAngelis).

            Compounding the issue even further (though you might think such is impossible to accomplish) is the other refer“ee”” is the local US Attorney. It was recently discovered in the fall of 2007 that the US Attorney in DE, Mr. Colm Connolly, was a partner with the MNAT law firm in 2001 (when the fraud and perjury began) (despite that flabbergasting - there is more).

            We reported these massive ethics and protocol violations to the California US Attorney’s office as eToys is physically located in CA and it is readily apparent that sending the information to DE authorities would be an effort in futility.

            No direct response has occurred, however, the L A Times reported that the CA US Attorney walked into a weekly staff meeting, belittled Asst US Attorneys and summarily disbanded the Public Corruption Unit in March 2008 for failure to find cases (Hello)!

            Making that matter worse the CA US Attorney, Tom O’Brien purportedly threatened career prosecutors to refrain from detailing any reason for the dismantling of the Unit or they would be disparaged.

            Summing up all the issues presented, there is a vast sophisticated, criminal, element that has gained organized control of the Federal System of Justice in Delaware where everyone would not even dare to mention the MNAT law firm’s name. So much so that the Dept of Justice went on written record that it will not address the MNAT issues. At the same time, in a grand effort to thwart any investigation, in a profound effort to Obstruct Justice - the Dept of Justice Attorney Mark Kenney provided perpetrators of willful defiance of the Code and the Court - the TBF law firm – illegal, implied, blanket, immunity by the Stipulation to Settle!

            Upon receiving the unlawful get out of jail free card, MNAT, TBF and Barry Gold engaged upon another $100 million dollar cash fraud endeavor in the separate (but related) case of Kay Bee Toys bankruptcy. When Haas pointed that out to the other Justice in the Kay Bee case, Mark Kenney stepped up to the plate again, utilizing Taxpayer dollars and petitioned the Kay Bee case justice to strike and expunge Haas and his proofs from the record.

            Upon successful completion of the Kay Bee Toys case Obstruction efforts the Delaware Federal System of Justice then tossed out Haas and his company, Collateral Logistics Inc (“CLI”) court approved work and $3 million dollar fees, quantum meruit, under pretense and “color of law”! Stating fraudulently – that Haas had willfully “waived” the CLI $3 million dollar claim and that Haas was not a party of interest in these cases.

            The issue here are really rather simple, either one cares that organized criminal activity is occurring within the Federal Court system that is being protected by the Dept of Justice - or one does not care. One would hope that the criminal endeavors here are of a rogue element within the Federal System of Justice – and not the norm. Either way, the situation is a serious matter that needs to be addressed by great authority and above reproach investigations. The issue remains and shall continue to be –the quest for an honorable review and investigation of the matters. For it is highly unlikely the participants woke up and decided to engage in this massive skullduggery simply because of eToys. - The quest is Justice –no more but No Less!

IV        Dept of Justice instructions concerning Corruption

            Within the United States Attorney Manual 9-42.010 (“USAM”) it candidly remarks upon “corruption of its officials” by stating –

            “The United States has both statutory -- and common law rights of action arising from fraud against the government and from the corruption of its officials. Every report of fraud or official corruption should be analyzed for its civil potential [as well as criminal] before the file is closed”.

            Not to be outclassed by such instructions, the United States Trustee Manual (“USTM”) discusses the “Bribery of Public Officials” as it directly reflects upon United States Trustee, clerks and Judges. The USTM 5-9.2 details the issue of Bribery of Public Officials or Witness under 18 USC § 201 as it is specifically designed to cover the possibility of inducements of the United States Trustee, where it (directly on-point with the eToys case) states;

            “This statute covers two distinct groups of offenses. The first, "Public Officials," would, within the bankruptcy system, cover the offices of the United States Trustee, the clerk's office, and judges”         

            The issues of Bribery and Corruption of public officials; specifically the inducement for the reckless disregard of the facts by US Trustee’s office and Federal Justices - is germane to this eToys saga. It is irrefutable, (to any unbiased party), how extensively the law and ethical protocols are being destroyed to eviscerate investigations of the MNAT law firm. Indictments vastly possible - along with their associates, clients and related parties, (such as Bain ), culpable for their criminality –as cronyism seeks to block, Official, investigation or view. Corruption is greatly afoot here while power, influence and fear halts any qualitative or quantitative review!

            One hundred felony violations are now known to have occurred - by premeditated Fraud upon the Court via extensive acts of Perjury by the Officers of the Court (who were cautioned by the “policing” Dept of Justice immediately prior to the contravention of the Law). The efforts of the DE Federal System of Justice in staunch refusals to prosecute, transverses the line of leniency into full-blown complicity, whilst continuous crimes occur. Rogue Federal System of Justice personnel have the unmitigated gall to utilize Taxpayer dollars to defend Organized Crime.

            Either one is vexed by this skullduggery, intrigued or apathetic. If you are one of the vexed you cannot sit idle while cronyism and corruption affects our Federal System of Justice. Much of the investigative work has already been done by Haas. The proof is in the pudding (extensively)! All any unhindered public servant need do is pick up the file and begin an Official investigation. Haas seeks the virtuous exoneration of the system from the detrimental, rampant, prevailing, evils within. The mendacity must be halted – thus a war for integrity has begun and all investigative parties must now chose a side by willful blindness or [in] actions!

IV        Dept of Justice shuts down Public Corruption Unit to thwart eToys investigation

            Allegations of fraud, cronyism and public corruption are throughout this briefing that will undoubtedly cause the reader to have anxiety. For clarity’s sake reiteration of the issues from all angles of influence and corruption is required. Forgive us for any apparent redundancy, as it appears thus far, that though criminality is profusely evident - any proper remedy is a ghost!

            When Haas discovered that the MNAT law firm was abusing its connections to the Federal System of Justice (Haas recently discovered MNAT’s former partner (Colm F Connolly) – is the US Attorney in Delaware), along with the Dept of Justice Attorney Mark Kenney and Roberta DeAngelis from the US Trustee profuse, overt acts of Obstruction of Justice. The ethics violations were reported by an “Official Clocked Copy” formal Complaint under 18 USC § 3057(a) and 18 USC § 3771 to the CA US Attorney Tom O’Brien’s office[1].

            Upon receiving the documentation of the Ethics, protocol and criminal violations of the Dept of Justice (concerning eToys), and the refusal to prosecute $300 million in fraud and 34 confessed false affidavits (Perjury). The only apparent response was the LA Times reporter Scott Glover reporting[2] that CA USA Tom O'Brien walked into a weekly staff meeting, unexpectedly belittling his staff and then summarily disbanded the Public Corruption Unit. Not only did O’Brien disband the Unit - O'Brien felt it necessary (purportedly) to threaten the career prosecutors to keep silent or they would be punished if they spoke to the press about the reasons why (see L A Times Story  "Shake-up roils federal prosecutors" (here )

            For the sake of the integrity of the Federal System of Justice –please verify the facts throughout this briefing. One must refrain from accepting feigned and cavalier remarks or declarations by pretentious participants (Dept of Justice personnel connected to the case) within the system of justice who pretend that the issues are being handled? When there is consummate proof that something is amiss, it should invoke a higher sense of perception and scrutiny.

            Therefore it is necessary to insist on follow-up reports to confirm a proper investigative effort is occurring. Be aware of “back-dated” reports & case numbers. You must insist on verifying the Office of Review and Oversight (“ORO”) details & any other such proper protocols for integrity’s sake. They, the nefarious hordes, have been stalling this case from precise inquiry for 7 years! The Justice Dept Attorney, Mark Kenney even stymied an SEC investigation by the Bankruptcy Fraud Division in Atlanta (a direct citation from SEC Mr. Gordon Robinson).