A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ...

Without Funds Ever Touching the Bankruptcy Estate

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A Civil Contempt Blog

This blog will describe the unknown and unpublicized true story and bizarre circumstances surrounding the longest, still ongoing, civil contempt sanction in U.S. Federal Court history now lasting over 11 years, including an imprisonment of over 6 years.

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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

ABOUT ME

Stephan J. Lawrence I am an M.I.T. graduate and was originally a financial analyst for several major brokerages and private investment firms. I established a very successful trading company that collapsed in the October 1987 crash after Bear Stearns successfully embezzled 10's of millions of dollars from my companies using backdated fictitious trades that the Chicago Board Options Exchange and the Options Clearing Corp. eventually admitted never occurred. View my complete profile

BLOG ARCHIVE

2012 (5) 2011 (6) April (4) How Bear Stearns and Bankruptcy Insiders Laundered... A Letter to The Editor South Florida Business Jo... A Tale Of Two Pedophiles A New Explanation For J... Pedophile Jeffrey Epstein's Accused Intimidator Wa... March (2)

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A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate

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.

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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.

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A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate

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

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One reason the $5 million in payments made by Bear Stearns were not listed on the bankruptcy

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A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate

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"

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A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate

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.

Posted by Stephan J. Lawrence at 12:37 PM Labels: bankruptcy, bankruptcy fraud, Berger Singerman, DOJ, Gibraltar Bank, Gibraltar Private Bank, Paul Singerman, Rothstein bankruptcy, Scott Rothstein, TD Bank, U.S. Attorneys' Office

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http://acivilcontemptblog.blogspot.com/2011/04/how-bear-stearns-and-bankruptcy.html[3/1/2012 8:39:04 PM]

A Civil Contempt Blog: How Bear Stearns and Bankruptcy Insiders Laundered Millions ... Without Funds Ever Touching the Bankruptcy Estate

http://acivilcontemptblog.blogspot.com/2011/04/how-bear-stearns-and-bankruptcy.html[3/1/2012 8:39:04 PM]