Bankruptcy Misconduct - Pillsbury Winthrop

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Pillsbury Winthrop

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Pillsbury Winthrop

Sometimes simple reality can be shocking. The logical and lawful consequence of criminality dares to confront BigLaw:

Pillsbury Winthrop Shaw Pittman and Levene, Neale, Bender, Rankin & Brill are getting a lot of attention for their apparent conspiracy to commit fraud upon the bankruptcy court in the Northern District of California.

In an extremely rare event, a fellow member of the bar urged the court make a criminal referral against a member of the Pillsbury Winthrop firm for a criminal failure to make full disclsoure in the SonicBlue bankruptcy case. But if you want our opinion, we can't see how conspiring members of a creditors committee and their counsel who were aware of any undisclosed conflict yet said nothing when they knew of fee applications against the assets of the estate which failed to disclose same could ever escape criminal liability as co-conspirators not to mention civil breach of fiduciary obligations and attorney ethics code. And it doesn't smell like team spirit either, it smells like RICO. Perhaps someone needs to insure that their counsel informs their insurance carriers of the issue, lest their eventual claim denied for malpractice as may be needed to have their personal criminal attorneys fees reimbursed?

Could this be the start of a new era, when Biglaw partners are held accountable to law?

If so, then Pillsbury Winthrop will be "just the tip of the iceberg". Respected lawyer and author of the Bankruptcy Crimes books series Stephanie Wickouski long ago informed the general public that each time these BigLaw attorneys file a false declaration of disinterestedness in order to get hired as official counsel in a bankruptcy case - it is a crime. Numerous ordinary citizens are thrown in jail for the crime of lying under oath, as are some famous people like Martha Stewart, Li'l Kim. We also see baseball players indicted such as Barry Bonds, not for using steroids but for allegedly lying about using them while under oath before Congress. For how long is the public supposed to accept this double standard?

The problem has been that the DOJ's Office of the U.S. Trustee has been staffed by a revolving door of former and prospective partners of the same BigLaw firms which they are charged to regulate. Brilliant observation of the day: Referring, investigating, indicted, prosecuting, and incarcerating your former law partners/prospective employers is not considered a good career move by these particular public servants who hold money above oath and honor.

Like in Sonic Blue, we have blatant frauds upon the Court in the eToys and Aureal bankruptcy cases. The Aureal case crimes took place in the very same district court as Sonic Blue and involved the coverup by both DOJ and California State Bar officials. Not to mention SEC issues which may envelope a number of other parties (including under Title 18 U.S.C. § 1001, 1002, 1003, & 1004) such as investors affiliated in ownership or underwriting with a certain hedge fund...

What is the difference which has independent lawyers demanding multi-million dollar fines and a criminal referral for criminal non-disclosure in the Sonic Blue case, but in stark contrast the whistle-blowers to such crimes are personally attacked with the help and support of Law Enforcement and the Judiciary in the eToys and Aureal cases? The essential difference in these last two cases is that current and former DOJ employees were partners in the BigLaw firms which committed the crimes in the eToys and Aureal cases.

Facts are a stubborn thing. Whistle-blowers can not be silenced in this age of the internet (unless the death threats against the whistle-blowers are followed through). Would the powers that be in the media please wake up and inform the citizenry of the largest organized crime ring eating away at our nations wealth as a tax upon all banking and business credit?