Bankruptcy Misconduct - Smelly Kelly

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Smelly Kelly

Kelly B Stapleton, who was employed by the Justice Department to protect the integrity of the bankruptcy system by overseeing case administration and engaging in litigating to enforce the bankruptcy laws, has recently resigned.

We have limited information on Ms. Stapleton. While we don't know what her specific involvement was, if any, in the eToys & Stone & Webster bankruptcy misconduct scandals or their aftermath, we have information that Kelly Stapleton was involved with the cover-up and tacit approval of the now mushrooming WebSci Scandal.

Experience has shown that this is going to get a lot more interesting. As successor to Ms. Stapleton, it would appear that Roberta A. DeAngelis now holds the baton with respect to the WebSci scandals. However, the existence of pending investigations by the FBI or other Federal or Congressional authorities may impede self directed efforts within the EOUST to clean up this particular mess.

BankruptcyMisconduct.com will continue to report on this WebSci Scandal and its aftermath. Again, we wish to thank the contributions from parties, attorneys, officials, and fellow internet journalists whether such submissions are done confidentially, anonymously, or without restriction.

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Reprinted from the DOJ website:

U.S. Department of Justice

Executive Office for United States Trustees

For Immediate Release

May 2, 2008

ROBERTA A. DEANGELIS APPOINTED ACTING U.S. TRUSTEE

FOR DELAWARE, NEW JERSEY, PENNSYLVANIA

WASHINGTON, D.C.–Roberta A. DeAngelis has been appointed Acting United States Trustee for Delaware, New Jersey, and Pennsylvania (Region 3) for an interim period effective on May 4, 2008, it was announced today by Clifford J. White III, Director of the Executive Office for United States Trustees. Ms. DeAngelis replaces Kelly Beaudin Stapleton, who has resigned after serving as U.S. Trustee for Region 3 since January 2005.

Ms. DeAngelis joined the U.S. Trustee Program as Assistant U.S. Trustee in the Newark office in July 1999 after practicing bankruptcy and insolvency law for 20 years. She has served as Acting General Counsel in the Executive Office for U.S. Trustees in Washington, D.C., since May 2005. Ms. DeAngelis received her law degree from Seton Hall University School of Law in Newark, N.J., and her Bachelor of Arts degree magna cum laude from Alvernia College in Reading, Pa.

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 95 field offices. Region 3 is headquartered in Philadelphia, with additional offices in Wilmington, Del; Newark, N.J.; and Harrisburg and Pittsburgh, Pa.

Contact: Jane Limprecht, Public Information Officer

Executive Office for U.S. Trustees

(202) 305-7411