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Tue Nov 27, 2018, 10:41 AM


ABSURD - Bankruptcy Judges are picked by Circuit Courts

Have you ever read about unjust rulings in a bankruptcy court? Or learned of a friend, neighbor or someone losing their house to a crooked foreclosure process?

Did you see or hear of a UCLA Law Professor Lynn LoPucki's Professional Paper titled "Routine Illegality " on how bankruptcy court judges routinely rule contrary to law?

Or perhaps you may have heard about Professor LoPucki's book titled "Courting Failure " that details the fact bankruptcy courts are being corrupted to favor law firms pursuits of large fee cases!

Now here is the kicker. There's only 1 way that bankruptcy court judges can get away with ruling contrary to the Law; and that is by the presiding Circuit Court's over these judges, allowing unjust rulings to transpire.

It may (should) surprise you that not only are the Circuit Court's allowing judges to be arbitrary & capricious, in violating our nation's citizenry Civil Rights under "Color of Law" (a federal crime 18 U.S.C. § 242) -

As a matter of fact Circuits pick bankruptcy judges!

Holy conflicto facto Batman - WTF!

That's right ladies & germs, right n front of our very eyes and noses the powers that be, unduly influenced by the legal lobby, is pulling a conflict of interest stunt - gargantuan.

See for yourself

Bankruptcy Judges

Bankruptcy judges are appointed for 14 year terms by the United States Court of Appeals for the particular federal circuit in which the bankruptcy court resides. Thus, unlike federal district court and appellate judges, who are appointed for life, the term of a bankruptcy judge must be renewed every 14 years by the appellate court. It is therefore quite possible for an appellate court to not renew a bankruptcy judge's term if it is unhappy with his or her performance. Likewise, the bankruptcy judge can choose to decline a 14 year appointment

Let this sink in for a moment -

It is therefore quite possible for an appellate court to not renew a bankruptcy judge's term if it is unhappy with his or her performance

At issue here are conflicts of interest, all over the place!

Our Federal Magistrate, District Court, Circuit Court and United States Supreme Court Judges are nominated by the President of the United States; and a vetting process including Senate questionnaire and vote approval occurs for such justices, transpires.

Once they are vetted federal judges are given life terms; which assures no undue influence (including no cronyism or corruption).

HOWEVER, when it comes to nomination of bankruptcy court judges - the very Circuit Court that may one day rule on a particular judge cases - also has the pendulum axe swinging over a Justice seeking for a 2nd term.

Compounding this absurdity, is the fact that U.S. citizenry is not a participant in the process. No vetting.

We dont even get to know who nominated a judge, or why.

At the barest of minimums, any Circuit Judge who nominated a party to become a bankruptcy judge, should be banned from ever making an appeal decision on that particular (hand picked) judge's cases.

USAG John Ashcroft on bankruptcy court corruption

Right now, in front of the nations very eyes, another gigantic bankruptcy fraud is occurring, in Toys R Us case.

Bain Capital was able to acquire Toys R Us by defrauding Mattel, Kay Bee, Fingerhut, Marc Dreier, Tom Petters Pinzi and eToys cases by massive criminal conspiracies that includes "Bankruptcy Ring" frauds.

According to the 3rd Circuit case of In re: Arkansas, Congress was keenly aware of cronyism & conflict of interest corruption in bankruptcy cases.

To wit:

Congress has warned the Circuits of how bankruptcy dealings can create a “bankruptcy ring” of attorneys. The 3rd Circuit has addressed the issue of “bankruptcy rings” where attorneys endeavor to remedy circumvention of the Code after the fact,. (In re Arkansas Co., 798 F.2d 645 (3rd Cir. 08/13/1986)).

The 3rd Circuit remarked upon the fabric of the stabs to clean up errant efforts, after the fact, to circumvent the Code, concerning offending applications of § 327(a) and Rule 2014 affidavits.

.....This Circuit stipulated that;

“[W]e reject the notion that a complete and thorough post-application review may substitute for prior approval in most cases. This approach would render meaningless the structure of the Bankruptcy Code and Rules, which contain provisions requiring both prior approval of employment and after the fact approval of compensation. 11 U.S.C. §§ 327(a), 1103(a), 330; Bankruptcy Rules 2014(a), 2016, 2017”

“It is significant that Congress chose to place the requirement of court approval for the employment of an attorney, accountant, or other professional by the creditors committee directly in the Bankruptcy Code in 1978. 11 U.S.C. § 1103(a). The legislative history makes clear that the 1978 Code was designed to eliminate the abuses and detrimental practices that had been found to prevail. Among such practices was the cronyism of the "bankruptcy ring" and attorney control of bankruptcy cases. In fact, the House Report noted that "in practice . . . the bankruptcy system operates more for the benefit of attorneys than for the benefit of creditors." H.R. No. 595, 95th Cong., 2d Sess. 92, reprinted in 1978 U.S. Code Cong. & Ad. News 5963, 6053”

Now, if you think that settled the issue, then why has the US Courts website posted these remarks of former USAG John Ashcroft that there are issues of bankruptcy court corruption.

Specifically, USAG Ashcroft is quoted as stating that:

"Bankruptcy court corruption is not just a matter of bankruptcy trustees in collusion with corrupt bankruptcy judges.

The corruption is supported, and justice hindered by high
ranking officials in the United States Trustee Program.

The corruption has advanced to punishing any and all who mention the criminal acts of trustees and organized crime operating through the United States Bankruptcy Courts.

As though greed is not enough, the trustees, in collusion with others, intentionally go forth to destroy lives.

Exemptions provided by law are denied debtors.

Cases are intentionally, and unreasonably kept open for years.

Parties in cases are sanctioned to discourage them from pursuing justice.

Contempt of court powers are misused to coerce litigants into agreeing with extortion demands.

This does not ensure integrity and restore public

The American public, victimized and held hostage by bankruptcy court corruption, have no where to turn."

The sentences are separated, by me, to make note each singular remark is dynamic on its own.

This is massive frauds, going on, killing Toys R Us and more, to line the pockets of guys like Mitt Romney.

Who is - now - to be a United States Senator.

Talk about Bankruptcy Ring foxes, are in hen house!

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