Breach of Trust: Perjury and Extortion in the U.S. Attorney’s Office
Lawyers Offer to Prove $38 Million Dollar Fraud on Bankruptcy Court
| Case No. 4-91-638 | FTC v. T. G. Morgan, Inc. et al | (Murphy, J.) |
| Case No. 4-92-0578 | In re: T. G. Morgan, Inc. | (Kressel, J.) |
This is a horror story about a consent settlement contract reached between T.G. Morgan, Inc., a dealer specializing in rare coins, and the Federal Trade Commission - approved by the US District Court in Minnesota as a Final Order on March 5, 1992 in the FTC civil case. Evidence in the public record reveals government lawyers and the federally-appointed Trustee breached the contract, extorted the funds from the company’s ERISA retirement account, and defrauded the Hon. Judge Robert Kressel’s court through a mixture of deceptive pleadings and outright lies. This dishonesty has prevented Judge Kressel from following or applying the rule of law in these matters.
A bankruptcy Trustee has the highest institutional and fiduciary duty of absolute honesty not only to the creditors, but to the Bankruptcy Court itself so as to protect the integrity of the legal system and provide checks and balances to a Trustee’s avoidance powers. There is long-standing legal precedent that an FTC consent settlement is a special kind of contract once it is approved as a Final Order, which a Chapter 7 Bankruptcy Trustee has no choice but to honor by state and federal contract law and the Bankruptcy Code itself.
Incontrovertible documents already found in the public record, including sworn depositions, confirm members of the US Attorney’s Office of Minnesota played a central role in planning breach of this contract. According to information in the public record, several federal lawyers and the Trustee’s attorney attended a meeting in January 1992 hosted by an Assistant US Attorney to plan violations of the FTC consent settlement, the FINAL ORDER, and the extortion of $1 million in pension assets from the T.G. Morgan, Inc. ERISA pension fund.
After being accused of federal tax and bankruptcy fraud by this new team of lawyers, the major national accounting firm that worked for the Chapter 7 Trustee has suddenly resigned after fifteen years, without providing any explanation, and refuses to sign any final income tax returns or certify any final Trustee reports. The Trustee is personally mailing out unsigned, unverified income tax forms, and calling them final tax returns. The AUSA who planned the ERISA theft is now a federal district court judge in Minneapolis. A 1993 deposition implicating the former AUSA and three other lawyers, including the lawyer for the Chapter 7 Trustee as planning the multi-million dollar frauds, has been served on all four lawyers who were at the US Attorney’s January 1992 meeting. Not one of those four lawyers has denied the accusations or asked to have anything in the deposition corrected. The Chapter 7 Trustee and his lawyer and former accountants cannot or will not reveal the whereabouts of several millions of dollars in missing assets and are now suddenly pushing Judge Kressel to close up the bankruptcy.
The FTC’s receiver and the Bankruptcy Trustee have illegitimately converted almost all of the $38 million which the FTC promised in the settlement contract would be returned to the company’s customers, including millions of dollars in unique or serial numbered assets fully prepaid and owned not by the company, but stipulated by the FTC and the company as owned by customers prior to the bankruptcy. The receiver and Trustee did this by fabricating evidence, and making false claims using the Trustee’s unusual and extensive powers. These wrongdoings continue to harm the customers, the former employees, and Diane Blodgett, an innocent woman who trusted the government lawyers. As a company shareholder, she agreed to settle the original FTC case because the FTC found no wrongdoing after a full investigation of T.G. Morgan, Inc.’s financial records, promised the company would stay in business, and that her ERISA pension fund would be protected.
A pro bono team of lawyers, including Professor Peter Erlinder of William Mitchell College of Law, former Senior Assistant Attorney General for Pennsylvania Lawrence M. Otter, and local attorney John Tancabel, are offering to prove up this massive fraud, not only to seek justice for the victims, but to defend the judicial integrity of Judge Kressel’s Court and to restore the public’s trust and rule of law in these matters. This team of lawyers is submitting objections and evidence offering to prove that the entire fifteen-year-old involuntary bankruptcy has been operated as a fraud on Judge Kressel’s Bankruptcy Court. These filings will also prove that the Trustee is asking Judge Kressel to approve a cover up of such fraud where the Trustee has been misusing his powers to prevent any such evidence from ever being fully considered by the courts.
We at badjustice.net hope to help finally bring justice to this matter. The fraud perpetrated by the Trustee and his cohorts not only continues to harm Ms. Blodgett, and the others, but discredits the objectivity of the legal system which we rely on every day. It would be a major national concern if the public not only cannot trust federal government lawyers, but they cannot trust a federal bankruptcy court to be able to follow and apply the rule of law because the court mistakenly and repeatedly relies on lawyers who lie.
Our team is offering to prove fraud on the Court itself to help Judge Kressel restore integrity and public trust to the proceedings in this Bankruptcy Court. To view key pieces of evidence or other material from the public record, visit badjustice.net. Additional information may be requested by contacting the team at bad.justice@yahoo.com, or local coordinator Nathan Dorschner at 612-207-3553. We will supply links to all authorities on which we rely. All conclusions or claims are based solely on evidence in the public record, as documented originally by Professor Erlinder and now confirmed by other lawyers and independent investigators.
For additional information on Professor Erlinder’s private litigation background, such as his involvement in this matter, contact Mary Grant, Assistant Director Alumni Relations at William Mitchell College of Law: 651.290.6452, or mary.grant@wmitchell.edu
Conn's Failure to Disclose Connections Under Rule 2014
Stoebner's Request to Employ Conn
Attorney Vartian's Termination for Cause
Attorney Gilbert confirms Vartian "Terminated for Cause" and has never provided an accounting.
Rosenbaum 1994 Hearing - Perjury by Attorney Vartian
Could the Federal Receiver have been granted immunity? Fired for cause for mishandling assets in 1992. In 1993 he admitted, under oath, to having planned with AUSA Joan Ericksen how to alienate a $1 million ERISA pension fund. These facts were never presented to Judge Rosenbaum.
Where has the $38 Million gone? Is this why the accountants have resigned? When is a tax return not a tax return at all?
Order Overruling Objections To Trustee's Final Report and Letters from Attorney Lawrence M. Otter dated September 14th and September 19th 2007.