By Aaron Kesel
Goldman Sachs persons partnered with Bain Capital persons to rip off Mattel, Marc Dreier, Fingerhut, Tom Petters and eToys victims for an excess of $5 billion dollars, as shown in over two years of this author’s research (here, here, here and here.)
Whistleblower Laser Haas (who has been threatened by the FBI) has been seeking justice for two decades against Goldman Sachs’ partnership with Bain Capital. That unholy union ripped off eToys when Laser was the Delaware Bankruptcy Court appointed executive of the company.
This was done through court-approved eToys Creditors Committee counsel Paul Roy Traub and Barry Gold who pretended to not know each other while working to rob Laser Haas, the court-appointed CEO of eToys, and its investors blind.
The fact of the matter is, Laser Haas has alleged (substantially and extensively to this reporter) that Goldman Sachs’ partnership with Bain Capital includes unjust enrichment of billions of dollars in fraud, at least during both firms’ early years via their lawyers’ illegitimate dealings by MNAT, Paul Traub, and Sullivan and Cromwell.
During my reporting, the Goldman Sachs debacle known as the Malaysia 1MDB scandal has driven Sachs’ stock price from a high of $239 (projected to go to $280 or more), to a low of $158, and Sachs’ new CEO, David Solomon, inherited the 1MDB and other frauds – can of worms.
Compounding the pressure on Sachs stock price is the fact that Goldman Sachs Asian executive, Tim Leissner, pled guilty, for his duplicity in the Malaysia $6 billion dollar ripoff!
Laser authorized eToys suing Sachs in the NY Supreme Court, for Sachs ripping off eToys for a billion dollars, when eToys went public on the stock market. That case was reported on in 2013, by the New York Times in an article entitled: “Rigging the IPO Game”.
Resultant of the “Rigging” article, Bain Capital was forced to halt plans to take Toys R Us public (a second time).
At that time, Laser forewarned everybody that Bain Capital had no other choice but to file bankruptcy of Toys R Us.
Back in 2012, Laser had compelled Matt Taibbi to do a story on Mitt Romney; which wound up on the cover of Rolling Stone (as “Greed and Debt: A True Story about Mitt Romney and Bain Capital”).
Neither Taibbi’s “Greed and Debt” article, nor NYT Joe Nocera’s “Rigging the IPO Game” has touched on 1/100th of all the racketeering crimes, mayhem and homicides, aided by corruption, linked to the eToys related cases that this reporter began telling in 2017.
David Solomon is on public record stating that the Malaysia 1MDB debacle is nothing more than a single, aberrant act of behavior. However, past cases show that’s nothing more than public relations.
After David Solomon officially became CEO of Goldman Sachs, Laser sent Solomon a letter to inform him, through this reporter, of the facts germane to the eToys case. Laser essentially informed Solomon that any claims that Goldman Sachs was coming clean would be fruitless until Sachs repents for the eToys-related crimes.
The day after Laser posted his letter upon Goldman Sachs social media pages, Sachs General Counsel, Gregory Palm, retired.
Reporting on these facts, I posted a story on the issues that Sachs culture is “Split in 2” and that Laser hoped that Goldman Sachs’ new CEO, David Solomon, (purportedly not invested in Sachs crimes and cover-ups), would do the right thing in the eToys case.
Since then, Laser reminded this reporter that Tim Leissner confessed that Sachs has a bad faith “culture.” A fact which is confirmed by another Goldman Sachs executive, Gregory Smith, who resigned in 2012 with a famous NYT Letter to the Editor, stating that there were executives at Goldman Sachs emailing on how to rip off Sachs clients – who were openly called Muppets!
TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.
It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact.
If that’s not enough, in 2010 a Goldman Sachs director, Rajat Gupta, told hedge-fund manager Raj Rajaratnam insider information. As a result, Gupta was tied to an insider-trading scandal involving a $5 billion investment after telling Rajaratnam that famed investor Warren Buffet made in the investment bank in 2008, NPR reported at the time.
Also happening that same year in 2010, the SEC filed a lawsuit against Goldman Sachs, stating Sachs vultures misled its client investors by selling them a subprime-mortgage investment that was secretly designed to lose value. Instead of the bank being shut down or investigated for fraud, Sachs sued the SEC saying the investigation was political. The SEC was later cleared of wrongdoing and Sachs agreed to pay $550 million to the Securities and Exchange Commission, one of the largest penalties ever paid by a Wall Street firm, to settle charges of securities fraud linked to the mortgage investments, New York Times reported.
Three years later in 2013, former Goldman Sachs Vice President Fabrice Tourre nicknamed “Fabulous Fab” was found liable for fraud for his role in a wrecked 2007 mortgage deal that cost investors $1 billion. Fab was accused by federal regulators of misleading the investors about subprime mortgage securities that he knew were doomed to fail, NYDailyNews reported.
David Solomon made the mistake of publicly stating Goldman Sachs’ culture is clean and it was only a one-off thing, but that remark doesn’t hold much water.
Now, out of the blue, Goldman Sachs and eToys-related persons are finally starting to pay attention to what Laser Haas has to say, and, as a result of that new dynamic, Laser just learned that another Goldman Sachs executive (James C. Katzman) quit Sachs in 2015. Katzman quit the vulture capitalist organization because he refused to be willfully blind to bad faith.
The nationally significant and important thing about James Katzman’s case against Goldman Sachs – is there’s an indication that David Solomon was a part of the team at Goldman Sachs who tried to hush him up as a whistleblower.
If that is true, David Solomon needs to address Laser Haas rather quickly because Laser has a book coming out at the end of the year; which in his opinion will “put a nail in Goldman Sachs coffin – unless the eToys issues – are dealt with beforehand.”
Therefore, of the many questions that begs answering, a key one is whether or not David Solomon is the new captain at the helm of a sinking Titanic?
Goldman Sachs’ stock price went all the way down to $158, on a case Sachs claims was a single aberrant act; which the eToys case alone exposes is not true. If the new CEO, David Solomon, does not do anything about Laser/eToys – then that would confirm Solomon is part of the Obstruction Sachs has been doing for 2 decades – and it might sink the Goldman Sachs ship.
That’s the same Goldman Sachs that appears to have screwed Germany and was purportedly involved in the Puerto Rico’s bond saga with Bain Capital. Laser has further consistently pointed out to this reporter that Sachs and Bain Capital have been partners in defrauding Mattel, Fingerhut and eToys victims.
Now (reportedly) Sachs is facing clawbacks of pay because of the Malaysia 1MDB scandal, and one recent article claims the Justice Department is going to insist Sachs plead guilty – and that would be Yuuuge.
Solomon recently went on the record with CNBC to say that Goldman Sachs wasn’t appreciated enough, a hilarious contention to make that a vulture capital firm caught in the past ripping off clients doesn’t get enough positive recognition.
“We started out to try to create a business that would disrupt what’s a big broad industry by really focusing on our customers, on our clients in a way that we would provide better service, better solutions, deal with pain points,” Solomon told about 200 Marcus workers who gathered on the 26th floor of the firm’s New York headquarters for a meeting attended by CNBC.
“Now, we’re getting absolutely no credit from anybody else in the investing community about that yet,” Solomon said.
“If we were out in Silicon Valley and made 20% of the progress that we’ve made, we would get a lot of credit and people would be throwing money at us to own a piece of this business,” he added. “But nestled inside little old Goldman Sachs, we’re just going to have to prove it over time.”
As Laser said on Twitter, Goldman Sachs’ CEO cries foul that his firm isn’t loved. Maybe if Sachs stopped ripping off clients, for so much, then we Muppets wouldn’t be calling Sachs “$uchs.” Serial Wall St whistleblower Laser Haas’s comment should also answer the ubiquitous question Plains All American Pipeline, L.P. asked in a recent article: “Is There A Resounding Lack Of Confidence In The Goldman Sachs Group, Inc?”
— Laser_Haas_eToys_real_CEO (@laserhaas01) June 11, 2019
If Solomon thinks Sachs is unsinkable, perhaps he should look back at TBTF Bear Sterns. Though justice gets stymied one way or another, it appears it is only a matter of time before the pendulum swings in the right direction!
Aaron Kesel writes for Activist Post. Support us at Patreon. Follow us on Minds, Steemit, SoMee, BitChute, Facebook and Twitter. Ready for solutions? Subscribe to our premium newsletter Counter Markets.
Image credit: TFTP
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