Steven Peikin To Leave SEC Three Years Too Late

By Aaron Kesel

Steven Peikin, co-director of enforcement at the Securities and Exchange Commission, will leave the agency Aug. 14th – three years too late, said Wall St serial whistleblower Laser Haas.

According to Laser Haas (who this reporter has consistently called a “serial” whistleblower), there were many schemes and artifice to defraud, running various schemes which have been ignored by enforcement officials.

Laser has been fighting for justice for two decades for himself and shareholders of eToys who were defrauded by Bain Capital, Goldman Sachs and Paul Roy Traub with help from Colm Connolly. But not just eToys, Laser has been exposing various frauds on toy companies including but not limited to — Toys R Us, Kay-Bee, Zainy Brainy, Gymboree, and FAO Schwarz.

Whistleblower Laser Haas has documented the fact that the racketeering enterprise began 20 years ago, when Goldman Sachs, Mitt Romney and Bain Capital defrauded Mattel of $4 billion (see this reporters article: How Goldman Sachs And Bain Capital Defrauded Mattel Investors And Got Off Scot-Free.)

At the same time Sachs & Bain Cap., via assistance by the Delaware Law firm of MNAT, were ripping off Mattel for $4 billion – Goldman Sachs was ripping off eToys.com public offering for a billion dollars (see NYT March 2013 article “Rigging the I.P.O. Game”); which documents eToys stock price was $75+ – but Sachs betrayed its customer (eToys) by only allowing eToys less than $20.

One piece of evidence that this reporter finds amazing, is that Laser was put in charge of eToys and everybody doing crimes at eToys were abandoning ship; which is real strange for a brand new public company. Even stranger is that one of the only two VPs remaining at eToys, was David Haddad, who Laser alleges he caught doing a bankruptcy crime of hiding $2 million dollars of eToys monies – overseas.

Even more important is the compounding fact that David Haddad was a former employee of Mattel.

Laser alleges with a plethora of evidence this writer has been detailing for years, that Bain Capital acquired all of those major Toy retailers via racketeering by lawyers that Congress has labeled to be “Bankruptcy Rings” (see Third Circuit case of In re: Arkansas – here). Laser was the court-appointed real CEO of eToys.com, which was put into bankruptcy by Morris Nichols Arsht & Tunnell (MNAT) law firm, in Wilmington, Delaware.

Unfortunately, in Laser’s eToys case, the federal prosecutor was Colm Felix Connolly; and Colm had his own, very serious, conflict of interest. Connolly was the Delaware United States Attorney presiding over the Mattel, Fingerhut, Kay-Bee and eToys cases. The civil servant, however, had one problem: he failed to disclose the fact he was a partner of MNAT from 1999 until August 2nd, 2001. Here’s Connolly’s résumé to verify those facts.

Others in Delaware clearly see Colm Connolly was a (very) conflicted federal prosecutor, as Delaware Liberal asks “Did Delaware’s Colm Connolly Run Interference For Romney and Bain Illegalities?”

For those paying attention, 1999 through August 2001 is the same time period that Mitt Romney’s campaign has previously claimed Mitt was “retroactively” retired.

This same time frame, between 1999 and 2001, is also where federal prosecutor, Steven Peikin, entered the eToys case picture.

Whilst Colm Connolly, a partner of MNAT (where MNAT was secretly dual representing Sachs) made sure the Delaware DOJ would not prosecute Goldman Sachs – Steven Peikin was working NYC Federal Prosecution office, as SEC Task Force – also making sure NYC DOJ and SEC did not prosecute Sachs.

Of the many pieces of evidence brought to my attention by Laser Haas, one of the most coincidental in my opinion was the shutdown of the Justice Department’s Public Corruption Task Force in 2008 – and threatening of career federal prosecutors to keep their mouths shut, about the reasons why (see March 2008, L.A. Times article “Shake-up roils federal prosecutors”).

Outrageously, that major case unit’s shutdown occurred only a few weeks after Laser Haas armed with smoking gun proof of Colm Connolly’s résumé, filed an 18 U.S.C. § 3057(a) Complaint, with the Public Corruption Task Force, in Los Angeles.

Thus far, Jay Clayton and his crony corrupts (like Steven Peikin) have done their part in protecting Bain Capital and Goldman Sachs to the point that the U.S. also lost the iconic company Toys R Us.

The very fact that so many major retailers, in a single industry, have been destroyed, where over 50,000-plus jobs and many billions of dollars from creditors and stockholders have been lost, should cause an investigation; but, instead, they just let it happen. This reporter mentioned Peikin over a dozen times prior to his resignation from the SEC in a recent past article titled: “Justice Dept Shake-up: Jay Clayton Corruption Expands.”

Even before that article way back in December of this last year, this author posed the blunt question: “Is SEC Enforcer Steven Peikin A Goldman Sachs Crony Protecting Corruption?”

To recap a bit for readers, after Jay Clayton was confirmed as Chairman of SEC, and the manipulation of the D.C. federal case of HAAS v. TRUMP was dismissed, then SEC Chairman Jay Clayton made Steven Peikin be the Top Enforcer for the SEC.

Both Jay Clayton and Steven Peikin were partners of Goldman Sachs law firm Sullivan and Cromwell; which means they have a serious conflict of interest when it comes to eToys (renamed ebc1) due to the fact Sullivan and Cromwell defended Goldman Sachs in the NY Supreme Court eToys case# 601805/2002.

Compounding the conflicts of interest issues are the facts that Jay Clayton’s wife (Gretchen) was a partner of Goldman Sachs, and Jay’s SullCrom résumé bragged about being invested in Bain Capital.

Steven Peikin also has multiple conflicts of interest issues relevant to eToys.

Similar to how Colm Connolly failed to prosecute cases, and then became partners of perpetrator MNAT; Steven Peikin was SDNY DOJ/SEC Task Force who failed to prosecute Goldman Sachs and Bain Capital public company swindles.

For a brief overview, Paul Roy Traub a crooked lawyer confessed that, in the eToys case, Traub’s law firm deliberately allowed false Affidavits to remain in the record. Laser pointed out that Traub and Barry Gold worked for Romney’s Stage Stores under Director Michael Glazer. Matt Taibbi’s Rolling Stone September 2012 Cover Story “Greed and Debt: A True Story About Mitt Romney and Bain Capital” – Taibbi points out that Glazer paid himself $18 million and Bain Capital $83 million prior to Glazer, as CEO of Kay-Bee, filing bankruptcy in 2004.

Laser has documented he is the whistleblower in the Kay-Bee case (another reason this reporter calls Laser a “serial” whistleblower.) Laser notes the fact that Taibbi missed key facts that Glazer was CEO of Kay-Bee and Director at Stage Stores at the same time.

Meanwhile, MNAT was concealing its numerous conflicts of interests (divided loyalties) of having direct connections to Mattel, GECC, Bain Capital, and Goldman Sachs. In a similar deceitful fashion, Paul Roy Traub (TRAUB) and his TBF Law firm were concealing TBF ties to Mitt Romney’s Stage Stores through Traub’s friend Barry Gold.

Gold worked under Stage Store Directors Michael Glazer and Jack Bush of Dallas (rumor has it that Mitt and former President George Walker Bush are distant cousins).

MNAT law firm misrepresented several facts to the Delaware Bankruptcy Court, and various creditors, investors, and other parties of interest during the eToys case.

Due to the success of MNAT’s numerous deceits, accomplished by more than a dozen lies under oath, Bain Capital, with the aid of their crony, Paul Roy Traub, who also lied under oath, to the Chief Justice, Traub Bonacquist and Fox (TBF) Law firm, became the Delaware Bankruptcy Court approved counsel for the eToys Creditors.

Traub’s TBF was hired for Stage Stores bankruptcy case by Barry Gold.

According to Laser Haas (who this reporter has consistently called a “serial” whistleblower), there were many schemes and artifice to defraud, running various schemes.

Peikin was also previously a partner of Goldman Sachs law firm Sullivan and Cromwell. Essentially, revolving doors from Wall St’s lawyer to the prosecutor of financial crimes.

It appears that Jay Clayton made Steven Peikin be Top SEC Enforcer, in order to make sure the Mattel and eToys fraud cases, as well as others, are never investigated or prosecuted.

The SEC did not say what Peikin would be doing next or why he was abruptly leaving the agency. Peikin declined to comment beyond his official statement provided by the SEC.

Here’s the essence of the cases that crony corrupts Jay Clayton, Colm Connolly, Marty Lackner and Steven Peikin are protecting Bain Capital & Goldman Sachs from being indicted for. Romney owns Stage Stores, where Michael Glazer was director over Barry Gold, who hired Paul Roy Traub to work Stage Stores bankruptcy (by the way, Stage Stores just filed bankruptcy – again).

Romney’s Bain Capital got a reported 12 million shares of Mattel stock as a result of The Learning Company fraud.

Then, David Haddad, who use to work at Mattel, hides millions of dollars from the bankruptcy schedules as MNAT (who worked The Learning Company merger with Mattel) places eToys into a phony bankruptcy after Goldman Sachs (also secretly represented by MNAT) ripped off eToys IPO for a billion dollars.

When Laser came to eToys, he stopped the auction sale of eToys billion-dollar company, to Bain Capital) Kay-Bee, for a mere $5.4 million.

When Laser the Liquidator, as Chief Judge appointed head of eToys, had mergers to Scholastic and others worth billions and auctions for eToys other assets in the tens of millions – Paul Roy Traub, as eToys Creditors Attorney – shut down all of Laser’s sales efforts -after Traub, MNAT, Barry Gold and David Haddad offered Laser a million-dollar bribe – that he turned down and reported to Delaware US Attorneys office (ran from 2001 until 2009 by MNAT partner Colm Connolly). Then, MNAT forged a letter of resignation of Laser Haas and Paul Roy Traub put in his law firm associate Barr Gold as new CEO of eToys

The Barry Gold and Paul Traub partnership is an issue of law-breaking on many levels.

First of all, Traub is eToys court-approved creditors counsel and Barry Gold is eToys new CEO. By federal law, Barry and Traub are required to tell all investors, creditors, and the court that they are partners. They did not disclose their lies under oath until Laser found the smoking guns.

Additionally, Barry Gold hired Traub for Stage Stores, where they both worked under Stages owner, Mitt Romney, and his Director Michael Glazer who also was CEO of Kay-Bee. After MNAT forged Laser’s resignation and helped Traub put Barry Gold into Laser’s CEO position – then MNAT, Barry Gold and Paul Traub reduced the sake prices of eToys assets to Bain Capital/ Kay-Bee.

With Laser out of the way, MNAT and Barry Gold continued their criminal conspiracy of nominating Paul Traub to be the person who sued Goldman Sachs on behalf of eToys, for the billion-dollar IPO fraud. With Colm Connolly in Delaware (where Mattel and eToys corporate homes are) and Steven Peikin in SDNY SEC Task Force (where Mattel & eToys sticks were traded) the enterprising gangs now know they are protected from investigation by their crony corrupts. The rackets can steal bigger, faster, from as many as they can.

So Mattel, puts Kay-Bee, Zainy Brainy, FAO, and eToys into bankruptcy where Romney’s secret Stage Stores lawyer, Paul Roy Traub switched sides, pretending to be Mattel creditors attorney against Bain Capital; where Traub is able to block anybody from outbidding Bain Capital. This is how Bain Capital “Bankruptcy Rings” stole enough to wind up owning Toys R Us. In 2015, eToys bankruptcy case was closed after settling the NY Supreme Court case of eToys v Sachs for a mere $7.5 million. Steven Peikin left the SDNY SEC Task Force to become a partner of Sullivan and Cromwell – who was representing Goldman Sachs in the NY Supreme Court case. Then Peikin ended up back at the SEC after revolving doors from Wall St lawyer back to the SEC.

Now, if you think all this really is the reason why Jay Clayton and Steven Peikin are leaving the SEC – you probably are correct; but that’s not the worst of it. Paul Traub was the “control” partner of Tom Petters Ponzi; which also involves Goldman Sachs and Bain Capital doing a fraud in Fingerhut case (that began at eToys). Minnesota Assistant United States Attorney James Lackner was head of the Criminal Division that ignored Laser’s whistleblowing about Traub = Tom Petters and fraudster Marc Dreier; which is a serious conflict due to the fact that USA James Lackner brother, Marty Lackner, was part of the Tom Petters/ Paul Traub Ponzi scheme.

We can’t ask Marty Lackner any questions; because Marty was found – dead – in his closet. Jay Clayton, Colm Connolly and Steven Peikin continues to help keep these organized crimes from being investigated or prosecuted by willfully blindly ignoring these crimes.

Are we going to allow crony corrupts like Jay Clayton, Colm Connolly, and Steven Peikin destroy ToysRUs and 50,000 jobs, whilst they protect Sachs, Bain Cap from an indictment, so they can get rich by betraying the public trust?

**By [@An0nkn0wledge](https://hive.blog/@an0nkn0wledge)**

Aaron Kesel writes for Activist Post.

Image: NPR

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