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April 28, 2008
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Disclaimer
The material contained in this website is educational and informational, but not intended as legal advice. The information contained in this site is compiled from case documents, news sources, public records, from victims, and other sources believed to be accurate and reliable.
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Welcome!
When Wells of Justice opened this site in 2000, most of our information came from the United States Bankruptcy Court for the Northern District of Illinois, Western Division. We focused mainly on that one bankruptcy court.
Since then, many people from other states have contacted us saying that the behavior described of the bankruptcy judge and bankruptcy trustees in Rockford, IL fits the judges and trustees in their case or a case in which they are a party. It's a nationwide problem. It's a nationwide problem that no one in authority within the goverment seeks to resolve.
Since 2000, we have received reports of bankruptcy court corruption from across the nation, including the States of Alaska, Arizona, Arkansas, California, Delaware, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Pennsylvania, Oregon, Tennessee, Wisconsin and Utah. The problem is so massive that we cannot possibly report all of the cases we receive. For other sites reporting bankruptcy court corruption, please check our page of Links.
Numerous people from a variety of states have stated that when asking federal law enforcement to investigate, they have experienced the run-a-round as we have reported.
"One of the ways we can judge a community, a country, or even a civilization, is how well we protect the powerless from the powerful." Bob Gibson, Esq. When Justice Hides Its Face
INTRODUCTION
"Corruption in the agencies charged with enforcing our laws not only threatens communities by allowing dangerous criminals to roam free, it also undermines the confidence of our citizens in law enforcement and the criminal justice system. The same is true with respect to judicial corruption. We must all, in our own countries, lead the fight to ensure integrity within our police and judicial systems."
(Former United States Attorney General John D. Ashcroft, in remarks to the Second Global Forum on Fighting Corruption)
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The United States Department of Justice responds to victims of bankruptcy court corruption that they should obtain private legal counsel to pursue civil options. Those pursuing civil options find that federal judges rely on bankruptcy law before the adoption of the United States Trustee Program and decide that panel trustees are appointed by the courts and have judicial immunity.
Legal counsel for the Executive Office for United States Trustees advises victims to pursue the appellant process for orders entered by bankruptcy judges that are void, or do not address the facts and merits, or are not based on the Bankruptcy Code. If victims are able to appeal, they find that Bankruptcy Appellate Panels and federal district judges dismiss appeals for lack of standing, or render them moot. Most victims of bankruptcy court corruption cannot afford legal counsel, neither absorb the rules, procedures, and effectively produce and file documents with the court as required by court Rules. It's a paradox. They are deprived due process of law in the bankruptcy proceeding, and are unable to exercise due process of law to appeal. Thus, the corrupt events in the cases go into a black hole.
Some victims turn to offices for United States Attorneys, or the Federal Bureau of Investigation. It has been reported from various regions that U.S. Trustees have the type of influence with U.S. Attorneys that hinders justice. In those regions, U.S. Attorneys have an unwritten mandate that requires the FBI to receive their approval before investigating bankruptcy trustees.
U.S. Attorneys and U.S. Trustees have redefined bankruptcy trustee fraud by eliminating unlawful practices used to extort money and exempt property from debtors and non-debtors. Bankruptcy trustees who administer cases with criminal intent are not investigated. Bankruptcy trustee fraud, as defined by the U.S. Trustee Program, is limited to the embezzlement of estate assets without the approval of the Regional U.S. Trustee.
On the other hand, bankruptcy trustees can and do divert all bankruptcy estate assets to their commission and fees for hired professionals with approval of Regional U.S. Trustees. Once approved by Regional U.S. Trustees, the panel trustee then presents his Report to the court. As long as the court enters Order approving the distribution of assets to the panel trustee and hired professionals, it is not considered embezzlement. It is then a judicial matter to be taken up on appeal.
Motions and appeals filed by debtors objecting to the distribution of assets are summarily dismissed for lack of standing on the basis that debtors cease to own all property upon the filing of bankruptcy.
U.S. Trustees violate RICO and the Sherman Act by targeting bankruptcy petition preparers. Price fixing goes on in the background, and case decisions revealing this secretive price fixing are unpublished.
Under the U.S. Trustee Program, there is no such thing as a good, ethical petition preparer. At 341(a) Meetings of Creditors, debtors using petition preparers are questioned by trustees and paralegals from regional U.S. Trustee offices. Petition preparers are unduly criticized and those debtors using them are advised to obtain legal counsel. Debtors are told that they will be denied a discharge, or have exempt property taken, because the petition preparer incorrectly filled out their schedules.
Once tapes evidencing their unjust procedures became public, Regional U.S. Trustee offices began hindering the revealing of just how petition preparers are setup for charges of violating Section 110 of the Bankruptcy Code. They deny copies of tapes of Section 341(a) meetings, or charge outrageously for them, or unduly delay delivery of the ordered tapes. It has been reported that now some trustees turn off the tape recorder while the debtor is being examined concerning the petition preparer.
Bankruptcy trustees, and attorneys for U.S. Trustees are so secure in perpetrating federal offenses that they arrogantly boast of what they will do, which tells litigants that their cases are already pre-decided. Bankruptcy judges do not disappoint trustees. They disregard law, binding legal priniciples and jurisdiction so that trustees prevail.
At least one Bankruptcy judge in the Northern District of Illinois, Western Division bars litigants from filing pleadings without leave of the court. The clerk of the court will not accept pleadings challenging the bar order unless leave is requested. Therefore, to challenge the bar order, the litigant must comply with it although federal rule provides that they have ten (10) days to file motion challenging the order before the order is final. The bankruptcy judge summarily denies leave to file, and then finds in favor of the bankruptcy trustee by default.
Bankruptcy court corruption is not only 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. They do not hesitate to inform debtors that trustees can and will incorporate the IRS to keep them in misery, and perhaps federal prison, unless they become silent, absorb the pain of injustices, and go on as though nothing criminal, or unjust, ever happened to them.
Exemptions provided by law are denied debtors. When reports are made that trustees unlawfully acquire debtors' assets, the public does not understand how trustees are wrong. The Bankruptcy Code, and many State laws, provide for exemptions. These are assets that debtors are allowed to keep when filing for bankruptcy.
A good example of debtor's assets that trustees unlawfully take and/or control, is social security direct deposit checks. It has been reported that in some cases, trustees receive court ordered injunctions over debtors' checking accounts that receive direct deposit. By the time debtors prove that the money is exempt social security retirement or disability, they have suffered financial harm. Some suffer medical harm, as they need their benefits to pay for medicine.
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 undermines the confidence of our citizens in law enforcement and the judicial system.
The American public, victimized and held hostage by bankruptcy court corruption, have no where to turn.
Citizens and politicians who address corruption in the judicial system are accused of disrespecting judges. This does not ensure integrity and restore public confidence. Such criticism is received by many Americans as an attempt to brainwash the American public. There are simply too many victims; too many experiences, too much documented evidence; too many judicial decisions, that demonstrate that the American judicial system is corrupt beyond recognition.
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People wrongfully assume that all victims of bankruptcy court corruption are debtors. You do not have to file for bankruptcy to be a victim of crimes committed under color and claim of official right of the United States Bankruptcy Court. Creditors, babysitters, family members, heirs, employers, and employees of debtor companies are victims. Those attorneys who do not submit to the racketeering practices of bankruptcy trustees are victims of the corruption.
People wrongfully assume that only the young and financially irresponsible file for bankruptcy. Medical bills and lost of retirement income are also reasons why people file bankruptcy. Divorce can lead into one or both spouses filing for bankruptcy. Unemployment and underemployment results in people filing for bankruptcy. Situations vary, and debtors should not be generalized, neither should judgment upon debtors be used to dilute the ugliness of corruption in the bankruptcy courts.
Law enforcement does not refuse to investigate the murder of someone reported to have a bad reputation. However, trustees and the Executive Office for United States Trustees deceive law enforcement and the public by presenting their victims as people who deserve to be victimized.
A great public outcry goes forth.
The Department of Justice must investigate federal offenses committed by bankruptcy trustees.
The Department of Justice must investigate corrupt bankruptcy judges.
The Congress must legislate and pass laws to remove the commission based pay to trustees, which inspires them to administer cases with criminal intent, misusing and abusing their positions for their personal enrichment.
States must pass laws that guarantee the payment of exemptions to debtors when secured property is sold by bankruptcy trustees.
States must pass laws that limit commission to realtors and auctioneers who sell real estate in bankruptcy cases.
Defendants accused of committing bankruptcy fraud should be provided with a public defender during the bankruptcy case, and a trial by jury during bankruptcy adversary proceedings.
Petition preparers accused of violating Section 110, particularly in suits exceeding $25, should be given Constitutional right to a trial by jury and provided with a public defender.
Some reading this may think, "WHAT?" They assume that any case involving allegations of criminal acts or violations of law provides defendants with free legal counsel and a trial by jury. NOT IN THE BANKRUPTCY COURTS. Bankruptcy law is civil. It is the only civil court that provides for U.S. Trustees to prosecute litigants in civil matters to advance criminal charges.
Bankruptcy Courts are perfect kangaroo courts.
The judges take the word of trustees and U.S. Trustees as "gospel."
Those nominated for the bankruptcy bench are not examined and appointed by members of the Congress. They are examined and appointed by federal judges. Judges appointing judges to the federal judiciary undermines the Congress, the Constitution, and the public.
Bankruptcy judges lack authority to appoint panel trustees, but panel trustees can only be discharged by order of the bankruptcy court.
Upon filing bankruptcy, debtors become legalized slaves. Their exemptions are not guaranteed unless the trustee allows them. Debtors have no rights to appeal bankruptcy court decisions pertaining to how much property is sold for, neither distribution of assets, neither amounts distributed to professionals hired by bankruptcy trustees.
Bankruptcy courts are civil courts where criminal allegations and/or violations of laws are presented and referred to U.S. Attorneys, without defendants having benefit of court appointed legal counsel.
The Bankruptcy Code is written so that trustees and judges can entertain violations based on what the Code does not say. Often, alleged crimes have no basis other than the "intent" of defendants. Bankruptcy judges enter decisions and orders based on their clairvoyance talents of claiming to know the WHY for defendants' actions.
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A nationwide investigation of panel trustees is necessary. It cannot be window dressing, or a smoke-screen. It must be a serious investigation conducted by impartial individuals. The Commission conducting such an investigation should be well-balanced, and not consist solely of attorneys, judges, and law professors.
Such an investigative Commission must include medical professionals such as psychologists who can access the emotional harm done to victims, because such harm inflicted by panel trustees is intentional harm upon American citizens that needs to be addressed. Victims should be allowed to orally testify, rather than held to standards of legal briefs in attempt to explain the horrors of their case in written detail without the benefit of questioning and expounding.
Members of Congress can begin the process by requiring U.S. Regional Trustees, the Executive Office for U.S. Trustees, the FBI and Dept. of Justice to turn over complaints filed with them alleging bankruptcy trustee misconduct. Next, find out how those agencies responded to those complaints. They will find that most are cookie-cutter responses and do not provide sincere consideration of the facts and details in the complaints. Some filing complaints receive no responses.
A good example of the passing of the proverbial buck to send complaints into a black hole is posted on this site. It appears to be an intentional run-a-round to encourage victims to give-up so that alleged crimes committed by bankruptcy trustees are never investigated.
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