Wall St Whistleblower Informs Goldman Sachs CEO Solomon Of Toxic Culture

Wall St whistleblower Laser Haas has sent the new Goldman Sachs head David M. Solomon, a letter on the true “culture” of Goldman Sachs.

Shortly before the Holiday season, Goldman’s Chief Executive Officer David Solomon defended the firm’s culture and oversight as the bank continues facing backlash from the high-profile corruption probe siphoning money from 1MDB (1 Maylasia Development Bhd), that has so far seen two former Goldman Sachs bankers charged, including Tim Leissner and Roger Ng Chong Hwa.

Goldman’s former Southeast Asia chairman Leissner pleaded guilty to conspiring to launder money and violating the Foreign Corrupt Practices Act by paying bribes to Malaysia and Abu Dhabi officials, as well as circumventing Goldman’s internal accounting controls, according to prosecutors.

According to court papers, the scheme dates back to at least 2009, prosecutors said. Between 2012 and 2013, Leissner conspired with two others (Roger Ng Chong Hwa, and one unnamed individual) to acquire and retain business from 1MDB for the benefit of Goldman Sachs by promising bribes and kickbacks to government officials in Malaysia and Abu Dhabi using misappropriated and embezzled proceeds from 1MDB bond transactions.

Meanwhile, Goldman has also suspended its former co-head of Asia investment banking, Andrea Vella, over his role in the firm’s involvement with the case, pending a review of allegations, Bloomberg reported.

“We believe our culture and our processes around our due diligence and compliance was strong at the time and is even stronger today,” Solomon said in a year-end message recorded for Goldman’s employees. “While we understand the anger and skepticism, we do not believe that the criticism directed at us accurately reflects who we were then or who we are now.”

Laser responded to Solomon’s comments with the following letter, addressing the corruption at Goldman Sachs, essentially saying the culture is illegal “bizness strategies” and ripping off their clients.

This also follows Leissner’s own comments about Goldman Sachs culture who stated in his guilty plea, what he did was “very much in line of its culture of Goldman Sachs to conceal facts from certain compliance and legal employees.” (archived)

These “bizness strategies” include conflicts of interest like those documented in this author’s Wall St Fraud Series, such as court-approved eToys Creditors Committee counsel Paul Roy Traub and Barry Gold pretending not to 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.

Other strategies include the classic pump-n-dump stock fraud “spinning scheme” and having someone in the DOJ to cover up crimes or revolving doors from Wall St to the DOJ. (See this writer’s previous stories, WHISTLEBLOWER: DOJ Wall Street – Get Rich Quick – Revolving Door$, and Does Wall Street Bully or Bribe Prosecutors? Revolving Doors At The DOJ.)

Laser writes, the following shocking revealing riveting message to Solomon.

Dear CEO David Solomon,

Sorry to be the bearer of bad news; but this letter is to inform you that any notion Goldman Sachs is an institution of substantial good faith “culture”, appears to be uninformed of certain specifics, prior to your becoming Goldman Sachs CEO.

Before your elevation, Goldman Sachs had a hand in ripping off Mattel, Marc Dreier, Fingerhut, Tom Petters and eToys victims; which has resulted in the demise of Toys R Us.

This is neither conjecture or hyperbole, as I’m the former court appointed head executive of eToys.com (that Goldman Sachs took public in 1999) and I own Petters-Fraud.com websites.

More specifically, as reported by the New York Times March 2013 article, by Joe Nocera, titled “Rigging the I.P.O. Game”, Goldman Sachs perpetrated a classic pump-n-dump stock fraud “spinning scheme” where Lawton Fitt, an executive at Goldman Sachs, emailed bets the eToys stock price would hit $80; but our eToys entity received less than $20 per share.

Compounding the crimes Goldman Sachs Delaware law firm of Morris Nichols Arsht & Tunnell (“MNAT”) conspired with MNAT’s other secret clients (Bain Capital & Mattel) to defraud the eToys Delaware Bankruptcy case (DE Bankr 01-706) and destroy our public company.

Paul Traub was court approved eToys Creditors Committee counsel. Aiding and abetting the schemes & artifices to defraud, MNAT lied under oath to become both my attorney and court approved eToys Debtor’s counsel; and, subsequently, MNAT forged a HAAS Affidavit, after I turned down and reported MNAT/Traub bribery; asking me to become a “Michael Glazer”.

Then MNAT & Traub utilized the forged HAAS Affidavit to usurp me to install Barry Gold as CEO!

In 2005, typos and other events resulted in my finding Smoking Gun proof compelling Traub confessing Barry Gold was a paid person of Traub Bonacquist & Fox (“TBF”) law firm; and MNAT confessed failing to disclose MNAT represented Goldman Sachs in the Finova case (DE Bankr. 01-705) whilst MNAT was representing eToys against Bain Capital and Goldman Sachs in eToys.

At the same time eToys.com was taken public, Mitt Romney, Bain Capital & Thomas Lee were aided by Goldman Sachs, to get involved in “The Learning Company” which was merged with Mattel by MNAT; resulting in an instant catastrophic loss of $4 Billion for Mattel.

Thereafter, Bain Capital’s contingency had a reported 12 million shares of Mattel stock; which aided the racketeering enterprise to march forward toward ownership of Kay Bee, FAO, Zainy Brainy, the Parent Company, and other toys outlets, including Toys R Us.

Meanwhile, Kay Bee and eToys were in bankruptcy, multiple times, with Scott Henkin (of KKR) was Fir Tree Value Fund scheming with Traub, Barry Gold and Kay Bee CEO “Michael Glazer” for Scott Henkin to switch sides to D.E. Shaw that acquired eToys from the Kay Bee case.

Glazer also was a director at Stage Stores, owned by Romney/Bain, where Barry Gold was an executive assistant that signed the hiring of Traub’s law firm for the Stage Stores bankruptcy.

Believing everyone got away, totally ‘Scot Free’, MNAT was eToys counsel, Traub was the Creditors’ counsel, Barry Gold was eToys President/CEO with Bain/Kay Bee/Glazer as buyers. Then they all moved over to Kay Bee were Glazer paid himself $18 million and Bain $83 million, whilst MNAT represented Bain in the Kay Bee case and Traub sought to prosecute them. When I reported the absurdity of this Colm Connolly’s unit buried the case having my proof stricken!

MNAT & Barry Gold then nominated Paul Traub to be the one to sue Goldman Sachs for the stock fraud, in New York Supreme Court case 601805/2002; which settled for paltry $7 million.

Sullivan & Cromwell was the law firm that defended Goldman Sachs, in the New York Supreme Court case; and their associate, Jeremy Bates provided me with proof that MNAT, Barry Gold and TBF received (illicit criminal conspiracy) court approval to Destroy eToys Books & Records.

At that time, surreptitiously, Jeremy Bates was no longer at Sullivan & Cromwell.

On December 7, 2007, I filed a Complaint with the Public Corruption Task Force, against Colm Connolly; because we learned he returned to the Delaware Justice Department as THE United States Attorney, who supervised the very cases of Mattel/Learning, Kay Bee and eToys.

This is not the only issue of Goldman Sachs mishandling clients, as was reported upon, in 2012, Goldman Sachs executive Greg Smith resigned by letter to New York Times on Sachs’s toxicity.

Specifically, Greg Smith is on the record stating that:

https://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html

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.

Apropos to eToys/Toys R Us cases, is the detailed remarks of Greg Smith concerning the culture focus of ripping off clients, by the betrayal of Goldman Sachs executives.

To wit, Greg Smith went on further, to state that:

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.

As is remarked by Mr. Smith, there are Goldman “internal e-mails” that refer to Sachs clients as “muppets” and our eToys.com company was one such. Also, a recent guilty plea of Sachs exec Tim Leissner reiterates the fact there is a “culture” at Goldman Sachs of bad faith leaning.

Obviously, this is a house of cards, a mile high, untenable – not of your making. MNAT & Sullivan Cromwell’s over acts of Obstruction expose Sachs. You can do something about this, while Goldman’s stock is already in a tailspin; and seek to learn if the law firms acted on their own.

We victims believe there’s too much public scrutiny upon your firm now; and the facts are profuse, overwhelming and irrefutable. There’s no statute of limitations applicable, as MNAT & Traub kept eToys case open until January 2015. Even without the dynamic of a corrupt Colm Connolly (who is now a Delaware District Court Federal Judge) the regular time is 5 years; which means the lowest standard (separate from In re: Hazel Atlas Glass) gives us until January 2020.

Please have someone contact me, to resolve these troubling matters, post haste?

Sincerely,

/s/ Steven Haas (a/k/a Laser) Whistleblower Mattel, Stage Stores, Kay Bee, Fingerhut & eToys cases.

Laser has previously written a 3-page letter to inform the Senate Judiciary Committee concerning alarming acts of bad faith by MNAT.com law firm’s former partner, Colm Connolly (who President Donald Trump has re-nominated to become DE District Court Judge).

I’ll end with a statement from one of my previous articles. We simply cannot allow oligarchs like Mitt Romney and companies like Bain Capital to be above the law. Unfortunately, President Trump doesn’t see it that way. (At least that’s the way it appears by his appointment of auspicious suspicious individuals connected to organized crime as this Wall St Fraud Series has shown.)

Whistleblowers are individuals who find themselves fighting crooked lawyers and crooked federal agents. Laser Haas has amassed a ton of evidence that could put many racketeers behind bars.

If there’s one case that can finally put an end to the notion of “too big to fail” or “too big to jail” the eToys-related cases are that saga.

Goldman Sachs’ media spotlight is long overdue for its historic bad faith culture. It is the real “culture” empirical of decades of ripping off clients that is responsible for Sachs believing it could get away with its involvement in Malaysia 1MDB fraud.

However, the larger problem is Goldman Sachs & Bain Capital’s ability to manipulate our Federal systems of Justice to the point of making tax-paid public servants impotent.

We may as well save the expenditure by not have any Federal Agents if they are all going to always turn a blind eye to organized crimes that end up getting people killed, while allowing Racketeers to become United States Senators.