What not to wear on your face.   OK, simple summary.  Every official counsel in a bankruptcy case must affirmatively swear in a written pleading that they have no conflict of interest with any party in the proceedings, and list all potential conflicts.  These lawyers have an official duty to update the court if there is any change.

Well, how about a circumstance where one counsel had a secret partnership with a liquidator hired in the case?  Naw... couldn't ever happen.

Well, how about this smoking gun which even demonstrates scienter, in the context of a secret agreement which even contemplates the eventual filing of a bankruptcy case, as well as the parties intent to keep the financial relationship secret.

You can't make this stuff up.  But we thank Barry Gold and Paul Traub for having their special Audacity of Dope to actually have reduced their slime agreement to writing.  Did someone say eToys?

Asset_Disposition_Advisors_ADA_Traubs_Letter2_Bonus_Sales.pdf