HBD, Oaktree Capital, & Aureal A multi Billion dollar hedge fund does a takeover of a public company, takes all the money and leaves nothing for minority stockholders. As this scandal takes place, the very same law firm simultaneously represents this hedge fund that is doing the hostile takeover as well as the same public company takeover target. The many instances of misconduct connected to the money grab and its cover-up is beyond a "no brainer" as violating written state ethics laws for attorneys as well as federal securities and criminal laws. Numerous SEC violations and false sworn documents before the SEC and the bankruptcy court, bankruptcy fraud and fraud upon the court. So what do the State Bar of California do about it? What does the DOJ do about it? How could either of these corrupt organizations do anything against one of their own? Yes, at least one former DOJ lawyer is deeply involved. And so is a big four accounting firm. The misconduct and crime here is well documented in these free downloads. While this particular onion is only beginning to peal, there have already been official court orders finding misconduct even in the midst of an industry mindset in which all lawyers whether on the bench, in private practice, or as part of the "self-regulation" scheme strive to cover-up misconduct and crime by their BigLaw brethren. BankruptcyMisconduct.com readers are not surprised to learn that the failures of the California State Bar, the California Attorney General, and the DOJ to address the unlawful business model used by a number of corrupt professionals - even in the face of sworn documented complaints - is resulting in further revelations of corruption in the legal industry of California. Tracking the careers of the criminal apologist bureaucrats who enable the corruption of our justice system is not merely fun, it is our obligation if we desire a stable country in which to live free. Fallout Watch... The firm of Dewey & LeBoeuf LLP has boldly staked out its foundation for a prominent future on the pages of BakruptcyMisconduct by their early 2011 "amalgamation" with the entire bankruptcy team from Hennigan, Bennett & Dorman LLP , since renamed Hennigan Dorman LLP, that was headed by former founding and named partner Bruce Bennett. BankruptcyMisconduct readers may speculate as to whether issues of P&L, client losses, state bar regulation, insurance coverage, or criminal in nature related to Aureal (or SONICblue) played any part in this dramatic move. It's like déjà vu all over again ... The greedy short-sighted management decision at Dewey LeBoeuf to accept the dirty Bruce Bennett Bankruptcy Bamboozlers is being repeated by another Stupid Stephen. Good luck to the Juniors and Associates at #JonesDay 'cause we can't guarantee how long the firm will last once they've swallowed the Demon Seed. DocumentsDate addedColor coded chart showing the chronology of Conflicted Representation with hyperlinks into the Revised Complaint. This chart is Exhibit X of the Revised Complaint. PriceWaterhouseCoopers ("PWC") was spanked by the judge in the Aureal Inc. bankruptcy proceedings. Legal misconduct by PWC was found to have been performed with the assistance of Aureal's bankruptcy counsel Hennigan, Bennett, and Dorman ("HBD"). PWC was simultaneously a client of HBD, a fact that does not appear to have been disclosed in any of the sworn declarations as required from HBD as part of their fee requests. The Court found that a 29 day failure to disclose a conflict in relation to PWC was "purposeful" and warranted the disgorgement of legal fees. In comparison the Revised Complaint details multiple failures to disclose a conflict by HBD of 90 days and 239 days involving two separate representations with their conflicting client Argo Partner concurrent with the bankruptcy case. Chronology of Conflicted Representation with hyperlinks into the Revised Complaint. The conflict of interest summarized in this color coded chart involves Argo Partners, a bankruptcy claims trader which purchased the majority of the claims in amount and number in the bankruptcy of the public company Aureal, Inc. The California law firm Hennigan, Bennett, & Dorman was retained as the official debtor's counsel to the public company Aureal Inc. in federal bankruptcy court as the firm simultaneously represented this same debtor's most significant creditors Argo Partners and the hedge fund Oaktree Capital. This chart is Exhibit J of the Revised Complaint. Color coded chart showing the chronology of certain instances of Attorney Misconduct with hyperlinks within the Revised Complaint. California Self Regulation at its finest. "We don't have standing on attorney misconduct".
Download CABAURHBDS157298.pdf for free. Voluminous exhibits to the appeal of the California State Bar's flip flopping effort to review the complaint and clear evidence of ethics and law violations. Download CABAURHBDS157298-exhibits.pdf for free. This letter CABAURHBDreq1.pdf contains additional documents requested by the California State Bar in conjunction with their evaluation of the Original Complaint as Revised against the firm Hennigan, Bennett & Dorman LLP (" HBD ") and all lawyers therein who simultaneously represented conflicted clients Oaktree Capital et al., Aureal, Inc. and Argo Partners. The California State Bar wanted a copy of the Judge's order in the Aureal, Inc. bankruptcy in which she found misconduct by professionals. Included in the letter was newly uncovered information showing that the ethical violations in the revised complaint were inextricably intertwined with numerous SEC Violations. Revised ethics complaint to the California State Bar ("CA Bar") alleging a series of disclosure failures and extreme misconduct by Hennigan, Bennett, & Dorman ("HBD") with respect to their appointment as counsel to the Debtor In Possession Aureal, Inc. vis a vis a number of HBD's simultaneous clients which were adverse to Aureal including hedge fund Oaktree Capital et al., Argo Partners, and PriceWaterhouseCoopers. Reversing the previous decision by the CA State Bar against taking action on the original complaint, the CA State Bar forwarded this Revised Complaint to their Enforcement Division and opened case numbers 06-O-15523 through 06-O-15529. Read about what is apparently an incredible bungled attempt at #Evidence #Fabrication with the #ManicMonday discovery response delivered with the identified officer who denied he performed a document search or had even seen the documents. This complaint was supplemented by a cover letter entitled CABAURHBDreq1.pdf containing additional documents requested by the CA Bar and was thereby expanded to include ethical violations related to and intertwined with SEC Violations. These related SEC Violations were specifically brought to the attention of SEC enforcement officials via a series of letters most notably the document which is available on this site under the title:SEC filings by client of PriceWaterhouseCoopers and HBD. California State Bar complaint number 05-20211 (Note: revised filing below) against the Hennigan, Bennett & Dorman ("HBD") law firm and certain of its partner and employee attorneys in connection with their conduct as official counsel to the Debtor In Possession during the Aureal, Inc. bankruptcy proceedings in the Northern District of California case number 00-42104 (T). This complaint points out that the law firm HBD and its lawyers failed to make a timely and complete disclosure of all facts and relevant circumstances related to their concurrent representation of their conflicted hedge fund client Oaktree Capital et. al which was indisputably adverse to the Debtor as the sole secured creditor and largest stockholder of the Debtor. Thus, every official act performed by HBD in the Aureal proceedings that involved their conflicted client Oaktree was an unwaivable conflicted prohibited by Federal law and in further violated numerous provisions of the California Rules of Professional Conduct (ethics laws), including without limitation CRPC 3-310. False statements and intentionally withheld information in a bankruptcy case constitutes bankruptcy fraud, unless there exists special immunity for acts committed by former DOJ employees or by lawfirms with former partners currently employed within the DOJ. |
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