The Bankruptcy Bordello
Part 3
The Reports

The file cabinets in the head office were bulging. Complaints from those who claimed they were victimized by corrupt practices in the California U.S. Bankruptcy Courts. Assignees of the Bankruptcy Courts selling back to bankrupt retailers the best of their fresh inventory at a knock-down, under the table price, for an appropriate pay-off so the retailer could go back in business and undersell any competitor. Same type of complaints as to manufacturing firms, and corporate operations.
Complaints with specific details of Trustees in the California U.S. Bankruptcy Courts working unholy deals for their own personal profits.
Specific details of domestic and foreign interests, including resident apparently renegade officials of various spy agencies, such as Italy and Israel, falsely and fraudulently forcing mid-size firms, even larger ones, into bankruptcy, so the firms could be plundered by the "California Bankruptcy Club".
Details about California U.S. Bankruptcy Judges, in several federal districts, who granted all the motions and petitions, regardless of the law and the facts and the merits, of "favorites", those who had some out-of-court financial link to the Judges and their immediate relatives and former law and business partners, or secret present business partners.
Specific complaints about auctioneers of the California U.S. Bankruptcy Courts un-padlocking the rear doors of firms in bankruptcy and selling the goods at knock-down prices, back to the debtors, or to competing firms, and anybody else willing to pay "under the table". And the bankruptcy auctions were mysterioously cancelled.
And the file cabinets likewise were jammed full of notes of FBI and other government investigators, state and federal.
Notes from the several different federal district officials of the Criminal Division of the Internal Revenue Service.
And then there were apparent documents, records, and notes that may have originated from the American CIA regarding California criminal gangs from Italy, Israel, and a few other places. It was not clear from the records exactly where these records, filed away in the full file cabinets, were coming from. The notes fingered Israeli operatives and those of the Roman Catholic Church, operating in California more or less as part of criminal enterprises.
There were extensive specific notes of the operations of the Japanese mafia, the Yakuza, owning most of the banks in California and intersecting with the Bankruptcy rackets and the forwarding of illicit funds through secret accounts.
There was parked away in one of the cabinets, specific notes of a government bank investigator, looking into criminal activities of Wells Fargo Bank and Bank of America, among others. He was fired for digging too deep into the latter day activities of the Yakuza and the California banks. It was a disturbance to American-Japanese relations , however, to be messing around in this subject. Besides, the Japanese, including the Yakuza, owned upwards of 40 per cent of all U.S. Treasury Securities. A little secret. The Japanese had their purchases of U.S. Treasuries back by gold, a benefit not extended to U.S. buyers of the same. No one in authority wanted to set off a Japanese run, Yakuza or not, on banks. [But see part 2 of this series as to Continental Bank Chicago.]
Housed in the locked cabinets were specific notes from well-informed tipsters and would-be government whistle blowers. They complained there was no remedy in that the U.S. Treasury Inspector General was,  as described in their notes, "the highest ranking mafia representative in the U.S. government".
A Congressional subcommittee had a detailed report, not published, and maybe never to be made public, somehow slipped out to "trouble-makers" and certain loudmouths, such as in Chicago and elsewhere.
And topping all this off were the secret reports of very Special Federal Grand Juries, sitting in more than one federal district in California, investigating all these goings on.
What was the problem? The files were in the head office of the Chief Federal Prosecutor in one of the Federal Districts in California. So what is wrong with that?
The U.S. Attorney as he is called in his official title, had failed, for years and years, to take any remedial action as to this. Supposedly, under the rules and procedures of his office, it was entirely "within his discretion", whether to proceed or not to have somebody indicted on federal criminal charges. So he just filed away all this data in his head office. He had a hang up. One of many. His immediate family member was a culprit, most likely subject to federal criminal prosecution, in the dirty business of the "California Bankruptcy Club". And moreover, the prosecutor came out of certain law firms and law circles up to their eyeballs in the same rackets.
Another problem was the heavy hitters in finance. The records and witness statements showed the illicit funds skimmed off of the California U.S. Bankruptcy Courts, were going offshore, through secret accounts in California banks. One such named was Wells Fargo. But they also funneled clandestine funds for the whole Pacific Basin covert operations of the American CIA. And a major owner of Wells Fargo is Warren Buffet, the Omaha poobah who claims he became a billionaire from properly operating a local furniture store. For sarcastic reasons, we prefer to pronounce his name as BUFFAY. We are not the only ones who suspect his fortune is based in part on CIA operations, and even, reportedly, dope trafficking on a big scale. [See our extensive series "Coca-Cola, CIA, and the Courts". Warren Buffet is a major Coke stockholder and has been a Board member.]
Another big-time operation, once headquartered in San Francisco but now in North Carolina, tied to the Bankruptcy rackets is Bank of America, and their holding company (minus the OF in the middle of the name) Bank America. As to the rotten history of Bank of America, now greatly owned by the Yakuza, see our website stories "The Pope's Banks in America, the Giannini Family, and the American CIA, Part One" and "The Japanese Mafia in the United States".
The way cases proceed in the U.S. Bankruptcy Courts is the U.S. Bankruptcy Court is in a federal district. Any appeal, if one is taken, goes to the U.S. District Court in the district, with the Bankruptcy Court considered a step-sister to the U.S. District Court. The federal judges higher up in the system select who, if anyone, is to sit as a judge or Chief Judge in the U.S. Bankruptcy Court, for a 14 year term. This is unlike the other federal judges who sit for life subject only to "good behavior" and they are almost impossible by impeachment to be removed. A Bankruptcy Judge is subject to the supervision of the Chief Judge of the U.S. Courts of Appeals in the circuit, California being part of the 9th Circuit, of several western states. The federal appeals court, 9th Circuit, is headquartered in San Francisco.
Like in Chicago and elsewhere in major federal districts, the California U.S. District Court Judges and U.S. Court of Appeals judges have quite a few skeletons in their closet. Key judges are also, as we describe, Banker-Judges, tied to banks, particularly so of several judges on the 9th Circuit.
A reliable source told us to expect a package. One day comes the package. Wow! Out pops the secret reports of the very Special Federal Grand Juries in California. No real return address was on the package. It detailed a mess many times bigger than that we knew about the Chicago Bankruptcy Club.
One of the Reports referred to their key witness, code-named "Jacobs". He was apparently disgruntled about being cheated out of very lucrative deals by the grand jury-identified members of The Club, Judges, Court Clerks, Assignees, Auctioneers, Trustees, the Bankruptcy gang in short.
"Jacobs" had direct personal knowledge of the facts to which he was competently testifying and stated he would continue to testify to the Special Federal Grand Juries. A summary of his testimony:
[1] That he handled a great deal of the illicit proceeds and skimming of the various California Bankrupty Club members.
[2] That through Wells Fargo and Bank America and Bank of America, at several branches and locations, in and out of the U.S., he handled and caused the funds so obtained to be placed into secret accounts. That he read off the account names, numbers, secret passwords and codes. Some of the funds went to Wells Fargo drop-off points such as in Hawaii.
[With the downturn in tourism, Japanese nationals (not U.S. citizens) bought upwards of 70 per cent of properties in Hawaii. And a huge number of Japanese nationals now live in Hawaii. Some contend this situation undercuts the validity of Hawaii being an actual part of "The United States of America", and more properly, is a Japanese colony under the jurisdiction of the Tokyo government. Of course, a great deal of this situation is the apparent headquartering in Hawaii of operations of the Yakuza, numbering many more members than the traditional Italian and Sicilian mafias. The Yakuza is generally not bothered by American authorities because they do covert operations worldwide for the American CIA.]
[3] He read off the names of California U.S. District Judges, part of "The Club". Also Club members are several judges on the U.S. Court of Appeals, 9th Circuit, through their link up to banks, identified and detailed by the witness.
[4] The witness detailed how some of the illicit funds, corruptly skimmed off of phoney and fraudulent bankruptcy cases and their assets and properties, were put into non-bank transactions, to cover up the trail through the holding firm, Bank America, NOT a bank of deposit. Some of the Bank America dealings for The Club was through little known branches in South America, which the witness detailed.
[5] That "Jacobs" knew and detailed specifics of some of the related secret accounts, passwords, and numbers, of relatives of various federal judges; with the relatives acting as their agents for the handling of the illicit funds. Since the U.S. Supreme Court permits only a handful of cases from the lower courts to be heard in Washington, the federal appeals court inSan Francisco is the "end of the line" for cases originating in the federal districts in California.
[6] "Jacobs" gave specific details and dates how at least two supervisory officials in California of the Internal Revenue Service were corrupted and compromised in a commotion between two competing firms, both apparently owned by Israelis, and one of the firms facing possible bankruptcy court protection, real or possibly phoney and arranged. [A Congressional subcommittee report noted that the U.S. Treasury somehow did not punish those IRS officials but instead, they were promoted, apparently with the connivance of the U.S. Treasury Inspector General, mentioned as "the highest mafia representative in the U.S. government".
[7] "Jacobs" testified that he was a form of trusted "accountant" or "book-keeper" for the illicit funds, proceeds of the Bankruptcy rackets in California. He became aware of the rewards but also the jeopardies. Like a "mob book-keeper", he said he was warned he could not "retire" from this work, except to the cemetery.
"Jacobs" was a key insider witness, a turncoat, necessary to understand the workings of the "California Bankruptcy Club" and their members. Was he given the protection of the ultra-secret Federal Witness Protection Program? Or were the federal officials, operating the program, also in business with criminals, mobsters, and the underworld in general?
Like Wallace Lieberman (mentioned in Part two of this series), "Jacobs" was murdered. His body was found laying under a bridge.
Our reliable sources filled in the gaps. The highly politicized and corrupt U.S. Justice Department blocked any possible indictments. Too big a problem. They were not about to take down a large part of the banking system in California as well as the federal judges. And besides, the Special Federal Prosecutor no longer had a live key witness.
The Justice Department, knowing how to hush up messy matters, after the rub-out of "Jacobs", had their gang ransack the offices, homes, and other places of "Jacobs". Key sources, close to the "Horse's mouth", informed us in detail, how this mass of notebooks, records, and computer stuff, was hauled away, shredders for the papers, the hammer for the hard disks.
So, apparently members of the California Bankruptcy Club are at ease these days. What insider would become a new turncoat, subject to no government protection and very likely to be snuffed out. "Jacobs" was very likely bumped off by the duplicity of the federals.
William A. Brandt, Jr., has offices in Los Angeles. [See part two of this series as to him.] Yes, it would simplify our understanding of the matter if we could, in L.A., find a reputed mob gold smelting outfit of which Brandt could somehow in Bankruptcy, be in charge of as the new CEO. Wells Fargo, with the aid of CIA darling Warren Buffet, can continue, without difficulty, doing their covert operations money laundering for the American CIA. Does anyone dare ask Warren Buffet, as a major purported stockholder of Wells Fargo, if HE knows anything about the spy agency and the funding of political assassinations? What mass media reporter could pin down Buffet with such a question, and still have a job and be employable within the monopoly press?
Can the Vatican, which retains an interest in Bank America, jointly with the Yakuza, dare remedy anything? After all, look what happened to Pope John Paul THE FIRST, croaked after only 33 days in office. ["In God's Name" by David Yallop, 1983. And John Paul 2nd survived an attempted assassination in 1981,to remind him not to mess with such matters.]
Some useful related matter can be seen on <> It is a website of a very well-informed crusader againsst corruption, Rodney Stich.
More coming....Stay tuned.
SInce 1958, Mr. Skolnick has been a court-reformer and since 1963, Founder/Chairman, Citizen's Committee to Clean Up the Courts. Since 1991, a regular panelist and since 1995, Moderator/Producer of "Broadsides", a one-hour weekly taped public access Cable TV program, cablecast WITHIN THE CITY LIMITS OF CHICAGO to upwards of 400,000 viewers each Monday evening, 9 p.m., Channel 21 Cable TV. Segments of some of the tv shows can be seen on-line on our website, through videostreaming.
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