The Bankruptcy Bordello
Part 4
Clubbing The Asians

The mass media have their own understanding of what the public wants to read, view, or hear. For tv, their nameless, faceless program consultants have a motto, "If it bleeds, it leads." So, they are not inclined to send their high-paid reporters to cover business cases in the federal courts, for example, which may educate the common people to problems, to put it crudely, of the whorehouses of justice.

As an unpaid free-lance journalist, waiting to observe a case we were following, one day in the Chicago Bankruptcy Courts, I saw something in the hearing of another case. It was before Chicago U.S. Bankruptcy Judge Jack B. Schmetterer, according to our inquiries apparently thick with Israeli intelligence, the Mossad.

In front of his bench, to the left stood a short little Chinese woman. To the right, lined up were 12 lawyers. It no longer puzzled me that they had Jewish last names, and Christian first names. Most of them. That item has to be explained later in this series.

The woman spoke haltingly as best she could in her poor command of English.

Chinese woman: "Judge, me family 14 Hong Kong. Work years. Save money. Me come Chicago for family. Buy shopping center. Business okay. Dirty bank no like me. Push me bankrupp. Lie. Me no bankrupp. No money you give for me family. Brothers fly Chicago. No lawyer. You no money for family. Why give 300 thousand dollar these lawyers.Me nothing? Why? (She started crying)."

Judge Jack B. Schmetterer: "The law provides that lawyers must get their fees. I am obligated to award them fees. They presented a petition for fees on behalf of other interests."

[Most every judge in the major federal district U.S. Bankruptcy Courts are able to so quickly refer to the Bankruptcy statutes, they could make ten cases brought by angels dance on a golden pin. They rapidly twist the laws supposedly to fit the facts.]

Judge: "I am granting the fee petitions as they seem to be in order."

The 12 lawyers, practically like a choir in unison, said "Thank you, your Honor" and rapidly departed the apparent scene of their crime.

On another day, following up a tip, we began thumbing through a huge file marked "Rusty Jones". They once were a heavily advertised rust-proofing firm, spraying or somehow applying their mixture of undercoating to prevent further rusting-out of cars. We discovered a typical rusting out of justice.

A group of lawyers were shown on the docket as being paid huge fees. Part of the docket as shown on the Clerk's Office Computer was incomplete. Item numbers were garbled or gone. So I went to the Bankruptcy Clerk's Office and started asking questions.

Citizen's Committee to Clean Up the Courts: "Sir, who is in charge of the dockets on your computer?"

Deputy Bankruptcy Clerk: "The tall fellow across the hall in that office (pointing)."

Citizen's Committee: "But, sir, there is no number on that office door, nothing. Who is there." He refused to further answer. I knocked on the unmarked door. No answer. So i was determined to find out what was behind this door. I parked my wheelchair right in front of the door, in such a way, whosoever comes out of that room will have to be quite athletic, to jump over my wheelchair to escape me.

After about an hour, the door opens.

Tall person: "Hey, let me out!"

Citizen's Committee: "You aint getting past me, til you tell me your title and what you have to do with the Clerk's computer."

Tall person: "I am the private consultant that sees that everything is running."

Citizen's Committee: "How is the docket changed if it is ever changed?"

Tall person: (naming supervisor with latino name) "She has the key."

Citizen's Committee: "You mean, a key like to a lock?"

Tall person: "No, the code to get into the docket entries and change them if necessary."

So I searched out that supervisor.

Citizen's Committee: "I have here a print-out of five different cases, dockets. Take a look, you can see the case numbers. Each one has been altered, where the fees were awarded to lawyers. Concealed apparently is some data. The tall consultant from the unmarked door over there, said YOU are the office supervisor with the code or key. WHY have the docket entries been altered? WHO ordered YOU to do that? And WHY?"

Clerk supervisor: "I am not answering. I have to call my lawyer."

Citizen's Committee: "Ma'm, are you pleading the Fifth Amendment or what?"

Clerk supervisor: "I have to call my lawyer." (She quickly fled from my presence.)

We began digging into what the Rusty Jones case was all about. Funny thing, the head lawyer of the law firm getting big bucks, was born in Israel. We surmised, is the firm part of the split from "The Club". And what is anyone in this place concealing? Does the IRS know that details of the fees are made to disappear? But then, we have documented the corruption about the top official of the Chicago District office of the Internal Revenue Service.

One day, a Japanese national has a meeting with us.

Citizen's Committee: You told us, there is trouble with the Rusty Jones case. What is that about?


Japanese national: "I am in America on behalf of our auto firm."

Citizen's Committee: "So you represent (naming firm)."

Japanese national: "I am the (names his position as top official) of the firm. This is a serious problem."

Citizen's Committee: "What is THAT problem?"

Japanese national: "Lawyers representing certain interests apparently in the Rusty Jones case, contend we owe them forty million dollars. They are false claims, yet they are bringing some kind of a supplementary action in the Bankruptcy Court to tie us up in America. They keep saying it will cost us more than forty million."

Citizen's Committee: "What remedy did you seek?"

Japanese national: "I hope you understand, in Japan we have very few lawyers. It is a disgrace for somebody to be seen going to the courts there to start up with another firm or a neighbor. A loss of face. Very bad. But I have complained in Chicago to the Federal Bureau of Investigation, the U.S. Justice Department, even to the judge himself. All the doors close on us. There is something wrong with your courts and your system of justice. I cannot say anything public because there is a Ministry in Japan that would punish us for interfering with relations with the U.S. There is some kind of a system, particularly here in Chicago, according to some of my friends here, to extort sums of money, or cheat Asians through your courts. Maybe I should have understood, as I had part of my business education in a top University in the U.S."

Citizen's Committee: "Well, name some of the lawyers. By the way, did you learn about shakedown and extortion when you attended that University in the U.S.?"

Japanese national: "Well, the full details of the lawyers I found out are not fully disclosed in the court record. A principal partner is actually an Israeli. (Starts naming the law firm partners.) You know anything about such things? In answer to your other question, no, my university professors never said a single word about shakedown and extortion in business relations in America."

Citizen's Committee: "Yes, we very much understand. Do you have attorneys in Chicago representing your interests?"

Japanese national: "Yes, but they do not seem like they will really help us. They seem to go along with some kind of a system you have in Chicago that I do not fully understand. It would not be allowed back in my home land."

Citizen's Committee: "Well, these lawyers that are in the Rusty Jones case, that claim your firm owes so much. What do they want?"

Japanese national: "Well, they want us to pay a down-payment of 800 thousand U.S. Dollars, in cash, to them, away from the courthouse., actually to accounts in the Grand Caymans. They are threatening harm against us, just like the Yakuza in Osaka. My family is worried. But it is my task to find out what to do."

Citizen's Committee: "Will 800 thousand end the problem?"

Japanese national: "Tell me,

is there a system in your country that I do not understand. Is it permitted to give large gifts of money to judges in the courthouse? It seems like these lawyers want a series of payments as gift to judges who are not on this pending matter. What is that about? And from what they are threatening me and my firm, the 800 thousand gift, is just the beginning of a series of gifts."

Citizen's Committee: "Your own lawyers, did you divulge this extortion to THEM?"

Japanese national: "No, this other group of lawyers are friends of my local attorneys. I fear it would be unwise to tell my own lawyers what is going on. Someone locally told me you are known for keeping matters like this confidential. Please, for the sake of my family back home, do not use my name publicly nor my exact title with our firm."

We found out from reliable sources that he apparently began payments, some to the Judges and "The Club" members of a compromised amount, of 400 thousand dollars each payment. The "book-keeper" of "The Club" arranged to deposit the funds in the Grand Caymans and the Channel Islands. Banks from all over the world have their units there for clandestine dealings.The Chicago District office of the IRS Criminal Division has the facts, but sit on their corrupt hands.[See our extensive website series on IRS corruption.]

Some asians doing business in Chicago appear to understand the corrupt system and simply help themselves. Several Koreans operated an electronics supply business. They had a dispute with their bank which apparently wanted to shove them into the hands of the Bankruptcy Club, proper claim or false claim, it did not seem to matter. And how did the Koreans reportedly deal with the situation?

Well, they were accused of apparently starting a fire to burn down their own business. They escaped. But a tragedy occurred. Two Chicago firemen lost their life when, while inside the building fighting the flames, the roof collapsed on them.

The spy-riddled, oil-soaked monopoly press is busy with idle stories about fires in abandoned mattress factories, or non-political murder and mayhem locally. Informing the common people of what is really going on does not interest the liars and whores of the press, those with the fifty dollar hairdoes and the nickel heads.

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 prrogram cablecast WITHIN THE CITY LIMITS OF CHICAGO, to upwards of 400,000 viewers each Monday evening, 9 p.m., Channel 21 Cable TV.Parts of tv shows can be seen on our website, on-line.

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