(A). What is the title of our petition?
Financially Abused TerreStar Common Shareholders
(B). Who is the target of our petition?
This petition is intended for the following groups -
(a). The Department of The United States Securities and Exchange Commission "S.E.C.",
(b). The United States Federal Bureau Of Investigation, "F.B.I"
(c). Chairman of F.C.C, Julius Genachowski,
(d). The Secretary of F.C.C, Marlene Dortch,
(e). Division of Enforcement-Unit, S.E.C, Robert Khuzami, Securities and Exchange Commission,
(f). The Honorable Senator Charles E. Grassley,
(g). The Honorable Senator Marco Rubio,
(h). The Honorable Senator John McCain,
(i). The Chief of Whistle Blower Office at The S.E.C, Attn: Sean X. Mckessey,
(j). Whistle Blower Office at The S.E.C, Attn: Matthew Coughlin,
(k). Whistle Blower Office at The S.E.C, Attn: Lannette Scott,
(l). Attn: Scott A. Masel, Senior Trail Counsel, S.E.C, Miami Office
(m). Attn: Lisa T. Roberts, Chief Investigator, S.E.C, Miami Office
(n). Attn: Eric Bustillo, Regional Director S.E.C, Miami Office,
(o). Attn: Special Agent Christopher Derks, The Chief of Securities Fraud Unit at the F.B.I., Northern Virginia Washington Field Office,
(p). The Chief of Enforcement Unit at the F.B.I, Northern Virginia Washington Field Office.
(C). What issue best describes our petition?
WE THE UNDERSIGNED COMMON SHARE HOLDER'S HAVE BEEN "UNJUSTIFIABLY WRONGED", WE ARE REQUESTING THAT THE BANKRUPTCY REORGANIZATION PLAN BE PLACED ON HOLD UNTIL AN EQUITY COMMITTEE, AND AN INDEPENDENT EXAMINER BE APPOINTED, DUE TO NUMEROUS SECURITIES FRAUD VIOLATION'S IN THE UNITED STATES CODE TITLE 18 SECTION 151-158 AND THE UNITED STATES CODE 807 OF THE “SARBANE-OXLEY ACT”.
WE ARE ALSO DEMANDING THE ORIGINAL APPOINTED UNITED STATES TRUSTEE TO BE MORE VIGOROUS IN IDENTIFYING IMPROPER SECURITIES VIOLATIONS ON BEHALF OF THE MINORITY COMMON SHAREHOLDERS OF TERRESTAR CORPORATION. WE HAVE NO REPRESENTATION WHATSOEVER IN THESE BANKRUPTCY PROCEEDINGS ESPECIALLY FROM THE DEBTOR, THE MEMBERS FROM THE BOARD OF DIRECTORS, THE CHAIRMAN OF THE BOARD AND ESPECIALLY THE DEBTOR LAWYERS.
Dear Ladies and Gentlemen,
We are the TerreStar Corporation (TSTRQ) common share holders. We are following up on the complaint that was filed at the Miami Field office, with the F.B.I Special Agent Mr. David Nance, his telephone # is 305-944-9101, by Mr. Aldo Ismael Perez, and was referred to the Securities Fraud Division Manager located at the Northern Virginia Washington Field Office. The F.B.I Special Agent Mr. Christopher Derks contacted our legal representative.
Mr. Nance is questioning why the TerreStar Corporation and TerreStar Networks Inc., were taken to the United States Bankruptcy Court of the Southern District of New York even when they are a Delaware, Corporations and jurisdiction. It should be tried at the Bankruptcy District Court of Northern Virginia instead of the Southern District court of New York, so he forwarded the case to the Northern Virginia Washington office.
This company was once named "American Mobile Satellite Corporation". The name was changed to Motient Corporation; then again, the name was changed to TerreStar Corporation. We wonder what would be this company’s new name, the fourth time if the Bankruptcy Judge approves the proposed reorganization plan.
We are pleading with our Governmental Officials to intervene and assist us and closely investigate both the TerreStar Bankruptcy Cases and why they were separated into two separate bankruptcy cases instead of one.
Why is this important?
(1). Questionable management and insiders dealing –
There are many wrong doing occurring in the bankruptcy process of this company, to benefit the preferred shareholders, note holders, lawyers, insiders and its executives. Instead of looking for buyers, it chose to file bankruptcy, and break up the company's assets into two separate bankruptcy proceedings, in favor of Hedge Fund of EchoStar Corporation, Phillip Falcone, Harbinger Capital Partner's LLC, and HedgeFund Solus Alternative Management.
Please note, the major preferred share holders and note holders are also insiders. With their new restructure plan, the new company will go to the same insiders and wipe out public Minority Common Share Holder's. Please see Docket #611, section J.
http://www.terrestarcorprestructuring.com/maincase.php
(2). Questionable favorable lease agreement to the insider, Harbinger –
In September 2009, Harbinger agreed to lease the 1.4GHz Spectrum from TerreStar for an initial amount of $1 Million Dollar per month, increasing to $2 Million Dollars per month in June 2010, locking up this valuable asset until Lightsquared filed for bankruptcy, Phil Falcone, known as LightSquared and Harbinger.
Please note, Harbinger, an insider also is a competitor. Leasing the 1.4 GHz Spectrum, the asset of TerreStar Corporation, below market value to a primary competitor of TerreStar Corporation, LightSquared, is a complete conflict of interest to the company and was never a part of the business plan.
(3). Undervalued the TerreStar Networks Spectrum License –
TerreStar Networks Inc. is the largest division of TerreStar Corporation. The valuable asset of the TerreStar Networks Inc. is the primary reason majority of the investors invested in TerreStar Corporation. Both TerreStar Networks Inc. and TerreStar Corporation held assets such as the 2.0 GHz Spectrum license, TS-1 and TS-2 satellites, 1.4 GHz Spectrum license etc. They undervalued the TerreStar Networks and were sold for the deliberately low amount of $1.375 Billion Dollars. The true valuation is for the amount anywhere from $4.7 Billion Dollars to nearly $10 Billion Dollars. Please refer to Docket #179, the UBS and Jefferies & Company telecommunication study for this case at:
http://www.terrestarcorprestructuring.com/maincase.php
The 2.0 GHz Spectrum was sold to EchoStar Corporation, Charles Ergen. They only paid a measly $391 Million Dollars for the 2.0 GHz Spectrum License alone, and paid $984 Million Dollars for both satellites TS-1 (Currently in space since July 1, 2009) and TS-2, making it a total amount of $1,375,000,000. It is unfair and illegal to maliciously undervalue this valuable spectrum asset so significantly. This is a clear case of stealing and bending rules to benefit a selective few.
(4). Undervalued the 1.4 GHz Spectrum, the very valuable asset of the TerreStar Corporation –
Now the same shenanigans are maliciously undervaluing another valuable asset, the 1.4 GHz Spectrum once again. A study was done by the Plum Consulting, a very respected telecommunication consultants based in London, England. According to Plum, the 1.4 GHz Spectrum is a very valuable asset for the European telecommunication market and perhaps Northern African region as well. They are undervaluing and stealing the 1.4 GHz Spectrum in the same manner as the 2.0 GHz Spectrum asset. The 1.4 GHz Spectrum is worth multiple Billion Dollars in Europe and that has been established and known by different means already.
Based on the last Spectrum Management Conference (The equivalent of the F.C.C, in the United States) that held in Brussels, Belgium in June 2011 the 1.4 GHz Spectrum Band can generate at least in revenues over $7.7 Billion Dollars in the European region. Undervaluing such an important and valuable spectrum, resulting to the common share holders getting wiped out. They are doing this deliberately to benefit a selected few once again. This company should not have been in bankruptcy in the first place.
This was being done exactly the same way as was done with bankruptcy cases of Loral Aerospace Corporation, Leap Wireless Corporation, DBSD/ North America (Former name was ICO Global Corporation), Global Star Corporation, TerreStar Networks Inc., TerreStar Corporation. Perhaps there are others incolved in this very well crafted scheme. This remains to be investigated.
Please note, a suspicious pattern that all bankruptcy were taking place in the same United States Bankruptcy Court at the Southern District Court of New York instead of their proper jurisdiction.
By the way, we would like to point out that the current Chairman of the Board of TerreStar Corporation, William H. Freeman was once the C.E.O of Leap Wireless Inc., and they were taken to the bankruptcy Chapter 11 also.
(5). Clearly questionable asset valuations - Asset valuations were inflated and deflated at varies time to favor their circumstances –
In February 21, 2012, Mr. David Goldman of CNN Money said that there is a Spectrum Crunch and AT&T said that the demand for wireless data traffic grew 20,000% since the iPhone was introduced in the market. However, according the debtors’ lawyers and experts 2.0GHz Spectrum license is worth only $391 Million Dollars and 1.4 GHz Spectrum is worth only $80 to $100 Million Dollars. The Blackstone Group valued the 1.4GHz Spectrum only in the range of $175 Million Dollars to $185 Million Dollars. There should have been other expert opinions. In Europe once again the valuation is or should be in Billions of Dollars. For the record, back in February 2008 the respected Investment Banker Jefferies & Company made an analysis the 1.4 GHz Spectrum was worth at that time $532 Million Dollars in the low end and $836 Million Dollars in the high end that is public record!
(6). Securities Fraud and violation's of the regulatory requirement of the Sarbane-Oxley Act –
The TerreStar corporation diverted over $622 Million Dollars and perhaps greater to create a new network by the name “SKYTERRA", later, on March 29, 2010, the Hedge Fund Harbinger Capital Partner paid $5.00 per share to take the company private, Skyterra became "LightSquared" by using the revenues from the common shareholders to compete against the nationwide Satellite network TerreStar Networks Inc., a complete conflict of interest!
The management including the former C.E.O "A former S.E.C inspector", the C.F.O, the in-house lawyer Doug Brandon, the members of the Board of Directors and the Chairman of the Board approved and consented of not disclosing the valuable information about 1.6 GHz Spectrum License and asset on the Consolidated Financial Statement, from 2006 until the first two quarters of 2010. Please review very carefully Docket #556.
Further research indicated that TerreStar Corporation is not a stranger to controversies. TerreStar Corporation was formerly known as Motient Corporation. The name was changed to TerreStar Corporation during an IPO on August 16, 2007 but the former executives, including the former Chairman of the Board of Motient Corporation were arrested for securities fraud and barred from the security industry, and the former New York state senator was also prosecuted for receiving a pay off of $250,000.00 Dollars. It appears scam continues but with different faces. It never went away.
(7). Two separated bankruptcies –
TerreStar Networks Inc. and TerreStar Corporation were taken to bankruptcy separately only benefiting insiders, HedgeFund, the Blackstone Group especially the law firm Akin Gump & Strauss Hauer & Feld LLP. Charging the estate outrageous and down right abusive attorney fees amounting to $700.00 -$1,050.00 per hour by one of the lawyers, Mr. Ira S. Dizengoff.
Clearly, two separated bankruptcies benefit no one but insiders, corporate executives and lawyers. Yet the bankruptcy Judge approves it.
(8). Why file bankruptcy at Southern District Court of New York? To garner favoritism?
(9). Timing and sequence of the bankruptcy –
In October 2010, TerreStar Network Inc. filed for Chapter 11 and stated that TerreStar Corporation was not in need of Chapter 11 but Insiders were quietly selling common shares and purchasing notes. Much later, in February 2011 TerreStar Corporation also filed Chapter 11 bankruptcy. Please note, Harbinger sold millions of common shares and used those funds to buy notes before the filing of the bankruptcy. They knew the very same amount of the dollars was worth more in notes than the common shares value. They benefited significantly from the inside information. Please note, the timing and sequence of the bankruptcy, such as, Oct 2010 TerreStar Networks and July 2011 Terrestar Corporation bankruptcy were approved and consented by the management, the in-house lawyer, the members from the Board of Directors including the Director of TerreStar Audit Committee and the Chairman of the Board, Hedge Fund Harbinger Capital Partners, LLC., and their Hedge Fund Manager.
(10). Victimized Common Shareholders –
The common shareholders are being victimized by an "A very well crafted scheme by using the bankruptcy laws to launder assets" and the involvement of very powerful and well connected individuals in Washington D.C. and in New York City, to financially benefit a selective few and disregarding the honest and hardworking common shareholders. We found that they not only failed to disclose some of the critical and valuable assets (1.6 GHz Spectrum license) in their financial statements for multiple years but also deliberately undervalued very valuable assets, such as the 2.0 GHz Spectrum License, 1.4 GHz Spectrum license etc.
For more details please see Docket #331, Docket #553, Docket #556, Docket #579, docket #607 and all dockets filed by Mr. Jeffrey Swarts, Mr. Aldo Ismael Perez.
For all the reasons we have listed above, we the common shareholders jointly object to the way these valuable assets are being undervalued to benefit a few. We are pleading the government officials to stop this bankruptcy proceeding immediately and investigate it thoroughly to insure justice and fairness for all affected shareholders.
Amendments
Title 18 U.S.C. Sections 151-158
http://uscode.house.gov/download/pls/18C9.txt
[as of 2002; since then only §§156-158 have been amended, which occurred in 2005 in the context of the amendment to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)]
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
Sec. 151. Definition
Sec. 152. Concealment of assets; false oaths and claims; bribery
Sec. 153. Embezzlement against estate
Sec. 154. Adverse interest and conduct of officers
Sec. 155. Fee agreements in cases under title 11 and receiverships
Sec. 156. Knowing disregard of bankruptcy law or rule
Sec. 157. Bankruptcy fraud
Sec. 158. Designation of United States attorneys and agents of the Federal Bureau of Investigation to address abusive reaffirmations of debt and materially fraudulent statements in bankruptcy schedules
*************************************************************************************************
DETAILS:
-CITE-
18 USC CHAPTER 9 - BANKRUPTCY 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
CHAPTER 9 - BANKRUPTCY
-MISC1-
Sec.
151. Definition.
152. Concealment of assets; false oaths and claims;
bribery.
153. Embezzlement against estate.
154. Adverse interest and conduct of officers.
155. Fee agreements in cases under title 11 and
receiverships.
156. Knowing disregard of bankruptcy law or rule.
157. Bankruptcy fraud.
158. Designation of United States attorneys and agents of
the Federal Bureau of Investigation to address
abusive reaffirmations of debt and materially
fraudulent statements in bankruptcy schedules.
AMENDMENTS
2005 - Pub. L. 109-8, title II, Sec. 203(b)(2), Apr. 20, 2005,
119 Stat. 49, added item 158.
1994 - Pub. L. 103-394, title III, Sec. 312(a)(2), Oct. 22, 1994,
108 Stat. 4140, substituted "against estate" for "by trustee or
officer" in item 153 and added items 156 and 157.
1978 - Pub. L. 95-598, title III, Sec. 314(b)(2), (d)(3), (e)(3),
(f)(3), Nov. 6, 1978, 92 Stat. 2677, substituted in item 151
"Definition" for "Definitions"; struck from item 153 ", receiver"
after "trustee" and from item 154 "referees and other" before
"officers"; and substituted in item 155 "cases under title 11 and
receiverships" for "bankruptcy proceedings".
-End-
-CITE-
18 USC Sec. 151 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 151. Definition
-STATUTE-
As used in this chapter, the term "debtor" means a debtor
concerning whom a petition has been filed under title 11.
-SOURCE-
(June 25, 1948, ch. 645, 62 Stat. 689; Pub. L. 95-598, title III,
Sec. 314(b)(1), Nov. 6, 1978, 92 Stat. 2676; Pub. L. 103-322, title
XXXIII, Sec. 330008(5), Sept. 13, 1994, 108 Stat. 2143.)
-MISC1-
HISTORICAL AND REVISION NOTES
Based on section 52(f) of title 11, U.S.C., 1940 ed., Bankruptcy
(July 1, 1898, ch. 541, Sec. 29f as added June 22, 1938, ch. 575,
Sec. 1, 52 Stat. 857).
Definition of "bankruptcy" was added to avoid repetitious
references to said title 11.
Minor changes in phraseology was made.
AMENDMENTS
1994 - Pub. L. 103-322 substituted "means" for "mean".
1978 - Pub. L. 95-598 substituted "Definition" for "Definitions"
in section catchline, substituted definition of "debtor" as a
debtor concerning whom a petition has been filed under title 11 for
definition of "bankrupt" as a debtor by or against whom a petition
has been filed under title 11, and struck out definition of
"bankruptcy" as including any proceeding, arrangement, or plan
pursuant to title 11.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note
preceding section 101 of Title 11, Bankruptcy.
SAVINGS PROVISION
Amendment by section 314 of Pub. L. 95-598 not to affect the
application of chapter 9 (Sec. 151 et seq.), chapter 96 (Sec. 1961
et seq.), or section 2516, 3057, or 3284 of this title to any act
of any person (1) committed before Oct. 1, 1979, or (2) committed
after Oct. 1, 1979, in connection with a case commenced before such
date, see section 403(d) of Pub. L. 95-598, set out as a note
preceding section 101 of Title 11, Bankruptcy.
-End-
-CITE-
18 USC Sec. 152 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 152. Concealment of assets; false oaths and claims; bribery
-STATUTE-
A person who -
(1) knowingly and fraudulently conceals from a custodian,
trustee, marshal, or other officer of the court charged with the
control or custody of property, or, in connection with a case
under title 11, from creditors or the United States Trustee, any
property belonging to the estate of a debtor;
(2) knowingly and fraudulently makes a false oath or account in
or in relation to any case under title 11;
(3) knowingly and fraudulently makes a false declaration,
certificate, verification, or statement under penalty of perjury
as permitted under section 1746 of title 28, in or in relation to
any case under title 11;
(4) knowingly and fraudulently presents any false claim for
proof against the estate of a debtor, or uses any such claim in
any case under title 11, in a personal capacity or as or through
an agent, proxy, or attorney;
(5) knowingly and fraudulently receives any material amount of
property from a debtor after the filing of a case under title 11,
with intent to defeat the provisions of title 11;
(6) knowingly and fraudulently gives, offers, receives, or
attempts to obtain any money or property, remuneration,
compensation, reward, advantage, or promise thereof for acting or
forbearing to act in any case under title 11;
(7) in a personal capacity or as an agent or officer of any
person or corporation, in contemplation of a case under title 11
by or against the person or any other person or corporation, or
with intent to defeat the provisions of title 11, knowingly and
fraudulently transfers or conceals any of his property or the
property of such other person or corporation;
(8) after the filing of a case under title 11 or in
contemplation thereof, knowingly and fraudulently conceals,
destroys, mutilates, falsifies, or makes a false entry in any
recorded information (including books, documents, records, and
papers) relating to the property or financial affairs of a
debtor; or
(9) after the filing of a case under title 11, knowingly and
fraudulently withholds from a custodian, trustee, marshal, or
other officer of the court or a United States Trustee entitled to
its possession, any recorded information (including books,
documents, records, and papers) relating to the property or
financial affairs of a debtor,
shall be fined under this title, imprisoned not more than 5 years,
or both.
-SOURCE-
(June 25, 1948, ch. 645, 62 Stat. 689; Pub. L. 86-519, Sec. 2, June
12, 1960, 74 Stat. 217; Pub. L. 86-701, Sept. 2, 1960, 74 Stat.
753; Pub. L. 94-550, Sec. 4, Oct. 18, 1976, 90 Stat. 2535; Pub. L.
95-598, title III, Sec. 314(a), (c), Nov. 6, 1978, 92 Stat. 2676,
2677; Pub. L. 100-690, title VII, Sec. 7017, Nov. 18, 1988, 102
Stat. 4395; Pub. L. 103-322, title XXXIII, Sec. 330016(1)(K), Sept.
13, 1994, 108 Stat. 2147; Pub. L. 103-394, title III, Sec.
312(a)(1)(A), Oct. 22, 1994, 108 Stat. 4138; Pub. L. 104-294, title
VI, Sec. 601(a)(1), Oct. 11, 1996, 110 Stat. 3497.)
-MISC1-
HISTORICAL AND REVISION NOTES
Based on section 52(b) of title 11, U.S.C., 1940 ed., Bankruptcy
(July 1, 1898, ch. 541, Sec. 29b, 30 Stat. 554; May 27, 1926, ch.
406, Sec. 11 (part), 44 Stat. 665; June 22, 1938, ch. 575, Sec. 1
(part), 52 Stat. 855).
Section was broadened to apply to one who gives or offers a
bribe.
Minor changes were made in phraseology.
AMENDMENTS
1996 - Pub. L. 104-294 substituted "fined under this title" for
"fined not more than $5,000" in closing provisions.
1994 - Pub. L. 103-394 amended section generally, designating
undesignated pars. as opening provisions, pars. (1) to (9), and
closing provisions, and in pars. (1) and (9) inserting reference to
United States Trustee.
Pub. L. 103-322 substituted "fined under this title" for "fined
not more than $5,000" in last par.
1988 - Pub. L. 100-690 substituted "penalty of perjury" for
"penalty or perjury" in third par.
1978 - Pub. L. 95-598 substituted, wherever appearing, "debtor"
for "bankrupt", "case under title 11" for "bankruptcy proceeding",
and "provisions of title 11" for "bankruptcy law"; and substituted
"a custodian" for "the receiver, custodian", wherever appearing,
and "recorded information, including books, documents, records, and
papers, relating to the property or financial affairs" for
"document affecting or relating to the property or affairs", in two
places.
1976 - Pub. L. 94-550 inserted paragraph covering the knowing and
fraudulent making of a false declaration, certificate,
verification, or statement under penalty of perjury as permitted
under section 1746 of title 28 or in relation to any bankruptcy
proceeding.
1960 - Pub. L. 86-701 included fraudulent transfers and
concealment of property by persons in their individual capacity in
sixth par.
Pub. L. 86-519 struck out "under oath" after "knowingly and
fraudulently presents" in third par.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under Title 11,
Bankruptcy, before Oct. 22, 1994, see section 702 of Pub. L. 103-
394, set out as a note under section 101 of Title 11.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note
preceding section 101 of Title 11, Bankruptcy.
SAVINGS PROVISION
Amendment by section 314 of Pub. L. 95-598 not to affect the
application of chapter 9 (Sec. 151 et seq.), chapter 96 (Sec. 1961
et seq.), or section 2516, 3057, or 3284 of this title to any act
of any person (1) committed before Oct. 1, 1979, or (2) committed
after Oct. 1, 1979, in connection with a case commenced before such
date, see section 403(d) of Pub. L. 95-598, set out as a note
preceding section 101 of Title 11, Bankruptcy.
-End-
-CITE-
18 USC Sec. 153 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 153. Embezzlement against estate
-STATUTE-
(a) Offense. - A person described in subsection (b) who knowingly
and fraudulently appropriates to the person's own use, embezzles,
spends, or transfers any property or secretes or destroys any
document belonging to the estate of a debtor shall be fined under
this title, imprisoned not more than 5 years, or both.
(b) Person to Whom Section Applies. - A person described in this
subsection is one who has access to property or documents belonging
to an estate by virtue of the person's participation in the
administration of the estate as a trustee, custodian, marshal,
attorney, or other officer of the court or as an agent, employee,
or other person engaged by such an officer to perform a service
with respect to the estate.
-SOURCE-
(June 25, 1948, ch. 645, 62 Stat. 690; Pub. L. 95-598, title III,
Sec. 314(a)(1), (d)(1), (2), Nov. 6, 1978, 92 Stat. 2676, 2677;
Pub. L. 103-322, title XXXIII, Sec. 330016(1)(K), Sept. 13, 1994,
108 Stat. 2147; Pub. L. 103-394, title III, Sec. 312(a)(1)(A), Oct.
22, 1994, 108 Stat. 4139; Pub. L. 104-294, title VI, Sec.
601(a)(1), Oct. 11, 1996, 110 Stat. 3497.)
-MISC1-
HISTORICAL AND REVISION NOTES
Based on section 52(a) of title 11, U.S.C., 1940 ed., Bankruptcy
(July 1, 1898, ch. 541, Sec. 29a, 30 Stat. 554; May 27, 1926, ch.
406, Sec. 11 (part), 44 Stat. 665; June 22, 1938, ch. 575, Sec. 1
(part), 52 Stat. 855).
Minor changes were made in phraseology.
AMENDMENTS
1996 - Subsec. (a). Pub. L. 104-294 substituted "fined under this
title" for "fined not more than $5,000".
1994 - Pub. L. 103-394 amended section generally. Prior to
amendment, section read as follows: "Whoever knowingly and
fraudulently appropriates to his own use, embezzles, spends, or
transfers any property or secretes or destroys any document
belonging to the estate of a debtor which came into his charge as
trustee, custodian, marshal, or other officer of the court, shall
be fined under this title or imprisoned not more than five years,
or both."
Pub. L. 103-322 substituted "fined under this title" for "fined
not more than $5,000".
1978 - Pub. L. 95-598 struck out ", receiver" after "trustee" in
section catchline and in text struck out "receiver," before
"custodian" and substituted "debtor" for "bankrupt".
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under Title 11,
Bankruptcy, before Oct. 22, 1994, see section 702 of Pub. L. 103-
394, set out as a note under section 101 of Title 11.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note
preceding section 101 of Title 11, Bankruptcy.
SAVINGS PROVISION
Amendment by section 314 of Pub. L. 95-598 not to affect the
application of chapter 9 (Sec. 151 et seq.), chapter 96 (Sec. 1961
et seq.), or section 2516, 3057, or 3284 of this title to any act
of any person (1) committed before Oct. 1, 1979, or (2) committed
after Oct. 1, 1979, in connection with a case commenced before such
date, see section 403(d) of Pub. L. 95-598, set out as a note
preceding section 101 of Title 11, Bankruptcy.
-End-
-CITE-
18 USC Sec. 154 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 154. Adverse interest and conduct of officers
-STATUTE-
A person who, being a custodian, trustee, marshal, or other
officer of the court -
(1) knowingly purchases, directly or indirectly, any property
of the estate of which the person is such an officer in a case
under title 11;
(2) knowingly refuses to permit a reasonable opportunity for
the inspection by parties in interest of the documents and
accounts relating to the affairs of estates in the person's
charge by parties when directed by the court to do so; or
(3) knowingly refuses to permit a reasonable opportunity for
the inspection by the United States Trustee of the documents and
accounts relating to the affairs of an estate in the person's
charge,
shall be fined under this title and shall forfeit the person's
office, which shall thereupon become vacant.
-SOURCE-
(June 25, 1948, ch. 645, 62 Stat. 690; Pub. L. 95-598, title III,
Sec. 314(a)(2), (e)(1), (2), Nov. 6, 1978, 92 Stat. 2676, 2677;
Pub. L. 103-322, title XXXIII, Sec. 330016(1)(G), Sept. 13, 1994,
108 Stat. 2147; Pub. L. 103-394, title III, Sec. 312(a)(1)(A), Oct.
22, 1994, 108 Stat. 4139; Pub. L. 104-294, title VI, Sec.
601(a)(1), Oct. 11, 1996, 110 Stat. 3497.)
-MISC1-
HISTORICAL AND REVISION NOTES
Based on section 52(c) of title 11, U.S.C., 1940 ed., Bankruptcy
(July 1, 1898, ch. 541, Sec. 29c, 30 Stat. 554; June 22, 1938, ch.
575, Sec. 1 (part), 52 Stat. 856).
Minor changes were made in phraseology.
AMENDMENTS
1996 - Pub. L. 104-294 substituted "fined under this title" for
"fined not more than $5,000" in closing provisions.
1994 - Pub. L. 103-394 amended section generally. Prior to
amendment, section read as follows:
"Whoever, being a custodian, trustee, marshal, or other officer
of the court, knowingly purchases, directly or indirectly, any
property of the estate of which he is such officer in a case under
title 11; or
"Whoever being such officer, knowingly refuses to permit a
reasonable opportunity for the inspection of the documents and
accounts relating to the affairs of estates in his charge by
parties in interest when directed by the court to do so -
"Shall be fined under this title, and shall forfeit his office,
which shall thereupon become vacant."
Pub. L. 103-322 substituted "fined under this title" for "fined
not more than $500" in third par.
1978 - Pub. L. 95-598 struck out "referees and other" before
"officers" in section catchline, and in text struck out "Whoever
knowingly acts as a referee in a case in which he is directly or
indirectly interested; or" before "Whoever, being a" and "referee,
receiver," before "custodian" and substituted "case under title 11"
for "bankruptcy proceeding".
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under Title 11,
Bankruptcy, before Oct. 22, 1994, see section 702 of Pub. L. 103-
394, set out as a note under section 101 of Title 11.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note
preceding section 101 of Title 11, Bankruptcy.
SAVINGS PROVISION
Amendment by section 314 of Pub. L. 95-598 not to affect the
application of chapter 9 (Sec. 151 et seq.), chapter 96 (Sec. 1961
et seq.), or section 2516, 3057, or 3284 of this title to any act
of any person (1) committed before Oct. 1, 1979, or (2) committed
after Oct. 1, 1979, in connection with a case commenced before such
date, see section 403(d) of Pub. L. 95-598, set out as a note
preceding section 101 of Title 11, Bankruptcy.
-End-
-CITE-
18 USC Sec. 155 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 155. Fee agreements in cases under title 11 and receiverships
-STATUTE-
Whoever, being a party in interest, whether as a debtor,
creditor, receiver, trustee or representative of any of them, or
attorney for any such party in interest, in any receivership or
case under title 11 in any United States court or under its
supervision, knowingly and fraudulently enters into any agreement,
express or implied, with another such party in interest or attorney
for another such party in interest, for the purpose of fixing the
fees or other compensation to be paid to any party in interest or
to any attorney for any party in interest for services rendered in
connection therewith, from the assets of the estate, shall be fined
under this title or imprisoned not more than one year, or both.
-SOURCE-
(June 25, 1948, ch. 645, 62 Stat. 690; May 24, 1949, ch. 139, Sec.
4, 63 Stat. 90; Pub. L. 95-598, title III, Sec. 314(f)(1), (2),
Nov. 6, 1978, 92 Stat. 2677; Pub. L. 103-322, title XXXIII, Sec.
330016(1)(K), Sept. 13, 1994, 108 Stat. 2147.)
-MISC1-
HISTORICAL AND REVISION NOTES
1948 ACT
Based on section 572a of title 28, U.S.C., 1940 ed., Judicial
Code and Judiciary (Aug. 25, 1937, ch. 777, 50 Stat. 810.)
Words "upon conviction" were deleted as surplusage since
punishment can be imposed only after a conviction.
A fine of "$5,000" was substituted for "$10,000" and "one year"
for "five years", to reduce the offense to the grade of a
misdemeanor and the punishment to an amount and term proportionate
to the gravity of the offense.
Minor changes were made in phraseology.
1949 ACT
This amendment [see section 4] clarifies section 155 of title 18,
U.S.C., by restating the first paragraph thereof in closer
conformity with the original law, as it existed at the time of the
enactment of the revision of title 18.
AMENDMENTS
1994 - Pub. L. 103-322 substituted "fined under this title" for
"fined not more than $5,000".
1978 - Pub. L. 95-598 substituted "cases under title 11 and
receiverships" for "bankruptcy proceedings" in section catchline
and in text "or case under title 11" for ", bankruptcy or
reorganization proceeding", inserted "knowingly and fraudulently"
after "supervision,", and struck out penalty provision for a judge
of a United States court to knowingly approve the payment of any
fees or compensation that were fixed.
1949 - Act May 24, 1949, inserted references to attorneys for any
party in interest in three places, and substituted "in any United
States court or under its supervision" for "in or under the
supervision of any court of the United States".
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-598 effective Oct. 1, 1979, see section
402(a) of Pub. L. 95-598, set out as an Effective Date note
preceding section 101 of Title 11, Bankruptcy.
SAVINGS PROVISION
Amendment by section 314 of Pub. L. 95-598 not to affect the
application of chapter 9 (Sec. 151 et seq.), chapter 96 (Sec. 1961
et seq.), or section 2516, 3057, or 3284 of this title to any act
of any person (1) committed before Oct. 1, 1979, or (2) committed
after Oct. 1, 1979, in connection with a case commenced before such
date, see section 403(d) of Pub. L. 95-598, set out as a note
preceding section 101 of Title 11, Bankruptcy.
-End-
-CITE-
18 USC Sec. 156 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 156. Knowing disregard of bankruptcy law or rule
-STATUTE-
(a) Definitions. - In this section -
(1) the term "bankruptcy petition preparer" means a person,
other than the debtor's attorney or an employee of such an
attorney, who prepares for compensation a document for filing;
and
Sponsor
raymond j coburn ray.coburn@rocketmail.com or 949-205-8803 california
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