WE THE TERRESTAR CORPORATION COMMON SHAREHOLDERS OBJECT TO THE CONFIRMATION HEARING OF THE 3RD AMENDED PLAN OF REORGANIZATION
Maxine K. signed
just now
Adam B. signed
just now
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
In Re: Lead Case No
TERRESTAR CORPORATION, et al 11 CV 10612 (SHL)
TERRESTAR NETWORK, et al 10 CV 15466 (SHL)
DEBTORS IN POSSESSION,
A). What is the title of our petition?
Requesting the approval of the Discovery Requests Responses of the Debtors with Comments by Jeffrey M. Swarts; and Objecting To the denial responses file on 10/02/2012 by the Counsel to the TSC Debtors, AKIN GUMP STRAUSS Hauer & FELD LLP, (please see docket #640).
In Response To: The Confirmation Hearing Of The TSC Debtors's 3rd Amended Plan of Reorganization.
B). Who is the target of our petition?
The Honorable Judge Sean H. Lane
C). What issue best describes our petition?
We are requesting the reorganization plan be fair and equitable with respect to all classes, including the common equity holders; also we are requesting actions that bring maximum value to the estate.
Dear Judge Lane,
We, the TerreStar Corporation (TSTRQ) common share holders, hereby request the approval of discovery of contracts, export reports, and documents filed by Mr. Jeffery Swarts in docket #625; and object to the denial comments made by the Counsel to the TSC Debtors, AKIN GUMP STRAUSS Hauer & FELD LLP, please see docket #640. We object to the company's disclosures and its 3rd Amended Plan of Reorganization.
Why is this important?
1. Violation of Fiduciary Responsibility –
The debtor's counsel objected to Mr. Swarts requests, based on confidential documents or documents subject to attorney-client privilege or work-product protection. Counsel ignores that he is paid by the estate and he is not looking after the best interests of the estate and maximizing its value, in violation of fiduciary duty.
The law firm Akin Gump & Strauss Hauer & Feld LLP. is the counsel to TerreStar Networks and TerreStar Corporation. The two separate bankruptcies are a conflict of interest. What measures do they take to determine and divide the claims, loans, credits and liabilities, TerreStar Network vs TerreStar Corporation?
Management's actions and decision making should be held accountable; the Officers, the Directors, the in-house lawyer, the members of the Board of Directors and the Chairman of the Board should not receive any claims whatsoever. Please see Docket # 639.
Further, the Financial Advisor, The BlackStone Group and the Debtor's lawyers should be held liable if there is any investigation by the Enforcement and Regulatory Agency, and if it is found they conspired to cover-up any wrongdoing of a crime or crimes.
In October 2010, TerreStar Network Inc. filed for Chapter 11, Solus and Millennium International Management LP, holders of preferred stock; also have a motion on the Nov. 16 calendar asking the bankruptcy judge to dismiss the Chapter 11 cases of seven TerreStar affiliates. They say the companies don't need reorganization and the value of their businesses should flow to the parent company, TerreStar Corp.
http://www.epiqsystems.com/Bankruptcy_Creditor.aspx?id=8589934611
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.
2. Securities Fraud and multiple violations of the Sarbanes-Oxley Act and in real need to maximize the value of the estate, such as finding "new value" –
The debtor's counsel objected to Mr. Swarts filing based on the grounds that it is vague, ambiguous, and
incapable of a precise response. Debtors further object to Request No. 1.1 to the extent that it seeks documents or information irrelevant to the subject matter of these proceedings.
Without an equity committee and the independent examiner, the fair and maximum valuation and transparency cannot be determined. The information that Mr. Swarts requests is the least that management can provide to assist in determining the true and accurate value of the TerreStar Corporation.
Elektrobit Corp. of Finland filed a lawsuit against the parent company of mobile satellite services startup TerreStar Networks, which was under Chapter 11 bankruptcy protection. On August, 2012, Elektrobit received payment of 13.5 million USD from TerreStar Corporation in full and final satisfaction of its claim against TerreStar Corporation. Will Echo Star, the new owner of the TerreStar Network, repay the loans and claims to its parent company TerreStar Corporation?
Again, we believe the maximum value of the estate can only be achieved by appointing an equity committee and the independent examiners.
3. Violations of Title 18 Section 152, Section 154, Section 157 and Section 158 in Bankruptcy Crimes –
Please refer Docket # 607. This clearly is a “Constructive Fraud " and the Bankruptcy Court have been used to launder assets from the equity shareholders of Terrestar Corporation to financially benefit the majority shareholders and the Preferred shareholders.
4. Undervaluation of FCC licensed 1.4 GHz spectrum –
The debtors have repeatedly argued that the infrastructure for the 1.4 Spectrum is immature and that it is not developed. However, there are numerous exhibits submitted that prove otherwise.
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. 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 will result in the common share holders getting wiped out. The debtors 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.
Your Honor, the debtors must disclose the requested 1.4 GHz related information (as listed in Docket #625) to insure the integrity of the process and that the valuation of the spectrum is properly supported.
For all the reasons we have listed above-
We, the common shareholders object to the confirmation hearing of the 3rd amended plan of reorganization.
We jointly support Mr. Jeffery M. Swarts and Mr. Aldo Ismael Perez's efforts, in searching fair, equitable, justifiable solutions.
We request the approval of the Discovery Request Responses of The Debtors with Comments by Jeffrey M. Swarts; and Object to the denial responses file on 10/02/2012 by the TSC Debtors Counsel, AKIN GUMP STRAUSS Hauer & FELD LLP.
We object to the way these valuable assets are being undervalued to benefit a few.
We are pleading The Honorable Judge Sean Lane to-
(1). Stop this bankruptcy proceeding immediately and investigate it thoroughly to insure justice and fairness for not only the few, but all affected shareholders.
(2). Guide the bankruptcy proceeding with transparency and honesty and take all actions that bring maximum value to the estate.
(3). Use all options, such as, Carved Out, Sharing a Piece of The Bankruptcy Pie, New Value, etc. to enable common share holders to participate the Reorganization planning.
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
(2) the term "document for filing" means a petition or any
other document prepared for filing by a debtor in a United States
bankruptcy court or a United States district court in connection
with a case under title 11.
(b) Offense. - If a bankruptcy case or related proceeding is
dismissed because of a knowing attempt by a bankruptcy petition
preparer in any manner to disregard the requirements of title 11,
United States Code, or the Federal Rules of Bankruptcy Procedure,
the bankruptcy petition preparer shall be fined under this title,
imprisoned not more than 1 year, or both.
-SOURCE-
(Added Pub. L. 103-394, title III, Sec. 312(a)(1)(B), Oct. 22,
1994, 108 Stat. 4140; amended Pub. L. 109-8, title XII, Sec. 1220,
Apr. 20, 2005, 119 Stat. 195.)
-REFTEXT-
REFERENCES IN TEXT
The Federal Rules of Bankruptcy Procedure, referred to in subsec.
(b), are set out in the Appendix to Title 11, Bankruptcy.
-MISC1-
AMENDMENTS
2005 - Subsec. (a). Pub. L. 109-8, in first par., inserted "(1)
the term" before " 'bankruptcy petition preparer' " and substituted
"; and" for period at end and, in second par., inserted "(2) the
term" before " 'document for filing' " and substituted "title 11"
for "this title".
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Pub. L. 109-8 effective 180 days after Apr. 20,
2005, and not applicable with respect to cases commenced under
Title 11, Bankruptcy, before such effective date, except as
otherwise provided, see section 1501 of Pub. L. 109-8, set out as a
note under section 101 of Title 11.
EFFECTIVE DATE
Section 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 an Effective
Date of 1994 Amendment note under section 101 of Title 11.
-End-
-CITE-
18 USC Sec. 157 01/03/2012 (112-90)
-EXPCITE-
TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
PART I - CRIMES
CHAPTER 9 - BANKRUPTCY
-HEAD-
Sec. 157. Bankruptcy fraud
-STATUTE-
A person who, having devised or intending to devise a scheme or
artifice to defraud and for the purpose of executing or concealing
such a scheme or artifice or attempting to do so -
(1) files a petition under title 11, including a fraudulent
involuntary petition under section 303 of such title;
(2) files a document in a proceeding under title 11; or
(3) makes a false or fraudulent representation, claim, or
promise concerning or in relation to a proceeding under title 11,
at any time before or after the filing of the petition, or in
relation to a proceeding falsely asserted to be pending under
such title,
shall be fined under this title, imprisoned not more than 5 years,
or both.
-SOURCE-
(Added Pub. L. 103-394, title III, Sec. 312(a)(1)(B), Oct. 22,
1994, 108 Stat. 4140; amended Pub. L. 109-8, title III, Sec.
332(c), Apr. 20, 2005, 119 Stat. 103; Pub. L. 111-327, Sec. 2(b),
Dec. 22, 2010, 124 Stat. 3562.)
-MISC1-
AMENDMENTS
2010 - Par. (1). Pub. L. 111-327, Sec. 2(b)(1), struck out
"bankruptcy" after "involuntary".
Pars. (2), (3). Pub. L. 111-327, Sec. 2(b)(2), struck out ",
including a fraudulent involuntary bankruptcy petition under
section 303 of such title" after "title 11".
2005 - Pars. (1) to (3). Pub. L. 109-8, which directed insertion
of ", including a fraudulent involuntary bankruptcy petition under
section 303 of such title" after "title 11", was executed by making
the insertion after "title 11" wherever appearing, to reflect the
probable intent of Congress.
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