U.S. Trustee Kelly Baudin Stapleton has resigned. The resignation was apparently effective May 4. See the last DOJ Press Release below. The acting U.S. Trustee for Region 3 is now Roberta A. DeAngelis. Stapleton's last filing in In re: The SCO Group, Inc., et al. (No. 1:07-bk-11337, Bankr. D. Del.) was on April 14, 2008 (see dkt #443: "Kelly Beaudin Stapleton, United States Trustee for Region 3 ('U.S. Trustee'), by and through her counsel, avers ...").

Andrew Vara is still the assistant UST for the District of Delaware (one of the five districts in Region 3; see 28 USC 581(a)(3) and 118), and Joseph James McMahon, Jr. is still the attorney assigned to the SCO case. Thus, I don't expect any change of course in the UST's handling of the case. (My guess -- and this isn't based on any real information -- is that McMahon has had some discussions with Vara about SCO, but the case has not had a high enough profile that Stapleton was ever more than dimly aware of its existence.)

Stapleton was appointed by attorney general John Ashcroft to a five-year term (per 28 USC 581), which started in January 2005. At the time, she said, "I am honored to be appointed U.S. Trustee for a region with such a challenging and complex case load. As a former prosecutor, the elimination of fraud and abuse from the bankruptcy system is of compelling interest to me. I look forward to working toward that goal under the leadership of Director Friedman and with the region's excellent career staff."

She has now left 2/3 of the way through her term. It's apparently difficult to keep this job filled. Her predecessor was Patricia A. Staiano, a Janet Reno appointee who completed a 5-year term in August 2001. It took more than three years to find a replacement. DeAngelis (the current acting UST) also served as one of the acting USTs during that interregnum.

I can't find any news coverage of Stapleton's resignation, other than the DOJ press release. If you google DeAngelis and Stapleton, you'll find lots of sensational accusations against DeAngelis relating to the Etoys bankruptcy, and an assertion that Stapleton's resignation was somehow connected to the FBI raid of Special Counsel Scott J. Bloch's office on May 6, but these ravings do not appear to be supported by evidence. They have been posted in numerous different fora by Steven Haas (a/k/a Laser Haas). The Third Circuit has noted "Haas's grievances against nearly everyone associated with the EToys litigation". In re: Etoys, Inc. (Steven Haas), No. 06-4308 (3rd Cir., May 16, 2007).

There is, however, an interesting bit of evidence out there pertaining to the tenure of Stainano (the last non-temp to hold the job before Stapleton). A congressional staff report noted that:

In the wake of numerous guilty pleas by Jack Abramoff and his lobbying associates relating to defrauding his clients and his law firm and to public corruption charges, the Committee on Government Reform commenced an investigation into the nature and extent of their lobbying of White House officials. The Committee obtained billing records and e-mail communications of Abramoff and his associates at his lobbying firm, Greenberg Traurig L.L.P., relating to instances of lobbying officials at the White House. The e-mail and billing data provided to the Committee by Abramoff's firm spanned three years, included the dealings of approximately 20 lobbyists. In total, it amounted to more than 14,000 pages.

...

On September 25, 2001, Abramoff sent an e-mail in which he committed to push for Patricia Staiano's re-appointment as United States Trustee for the Third Circuit, writing, "I'll try to put another call into Karl ...".

Staiano was not re-appointed.

(The Abramoff Report: Staff Report of the Committee on Government Reform, September 29, 2006, at p. 1 and p. 75)

Below is the email, which includes a statement from Keith J. Shapiro, Esq. (Illinois, admitted 1983; president of the American Bankruptcy Institute, 2000-2001) that Staiano was "a great Trustee". It's pretty clear from the rest of the sentence that what he meant by "great Trustee" was not a UST who was exemplary at "protecting the public interest and ensuring that bankruptcy cases are conducted according to law." H.R. Rep. No. 95-595 at 109-110 (1977). Instead, he seems to have just meant a UST who directed half a million bucks in revenue to his law firm.

From: Abramoff, Jack (Dir-DC-Gov)
Sent: Tuesday, September 25, 2001 1:10 PM
To: Shapiro, Keith (Shld-Chi-Bky)
Cc: Richard, Barry (Shld-Tal-LT); Baggett, Fred (Shld-Tal-Gov/Adm); Neier, David (Shld-NY-Bky)
Subject: RE: Patricia Staiano

I'll try to put another call in to Karl, but given the situation lately, it's almost impossible to get him on the phone. I will, however, remind Susan Ralston, who is his top aide (and used to be mine).

-----Original Message-----
From: Shapiro, Keith (Shld-Chi-Bky)
Sent: Tuesday, September 25, 2001 2:07 PM
To: Abramoff, Jack (Dir-DC-Gov)
Cc: Richard, Barry (Shld-Tal-LT); Baggett, Fred (Shld-Tal-Gov/Adm); Neier, David (Shld-NY-Bky)
Subject: Patricia Staiano

We had corresponded several weeks ago about my desire to help Ms. Staiano in her quest to be reappointed as US Trustee overseeing Delaware, Pennsylvania and New Jersey. I believe Jack was gong to contact Mr. Rove or others at Justice. I haven't heard back and suspect that with the insanity of the last couple weeks this understandably fell between the cracks. As I mentioned previously, Pat is a great Trustee whose appointments of our NY shareholder David Neier as trustee and examiner in major cases will generate nearly $500k in billings for the firm in 2001. The bankruptcy group rarely has a political request, but this is a big one. I sincerely appreciate any help you can provide. My understanding is that a decision on this appointment s imminent. I am reachable today in the Chicago office at [REDACTED..] or on my cell all evening at [REDACTED...] Thanks,

Keith
--------------------------------
Sent from Keith Shapiro on my Blackberry

(Abramoff Report, Appendix at Bates page No. GTG-R000327)

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Here are all the DOJ press releases I could find regarding changes to the Region 3 U.S. Trustee:

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http://www.usdoj.gov/opa/pr/1996/August96/404ust.htm

FOR IMMEDIATE RELEASE FRIDAY, AUGUST 23, 1996

U.S. TRUSTEE APPOINTED FOR DELAWARE, NEW JERSEY AND PENNSYLVANIA

 

WASHINGTON, D.C.-- Attorney General Janet Reno has appointed Patricia A. Staiano as United States Trustee to oversee the administration of bankruptcy cases in Delaware, New Jersey, and Pennsylvania, the Department of Justice announced today.

Staiano, whose appointment runs for five years, assumed her duties on August 5, 1996. The principal office for the three-state "Region 3" is located in Philadelphia.

Staiano has extensive experience representing debtors, creditors, and trustees in both chapter 7 and chapter 11 matters and has been active in the field of bankruptcy since 1986. Staiano has been an associate with several major law firms in New Jersey, including, most recently, Hellring Lindeman Goldstein & Siegal in Newark. From 1986 to 1988, she served as Law Clerk to the Honorable William H. Gindin, Chief Bankruptcy Judge for the District of New Jersey.

Staiano received a Bachelor of Science degree in finance/marketing from Boston College in 1983, and a Juris Doctor from Seton Hall University School of Law in 1986. She is a frequent lecturer on bankruptcy for the New Jersey Bar Association, of which she is a member. Staiano is licensed to practice in the United States District Court for the District of New Jersey and the Southern and Eastern Districts of New York, as well as the U.S. Court of Appeals for the Third Circuit.

As U.S. Trustee for Region 3, Staiano will play an important oversight role in the administration of the bankruptcy process, appointment and monitoring of individuals employed to represent bankruptcy estates, commenting on fee applications of attorneys and other professionals, as well as investigating and assisting in the prosecution of bankruptcy crimes.

# # #

96-404

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http://www.usdoj.gov/ust/eo/public_affairs/press/docs/pr20011005.htm

For Immediate Release
October 5, 2001

DONALD F. WALTON APPOINTED ACTING U.S. TRUSTEE
IN DELAWARE, PENNSYLVANIA, AND NEW JERSEY

 

       WASHINGTON, D.C.-Donald F. Walton has been appointed Acting United States Trustee for Delaware, Pennsylvania, and New Jersey (Region 3) for an interim period effective Oct. 7, 2001, Martha Davis, Acting Director of the Executive Office for United States Trustees, announced today. Walton replaces Patricia A. Staiano following the expiration of her term.

       "Ms. Staiano's leadership has been instrumental in helping the region to address significant management and legal issues arising from the country's largest and most complex Chapter 11 caseload," Davis stated. "Mr. Walton is an outstanding public servant whose years of experience in the Program will enable him to guide this important region."

       Walton is the Regional Assistant U.S. Trustee for Region 21, which is headquartered in Atlanta and consists of Georgia, Florida, Puerto Rico, and the U.S. Virgin Islands.

       Walton joined the U.S. Trustee Program in 1987 as Assistant U.S. Trustee in Atlanta after working for 11 years as an associate, and then partner, with an Atlanta law firm. He served as Acting U.S. Trustee for Region 21 from August 1992 to June 1997, and as Acting Deputy Director for the Executive Office for U.S. Trustees from January 1995 through June 1995. He has also taken temporary duty assignments as Assistant U.S. Trustee in Los Angeles; New Haven, Conn.; Newark, N.J.; Garden City, N.Y.; and Brooklyn, N.Y. In 1992 and 2001, respectively, Walton received the Attorney General's Award for Distinguished Service and the Director's Award for Distinguished Service.

        Walton received his undergraduate degree from the University of North Carolina at Chapel Hill in 1968. He was commissioned as an ensign in the U.S. Navy Reserve and served three years active duty. He received his law degree cum laude in 1974 from the University of Georgia's Lumpkin School of Law. Immediately afterward, he clerked for the Honorable James C. Hill, Judge, U.S. District Court for the Northern District of Georgia and U.S. Circuit Court of Appeals for the Fifth Circuit.

        The United States Trustee Program is a component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

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http://www.usdoj.gov/ust/eo/public_affairs/press/docs/pr030314.htm

For Immediate Release March 14, 2003

ROBERTA DeANGELIS APPOINTED ACTING U.S. TRUSTEE
IN DELAWARE, PENNSYLVANIA, AND NEW JERSEY

WASHINGTON, D.C.-Roberta DeAngelis has been appointed Acting United States Trustee for Delaware, Pennsylvania, and New Jersey (Region 3) for an interim period effective on March 20, 2003, it was announced today by Lawrence Friedman, Director of the Executive Office for United States Trustees.

DeAngelis joined the U.S. Trustee Program in July 1999 as Assistant U.S. Trustee for the Newark office, after practicing bankruptcy law for 20 years. She has also served as interim Assistant U.S. Trustee in the Philadelphia and Wilmington offices. Immediately before joining the Program, DeAngelis was a partner in the Lawrenceville, N.J., office of Fox, Rothschild, O'Brien & Frankel LLP.

DeAngelis received her law degree from Seton Hall University School of Law in Newark, N.J., and her Bachelor of Arts degree from Alvernia College in Reading, Pa.

The U.S. Trustee Program is a component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. DeAngelis replaces Donald F. Walton, who has served as Acting U.S. Trustee for Region 3 since October 2001 and is returning to his position as Regional Assistant U.S. Trustee in the Program's Atlanta office.

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http://www.usdoj.gov/ust/eo/public_affairs/press/docs/stapleton_release2_12-04.htm

For Immediate Release
December 22, 2004

KELLY BEAUDIN STAPLETON APPOINTED U.S. TRUSTEE

FOR DELAWARE, PENNSYLVANIA, NEW JERSEY

WASHINGTON, D.C.-Kelly Beaudin Stapleton of Indiana, Pa., has been appointed United States Trustee for Delaware, Pennsylvania, and New Jersey (Region 3), it was announced today by Lawrence Friedman, Director of the Executive Office for United States Trustees. Ms. Stapleton's appointment takes effect on January 9, 2005.

"Ms. Stapleton is an experienced commercial litigator as well as a former prosecutor," Mr. Friedman stated. "This is an essential combination of skills for the U.S. Trustee Program's Region 3, which has one of the highest Chapter 11 filing rates in the nation as well as a continuing record of active, effective civil and criminal enforcement."

"I am honored to be appointed U.S. Trustee for a region with such a challenging and complex case load," Ms. Stapleton stated. "As a former prosecutor, the elimination of fraud and abuse from the bankruptcy system is of compelling interest to me. I look forward to working toward that goal under the leadership of Director Friedman and with the region's excellent career staff."

Immediately before joining the U.S. Trustee Program, Ms. Stapleton practiced law with firms in Philadelphia and Indiana, Pa., with an emphasis upon commercial litigation. Prior to that, she was assistant counsel for the Allegheny Health, Education, and Research Foundation in Philadelphia, handling all in-house litigation as well as development of the foundation's code of ethics and employee ethics training. She has also served as an assistant district attorney in Philadelphia.

Among other professional and community activities, Ms. Stapleton has served as a member of the Pennsylvania Lawyer's Fund for Client Security Board, the United States Attorney/United States Marshall Review Panel for the Western District of Pennsylvania, and the Advisory Board of the Pittsburgh Symphony Orchestra at Indiana University of Pennsylvania.

Ms. Stapleton received her law degree from Georgetown University Law Center in Washington, D.C., and her undergraduate degree from the University of California at Los Angeles.

The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.

The Program has 21 regions and 95 field offices. Region 3 is headquartered in Philadelphia with additional offices in Pittsburgh and Harrisburg, Pa.; Wilmington, Del.; and Newark, N.J.

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http://www.usdoj.gov/ust/eo/public_affairs/press/docs/2008/pr20080502.htm

For Immediate Release

May 2, 2008

 

ROBERTA A. DEANGELIS APPOINTED ACTING U.S. TRUSTEE

FOR DELAWARE, NEW JERSEY, PENNSYLVANIA

             WASHINGTON, D.C.–Roberta A. DeAngelis has been appointed Acting United States Trustee for Delaware, New Jersey, and Pennsylvania (Region 3) for an interim period effective on May 4, 2008, it was announced today by Clifford J. White III, Director of the Executive Office for United States Trustees. Ms. DeAngelis replaces Kelly Beaudin Stapleton, who has resigned after serving as U.S. Trustee for Region 3 since January 2005.

             Ms. DeAngelis joined the U.S. Trustee Program as Assistant U.S. Trustee in the Newark office in July 1999 after practicing bankruptcy and insolvency law for 20 years. She has served as Acting General Counsel in the Executive Office for U.S. Trustees in Washington, D.C., since May 2005. Ms. DeAngelis received her law degree from Seton Hall University School of Law in Newark, N.J., and her Bachelor of Arts degree magna cum laude from Alvernia College in Reading, Pa.

             The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 95 field offices. Region 3 is headquartered in Philadelphia, with additional offices in Wilmington, Del; Newark, N.J.; and Harrisburg and Pittsburgh, Pa.

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