Paul Traub
Encyclopedia
Paul R. Traub is an American lawyer, who specializes in business law, specifically bankruptcy
, insolvency
, and trial litigation. He has participated in several large retail bankruptcies, among them Kmart
, FAO Schwarz Inc., KB Toys
Inc., Stage Stores
, Office Max, and eToys.com
. Other clients have included Halston, Joan & David, Levitz, Bombay Company, Linens 'n Things, Zales, and Whitehall Jewelers.
High School in 1969. He received his Juris Doctor
degree from Golden Gate University in 1977, and his Bachelor of Arts
degree from the State University of New York (SUNY), at Buffalo
in 1973. He was admitted to the New York Bar Association in 1978. He is admitted to the New York, U.S. District Court Southern, Eastern and Western Districts of New York; the U.S. Court of Appeals, Second Circuit; U.S. District Court, Eastern District of Wisconsin.
He is a member of the American Bar Association
(Member, Insolvency and Litigation Section; American Bankruptcy Institute; Association of Banking and Commercial Law Firms; Commercial Finance Association; Commercial Law League of America, (Bankruptcy and Insolvency Section); New York State Trial Lawyers Association; Turnaround Management Association, and Member, Salvation Army
Manhattan Advisory Board {1985-1989}. He was once interviewed on Fox News Business, a cable-TV news channel.
On December 5, 2008, after Dreier's arrest for being involved in an alleged scheme to sell $700 million in fictitious promissory notes,
Traub and the other bankruptcy lawyers resigned and restarted Traub, Bonacquist & Fox. In February, 2009, Epstein, Becker & Green, a firm specializing in government contracts, brought the seven-member Traub/Dreier bankruptcy team into their New York office.
bankruptcy. The dotcom company filed for chapter 11
protection toward the end of the Internet bubble on March 7, 2001. The Office for United States Trustee accused him and his New York law firm of a conflict of interest
, non-disclosure, and employing non "arms length" key personnel,
because of his business partnership with Barry Gold. In April, 2001, Traub founded Asset Disposition Advisors, LLC ( "ADA"), a Delaware liquidation company, with Gold, located at his Manhattan
law office.
Traub also appointed Gold CEO of eToys.com
one month after forming ADA, while Gold had been receiving paychecks from Traub's lawfirm. The Court ruled in favor of Traub: Gold's participation in ADA with Traub was not sufficient to establish a conflict of interest, although the judge said failure to disclose such relationships in future could lead to sanctions. "In the future ... the failure of an officer of a debtor to disclose such relationships will subject that officer to review and possible disgorgement of compensation, if the court concludes that the relationship constitutes an actual conflict of interest."
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
, insolvency
Insolvency
Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...
, and trial litigation. He has participated in several large retail bankruptcies, among them Kmart
Kmart
Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, FAO Schwarz Inc., KB Toys
KB Toys
K·B Toys was a chain of mall-based retail toy stores in the United States. It was founded in 1922 by the Kaufman brothers. K·B operated 605 stores in 44 U.S. states, Puerto Rico as well as Guam. It was privately held in Pittsfield, Massachusetts...
Inc., Stage Stores
Stage Stores
Stage Stores, Inc. is a department store company specializing mostly in retailing brand name clothing, accessories, cosmetics and footwear. It has its headquarters in Houston, Texas....
, Office Max, and eToys.com
EToys.com
eToys.com is a retail website that sells toys via the Internet. It was established by a startup company of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys...
. Other clients have included Halston, Joan & David, Levitz, Bombay Company, Linens 'n Things, Zales, and Whitehall Jewelers.
Education and affiliations
Traub graduated from Massapequa, New YorkNew York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
High School in 1969. He received his Juris Doctor
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
degree from Golden Gate University in 1977, and his Bachelor of Arts
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
degree from the State University of New York (SUNY), at Buffalo
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
in 1973. He was admitted to the New York Bar Association in 1978. He is admitted to the New York, U.S. District Court Southern, Eastern and Western Districts of New York; the U.S. Court of Appeals, Second Circuit; U.S. District Court, Eastern District of Wisconsin.
He is a member of the American Bar Association
American Bar Association
The American Bar Association , founded August 21, 1878, is a voluntary bar association of lawyers and law students, which is not specific to any jurisdiction in the United States. The ABA's most important stated activities are the setting of academic standards for law schools, and the formulation...
(Member, Insolvency and Litigation Section; American Bankruptcy Institute; Association of Banking and Commercial Law Firms; Commercial Finance Association; Commercial Law League of America, (Bankruptcy and Insolvency Section); New York State Trial Lawyers Association; Turnaround Management Association, and Member, Salvation Army
Salvation Army
The Salvation Army is a Protestant Christian church known for its thrift stores and charity work. It is an international movement that currently works in over a hundred countries....
Manhattan Advisory Board {1985-1989}. He was once interviewed on Fox News Business, a cable-TV news channel.
Traub Bonacquist & Fox
Traub is the founding member and managing partner, of Traub, Bonacquist, and Fox, a New York based boutique law firm specializing in bankruptcy and business reorganization matters. In September, 2006, Marc Dreier, sole equity partner of Dreier, LLP, acquired the boutique law firm. Paul Traub became a Dreier partner and co-chair with Norman Kinel of the Bankruptcy and Business Reorganization group.On December 5, 2008, after Dreier's arrest for being involved in an alleged scheme to sell $700 million in fictitious promissory notes,
Traub and the other bankruptcy lawyers resigned and restarted Traub, Bonacquist & Fox. In February, 2009, Epstein, Becker & Green, a firm specializing in government contracts, brought the seven-member Traub/Dreier bankruptcy team into their New York office.
Etoys.com Bankruptcy
Traub represented the Creditors in eToys.comEToys.com
eToys.com is a retail website that sells toys via the Internet. It was established by a startup company of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys...
bankruptcy. The dotcom company filed for chapter 11
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
protection toward the end of the Internet bubble on March 7, 2001. The Office for United States Trustee accused him and his New York law firm of a conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
, non-disclosure, and employing non "arms length" key personnel,
because of his business partnership with Barry Gold. In April, 2001, Traub founded Asset Disposition Advisors, LLC ( "ADA"), a Delaware liquidation company, with Gold, located at his Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
law office.
Traub also appointed Gold CEO of eToys.com
EToys.com
eToys.com is a retail website that sells toys via the Internet. It was established by a startup company of the same name during the dotcom boom, but the company went bankrupt towards the end of the boom, after which the site went through a number of changes of ownership, and was acquired by Toys...
one month after forming ADA, while Gold had been receiving paychecks from Traub's lawfirm. The Court ruled in favor of Traub: Gold's participation in ADA with Traub was not sufficient to establish a conflict of interest, although the judge said failure to disclose such relationships in future could lead to sanctions. "In the future ... the failure of an officer of a debtor to disclose such relationships will subject that officer to review and possible disgorgement of compensation, if the court concludes that the relationship constitutes an actual conflict of interest."