Gertz hired an auctioneer to organize the assets of Pro Arts for an orderly sale.
It was in the first two weeks that I discovered the first major fraud of the Pro Arts bankruptcy.
Brian Jefferies, an English Color-in Poster Distributor, had made arrangements with Old Phoenix Bank and Hallman to purchase about $15,000 worth of printing from the Trustee and pressed the Trustee to "abandon" this printing so that the goods could be swiftly exported out of the United States.
By the time I received the Notice of Abandonment" from the Court, the Trustee had received a few thousand dollars and Jefferies had exported the posters out of the country.
Not only was I upset that PIE had not been given the opportunity to "bid" on the printing, but I later discovered the printed posters to include copyrights exclusively licensed to PIE! Old Phoenix had violated federal copyright law by selling Jefferies the copyrights I had licensed.
When I went to the Bankruptcy Clerk of Courts to obtain the documents illustrating this transaction, I looked at the Pro Arts docket to see what had transpired that I did not know had transpired.
I discovered Greg Happ's personal claim of $21,069.95 that Happ had entered under penalty of perjury.
I asked the Clerk if Happ's claim had been reduced to the $1,069.95 claim that Dietrich stated to me he would reduce on March 23, l983.
The Clerk stated that if an Objection to the Claim were not on file, the claim would remain as Happ filed it.
From the time that Happ had filed his fraudulent claim in bankruptcy court until April 13, l984 (the day I personally inspected the file docket), no change had been made and no Objection to the $21,069.95 had been filed by anyone.
Dietrich had lied to me over the telephone several times during the March 23, l983 conversation and since I had recorded the conversation, I realize Dietrich and the other conspirators had bribed Happ.
The fact that I was told Dietrich would change the Claim to $1,069.95 cleared me of any involvement of the bribe since Dietrich was the Debtor's Attorney and it was Dietrich's responsibility to correct the record.
It was at this moment that my suspicions that I had alleged throughout the bankruptcy suddenly became a reality.
I wondered what other frauds had been committed and I was determined at this time to see the true story of the Pro Arts bankruptcy brought to justice.