Complaints Allege Eric Holders Justice Dept. May Have Improperly Quashed Federal Bankruptcy Case

Complaints suggest Attorney General Eric Holder’s Department of Justice may have allowed cronyism to get in the way of a criminal investigation into a federal bankruptcy case. (Getty Images)

A coalition of business executives and attorneys have been pressing unsuccessfully to get a Congressional review into whether Attorney General Eric Holder’s Justice Department improperly quashed a criminal investigation related to a federal bankruptcy case.

Correspondence in March and May with the House Judiciary Committee, the House Committee on Oversight and Government Reform and the Justice Department’s Public Integrity Section suggest that top Justice Department officials may have allowed cronyism to get in the way of an investigation related to the bankruptcy filing for the Yellowstone Club, a private resort in Montana.

So far, no action appears to have been taken to investigate the allegations. The Department of Justice, the House Judiciary Committee and the House Committee on Oversight and Government Reform did not respond to requests from TheBlaze Thursday regarding the status of the complaints.

The letters to the House Judiciary and Oversight committees, chaired by Reps. Lamar Smith (R-Texas) and Darrell Issa (R-Calif.) respectively, state that a more than two-year investigation by FBI, IRS and Secret Service agents led to recommendations that criminal charges be filed.

“Days later, however, the Department of Justice abruptly terminated the investigation without explanation,” the letter to the Judiciary Committee states. “The mysterious and sudden change of heart raises serious questions about the impartiality of senior Justice Department officials.”

Among the questions is the involvement of Credit Suisse bank, which is “routinely represented” by the Washington, D.C.-based law firm Covington & Burling, LLP — the law firm where Holder and Assistant Attorney General Lanny Breuer were each partners before joining the Obama administration.

“In conformity with Justice Department policies and guidelines to investigate and prosecute substantial ‘white collar’ financial crimes, particularly given the disastrous effect of these crimes on our economy and society and general, the decisions in this matter by Central Justice appear to reflect political cronyism, or worse,” the letter to the Justice Department states.

The signatories to each of the three letters are Timothy Blixseth, Jonathan Stack, Patrick Hook and attorneys Michael Flynn, Philip Stillman, CJ Conant and Andrew Hawes from Montana and attorneys Robert Huntley and James Sabalos from Idaho.

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