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DII/Halliburton Asbestos Trustees Breach Fiduciary Duties to Claimants – Asbestos Victims Lose

Asbestos Bankruptcy Trust Fraud Newsline – March 2016


Asbestos Bankruptcy Trust Fiduciary Fraud Continues (DII Industries/Halliburton Asbestos PI Trust Fraud)

It has now been confirmed that the Trustees and Fiduciaries running the DII/Halliburton Asbestos Settlement Trust have breached their Fiduciary Duties to Claimants, Attorneys and have committed fraud in suspending claims and lying to claimants counsel. For clients of the Mandelbrot Law Firm – it is solely due to the corrupt lawyers below that claims are not passing!

“These corrupt lawyers improperly suspended DII/Halliburton Claims filed by my office in September 2014. It wasn’t authorized or warranted under the Trust Rules, but they did it anyway. Then, after I completed their AUDIT (the largest in the history of the Trust) with clearly no finding of any wrongdoing, they continued to bar claims and lie to me throughout,” said experienced Asbestos Attorney Michael Mandelbrot. “It’s amazing how corrupt lawyers (and liars) will band together to harm beneficiaries of the Trust. They are just a pack of despicable lawyers with little ethics who are misappropriating monies from claimants in the process. Hopefully the Judge or the Department of Justice takes notice.”

Below you will find actual documents related to the Fraud. First though – a list of every corrupt lawyer and Fiduciary at the DII/Halliburton Asbestos Settlement Trust – 


  1. Mary Ellen Nickel, Managing Director – A liar. Oversees claim filing. Indicated to Mandelbrot prior to the audit in September 2014 “we know you are a good guy who hired a bad employee (John Lynch) – the audit should be done in a few weeks.” Here we are 18 months later with the audited completed yet claims not being filed.
  2. Greg McHugh – DII/Halliburton Attorney – Another deceptive individual. Extortionist. Wholly ignored the DII/Halliburton’s own Trust rules and attempted to extort over $58,000 from Mandelbrot and his office through fraud. Lied to Mandelbrot and Claimants on many occasions. Required Mandelbrot to confirm he represented dozens of clients due to the bad faith of another attorney. Following conclusion of the audit, sent a 2nd completely fraudulent report to Mandelbrot (clearly fraud) attempting to indicate he filed unreliable claim. McHugh has breached his fiduciary duty to claimants.
  3. Janet Jardin – DII/Halliburton Attorney – A compulsive liar. Clearly doesn’t even know the rules of the DII/Halliburton Asbestos Settlement Trust. Delayed Mandelbrot audit over 12 months and lied throughout the process. Following audit, attempted to mislead Trustees regarding Mandelbrot claims (due to Jardin’s incompetence). Should be fired from Trust. Has time to “tweet” throughout the day, but couldn’t dedicate time to the audit (or was just too stupid to understand the documents).
  4. Marcellene Malouf – DII/Halliburton Attorney – See Janet Jardin, above. Malouf is her sidekick and also a liar.
  5. Beverly Weiss Manne – DII/Halliburton Attorney – Another Liar. Extortionist. Fraud. After Mandelbrot was misled by McHugh for over 4 months following the audit – the negotiation was turned over to Ms. Manne. Turned out to be as much of a liar as the rest of the crew. An enabler of fraud. Lied to Mandelbrot and indicated that the audit should be wrapped up before the end of the year.
  6. Alan Brayton/David McClain/Steven Kazan – Asbestos Claimants Committee Members – Some of the most corrupt lawyers in the Country.


November 2012 – Mandelbrot notifyies of DII Trust and all Trust of ‘bad employee’ John Lynch. Mandelbrot identifies specific DII LLC Asbestos PI Settlement Trust claims impacted in chart provided to Trust (see link below). Mandelbrot, in good faith, withdraws any pending claim with the Trust which has been ‘touched’ by John Lynch so the claims can be filed properly.

November 2012 Declaration Notifying Trusts of John Lynch – See Link

Charts regarding Lynch Discoveries

September 2014 – DII Asbestos Industries Personal Injury Asbestos Trust Suspends Mandelbrot Claims – A violation of Fiduciary Duties and the Trust Distribution Procedures. No notification is provided to Mandelbrot. Mandelbrot discovers claims are put in a “suspended” status and contacts DII Asbestos Trust Managing Director Mary Ellen Nickel.

Link Letter to Trusts – Notification of Lynch 2014 – This letter followed up on September 2011 to Trusts notifying them of convicted felon John Lynch

September 2014 – Mandelbrot speaks with Mary Ellen Nickel and indicates “We know you are a good guy who hired a bad employee (referring to now-convicted felon John Lynch), the audit should be completed in a couple of weeks (the timing of audit as communicated by Mary Ellen Nickel turned out to be a big LIE.


January 2015 – Mandelbrot finally receives notification from the DII Industries Personal Injury Asbestos Trust regarding a targeted audit. Trust attorney Janet Jardin delayed 90 days in sending this request with excuses like “the Holidays are busy…” and “it should be done soon”. Jardin lies to Mandelbrot on multiple occasions before finally sending audit request. LINK – Audit Request to Mandelbrot Law Firm – January 2015 – the largest in the History of the DII Trust

February 2015 – Mandelbrot provides full and complete responses to Trust Audit. All documents proving all claims are provided. Over 100, 000 pages of records including liability documents relating to Halliburton, DII Industries and Worthington Pumps.

August 2015 – After repeated delays (see below) of over 6 months – DII Trust finally provides a Report in response to the Audit showing Trust incompetence, bad faith, fraud and misconduct. It is confirmed at this point that Janet Jardin is incompetent to the DII Trust Liabilities and the racketeering and bad faith are taking place at the Trust – Actors involved in fraud – Greg McHugh, Marcellene Malouf, Mary Ellen Nickel.

Mike, I am writing to provide an update that, due in part to work travel and meeting schedules, we will not be sending the report for a few more days.  So that you have sufficient time to review, we will also push back the call that we initially proposed having on Thursday to the following week.   Regards,Janet JardinAssistant General Counsel – Director of Audit-DII Asbestos Trust

August 2015 – The day after receiving the Fraudulent Report on Audit from the DII Trust – Mandelbrot Responds – Realization Trust Fiduciaries are incompetent, acting with bad faith, delaying claims and colluding. Janet Jardin and Marcellene Malouf exposed as frauds.

 LINK – Mandelbrot Complete Response to DII Targeted Audit – DII Fiduciary Fraud and Incompetence

DII claims remain suspended – Trust Bad Faith

September 2015 – After committing fraud and bad faith (and showing they don’t even know the liabilities of the billion dollar trust they oversee), Malouf and Jardin ‘require’ Mandelbrot to sign a confidentiality agreement. Mandelbrot refuses. Janet Jardin and Marcellen Malouf are pulled off of the Mandelbrot Audit. Mandelbrot now communicates with Trust Counsel Greg McHugh – who proves to be a liar and Fraud (see below). McHugh forces Mandelbrot claimants to sign an incomprehensible ‘confirmation of representation.’ Mandelbrot complies. McHugh admits there is no finding of any wrongdoing and then attempts to ‘create’ fraudulent Mandelbrot claims. McHugh sends Mandelbrot a “new” report on audit and identifies the same claims Mandelbrot identified in the letter of November 2012 (see above) and attempts to now say unreliable claims were filed.

Link – Confidentiality Agreement – Unsigned

Link – Good Faith Mandelbrot Response to September 9 letter – McHugh Fraud (1

Mandelbrot DII Trust Claims remain suspended.

October 2015 – Greg McHugh (after his attempts at fraud failed) is pulled off the Audit and the DII Trust hires Counsel Beverly Manne to attempt to close the audit. Manne attempts to have Mandelbrot sign ANOTHER confidentiality agreement through fraud. Mandelbrot refuses. Manne makes various bad faith requests to Mandelbrot. Mandelbrot refuses.

December 2015 – Beverly Manne lies to Mandelbrot and indicates that she hopes to have audit wrapped up by end of year. Manne then never responds to Mandelbrot requests or e-mails. Mandelbrot claims remain suspended in bad faith. DII Trust Fraud continues.

March 2015: Mandelbrot finally hears from Beverly Manne again (after Mandelbrot had e-mailed her at least 5 times). Manne now attempts to extort claims from Mandelbrot. Bad faith and collusion is clear. Manne has a fiduciary duty to the Trust and claimants but ignores it – here is her actual e-mail (why is she attempting to force me to withdraw the Coots claim – clear tyrannical conduct by Manne).

Dear Mr. Mandelbrot:

 The claims listed below are not DII claims.

 However, the following claimant has filed the following claim with the DII Asbestos Trust: Claim 4180299 (Charles Coots). 

 Did you want to have the Coots Claim 4180299 deemed withdrawn by you?

 Beverly Weiss Manne, Esq.

Mandelbrot refuses the Manne’s request. DII Industries L.L.C. Asbestos PI Trust extortion fails.

March 2015 – Trust Lawyer Beverly Manne e-mails Mandelbrot, rejects Mandelbrot offer to settle, threatens litigation (so Manne can misappropriate funds/bill Trust to meet her hourly requirements). Beneficiary claims continue to sit at the Trust. Bad Faith and misconduct continues. Department of Justice notified.


Corrupt DII Industries L.L.C. Asbestos PI Trust Lawyers are harming your rights….