The U.S. Trustee Program yesterday demanded extraordinary penalties for financial adviser Capstone over alleged coverups during GSC Group Inc.'s bankruptcy, seeking to strip millions of dollars in fees as a heated trial came to a close, Reuters reported today. The U.S. Trustee Program alleged that Capstone deliberately misrepresented the employment status of the adviser assigned to the GSC case in an effort to cover up unlawful fee arrangements. It earlier settled similar allegations against the adviser, Robert Manzo, and against Kaye Scholer, the law firm that advised GSC, which the U.S. Trustee said knew about the fee arrangements. Kaye Scholer agreed to pay $1.5 million and to appoint an independent expert to review its disclosure policies. Both Kaye Scholer and Manzo agreed to leave the case.