Welcome to Inner City Press’ Bank Beat. We aim to scrutinize the industry, from high to low. Our other Reporters cover Community Reinvestment, the Federal Reserve, and other beats. ICP has published a (double) book about the Bank Beat-relevant topic of predatory lending - click here for sample chapters, an interactive map, and ordering information. The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters." See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," by Matt Pacenza, City Limits, Sept.-Oct. 2004. The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site. Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere, which include bank-related topics.
Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER BloggingHeads.tv Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press. Until next time, for or with more information, contact us.
By Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, April 8 – Turkey's Halkbank has
officially given up its strategy of refusing to
official appear in the US criminal case against
it, and on February 25, 2020 appeared and agreed
to be indicted. Inner City Press live tweeted it
here
and below.
On
April 12, 2021 with the case stayed pending
appeal, a three-judge panel of the Second
Circuit heard the arguments. Inner City Press
live tweeted it, here: [& fast podcast here]
On
October 22, 2021, the Second Circuit ruled that
Halkbank is NOT immune.
On
December 21, Halkbank
filed more than 30 pages with
the Second Circuit, seeking a
stay pending appealing to Supreme Court.
Full filing
on Patreon here.
Halkbank
was indicted for Iran sanctions violations and
money laundering in the U.S. District Court for
the Southern District of New York.
Jump
cut to April 8, 2024 when DOJ in a civil case
filed a motion to intervene in and stay, and a
request to move the civil case to Judge Berman
with the criminal case, in Hughes, et al. v.
Halkbank, et all, 23-cv-6481. In that
case, 151 Americans are suing for death or
injuries by Al Qaeda in Afghanistan from 2012 to
2020 and in Syria 2012 to 2013. The US
Attorney's Office writes that it relies on the
factual allegations in US v. Zarrab and facts
adduced at the trial of Attila.
April
8, 2024 letter on Patreon here
The
criminal case is US v. Turkiye Halk Bankasi
A.S., 15-cr-867 (Berman)
The
civil case in which DOJ has moved to intervene,
stay and consolidate is
Hughes, et al. v.
Halkbank, et all, 23-cv-6481
(Vyskocil)
by
Matthew Russell Lee, Patreon Substack
IMF,
April 4 – On Bitcoin and El Salvador, Inner City
Press at the International Monetary Fund on
April 4 asked Spokesperson Julie Kozack about
any linkage between an IMF program and reversing
the legal tender status of Bitcoin there.
Ms. Kozack praised some developments in El
Salvador, but said that addressing the risks of
Bitcoin are a "key element." Inner City Press
also asked about Ethiopia, Papua New Guinea and,
full circle, Sri Lanka. From the IMF transcript,
on El Salvador and Bitcoin:
Matthew
Russell Lee, Inner City Press: "on El Salvador,
some are saying that a program there is in some
way linked to possibly removing bitcoin as legal
tender status. I don't know if that's the
case. And just generally, what can you say
about El Salvador's progress and possible
program?"
IMF
Spokesperson Kozack: "IMF staff continue to
engage constructively with the Salvadorian
authorities with the objective of reaching an
agreement on an IMF supported program.
Discussions are focused on policies to
strengthen fiscal and external sustainability
and to boost productivity growth and strengthen
economic governance.
Addressing
risks arising from Bitcoin is a key element of
our discussions with the authorities.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
March 23 – The fintech Current has been sued for
discrimination by former employee Isabelle
Mitura. On March 22, 2024 the parties were
before U.S. District Court for the Southern
District of New York Judge Valerie E. Caproni.
Inner City Press was there, the only media in
the courtroom.
The
complaint alleges that Finco Services / Current
"Head of People" Sergiyenko described
Mitura as "an old Asian woman with no kids" to
CEO Stuart Sopp, "who expressed frustration at
having to interview too many Indians for the
Chief Risk Officer position."
While
Mitura took leave after a breast cancer
diagnosis, her job was given to a replacement
who "had built relationships within the company
while she was on leave" - and she was
terminated.
Now
Current's lawyers want all of her oncology
records. Judge Caproni said they can get some,
but not all. Fact discovery closes on July 19,
with another conference on July 26 at 10 am.
The case is Mitura v. Finco Services, Inc., et al., 23-cv-2879 (Caproni)
***
SOUTH
BRONX, March
22 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt.
But
still no records as of March 22, so this:
This
is a FOIA request for the entirety of Capital
One's applications for regulatory approval of
its Discover proposal, including all portions
for which Capital One has requested confidential
treatment, and all communications by your agency
with the banks since February 19. As of March 22
at 1 am, the Fed's most recent H2A is from March
15
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, March 15 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," paperback
coming (in the morning?) for now, 200 page ebook
here.
Soft cover here.
"He
did not know then how it or he would turn out.
It could have been called, Crypto Houdini. But
it wasn't." And a second trial?
Well,
no. Past 6 pm on December 29, 2023 the US
Attorney Office wrote to Judge Kaplan "to
provide notice to the Court and the defendant
that it does not plan to proceed with a second
trial in the above-captioned matter." So no
evidence and cross examination about the
campaign finance and China bribe counts, no
getting to the bottom of who took the money. It
is known that officials in the Bahamas, whose
request to drop these charges DOJ cited in
severing them, took SBF's and FTX customers'
money.
SBF's
new lawyers Mukasey and Young's sentencing
submission was due Feb 27
Past
11 pm on February 27, SBF's memo posited his
sentencing guideline at 63 to 78 months and
asked for a sentence "that returns Sam promptly
to a productive role in society." Memo on
Patreon here
On
March 15, the US Attorney's Office put in a 100+
page memo, asking for a prison term of 40 to 50
years. US memo on Patreon here.
More
on X for Subscribers
here, Substack here
We'll
have more on this.
***
Your support means a lot. As
little as $5 a month helps keep us going and grants you access
to exclusive bonus material on our Patreon page. Click here
to become a patron.
by
Matthew Russell Lee, Patreon Substack
SOUTH
BRONX / SDNY, March 7 – A year after the failure
of Silicon Valley Bank and Signature Bank, the
International Monetary Fund has warned of more
trouble, just as NYCB teeters. Inner City Press
on March 7 asked the IMF about it, video here.
The
IMF had said, "the high concentration of CRE
[commercial real estate] exposures represents a
serious risk to small and large banks amid
economic uncertainty and higher interest rates,
potentially declining property values, and asset
quality deterioration.”
Small
banks retain “exceptionally high CRE
concentration for which losses could compromise
their safety and soundness”, it added. Nearly
33% of US banks have commercial property loan
books which are so big versus their capital
buffers that they exceed regulatory guidance. So
where are the regulators?
Inner
City Press asked the IMF spokesperson, noting
the Mnuchin investment in NYCB (and imposition
of Joseph Otting as CEO).
IMF
Spokesperson Julie Kozack replied that the risk
is real and is being studied, with more to come
in the GSFR. Watch this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, Feb 29 – With no public comment
period, New York Community Bank has been handed
the 40 branches of Signature Bank, to re-open
them as braches of Flagstar, which NYCB bought
in a proceeding delayed by fair lending
problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.SOUTH
BRONX,
Feb 23 – As US bank regulators talk about
working to increase the fairness of the
financial system, and closely scrutinizing
mergers and the spread of bad practices, banks
continue to assume they can combine.
Before this week's Capital One - Discover
proposal, and ABA lawsuit against the Community
Reinvestment Act regulation, there was
FirstSun Capital Bancorp of Denver and Dallas
saying it will merge with Homestreet, Inc. and
Homestreet Bank of Seattle, Washington.
On February 23 Fair Finance Watch with Inner
City Press on the FOIA filed with the Federal
Reserve: "FirstSun's flagship Sunflower Bank, in
Texas in 2022, made 694 mortgage loans to
whites, and only 41 to African Americans.
Meanwhile it denied 12 applications from African
Americans, and only 34 from whites.
This is disparate, and more disparate both than
the aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
HomeStreet, meanwhile, is politely said to have
had a "tough" 2023.
FFW and Inner City Press have been deeply
concerned about the rush by the Federal Reserve
to rubber-stamp mergers by redliners, money
launderers and predatory lenders. This has been
killing the Community Reinvestment Act and so a
timely request public hearings.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Feb 9 – Mendel
Zilberberg was indicted for
bank fraud while he was a
board member of Park Avenue
Bank. His trial was to start
on January 23, 2023 - but actually began
on July 5, 2023. Inner City
Press was there - all the way
to the verdict:
" JURY
VERDICT as to
Mendel
Zilberberg (1)
Guilty on Count
1,2,3,4,6." Sentencing
is scheduled
for November
29, 2023,
before Judge
Daniels.
Back on
January 11, 2023 U.S. District
Court for the Southern
District of New York Judge
George B. Daniels held an
in-person final pre-trial
conference. Inner City
Press went to cover
it.
But even as the
next defendant, in a gun case,
had his family setting up in
the gallery, in the well of
the courtroom Zilberberg's
lawyer Ben Brafman was
conferring with the
prosecutors.
When
Judge Daniels took the bench,
the parties asked for an
adjournment, in light of
20,000 pages of FDIC documents
just produced. No new trial
date was agreed. Instead, a
March 28 pre-trial conference
was scheduled.
Judge
Daniels asked about a related
loan, to Zilberberg's niece.
The
prosecutor emphasized that she
was a special education
teacher, and did not have a
business for the business
loan. Judge Daniels said it
might be cumulative, and/or
prejudicial.
Brafman
said the jury could be
confused by the issue of
taking advantage of a younger
relative. Judge Daniels asked
for a letter.
Brafman wrote in the
Loan 2, the Niece Loan,
"has little, if any,
probative value."
On March
21, Judge Daniels had
a final pre-trial conference
and largely agreed,
unless the door
is opened
during the
trial to this
loan. The
trial was
moved up to
July 5 for jury
selection.
On
April 10, co-defendant
Aron Fried who
pled guilty
submitted a
lengthy but
redacted
sentencing submission,
including on
medical
condition,
asking for a
below
guideline
sentence. But
how
much below?
On
April 13, the
US Attorney's
Office asked
for 30 to 37
months.
On
April 18,
Inner City
Press went to
Fried's
sentencing. There
were more than
a half dozen
supporters
in the gallery.
Judge Daniels
asked about
what Fried
knew, and
when. Fried
spoke of bone
cancer and
bad advice.
Judge
Daniels
sentencing
Fried to a
year and a
day. Lead
defense counsel
asked for home
confinement -
Judge Daniels
said no but
that he might
reconsider if
major
(presumably
negative) developments
on health
before the surrender
date. Defense
counsel asked
for a recommendation
of designation
to Otisville.
On July
5 the trial
began. Ben
Brafman told
teh jury to pay
attention to
his cross
examination of
the
cooperator,
and return
with a verdict
of not
guilty. Then
the US put on
the stand a
man who makes
prosthetic limbs and
who
sought a loan
from Park Avenue
Bank.
On July
6, the
prosecution put
on the stand
FDIC Examiner Todd
Goodman and
showed notes
and his and the
NYSBD's
meetings with
Park Avenue
Bank, about
loans in violation
of Reg O and
TARP
subpoenas. Zilberberg
was there.
On July 7,
the prosecution
put on a
witness
drilling down
into particular loan
applications which
Zilberberg had
pushed, based
on "high
credit score and
debt service
coverage ratio."
Some jurors' eyes
rolled. Elsewhere
in the SDNY
courthouse on
July 7 Judge Jed
Rakoff derided
mandatory
minimum sentences
and the trial
penalty they
impose. The former
doesn't apply
here - so would
the
latter?
On July
10, the charge
conference was
held, with the
AUSA asking to add
to the jury
instruction
about being
able to disregard
the testimony
of a witness
found to have
testified
falsely, but
Judge Daniels
saying such an
instruction
might go too
far.
And
then the
verdict: "
JURY VERDICT
as to Mendel
Zilberberg (1)
Guilty on
Count
1,2,3,4,6."
On August
11
Zilberberg's
counsel wrote
to Judge
Daniels that
he "will reply
on the record
and arguments
made as part
of his Rule 29
motion and
will not be
filing post-trial
motions in
this matter."
On
February 5,
2024, Zilberberg's
counsel wrote
in asking
for a sentence
of probation
with a period
of home
confinement -
then redacted. The
submission
does, however,
mention the
Binyan Adey Ad
organization,
and The
Menorah
Project of A
TIME.
Days
later, the US
wrote in
asking for a
sentence of 48
months. Watch
this site.
This case is US v. Zilberberg, 19-cr-802 (Daniels)
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
NY Feb 5 – When First National Bank of
Pennsylvania applied to the Federal Reserve to
buy Yadkin bank in North Carolina, Fair Finance
Watch challenged it on Community Reinvestment
Act and fair lending grounds.
The
Federal Reserve, as usually, rubber stamped the
merger. Now in February 2024 the
Justice Department had sued and settled with FNB
on fair lending grounds.
Inner City Press had wanted to ask DOJ about the Fed (including in its recent Patriot Bank action), but has been unable so far. Watch this site
February 5, 202424by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, Feb 3 – With no public comment
period, New York Community Bank has been handed
the 40 branches of Signature Bank, to re-open
them as braches of Flagstar, which NYCB bought
in a proceeding delayed by fair lending
problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.by
Matthew Russell Lee, Patreon Book
Substack
SDNY EXCLUSIVE,
Jan 26 – The family of an American contractor
who died in his native Kansas after release from
kidnappers in Iraq has sued HSBC and other banks
- but nearly all of the case is sealed.
On January 26, 2024 a conference in the case was
held. The discussion was about an anonymous Doe
witness about information in the National
Iranian Oil Company.
He cannot be questioned about any of the details
of his work or where he got the information, for
fear of retaliation from Iran. His testimony -
sealed? - will be by Zoom, with him sworn in by
name before the Court, then again without name
before others.
Even the complaint in the case is sealed, as of
January 27. Inner City Press, which has
repeatedly asked the UN about its solicitude
toward Iran, will continue to cover the case
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Jan 19 – JPMorgan Chase
bought a start-up called
Frank, which claimed to have 4
million students signed up to
file their FAFSA forms, for
$175 million. Then Chase
learned Frank had only 300,000
customers.
On April 4, 2023, Frank founder Ms. Charlie Javice was brought before U.S. District Court for the Southern District of New York Magistrate Judge Barbara C. Moses
On July
27, the
prosecutors
wrote it to
say they are
unavailable
on August
15, and that
the Court said
it would be
available
on September
20. But Javice
will not consent to exclude
Speedy Trial
Act time
until then.
Letter on
Patreon here.
On
August 23,
Inner City
Press was
there. Thread.
By
Matthew Russell Lee,
Patreon
Podcast Order
SDNY
COURTHOUSE, Jan 20 -- For scam crypto currency
OneCoin, Sebastian Greenwood who co-founded the
company with Ruja Ignatova was sentenced to 20
years in prison by U.S. District Court for the
Southern District of New York Judge Edgardo
Ramos on September 12, 2023. Inner City Press
was there and live tweeted, thread here
On
January 19 Mark Scott, convicted at trial,
submitted a heavily redacted sentencing
submission, asking for "no more than five years
of imprisonment." Inner City Press immediately
wrote in seeking to unseal. Later on January 19,
the US Attorney's Office asked for 17 years.
We'll have more on this.
Inner
City Press had sought the unsealing of
Greenwood's 33 sentencing letters but with him
opposing (citing a Mafia case) and the US
Attorney's Office inappropriately taking no
position, it was denied. Judge Ramos'
order is here.
On
October 10, Inner City Press filed Notice of
Appeal of the sealing of all of Greenwood's
letters. On December 21, represented by pro bono
counsel Brian D. Ginsberg of Harris Beech, the
request to extend the time to brief this
important court transparency appeal was
extended, by Second Circuit Judge Jose A.
Cabranes, to March 18, 2024, here.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
January 15, 2024 For Front Running at Morgan Stanley Passi Gets Deferred Prosecution Agreement Not a Felonby
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Jan 12 – Morgan Stanley conspired in
front-running from 2018 to 2021 and on January
12 got a non prosecution agreement and fine.
Senior
official Pawan Passi got a deferred prosecution
agreement and, to ensure no felony record,
formally pled not guilty before U.S. District
Court for the Southern District of New York
Magistrate Judge Robyn F. Tarnofsky. Inner City
Press live tweeted, thread:
All
rise! Milbank for Pawan Passi [3 lawyer at
defense table] Judge Tarnofsky: You are charged
in an information...We will address your
conditions of release. [Pre-Trial Services is
here, but no formal court reporter]
Judge:
You are charged with securities fraud. Passi:
Not guilty. Defense: We've entered a deferred
prosecution agreement. Judge: OK, no Brady [5f]
order.
DOJ,
giving thr DPA deal, says Passi promised sellers
of equity blocks MORGAN STANLEY would keep info
on their potential sales confidential, knowing
that he would disclose that info to buy-side
investors who usedthe info to trade in advance
of the block sales.
Judge:
DOJ can release you from supervision at any
time, do you understand? Passi: Yes. Judge: You
are released on your own recognisance. Control
date May 13.
It's
signed and done.
Deferred Prosecution Agreement on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Jan 11 – When the International
Monetary Fund held its embargoed press briefing
on January 11, 2024, Inner City Press asked for
the IMF's view of the attacks on ships in the
Red Sea and on the US SEC's approval the day
before of spot Bitcoin EFTs.
The IMF spokesperson put on the screen the
Fund's Port Watch and provided statistics on hte
impact on shipping. After reiterating the IMF's
position on crypto that it has benefits as well
as making monetary policy more difficult, among
other things, she said the IMF is studying the
SEC's approval and may have more to say.
Inner City Press also asked what is the goal of the IMF's current mission in Sri Lanka. To assess the Program, she said, which last month disbursed $337 million.
Back
on September 28 Inner City Press asked the IMF
and crypto, mere days before the SDNY trial of
FTX's Sam Bankman-Fried on fraud charges:
"At
the G20, Deputy Managing Director Gopinath on
crypto-currencies said that 'the good thing is
there’s no talk of banning crypto I mean the
idea that crypto is tough to ban has kind of
gone through...It’s going to be much less of the
Wild West with better data and
transparency.' Can you explain more, and
separate give some/any examples of this better
data and transparency?" Video here
Spokesperson
Julie Kozack directed Inner City Press to the
Fund's recent paper; later in the briefing she
cited concerns at El Salvador and Bitcoin. Watch
this site.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
January 8, 2024 Netflix BitConned Has Crypto Rat Tripani Bragging Before Time Served SDNY Reviewby
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Jan 6 - In covering cryptocurrency cases and
crimes in Federal court in New York, Inner City
Press is often asked to assist on possible
documentaries about OneCoin, Ruja Ignatova and
Sebastian Greenwood, SFB and maybe soon Do Kwon
and SafeMoon's Karony.
But one cryptocurrency true-crime is out this
month on Netflix: BitConned, about Ray Tripani
(the cooperator), Robert Farkas, and Sohrab
Sharma.
Inner
City Press covered their sentencings, and
Sharma's remand for violation of pre-trial
supervision. So now, its review of the Netflix
flick.
The
chutzpa of Tripani, giving interviews about
ongoing scams will awaiting sentencing, is
surprising.
They
show 40 Foley Square, then have an actress read
from the sentencing transcript. Tripani is said
to start a business lending at 50% interest -
illegal in New York State. But he's in
Florida.
Will we see him on a Violation of Supervised Release? Watch this site - and the flick.
***
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, Dec 29 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," paperback
coming (in the morning?) for now, 200 page ebook
here.
Soft cover here.
"When
at last the Sam Bankman-Fried trial started on
October 3, 2023 with jury selection, after Sam
had been remanded to the MDC jail, the courtroom
on the 26th floor was full, and an overflow room
established on the 23rd. The author went
back and forth between them, and down to the
Press Room he'd been admitted to after six
months of covering cases here, after he was
thrown out of the UN...
"He
did not know then how it or he would turn out.
It could have been called, Crypto Houdini. But
it wasn't." And a second trial?
Well,
no. Past 6 pm on December 29, 2023 the US
Attorney Office wrote to Judge Kaplan "to
provide notice to the Court and the defendant
that it does not plan to proceed with a second
trial in the above-captioned matter." So no
evidence and cross examination about the
campaign finance and China bribe counts, no
getting to the bottom of who took the money. It
is known that officials in the Bahamas, whose
request to drop these charges DOJ cited in
severing them, took SBF's and FTX customers'
money. We'll have more on this. Letter on
Patreon here.
***
Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.
December 25, 2023 In OneCoin Case Konstantin Wants Longer Curfew as Inner City Press Appeal Due MarchBy
Matthew Russell Lee,
Patreon
Podcast Order
SDNY
COURTHOUSE, Dec 22 -- For scam crypto currency
OneCoin, Sebastian Greenwood who co-founded the
company with Ruja Ignatova was sentenced to 20
years in prison by U.S. District Court for the
Southern District of New York Judge Edgardo
Ramos on September 12, 2023. Inner City Press
was there and live tweeted, thread here
Now
on December 22 Konstantin Ignatov's lawyer has
written in to further loosen his conditions of
release: "Re: USA v. Ignatov Dear Judge Ramos,
The defendant in the above matter continues to
participate in community service at the soup
kitchen... He wants to work a shift from 10:00
AM to 6:00 PM. We request that Mr. Ignatov’s
bail conditions be modified such that he has a
curfew set at the discretion of pre-trial
services. Pre-trial service does not object to
this request. The government defers to
pre-trial." Full letter with more details on
Patreon here.
Inner City Press had sought the unsealing of Greenwood's 33 sentencing letters but with him opposing (citing a Mafia case) and the US Attorney's Office inappropriately taking no position, it was denied. Judge Ramos' order is here.
On
October 10, Inner City Press filed Notice of
Appeal of the sealing of all of Greenwood's
letters. On December 21, represented by pro bono
counsel Brian D. Ginsberg of Harris Beech, the
request to extend the time to brief this
important court transparency appeal was
extended, by Second Circuit Judge Jose A.
Cabranes, to March 18, 2024, here.
***
Your support means a lot. As
little as $5 a month helps keep us going and grants you access
to exclusive bonus material on our Patreon page. Click here
to become a patron.
By
Matthew Russell Lee, Patreon Maxwell
Book
SDNY
COURTHOUSE, Dec 14 – A scandal of Allianz
that has been brewing since the collapse of its
investment funds as COVID set has given rise to
guilty pleas of two cooperators, and the
indictment of Gregoire Tournant, by Southern
District of New York prosecutors on May 17,
2022.
More
than a year and a half later on December 14,
2023, this order: "as to Gregoire Tournant re:
MOTION for Bill of Particulars and to direct the
government to produce Brady material, dismiss
the wire fraud object of the conspiracy charge,
strike Count Three or Four as multiplicitous,
and strike as surplusage paragraphs 7 and 69 of
the Indictment filed by Gregoire Tournant. For
the reasons explained above, the Motion is
granted to the extent that the Government must
provide a bill of particulars identifying the
institutional and individual investors and
prospective investors, as well as any
consultants, that the Government will or may
attempt to prove were victims of the scheme
alleged in Count One of the Indictment. The bill
of particulars must be provided by December 20,
2023. The Motion is denied in all other
respects. (Signed by Judge Laura Taylor Swain on
12/13/23)."
At
issue are Allianz Global Investors U.S. LLC's
Structured Alpha Funds; the cooperators are
Stephen Bond-Nelson, who along with Tournant was
discharged in late 2021, and Trevor
Taylor.
At 3
pm AGI pleaded guilty, and even got a sentencing
date, in a peak of corporate personhood. Inner
City Press live tweeted here and below.
Jump
cut to June 2, when Gregoire Tournant was
arraigned before SDNY Chief Judge Laura Taylor
Swain. Inner City Press live tweeted here
Earlier
in the day, Inner City Press went to the SDNY
press conference and asked if the US Attorney's
Office anticipates seeking any jail time for
Taylor and Bond-Nelson - who left his SEC
interview, ostensibly for a bathroom break, and
never came back.
Inner
City Press has uploaded Bond-Nelson's
cooperation deal to Patreon here.
US Attorney Damian Williams replied that it is
early in the cooperation so too early to tell.
To Inner City Press' question about whether his
Office worked with BaFin or other German
authorities, he declined to say, emphasizing the
collaboration of DOJ, the Postal Inspectors and
SEC.
The
prosecutors' statement of facts goes out of its
way to say "The misconduct occurred only within
the small Structured Products Group at AGI US.
The Government’s investigation has not revealed
evidence that anyone at AGI US outside of the
Structured Products Group was aware of the
misconduct before March 2020. The investigation
also has not revealed that anyone at any other
organizations that fell within the broader
umbrella of the parent company Allianz SE was
aware of or participated in the
misconduct."
Allianz has previously been fined by the US OFAC
for sanctions violations, and for example hit
with penalties by the Bermuda
Monetary Authority.
Inner
City Press will stay on the case - watch this
site.
The case is US v. Tournant,
22-cr-276 (Swain)
***
by
Matthew Russell Lee, Patreon Book
Substack
UN
GATE, Dec 5 – The UN's climate change conference
has as its president the head of the United Arab
Emirates' oil company, ADNOC.
As UNSG Antonio Guterres defends and covers for
him, Sultan Al Jaber has said that there is “no
science” to support the need to keep warming
below 1.5 degrees Celsius and that phasing out
fossil fuels would “take the world back into
caves.” From Guterres? Nothing. And his
propaganda circle of in-house scribes ask him
nothing.
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX NY,
Dec 1 – The long
delayed small business data reporting provision
of the Dodd Frank Act is in play again in
Congress.
This while Bank of America was just outed and
fined for gaming the Home Mortgage Disclosure
Act for four years or more, and fined for it.
On
November 28 the House Rules Committee held a
hearing to move forward S.J.Res. 32, targeting
the CFPB's rule.
Pennsylvania
Rep. Scanlon pointed out at the COVID PPP loan
program went in the first instance to the
"concierge" clients of big banks. (There was
also much related fraud, which Inner City Press
reported on daily in the SDNY and other Federal
courts).
New Mexico Rep. Leger Fernandez pointed out the
lack of access to capital in rural area.
S.J.Res.
32 is slated to come up on the House floor, like
George Santos, this week. NCRC resources here;
Inner City Press will stay on this - and on Bank
of America and its kin.
***
by
Matthew Russell Lee, Patreon Book
Substack
FEDERAL
COURT, Nov 22 – After Changpeng Zhao or CZ of
Binance pled guilty to money laundering and
sanctions violations, a Federal Magistrate ruled
that he could travel back to the United Arab
Emirates until his sentencing in February
2024.
The
US Attorney's Office said it would appeal to the
assigned District Judge, and on November 22 it
did. It notes that
"the
United States has no extradition treaty with the
UAE. If Zhao decided he would not return for his
sentencing, the government would not be able to
secure his return.. Zhao is a
multi-billionaire. The government believes that
the vast majority of that wealth is held
overseas and Zhao is believed to have hundreds
of millions of dollars in accessible
cryptocurrency. Zhao could live on that wealth
in the UAE indefinitely." Full memo on Patreon here.
Two
people, undisclosed for now, have agreed to
forfeit property if CZ were to not return. We'll
have more on this.
Terraform
Labs SEC Case Moves Toward Trial
with Experts Grilled and Howey
Briefing
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Nov 17– The SEC's case against Terraform
Labs is moving toward a January 2024 trial. On
November 17 US District Court for the Southern
District of New York Judge Jed S. Rakoff held a
hearing on potential trial experts. Inner City
Press live tweet, thread:
OK -
now in crypto case of SEC v. Terraform Labs Pte
Ltd. et al - defendants want in a defi
expert, Professor Parlour, from Berkeley.
SEC
lawyer: Prof Parlour says the use case for UST
was as a fiat replacement- but admits she's
never seen that. We'll be calling Terra
employees as witnesses. Prof Christine
Parlour takes the stand, and says (in British
accept) I put the system design in context
Judge
Rakoff: So we're talking crypto securities- I
mean cryptocurrency, I'm sure no one is
interested in that distinction (grins) This case
alleges fraud Parlour: The DiMaggio paper has a
limited scope. Judge Rakoff: I'll rule by
Thanksgiving.
Judge:
The next proposed defense expert didn't do the
analysis himself, Cornerstone Research did. SEC:
He has no certifications in blockchain analysis.
Now Raj Unny on the stand. Judge: How much are
you being paid? Unny: $950 an hour. Judge: Do
you want a raise?
Unny:
I know the code. Judge: Why is the name of the
company that tried to maintain the peg in May
2021 kept confidential? Counsel: They asked for
it. Judge: I'm about to say their name Company's
outside counsel " Elliot Bacon" says the
material is confidential
Judge:
The name of the company is Jump, jumping right
into it.
SEC:
Jump has an incentive to support the peg. Judge:
Sure there were motivations. But this proposed
expert was looking at the effects of Jump's
trading, not its motives. SEC: Jump earned a
$400,000 profit from a long position in UST.
Terrence
Hendershott: The motivations don't go into the
statistical model. Judge: You were paid
$1400 an hour. Why more than Ms Parlour?
Hendershott: I have more experience.
Judge:
But are your opinions within your area of
expertise? Hendershott: I've studied technology
and markets for 30 years. Judge: I will let the
SEC question you - like Perry Mason, go up to
him. SEC: You estimate Jump made $400,000?
[Note: that 400 thousand]
Next
proposed expert is on stand. Defense lawyer: If
Jump trades ten seconds apart, does your model
consider if there was another trader- SEC's
rebuttal expert [to Hendershott] I don't see
one. I used the same data in both reports.
Judge: SEC questions?
SEC:
What occurred that day between 13:30 and 14:00?
A: The Jump witnesses will tell us. Next SEC
expert is Matthew Edman Judge: How tall are you?
Edman: 6'3". I reviewed source code. Judge: SEC
alleges it was a lie that Chai was using the
blockchain
Edman:
The inputs from the server were not available
for review SEC: Defendants says they couldn't
get it from Naver Edman: That's like the AWS of
Korea Judge: We'll break here
We're
back. 2d defense lawyer: We too are interest in
Chai and the LP server. Judge: Is any of this
data in the US? TFL lawyer: No. It's all in
Korea. Judge: I can compel anything in the US.
There's the Hague Convention, or I can write
letters to judges overseas
Edman:
I reviewed posts by Do Kwon in which he claimed
some transactions were Chai
transactions... Judge: We're done for
today. Get me Howey briefing. I will get you a
bottom line decision by Thanksgiving. Inner City
Press will cover it
There's
more: SEC: Will Do Kwon attend? TFL lawyer: We
can't know. Judge: We need to know by late
December. Oh and I'll speak at Columbia but not
about thus case, only Howey.
More
on Substack here
The
case is Securities and Exchange Commission v.
Terraform Labs Pte Ltd. et al., 23-cv-1346
(Rakoff)
Do Kwan's criminal case has been assigned to District Judge John P. Cronan, after his arrest at the airport in Montenegro.
The
indictment, formally against Do Hyeong Kwon,
cites Terra LUNA and TerraUSD. South Korea has
also asked that Do Kwon be extradited.
Inner City Press, which covers all things crypto
in the SDNY and beyond, is tracking it.
The
SDNY case is US v. Kwon, 23-cr-151 (Cronan)
***
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, Nov 2 – For US v Sam Bankman-Fried,
after more than a day of jury selection, late
morning on October 4 the twelve and six
alternate were selected. Inner City Press live
tweeted the voir dire here
and more below
On
Nov 2, the verdict, in thread here
OK -
now counsel have reassembled in the courtroom.
SBF still not brought back in. AUSA Thane Rehn
flipping through a document redactions. Judge
Kaplan: So, I just want to make a record of the
various notes
Judge
Kaplan: An hour ago the jury asked for the
testimony of Boroujerdi (of Third Point) and
Matt Huang (of Paradigm). They also asked for
Post-It notes, and the actual indictment. Now
we'll wait for further communications
Now
with the prosecutors (and judge) out of the
courtroom, SBF is standing twisting something in
his hands while his lawyer Mark Cohen speaks
into his ear. Now SBF is being led out of the
courtroom again by US Marshals
For
those asking about Huang, here's from Inner City
Press thread: "AUSA: Were you told that FTX was
transferring money from this round of financing
to Alameda? Huang: No. And we would not have
invested. We invested $278 million. We've marked
it to zero."
ALERT:
Courtroom deputy Andy: We have received a note
from the jury that they have reached a verdict.
[Inner City Press will live tweet, below]
Judge
Kaplan: Madam Foreperson, I understand the jury
has reached a verdict. Please hand it to Andy.
Thank you. The clerk will publish the verdict.
Please rise. Count 1: Guilty. Count 2: Guilty.
Count 3: Guilty.
Deputy:
Count 4? Guilty. Count 5: Guilty Count 6:
Guilty. Count 7: Guilty. Deputy: Thank you.
Judge Kaplan: There's another question, Andy.
Deputy: Either or both? Both.
SBF's
lawyer Mark Cohen: We would like the jury
polled. [Verdict is confirmed]
Judge
Kaplan: Jurors, I thank you. You did what we
hope all citizens do when called for service.
That was your call. In just a minute I am going
to discharge you. You can speak about it
Judge
Kaplan: If you do speak, be sensitive to the
feeling of other jurors. If anyone involved in
the case contact you and you say no and they
don't take no for an answer, I will take
appropriate steps if I lawfully can do so. Leave
your notes there
Judge
Kaplan: We have scheduled a second trial for
March 11 [2024]. Let me know by February 1 if
that is going to proceed. I want an update on
that. What is the government's position on
setting a sentencing date on this? AUSA Roos:
Let's get the PSR process going
Judge
Kaplan: I'll need Andy for that. Or I can fly
blind, let's see if I can get my own calendar
up. We'll set sentencing for March 28 at 9:30 in
morning. Defense submission by Feb 16, US by
March 8. Enough time, Mr. Cohen? Cohen: Could we
have more time?
Judge
Kaplan: Feb 27, March 15. Anything else? Cohen:
Post trial motion schedule - we ask for the 20th
of November. AUSA Roos: Can we have 3 weeks?
Judge Kaplan: Dec 11. Anything else? Cohen: No.
Roos: No. Judge Kaplan: Good job all around.
Thanks. All rise!
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, Oct 27 – For US v Sam Bankman-Fried,
after more than a day of jury selection, late
morning on October 4 the twelve and six
alternate were selected. Inner City Press live
tweeted the voir dire here
and more below
On
October 27, SBF was on the stand all day. Inner
City Press live tweeted, including thread
Cohen:
Why did you where the shorts and T-shirts? SBF:
I found them comfortable. Cohen: Why the long
hair? SBF: I was lazy.
Cohen:
Who is in this photo: SBF: Katy Perry, Michael
Kives, Kate Hudson and me. We were running a
Super Bowl ad.
Cohen:
When had you met Michael Kives? SBF: It was
Kives' and I had been wandering the stadium, I
ran into them and they invited me in
Cohen:
Did you invest in Kives' K5? SBF: Yes. I thought
they had promising incubations. And celebrity
contacts. Cohen: Did you want to contribute to
candidates? SBF: Yes. In 2020, then more in 2021
and 2022. Cohen: Why? SBF: I thought I could
impact the world
SBF:
I was interested in pandemic prevention. So I
thought policy was important, Congres and the
Executive Branch. Some were by FTX for crypto
currency lobbying - some, not most. Cohen: The
crypto lobbying was for? SBF: A US regulatory
structure
Cohen:
Who else made donations? SBF: Nishad and Ryan
Salame? Cohen: Did you discuss them with Mr.
Salame [he pronounces it Salaam]? SBF: No.
Cohen: Your donations were from? SBF: Loans from
Alameda research.
Cohen:
Did you work with political consultants? SBF:
Yes. I had a full time job. So I hired them.
Cohen: Did you know Michael Sadowsky? SBF: He,
of Guarding Against Pandemics. Cohen: What about
Congressmembers? SBF: I discussed crypto and
other issuesCohen: Did you testify to Congress?
SBF:
Late 2021, and early 2022 and one in late Spring
early Summer of 2022. The House Financial
Services Committee invited me. I declined. They
invited more strongly and I accepted. Then
Agriculture, about the CFTC.
SBF:
Then Agriculture had a hearing about our
application to the CFTC. Our competitors were --
AUSA: Sassoon: Objection. No foundation. Judge
Kaplan: Sustained. Cohen: New topic. Are you
familiar with EcoSerum and SRM? SBF: Yes. I
spoke with Nishad about it
SBF:
I spoke with them about if our 2021 revenue was
in fact over $1 billion. Cohen: Why was that
important? SBF: It's a round number.
Cohen:
Why did FTX use Slack and Signal? SBF: They are
conversational. Cohen: What is encryption?
SBF: It's like in World War II... on the
Internet, it's about only the sender and
receiver seeing the message. We thought it
was good.
AUSA
Sassoon: Objection - who is "we"? SBF: I am
sorry, I meant me, I often say "we" to not
single myself out from other employees. Cohen:
What about records retention? SBF: Some had to
be kept, some should be not kept, and then those
in the middle.
Cohen:
What about these calls? SBF: We had on Dan
Friedberg.. and Brett Harrison.
by
Matthew Russell Lee, Patreon Book
Substack
LITERARY
SDNY, Oct 19 -- Nineteenth day of October and
the prosecutors of SBF put just two witnesses on
the stand. The first was former General Counsel
Can Sun, in thousand dollar glasses, fresh in
from Japan with a non-prosecution agreement.
He was shocked, he insisted, when he learned
that there were seven billion dollars missing.
Not so shocked, however, that he didn't do his
lawyerly job and provide Sam with alternate
plausible explanations of the missing money.
Escheatment,
that was his big one. A longer word for
cheating? No, the seizure of dormant cash.
Natch.
Next and last before the weeklong break was the
head of Third Point in Hudson Yards, one
Boroujerdi. He had stayed up late in his NYC
apartment to talk to Sam by Zoom from Hong Kong
about the risk engine.
He insisted he never would have invested if he'd
known Alameda was exempt from it. There was
virtually no cross examination.
Kurt Wheelock went to start writing up
the story, such as it was - then realized the
parties were still in the courtroom. He rushed
back up, but the door was being locked. He
waited outside.
Later one of the defense team came out and joked
that it had only been about a mis-numbered
exhibit. Oh and that Sam was getting his meds.
Would he be testifying next week? Their Request
to Charge left it both ways.
More
on this on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
LITERARY
SDNY, Oct 13 -- Thirteenth day of October and on
the stand in the SBF trial trial was the former
CEO of the now-bankrupt BlockFi, Zac Prince.
They'd
lent a billion dollars to FTX and Alameda and
lost $650 million of it when the dust so quickly
settled.
SBF's
lawyer Cohen, in another meandering cross
examination, asked if he hadn't known that FTT
was illiquid.
But
how was that the point? Had he known that FTX
was taking customers deposits and letting
Alameda use them, to make huge "loans" to Sam
and the others?
Speaking
of Sam(s), where was Sam Trabucco? It emerged --
Kurt Wheelock spotted -- that Sam Trabucco, who
supposedly left Alameda in August 2022 before
the sh*t hit the fan, was still on a four-person
Signal chat on D-Day, November 5, 2022, the one
in which Ellison said she'd offer to buy all of
CZ's FTT at $22.
Some replied that maybe he'd just been left on
the chat. That seemed unlikely, given that only
four people were on it: Sam Bankman-Fried,
Caroline Elison, Ben Xie and.. Sam
Trabucco.
Then others argued that Sam Trabucco, at least
in the part of the chat the prosecutors had put
into evidence, had not "said" anything. But he
should have been and will should be indicted not
for his role on November 6 but for his active
involvement in the China bribe: conspiracy to
violate the FCPA. It was open and shut.
Prosecutorial discretion, Kurt was finally told.
But he'd seen this before, when they went after
those who paid bribes in the UN but not those
who took them, who remained there, all the way
to the top.
Kurt's view was that while prosecutorial
discretion might knock down in court a defense
of selective prosecution, it was something that
had to be looked at, in detail.
These
were offices that wielded power, power to put
people in prison or to allow some criminals to
go free. But to cover them, journalistically,
people needed access and that led to a certain
kind of stories.
To say they were appointed by the party in power
was just the start of it. The issue has come up
in the Ghislaine Maxwell case, when Kurt and
others had derided the narrow prosecution,
others being allowed to get away. But this was
different
More
on this on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
LITERARY
SDNY, Oct 6 -- Sixth day of October and in the
SBF trial Judge Kaplan was growing angry with
Sam's lawyers.
It
happened during the cross examination of Gary
Wang, who was in his second day of testimony,
with a third to come.
It
had been said he couldn't speak but here he was,
speaking. And taking Sam apart.
Gary explained how Alameda could trade faster
than others on FTX. (On cross, Everdell try to
ascribe this to not having to go through
CloudFlare).
How
Sam lied on TV and on Twitter, and on phone
calls Gary overheard as Sam walked around the
Bahamas office in his cargo shorts.
At the end of the direct, Gary was asked about
his cooperator's deal, his hope to serve no jail
time at all.
People
asked and Kurt Wheelock answered: cooperators
could still go to jail. He used the example of
money launderer Gilbert Armenta in the OneCoin
case, who'd gotten a five year sentence. Of
course, he had violated his cooperation
agreement, moving to sell his airplane.
Sam's
two jets were being taken under forfeiture.
Maybe, just maybe, some of the money would go
back to FTX's victims.
During
a 15 minute break Kurt ran across to 40 Foley
Square, the murder trial there. On the way he
passed the crowd of crypto reporters who'd
stepped outside to use their phones and laptops
as he'd used to have to do, during the UN
corruption trials of Ng Lap Seng and then
Patrick Ho. Out in the snow. He
commiserated.
In Courtroom 318 of 40 Foley Square, a
cooperator was on the witness stand - and he was
in Essex jail yellow, with Marshals discretely
by his side. Yes, cooperators can go to jail.
Though this one had probably only reached out to
snitch AFTER he was in jail. He didn't get an
offer in advance like Gary and Caroline and
Nishad.
And where was Sam Trabucco, people kept asked -
and where was Dan F? There was at least one more
government witness with an immunity deal. Which
one or who would it be?
Kurt
got back late from 40 Foley, and missed some of
the testimony. He kicked himself. But all these
other cases couldn't just be let go. He jumped
back in, with Everdell's repetitive cross
examination. Mr Wang, you say you met Sam in
math camp --
We
have already heard this, the judge said. Move on
and don't do it again.
But Everdell would, again and again. As he'd
done in the Ghislaine Maxwell trial..
More
on the SBF trial comparisons (Maximum Ghislaine
Maxwell) and parents on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Sept 30 – Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
On Saturday, September 30 the prosecutors filed
a letter asking for permission for remote
testimony, citing the example of a young man in
Ukraine who lost his life savings to FTX but is
banned from leaving Ukraine. SBF opposes the
testimony - letter on Patreon here
More
details on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Sept 21 – Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
On
August 25 SBF's lawyers wrote in again, saying
two days a week in the holding cell with a
laptop is not enough. Full letter on Patreon here
On
September 15, the prosecutors objected to SBF's
bid to ask jurors about, among others things,
effective altruism. Full letter on
Patreon here.
On
September 21, Bankman-Fried listing as expert
witnesses Thomas Bishop and Brian Kim was denied
by Judge Kaplan, "completely failed to satisfy
the requirements of FRCP 16." Full ruling on
Patreon here.
On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread
More
August 22 details on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Sept 15– Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On September 15, the prosecutors objected to SBF's bid to ask jurors about, among others things, effective altruism, writing to Judge Kaplan that "Whether or not the defense can establish an admissible purpose for the defendant’s purported philanthropic commitments, voir dire is not the appropriate forum to suggest to the jury that the defendant was simply a good guy who wanted to make the world a better place." Full letter on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Aug 30 – Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
On
August 25 SBF's lawyers wrote in again, saying
two days a week in the holding cell with a
laptop is not enough. Full letter on Patreon here
On
August 29, the US filed that "the USMS has also
offered to transport the defendant two days per
week to the 500 Pearl Street cellblock... after
only two prior sessions, the defendant declined
this week to take advantage of this
accommodation, citing dissatisfaction" - full
letter on Patreon here
On
August 30, Judge Kaplan held a hearing,
resulting in him asking for a report on
discovery review by Sepember 5, and telling the
defense to ask for an adjournment of trial, if
they're going to, by September 1. Inner City
Press thread:
Judge
Kaplan: We're address the motions in limine, the
MDC situation, then the advice of counsel
defense... SBF's lawyer: We are getting
discovery late, because of the speed with which
the government chose to charge this case -
Judge: It was the grand jury.
SBF's
lawyer: We chose an aggressive date for our
client to clear his name. But we have a right to
discovery. Judge Kaplan: You're complaining that
the government got the information late,
correct?
SBF's
lawyer: They charged the case before they ask
for these docsSBF's lawyer: Our client is in
jail and can't search these documents as he
could when he was out. Judge Kaplan:
Anything else? SBF's lawyer: Do they plan
additional productions? This is too late in the
game. Judge Kaplan: You haven't asked for more
time.
Judge
Kaplan: Would you like to ask [for more time]?
SBF's
lawyer: Not at this time.
Judge
Kaplan: Has you gotten FTX's code base? SBF's
lawyer: We got it from the debtors. But our
client has to look at it online. Judge Kaplan:
What about your 7 expert witnesses? Inner City
Press @innercitypress · 58m SBF's lawyer: It's a
bespoke code base -
Judge
Kaplan: A what?
SBF's
lawyer: A bespoke code base, best understood by
those who designed it. Judge Kaplan: The code
basis edits, did you ask the FTX debtors for it?
SBF's lawyer: I have to go back and check my
notesJudge Kaplan: Both sides proposed this
schedule. I approved it.
Assistant
US Attorney: Correct. The defense keeps asking
for the Slack messages the FTX debtors have. We
are transferring them. They are text searchable.
Then there's the Google docs - they're his own
AUSA
Rehn: The FTX debtors tell us they have provided
the defense to the code base edits, which they
call the Commit history. We told them we had to
processing the Slack messages from Gary Wang's
laptop. There's no surprise. SBF's lawyer
Everdell: There is...
Judge
Kaplan: I'm not going to be precluding any of
them [from use at trial.] In the defense's
letter of Aug 28, the accusations of broken
promises are not at all accurate. In January the
government made clear it would obtain
information on an ongoing basis
Judge
Kaplan: These Google documents, the defendants
had essentially unfettered access to from his
parents' home until he was detained on August
11. Now the defense claims concerning an alleged
deluge of documents is seriously exaggerated. I
will not preclude
Judge
Kaplan: If the defendant feels he needs a
postponement, they can ask for it. I'm not
saying I would necessarily grant it. They'd have
to demonstrate a need - not just recount the
number of documents. There's got to be more meat
on those bones.
Judge
Kaplan: The deadline for me to request a jury
for an October 3 trial is September 7. So if you
are going to move, do it by the end of this
week. We already have a second trial date, March
11, held against the possibility the Bahamas
grants consent.
Judge
Kaplan: I'm not saying I would grant an
extension. I'll just laying all the cards on the
table, reserving all rights. Let's go to the MDC
issues. Why doesn't he have the hard drives? And
to the defendant, what's the problem with the
battery life? Get a cord
Judge
Kaplan: I will want to hear from the defense why
the defendant did not avail himself of the
opportunity to come to the courthouse twice this
week. AUSA Kudla? AUSA Kudla: We got approval
for the laptop, we got it this morning and
delivered it prior to this
AUSA
Kudla: The laptop can be used every weekend 8 am
to 7 pm, Saturday and Sunday from 8 to 3. The
hard drives, BOP Legal has agreed to procedures
which will expedite this - they can give them in
visiting hours. On battery life, it's faster for
them to order it
AUSA
Kudla: He is able to review discovery 70 hours a
week. Counsel can visit him 7 days a week.
This is not a pro se defendant - he has many
lawyers & experts, who prepare around the
clock. Judge Kaplan: What about the
Internet connection? AUSA: It's not 5G
Judge
Kaplan: They complain about the cell block. What
about the proffer room? AUSA Kudla: Using the
Marshals there takes them away from other
defendants. SBF's lawyer Mark Cohen: Until
now, there's been no Microsoft Office suite.
With that, he can take it back
SBF's
lawyer: First time he showed up, there was only
one hour charge on the battery. Judge Kaplan:
You could be the ones to bring backup battery.
SBF's lawyer: He wanted to bring papers, but no.
There always something. We have no faith.
We want temporary release
Judge
Kaplan: I'm not going to rule on this
application now. I'd like a joint report Tuesday
morning concerning the exact situation at
the MDC as of that time. We'll see. If
there'll be an application for more time by the
defense it would best be made by Friday
Judge
Kaplan: On advice of counsel, I'd like a joint
proposal by the close of business Friday.
I'll resolve that over the weekend. I'm grateful
for the zealous advocacy. Anything else? SBF's
lawyer: Not from the defense. AUSA: We don't
think adjournment needed
Judge
Kaplan: I would wish you a good weekend but that
would be rubbing salt in an open wound. Have the
best one you can. Adjourned.
On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread
More
August 22 details on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Aug 23 – JPMorgan Chase
bought a start-up called
Frank, which claimed to have 4
million students signed up to
file their FAFSA forms, for
$175 million. Then Chase
learned Frank had only 300,000
customers.
On April 4, 2023,
Frank founder Ms. Charlie
Javice was brought before U.S.
District Court for the
Southern District of New York
Magistrate Judge Barbara C.
Moses, represented by Quinn
Emanuel.
The
complaint quotes Javice
messages with the engineers
she hired to create the false
data, and to enter in data she
bought on the open market. To
one of them, she is quoted,
"We don't want to end up in
orange jumpsuits."
In the
tri-state, it is Westchester
County Department of
Corrections in Valhalla that
dresses its inmates in orange.
MDC Brooklyn uses beige; Essex
County Corrections Facility in
New Jersey uses yellow.
In
any event, white collar
defendant Javice, who took on
an appropriately or
strategically contrite look on
Worth Street still barricaded
for the nearby state court
arraignment of former
President Donald Trump, was
freed on $2 million bond,
travel restricted to SDNY and
EDNY and the Southern District
of Florida, where she lives.
On May 18, Javice was
indicted on bank, wire and
securities fraud counts,
and the case assigned to District Judge Alvin K.
Hellerstein.
In
June the US
prosecutors sought
to intervene in
and stay the
SEC's case
against
Javice. Inner
City Press
attended and
covered the oral
argument and
now first
reports that
Judge Lewis
J. Liman has
granted the
motions to
intervene and
stay, noting
among other
things that "Javice
will have
access to a
vast amount of
material
usable in the
civil case
through the
means of Rule
16 discovery
in the
criminal case.
That discovery
will include
virtually all
of the SEC’s
investigative
file. And it
will include
documents from
at least 30
different
third parties.
She has not
made a
convincing
case that she
needs more
document
discovery to
be prepared to
move quickly
in this case
when the
criminal case
is resolved
and the stay
is lifted."
The
(stayed) civil
case is
Securities and
Exchange
Commission v.
Javice et al,
23-cv-2795
(Liman)
On July
13, Javice and
her co-defendant
were arraigned,
and Judge
Hellerstein
asked why JPMC
didn't find
the fraud in
due diligence.
Inner
City Press was
there, thread:
All
rise!
Judge:
How do you
plead? Javice:
Not guilty.
Judge: How do
you pronounce
your name?
Javace?
Javice:
"Jah-veese."
Judge:
And Mr Amar?
Amar
(takes off
COVID mask
still required
in this
courtroom) Not
guilty
Judge
Hellerstein:
I'm puzzled,
why didn't JP
Morgan Chase
figure this
out during due
diligence?
AUSA: They
created fake
data. [Javice
is shaking her
head No, pink
cardigan tied
over her
shoulders]
Judge:
Defense wants
a delay?
Spiro: The US
is just
regurgitating
JPM Chase's
civil case.
AUSA: Mr Spiro
is confused
about Rule 16.
Judge: Can you
subpoena JPMC?
AUSA: We'd
have to see if
that complies
with Rule 17.
Judge to AUSA:
Why don't
*you* subpoena
JPMC?
AUSA: We'll be getting it. Judge: We'll meet in 30 days. August 15 at 11 am. I'll sent a motion schedule at that time. Adjourned.
On July
27, the
prosecutors
wrote it to
say they are
unavailable
on August
15, and that
the Court said
it would be
available
on September
20. But Javice
will not consent to exclude
Speedy Trial
Act time
until then.
Letter on
Patreon here.
On
August 23,
Inner City
Press was
there. Thread:
All
rise!
AUSA:
JPM Chase will
finish
producing its
privilege logs
by November.
Then we could
set a motion
schedule.
Javice's
lawyer Alex
Spiro: My
client was
arrested in
April. We want
their internal
communications.
Judge: I want
a conference
earlier, on
privilege
disputes. I'm
not pleased
with
JPMorgan's
delay.
AUSA: We'll
let them know.
[Strange
that JPMC
doesn't have a
lawyer here.
There are 3
people in the
gallery Inner
City Press
doesn't
recognize]
Judge:
I want JPM's
production
complete by
Oct 13, with
privilege logs
on a rolling
basis... We
meet Seot 26,
at 2:30.
Spiro:
Let's not have
groundhog's
day again. JPM
seems to be
driving the
process. We
need the names
of record
custodians
AUSA:
We can't tell
JP Morgan how
to respond to
the subpoena.
It seems the
defendant
wants to drive
the bus--
Judge
Hellerstein:
I'll be
driving the
bus.
Co-defendant's
lawyer
Buckley:
Speaking about
the bus--
Judge
Hellerstein:
Let's not use
that metaphor
anymore.
AUSA:
The Devil's in
the details
[Still using
that one...]
Spiro: We want
a copy of the
subpoena AUSA:
They just keep
demanding
things Judge:
What's new
[Co-defendant's
lawyer Buckley
passes a note
to Spiro, who
doesn't read
it. At least
at first.
Pause is taken
so the two
prosecutors
can whisper;
now it's read]
AUSA: We don't
share
subpoenas due
to grand jury
secrecy Rule
6(e) Spiro: We
can subpoena
the subpoena
Judge:
By Sept 1,
defendants
must make all
their
custodian
demands
Buckley: The
government has
given us
copies of
other
subpoenas, and
riders
thereto-
Judge: The
text of the
subpoenas by
Aug 30
Judge
Hellerstein:
Chase will
have to be
here [in
court] on Sept
26, the
documents
should be
brought to the
courtroom for
my ruling...
Joint letter
by Sept 21 [He
is driving the
bus]
Judge
Hellerstein:
So after Sept
26, we'll get
together, to
discuss a
trial date and
length of
trial,
on Oct 24.
[Speedy Trial
Act time
excluded until
then, on
consent]
Adjourned.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, April 18 – Sam Bankman-Fried
of FTX on August 11 for tampering with witnesses
in the upcoming trial against him was ordered
remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
SBF World was the second largest donor to
Democrats in the 2022 cycle... More analysis,
including of Nishad Singh guilty plea to the
count, on Substack here.
Watch this site.
On
August 18 SBF's lawyers wrote in to ask - or
demand - that he be produced 5 days a week to
the 500 Pearl Street SDNY courthouse into the
fifth floor proffer room - letter on Patreon here. Watch
this site.
More
sample on Substack here.
Extended on Patreon here.
Bankman-Fried
Bail Revoked So Jailed As US Claims Can't
Pursue Campaign Finance Charges
By
Matthew Russell Lee, Patreon
Substack
SDNY
COURTHOUSE, Aug 11 – Sam
Bankman-Fried of FTX was indicted
in the U.S. District Court for
the Southern District of New
York, leading to his arrest in
the Bahamas on December 12, 2022 and
extradition to the US on
December 21, 2022.
On
August 11, 2023 he was
remanded to jail, Inner
City Press thread
OK
- now US v.
Bankman-Fried
hearing on
possible
remand of SBF
to jail for
intimidating
witnesses,
including
leaking
Caroline
Ellison's
Google Docs
(still sealed)
to the NYT.
Inner City
Press moved to
unseal here
&
will live
tweet, thread
below
All
rise! Judge
Kaplan: I
thank you for
coming in.
Judge
Kaplan: I come
to the more
recent event,
the NYT July
20 article,
Inside the
Private
Writings of
Caroline
Ellison. Her
insecurities
are described
and her
personal
relationship
with the
defendant. The
article
doesn't state
the source of
the materials
Judge Kaplan: Mr. Bankman-Fried
entertained
the reporter
at his
parents' home
in Palo Alto
and showed
some portion
of Ms.
Ellison's
private
writings. The
US said it was
to intimidate
her and
others. The
defense says
it's about a
First
Amendment
right
Judge
Kaplan: Was he
motivated in
part by a
desire to
intimidate?
The defense
says he's
gotten bad
press and has
a right to try
to repair his
reputation.
Fair enough.
But I find
that there is
a practical
possibility it
was intended
to have them
back off
Judge
Kaplan: The
defendant had
the reporter
come to his
home and
didn't give
him copies but
rather see it
and take
notes. There
are quotes in
the NYT
identical to
the language
in those
documents
[which are
still sealed
despite this
Judge
Kaplan: This
defendant
tries to go
right up to
the line - his
use of the VPN
to watch a
football game
over an
account he
wasn't
authorized,
there it is..
Judge
Kaplan: He
subscribed
from the
Bahamas and
used a VPN as
if he were in
the Bahamas
when he was in
Palo Alto and
could have
watched it on
public TV. It
shows the
mindset. All
things
considered I
am going to
revoke bail.
Judge
Kaplan: I am
focused on the
possibility
that he will
be detained at
the MDC, not
on anyone's
list of five
star
facilities.
That said, I
understand he
could have a
dedicated
laptop at the
MDC [Many have
it - James
Garlick, for
example] 9,
10, 11 hours a
day
Judge
Kaplan: There
is Section
3142(i), the
judicial
officer can
release the
defendant for
preparation of
defense. What
that says to
me is that on
an appropriate
showing, I
could
entertain an
application
for Mr.
Bankman-Fried
to spend time
in counsel's
office
Judge Kaplan: Ms. Sassoon?
AUSA
Sassoon: The
government
communicated
with the MDC,
you are
correct they
have desktops
and situations
with laptops.
We propose
Putnam because
where we are
in the case,
it could take
weeks to load
a laptop. So
we say Putnam
with 'Net
AUSA
Sassoon: The
FBI would
assist with
transporting
him to Putnam.
During trial,
in the MDC.
The discovery
issues will be
more
manageable
then. On
3142(i), my
understanding
is there are
obstacles
arranging to
bring a
defendant to
an attorney's
office
Judge
Kaplan: If Mr.
Cohen feels he
needs
something like
that, I'll do
it, if I'm
convinced it's
safe. Mr.
Cohen: We
intend to
appeal this.
We need a
written order.
Judge Kaplan:
You'll have
the transcript
overnight. I
can do a short
form order
today
Cohen: We have an application to
stay today's
ruling pending
appeal. AUSA
Sassoon: We
oppose that. Cohen: There are important
issues here.
We have an
unusual
situation
factually. We
think the
Circuit will
take it up
quickly.
AUSA Sassoon: There is a reason
for concern,
who knows what
mischief he
could
accomplish in
the next few
days. Judge
Kaplan: Mr.
Cohen, I deny
your
application
because I
disagree
there's
anything novel
here other
than the
factual issue.
Judge
Kaplan: The
defendant is
remanded. AUSA
Sassoon: This
should not
change the
trial date.
We'll stick to
all deadlines.
[US Marshals
move in - SBF
takes off his
jacket and
tie, leans
down to take
off his
shoelaces
***
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, July 27 – JPMorgan Chase
bought a start-up called
Frank, which claimed to have 4
million students signed up to
file their FAFSA forms, for
$175 million. Then Chase
learned Frank had only 300,000
customers.
On April 4, 2023,
Frank founder Ms. Charlie
Javice was brought before U.S.
District Court for the
Southern District of New York
Magistrate Judge Barbara C.
Moses, represented by Quinn
Emanuel.
The
complaint quotes Javice
messages with the engineers
she hired to create the false
data, and to enter in data she
bought on the open market. To
one of them, she is quoted,
"We don't want to end up in
orange jumpsuits."
In the
tri-state, it is Westchester
County Department of
Corrections in Valhalla that
dresses its inmates in orange.
MDC Brooklyn uses beige; Essex
County Corrections Facility in
New Jersey uses yellow.
In
any event, white collar
defendant Javice, who took on
an appropriately or
strategically contrite look on
Worth Street still barricaded
for the nearby state court
arraignment of former
President Donald Trump, was
freed on $2 million bond,
travel restricted to SDNY and
EDNY and the Southern District
of Florida, where she lives.
On May 18, Javice was
indicted on bank, wire and
securities fraud counts,
and the case assigned to District Judge Alvin K.
Hellerstein.
In
June the US
prosecutors sought
to intervene in
and stay the
SEC's case
against
Javice. Inner
City Press
attended and
covered the oral
argument and
now first
reports that
Judge Lewis
J. Liman has
granted the
motions to
intervene and
stay, noting
among other
things that "Javice
will have
access to a
vast amount of
material
usable in the
civil case
through the
means of Rule
16 discovery
in the
criminal case.
That discovery
will include
virtually all
of the SEC’s
investigative
file. And it
will include
documents from
at least 30
different
third parties.
She has not
made a
convincing
case that she
needs more
document
discovery to
be prepared to
move quickly
in this case
when the
criminal case
is resolved
and the stay
is lifted."
The
(stayed) civil
case is
Securities and
Exchange
Commission v.
Javice et al,
23-cv-2795
(Liman)
On July
13, Javice and
her co-defendant
were arraigned,
and Judge
Hellerstein
asked why JPMC
didn't find
the fraud in
due diligence.
Inner
City Press was
there, thread:
All
rise!
Judge:
How do you
plead? Javice:
Not guilty.
Judge: How do
you pronounce
your name?
Javace?
Javice:
"Jah-veese."
Judge:
And Mr Amar?
Amar
(takes off
COVID mask
still required
in this
courtroom) Not
guilty
Judge
Hellerstein:
I'm puzzled,
why didn't JP
Morgan Chase
figure this
out during due
diligence?
AUSA: They
created fake
data. [Javice
is shaking her
head No, pink
cardigan tied
over her
shoulders]
Judge:
Defense wants
a delay?
Spiro: The US
is just
regurgitating
JPM Chase's
civil case.
AUSA: Mr Spiro
is confused
about Rule 16.
Judge: Can you
subpoena JPMC?
AUSA: We'd
have to see if
that complies
with Rule 17.
Judge to AUSA:
Why don't
*you* subpoena
JPMC?
AUSA: We'll be getting it. Judge: We'll meet in 30 days. August 15 at 11 am. I'll sent a motion schedule at that time. Adjourned.
On July
27, the
prosecutors
wrote it to
say they are
unavailable
on August
15, and that
the Court said
it would be
available
on September
20. But Javice
will not consent to exclude
Speedy Trial
Act time
until then.
Letter on
Patreon here.
Watch
this site.
Back
on May 22,
Javice was
arraigned, by
video feed into
the SDNY Mag
Court. Inner City
Press was there,
thread here:
OK- now
at Charlie
Javice
arraignment in
SDNY
Magistrates
court - Javice
is by video.
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, July 27 – In the wake of the
Archegos meltdown, the other shoe dropped on
April 27, when the US Attorney for the SDNY
unsealed and indictment charging Bill Hwang
Patrick Halligan, Archegos’s CFO with
racketeering conspiracy, securities fraud, and
wire fraud offenses.
Inner
City Press went to the SDNY press conference to
ask, What about Credit Suisse and Nomura and
people in those banks? What about the massive
family office loophope to the Investment
Advisors Act of 1940? This has come up in the
OneCoin fraud case, on which the Office used
perjured testimony and now agrees to delay after
delay.
Damian
William referred obliquely to Hwang doing it in
the dark, but otherwise the issue - which is
addressed by a pending bill in Congress - did
not come up. Nor did Lisa Monaco, present in New
York for the presser, address it.
On
June 1, newly assigned District Judge Alvin K.
Hellerstein held a conference in the case. Inner
City Press attended and live tweet it here
(and asked defense counsel a question later, here).
Thread
here.
Hwang's
lawyer Larry Lustberg predicts robust motions.
Hwang's co-defendant Halligan's lawyer says this
is like the NBA, sharp elbows. Predicts omnibus
motions on/against RICO allegations.
Judge
Hellerstein: How about ten weeks from today, you
chart your motions, consolidated as much as
possible. Aug 9 at 11.
Lustberg:
No problem, judge.
Judge
Hellerstein: Maybe we need a list and definition
of each alleged misrepresentation.
AUSA:
We expect them to request a bill of particulars.
Judge:
Do it before the next conference, and put it on
ECF. Maybe on Aug 9, I'll set the trial date. Mr
Lustberg, when can you list what you're lacking?
Lustberg:
Soon.
Judge: Time excluded until Aug 9. Adjourned.
And
after, stand-up here,
short Q&A here.
Jump
cut to June 15, 2023, when the US - ostensibly
for the defense, and trading off another case
Inner City Press is covering, about fake
passport(s), wrote: " The Government writes
regarding the trial schedules in United States
v. Hwang, 22 Cr. 240 (AKH), and United States v.
Etoty, 20 Cr. 187 (AKH). On May 10, 2023, new
counsel for defendant Sung Kook (Bill) Hwang
entered appearances in Case Number 22 Cr. 240
(AKH). Hwang’s new counsel also contacted the
Government, seeking consent for a trial
adjournment, in part to accommodate certain
personal scheduling conflicts. While the
Government is prepared to proceed with the
originally scheduled trial date, in light of
discussions with Hwang’s new counsel, the
Government writes on behalf of all parties to
respectfully request that the beginning of trial
in United States v. Hwang be adjourned to
February 20, 2024. Trial in United States v.
Etoty, 20 Cr. 187 (AKH), is currently scheduled
to begin February 21, 2024. However, both to
permit additional time to prepare for that trial
and to accommodate the length of trial in United
States v. Hwang, which the parties currently
expect to last approximately two months" - full
letter on Patreon here.
Back
on July 14, Judge Hellerstein approved Hwang's
request to be allowed, on three days' notice to
the Office of Pretrial Services, to travel
throughout the 48 states to "support the poor
and oppressed" via Grace & Mercy Foundation.
On
July 20 the US Attorney's Office asked to
postpone the conference set for August 9 until
September 8, saying it has been unable to
complete the production of discovery.
And
on September 8, with COVID masks voluntary in
most of SDNY but in place in this courtroom,
this: "Minute Entry for proceedings held before
Judge Alvin K. Hellerstein: Pretrial Conference
as to Sung Kook (Bill) Hwang, Patrick Halligan
held on 9/8/2022. Deft. Sung Kook Hwang pres.
w/attys. Lawrence Lustberg, Thomas Valen and
Jeffrey Nagel; Deft. Patrick Halligan pres.
w/attys. Mary Mulligan and Tim Haggerty; Motions
to be filed by 12/2/22; response by 1/12/23;
reply 1/27/23; Trial set for 10/10/23; FPTC set
for 10/4/23 at 10:00 a.m; Time is excluded until
10/10/23; in the interest of justice."
Jump
cut to January 27, 2023, when Lustberg submitted
another filing asserting prosecutorial
misconduct, specifically misrepresentations that
Hwang was a subject, not a target, of its
investigation, and that the US was open minded
about whether or not to charge Hwang. This could
often be said or alleged.
On
February 7, Judge Hellerstein citing time
conflicts on the part of counsel pushed the
trial into 2024: "SCHEDULING ORDER as to Sung
Kook (Bill) Hwang, Patrick Halligan. A conflict
with another trial having arisen on the part of
counsel, trial in the above-captioned criminal
matter is adjourned from October 10, 2023 to
January 9, 2024."
On
June 20, it was pushed back again: "SCHEDULING
ORDER as to Sung Kook (Bill) Hwang, Patrick
Halligan. Trial in the above-captioned criminal
matter, by request of all parties, is adjourned
from January 9, 2024 to February 20, 2024 at
10:00 a.m., in Courtroom 14D. The Final Pretrial
Conference will be held on February 14, 2024 at
2:30 p.m. Time is excluded in the interest of
justice from January 9, 2024 to February 20,
2024 pursuant to 18 U.S.C. § 3161. SO ORDERED
(Signed by Judge Alvin K. Hellerstein on
6/20/2023)."
SDNY
COURTHOUSE, July 21 – Sam
Bankman-Fried of FTX was indicted
in the U.S. District Court for
the Southern District of New
York, leading to his arrest in
the Bahamas on December 12, and extradition to
the US on December 21.
On February 28, with Bankman-Fried free on bond,
FTX's
Nishad Singh pleaded
guilty to six
criminal charges. Inner
City Press
put the
charging document
on its DocumentCloud
here.
On
March 10,
Judge Kaplan
held a
proceeding. Inner
City Press was
there and
live tweeted,
thread here.
On
March 27, Bankman-Fried's
lawyers filed
a sealed
version of
conditions it
said DOJ agreed to -
adding that
"the Government does
not object to
the sealing
request." Full
letter on Patreon here.
On July
20, the US
Attorney's
Office at 11
pm wrote in: "the
defendant has
sought to
publicly
discredit a
government
witness by
sharing her
personal
writings with
a reporter so
that these
private
documents
would be
featured in a
New York Times
article
published
today. As such
efforts have
the potential
to taint the
jury pool, and
could have a
chilling
effect on
witnesses, the
Government
respectfully
requests an
order that
limits
extrajudicial
statements by
parties and
witnesses
likely to
interfere with
a fair trial
by an
impartial
jury. See SDNY
Local Rule
23.1(h)" - and
see full letter on
Patreon here.
On July 21, Judge Kaplan ordered: "ORDER as to Samuel Bankman-Fried: The Court will hear argument on the government's letter application, dated July 20, 2023, on July 26, 2023 at 2 p.m. The defendant shall be present. At or before 11 a.m. on July 24, 2023, the government shall file the proposed order that it asks the Court to enter. The parties shall be prepared on July 26 to address, among other things, the adequacy and continuation of the current bail conditions.(Signed by Judge Lewis A. Kaplan on 7/21/2023)."
On July
13, SBF's
lawyers sent Judge Kaplan a
sealed list of
people, not
stating even
the number of
people, for whom
the security
guard
requirement - to
show not
sharing
phones with
SBF - should to
waived. They
argue, as
they did with
the co-signers, that
the list
should be
sealed. And
they say the
SDNY prosecutors agree....
Letter on
Patreon here
Early
on July 14,
Inner City
Press filed to
unseal the
list, filing
on
DocumentCloud
here.
The
case is US v.
Bankman-Fried,
et al.,
22-cr-673
(Kaplan)
More with analysis on Substack here
***
SDNY
COURTHOUSE, July 14 – Sam
Bankman-Fried of FTX was indicted
in the U.S. District Court for
the Southern District of New
York, leading to his arrest in
the Bahamas on December 12, and extradition to
the US on December 21.
On February 28, with Bankman-Fried free on bond,
FTX's
Nishad Singh pleaded
guilty to six
criminal charges. Inner
City Press
put the
charging document
on its DocumentCloud
here.
On
March 10,
Judge Kaplan
held a
proceeding. Inner
City Press was
there and
live tweeted,
thread here.
On
March 27, Bankman-Fried's
lawyers filed
a sealed
version of
conditions it
said DOJ agreed to -
adding that
"the Government does
not object to
the sealing
request." Full
letter on Patreon here.
On July
13, SBF's
lawyers sent Judge Kaplan a
sealed list of
people, not
stating even
the number of
people, for whom
the security
guard
requirement - to
show not
sharing
phones with
SBF - should to
waived. They
argue, as
they did with
the co-signers, that
the list
should be
sealed. And
they say the
SDNY prosecutors agree....
Letter on
Patreon here
Early
on July 14,
Inner City
Press filed to
unseal the
list, filing
on
DocumentCloud
here.
The
case is US v.
Bankman-Fried,
et al.,
22-cr-673
(Kaplan)
More with
analysis on Substack
here
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, July 6 – Mendel
Zilberberg was indicted for
bank fraud while he was a
board member of Park Avenue
Bank. His trial was to start
on January 23, 2023 - but actually began
on July 5, 2023. Inner City
Press was there.
Back on
January 11, 2023 U.S. District
Court for the Southern
District of New York Judge
George B. Daniels held an
in-person final pre-trial
conference. Inner City
Press went to cover
it.
But even as the
next defendant, in a gun case,
had his family setting up in
the gallery, in the well of
the courtroom Zilberberg's
lawyer Ben Brafman was
conferring with the
prosecutors.
When
Judge Daniels took the bench,
the parties asked for an
adjournment, in light of
20,000 pages of FDIC documents
just produced. No new trial
date was agreed. Instead, a
March 28 pre-trial conference
was scheduled.
Judge
Daniels asked about a related
loan, to Zilberberg's niece.
The
prosecutor emphasized that she
was a special education
teacher, and did not have a
business for the business
loan. Judge Daniels said it
might be cumulative, and/or
prejudicial.
Brafman
said the jury could be
confused by the issue of
taking advantage of a younger
relative. Judge Daniels asked
for a letter.
Brafman wrote in the
Loan 2, the Niece Loan,
"has little, if any,
probative value."
On March
21, Judge Daniels had
a final pre-trial conference
and largely agreed,
unless the door
is opened
during the
trial to this
loan. The
trial was
moved up to
July 5 for jury
selection.
On
April 10, co-defendant
Aron Fried who
pled guilty
submitted a
lengthy but
redacted
sentencing submission,
including on
medical
condition,
asking for a
below
guideline
sentence. But
how
much below?
On
April 13, the
US Attorney's
Office asked
for 30 to 37
months.
On
April 18,
Inner City
Press went to
Fried's
sentencing. There
were more than
a half dozen
supporters
in the gallery.
Judge Daniels
asked about
what Fried
knew, and
when. Fried
spoke of bone
cancer and
bad advice.
Judge
Daniels
sentencing
Fried to a
year and a
day. Lead
defense counsel
asked for home
confinement -
Judge Daniels
said no but
that he might
reconsider if
major
(presumably
negative) developments
on health
before the surrender
date. Defense
counsel asked
for a recommendation
of designation
to Otisville.
On July
5 the trial
began. Ben
Brafman told
teh jury to pay
attention to
his cross
examination of
the
cooperator,
and return
with a verdict
of not
guilty. Then
the US put on
the stand a
man who makes
prosthetic limbs and
who
sought a loan
from Park Avenue
Bank.
On July
6, the
prosecution put
on the stand
FDIC Examiner Todd
Goodman and
showed notes
and his and the
NYSBD's
meetings with
Park Avenue
Bank, about
loans in violation
of Reg O and
TARP
subpoenas. Zilberberg
was there.
Watch this
site.
This case is US v. Zilberberg, 19-cr-802 (Daniels)
***
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, June 29 – As
the second of
four insider
trading
prosecutions
announced on
June 29, 2023
by the US
Attorney for
the Southern
District of
New York
Jordan Meadow
was charged
with using
inside
information
stolen from a
major
investment
bank in
NYC.
The four
prosecutions
come a week
after the
conviction in
SDNY of
Brijesh Goel,
formerly of
Goldman Sachs.
Goel testified
on his own
behalf in a
trial covered
by Inner City
Press, which
is also
reporteding
weekly on the
SDNY
prosecutors
murky deal
with Sam
Bankman-Fried
to agree to
extradition
from the
Bahamas
apparently in
exchange for
not seeking
detention
(unlike on Avi
Eisenberg) and
now with the
China bribe
charges
severed or
dropped.
Meadow offered
and agreed to
provide items
of value, such
as Rolex
watches, to a
friend, Steven
Teixeira, in
exchange MNPI
that Teixeira
obtained by
secretly
accessing
confidential
work documents
on a personal
laptop
computer
belonging to
Teixeira’s
then-girlfriend,
an executive
assistant at
the Investment
Bank.
The documents
on the Laptop
contained MNPI
about planned
corporate
acquisitions
in which the
Investment
Bank served as
an advisor.
In or around
late July
2021, Teixeira
secretly
accessed
confidential
work
information on
the Laptop and
learned that
in less than a
week, Penn
National
Gaming, Inc.
(“Penn
National”),
was going to
acquire Score
Media and
Gaming Inc.
(“Score”), a
Canadian
digital media
company, for
approximately
$2.2
billion.
Teixeira
shared this
MNPI with a
friend, who in
turn shared it
with
MEADOW.
MEADOW
then purchased
more than 769
call option
contracts in
Score
Then in March
2022, Teixeira
secretly
accessed
confidential
work
information on
his
then-girlfriend’s
laptop and
learned about
a planned
corporate
acquisition of
VMWare, an
enterprise
software
company, for
approximately
$65 billion.
Teixeira
shared this
MNPI with his
friend, who in
turn shared it
with
MEADOW.
MEADOW
purchased over
5,000 shares
of VMWare
stock, as well
as call
options
contracts in
VMWare,
between May 9,
2022, and May
18, 2022, and
advised his
colleague at
the brokerage
firm to
purchase
VMWare
securities.
MEADOW,
34, of Warren,
New Jersey,
who was
arrested on
June 29, amid
the unsealing
of charges
against Steven
Teixeira, who
has pled
guilty
pursuant to a
cooperation
agreement.
Another
Niranjan?
Inner City
Press was at
the
presentment of
Jordan Meadow,
thread:
Meadow
was arrested
at 9 am -
that's why
he's the last
up of the (NY)
Four. Pleads
not guilty. He
is (was?) with
Spartan
Capital
Securities.
Bond is $1
million,
secured by
parents house
and investment
accounts. His
mother is here
The
unnamed
Investment
Bank is Morgan
Stanley. US is
allowing
Meadow to fly
back to Las
Vegas to pick
up his family
Defense
counsel says
Meadow is
seeking a job
in Las Vegas.
Poker is
referenced.
The
case, like
another of the
four, is
wheeled to
Judge Andrew L
Carter, July
11 date.
The
case is US v.
Meadow,
23-cr-313
(Carter)
***
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, June 21 – JPMorgan Chase
bought a start-up called
Frank, which claimed to have 4
million students signed up to
file their FAFSA forms, for
$175 million. Then Chase
learned Frank had only 300,000
customers.
On April 4, 2023,
Frank founder Ms. Charlie
Javice was brought before U.S.
District Court for the
Southern District of New York
Magistrate Judge Barbara C.
Moses, represented by Quinn
Emanuel.
The
complaint quotes Javice
messages with the engineers
she hired to create the false
data, and to enter in data she
bought on the open market. To
one of them, she is quoted,
"We don't want to end up in
orange jumpsuits."
In the
tri-state, it is Westchester
County Department of
Corrections in Valhalla that
dresses its inmates in orange.
MDC Brooklyn uses beige; Essex
County Corrections Facility in
New Jersey uses yellow.
In
any event, white collar
defendant Javice, who took on
an appropriately or
strategically contrite look on
Worth Street still barricaded
for the nearby state court
arraignment of former
President Donald Trump, was
freed on $2 million bond,
travel restricted to SDNY and
EDNY and the Southern District
of Florida, where she lives.
On May 18, Javice was
indicted on bank, wire and
securities fraud counts,
and the case assigned to District Judge Alvin K.
Hellerstein.
In
June the US
prosecutors sought
to intervene in
and stay the
SEC's case
against
Javice. Inner
City Press
attended and
covered the oral
argument and
now first
reports that
Judge Lewis
J. Liman has
granted the
motions to
intervene and
stay, noting
among other
things that "Javice
will have
access to a
vast amount of
material
usable in the
civil case
through the
means of Rule
16 discovery
in the
criminal case.
That discovery
will include
virtually all
of the SEC’s
investigative
file. And it
will include
documents from
at least 30
different
third parties.
She has not
made a
convincing
case that she
needs more
document
discovery to
be prepared to
move quickly
in this case
when the
criminal case
is resolved
and the stay
is lifted."
The
(stayed) civil
case is
Securities and
Exchange
Commission v.
Javice et al,
23-cv-2795
(Liman)
Back
on May 22,
Javice was
arraigned, by
video feed into
the SDNY Mag
Court. Inner City
Press was there,
thread here:
OK- now
at Charlie
Javice
arraignment in
SDNY
Magistrates
court - Javice
is by video.
Mag
Judge
Gorenstein
presiding.
(Indicted case
has been
wheeled out to
District Judge
Hellerstein,
who also has
Trump removal
of state
criminal cass)
Alex Spiro of
Quinn Emanuel
for Javice,
also virtual
Judge
Gorenstein
read off, To
drfraud JPMC
and a certain
other bank."
Could
it be now
failed
Signature
Bank? In
any event, why
not name them?
And, some ask,
why is SDNY
serving as
collection
agent for
banks' lack of
due
diligence?
Next date is
July 13, 2023:
"Deft. pres.
w/attys. Alex
Spiro and
Maaren Alia
Shah; AUSAs,
Dina McLeod
and Micah
Fergenson
pres.; Next
PTC is set for
7/13/23 at
10:45 am; Time
is excluded
until 7/13/23;
in the
interest of
justice; Deft.
contd. on
bail.
(Pretrial
Conference set
for 7/13/2023
at 10:45 AM
before Judge
Alvin K.
Hellerstein)."
Spiro:
They won't
show us how or
if JPMC relied
on her
representations.
It's Brady
material.
AUSA: It's
voluminous. We
could live
with running
the time off
the clock.
Exclusion of
time under
Speedy Trial
Act
granted
5f order read
out,
adjourned.
Note
also in
SDNY, JPM
Chase is a
defendant in
Epstein
victims' case.
More on
Substack here.
Inner City
Press will stay on this case -
and other JPMC cases,
including the Jeffrey
Epstein-related case against
Chase in which CEO Dimon must
give discovery.
This case
is US v. Javice, 23-cr-251 (Hellerstein)
***
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, June 17 – Former Goldman Sachs
investment banker Brijesh Goel was arraigned on
insider trading charges on the morning of July
28, 2022. Inner City Press there - although the
arraignment had not be listed in the docket, nor
announced by prosecutors.
Goel's
case was assigned to U.S. District Court for the
Southern District of New York Judge P. Kevin
Castel, who held the arraignment.
Goel is accused of feeding inside information to
his graduate school friend and squash partner
Akshay Niranjan, at Barclays.
On
June 12, 2023, after jury selection, the trial
began with opening arguments. Inner City Press
was there and live tweeted, thread
here:
On
June 14, finally, Niranjan took to the stand,
but not yet on cross. Thread here:
Judge
Castel: Jurors, yesterday I told you about what
happened in the Revolutionary War right near
here. In 1777, our early flag was adopted.
[Judge Castel to his credit has posters about
history on his walls. He also issued this
On
June 16, Niranjan finished, cross and re-direct
(and was spotted by the courthouse cafeteria on
8, talking about going to the prosecutors'
office on the 5th floor), thread here
SURPRISE
- defendant Brijesh Goel has just taken the
stand. Goel's lawyer: When did you know there
was a problem with Mr. Goel?
Goel:
By mid 2021, Mr. Niranthan had separated from
his wife. He was going through issues. I was
there for him.
Goel's
lawyer: After you played squash in late February
[2022] what did you learn? Goel: Niranjan said
his life was coming to an end, he was planning
to go to India. I said I could help him get a
job.
Goel's
lawyer: Did you meet at Quality Meats? Goel:
Yes.
[Quality
Meats has steaks up to $195 - Inner City Press
calls it "Inequality Meats.]
On
Saturday, June 17 the US Attorney's Office
complained Goel had yet to answer their
subpoena. Goal's counsel promised an answer in
two hours. Subpoena on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
June 8 – When the International Monetary Fund
held a question and answer briefing on June 8,
2023, Inner City Press asked on Tunisia, about
Italy's urging IMF help while President Kais
Saied says the IMF provides "ready-made recipes"
for treatment without knowing the causes of the
disease.
IMF Spokesperson Julie Kozack took the question
and replied, diplomatically, about strong
partnership and that the IMF stands ready.
On Zambia, on which Inner City also submitted a
question, Ms. Kozack said that after the May 25
meeting there is another one, of creditors. She
was also asked about a New York law forcing
creditors to the table - more on this to follow.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, May 31 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving 2022 in
the U.S. District Court for
the Southern District of New
York, where Inner City Press
found them in the docket.
Late on
May 17, 2023,
plaintiffs' lawyer David Boies
selectively
announced a $75 million
settlement with
Deutsche Bank. Nothing
was filed in the
docket. But the
pressure on JPM Chase,
and its
CEO Dimon, grew.
More
including class
analysis on
Substack here
On
May 26, Judge
Rakoff held
oral arguments
on class
certification,
noting that
Dimon's
deposition was
taking place
at that time.
Inner City
Press was
there,
thread here and
below.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, May 26 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving 2022 in
the U.S. District Court for
the Southern District of New
York, where Inner City Press
found them in the docket.
Late on
May 17, 2023,
plaintiffs' lawyer David Boies
selectively
announced a $75 million
settlement with
Deutsche Bank. Nothing
was filed in the
docket. But the
pressure on JPM Chase,
and its
CEO Dimon, grew.
More
including class
analysis on
Substack here
On
May 26, Judge
Rakoff held
oral arguments
on class
certification.
Inner City
Press was
there,
thread here:
All
rise!
Judge
Rakoff: We're
here on the
question of
class
certification...
I just got off
the phone
about a
deposition
taking place
in the same
case. You're
missing all
the fun,
folks.
(Laughs).
Let's first
consider Jane
Doe's
expert...
Judge
Rakoff: The
expert writes,
"Class
certification
is appropriate
here" - but
isn't that a
legal
conclusion?
Counsel
to Jane Doe:
Maybe it's a
matter of
drafting...
Judge
Rakoff: I
strike that
first opinion.
Counsel
to Jane Doe:
She is saying
that Epstein
could only run
his sex
trafficking
conspiracy by
having access
to influential
people. Judge:
Duh. What's
her expertise?
Counsel to
Jane Doe: She
was at DOJ and
interviewed a
number of
victims
Counsel
to Jane Doe:
Her experience
does not have
to be into
JPMorgan Chase
Bank -- Judge
Rakoff: So
what is it
were Signature
Bank?
Counsel to
Jane Doe: She
looked into
banks while at
DOJ. [Note:
the expert at
issue is Jane
Khodarkovsky
formerly of
DOJ]
JPMC's
lawyer: She
was 3 1/2
years at DOJ,
not in sex
trafficking,
only money
laundering. So
she's not an
expert.
Judge
Rakoff: After
3 1/2 years at
DOJ, maybe an
expert in
bureaucracy...
JPMC's lawyer:
We say, the
issue of sex
trafficking is
not for class
action
Judge
Rakoff: The
allegations is
that Jeffrey
Epstein
enticed them
into sexual
acts by
getting
massages... I
don't see why
you need to be
an expert to
see that if
the
allegations
are true, they
may will
violate the
sex
trafficking
statute
Judge
Rakoff: And
that if the
money to carry
it out came
from or
through a bank
that should
have known, it
may be liable
- why is an
expert needed
on this?
JPM
Chase lawyer:
The question
is, what are
the indices of
sex
trafficking?
Judge:
This is not a
clean slate
Judge
Rakoff: The
grand jury
that issued
the 2019
indictment
found Jeffrey
Epstein
sexually
exploited and
abused dozens
of minor girls
at his various
homes. I don't
know what the
expert's
opinion adds
to this. Chase
lawyer: It's
not
susceptible to
class
treatment
Judge
Rakoff: We
could have
used a
psychological
expert, as was
included in
the case
before Judge
Nathan
JPMC
lawyer: Their
expert just
parrots
others'
info.
Judge: To your
adversary: If
you had a
frozen pipe, a
plumber could
opine... But
aren't money
laundering
regulations
laws, &
the Court the
expert? Doe's
lawyer: She is
an expert on
how
trafficking is
financed
Doe's
lawyer: She
example, she
has expertise
in the filing
or not filing
of Suspicious
Activities
Reports. Judge
Rakoff: Are
you saying an
expert is
needed because
I have been
asleep for the
99 cases on
the topic of
SARs? Let's
turn to class
certification...
Judge
Rakoff: JPM
Chase does not
dispute that
Mr. Epstein
was involved
in a
longstanding
sex
trafficking
venture that
impacted
dozens that
required money
to make it
work.
JPMC's lawyer:
We're not sure
it's dozens-
Judge Rakoff:
Dozens is what
the indictment
says
Doe's
lawyer: This
class should
be certified -
it was sexual
exploitation
and the
commonality
here is the
bank. Epstein
needed these
obscene
amounts of
money from JPM
Chase to
continue with
this. I may
need a sidebar
on this.
Judge: About
the SARs?
[Sidebar
is held;
transcript to
be sealed,
Judge says]
Judge
Rakoff: I have
taught the
class action
seminar at NYU
Law School, so
I think I know
the elements.
Thank you, I
will get you
an order
afterword.
I'll get
called at 5 on
the Dimon
deposition...
SDNY
COURTHOUSE, May 18 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving 2022 in
the U.S. District Court for
the Southern District of New
York, where Inner City Press
found them in the docket.
Late on
May 17, 2023,
plaintiffs' lawyer David Boies
selectively
announced a $75 million
settlement with
Deutsche Bank.
Nothing was
filed in the docket until
May 18: "Minute
Entry for
proceedings held
before Judge Jed S.
Rakoff: Telephone
Conference held on
5/17/2023,without
transcription or
recording.
Plaintiffs motion
for preliminary
approval of proposed
class settlement is
due by 5/26/2023. A
preliminary fairness
hearing will be held
at 4:00 PM on
6/1/2023 in
Courtroom 14B, the
Daniel Patrick
Moynihan U.S.
Courthouse, 500
Pearl St., New York,
NY."
But the
pressure on JPM Chase,
and its
CEO Dimon, grows.
More
including class
analysis on
Substack here
On May 15, U.S. Virgin Islands in its
lawsuit against JPM
Chase
told SDNY Judge Jed
S. Rakoff they have
been unable to serve
Elon Musk a subpoena
asking, among other
things, whether
Epstein referred
him to Chase.
Musk returned fire:
"This is idiotic
on so many
levels: 1.
That cretin
never advised me
on anything
whatsoever.
2. The notion
that I would
need or listen
to financial
advice from a
dumb crook is
absurd. 3.
JPM let Tesla
down ten years
ago, despite
having Tesla’s
global
commercial
banking
business, which
we then
withdrew. I have
never forgiven
them." And
there is a
case in
SDNY,
including
Chase's London
Branch, that
Inner City
Press is also
covering. Watch
this site.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, May 11 – When the
International Monetary Fund held its media
briefing on May 11, 2023, Inner City Press posed
questions including "on Argentina, crypto and
the IMF, what is the IMF's response to those who
say the country's recent ban on digital assets
is an effect of / condition imposed by the IMF?"
It
asked about El Salvador and other IMF country
program negotiations.
Spokesperson Julie Kozack explained that the IMF
opposes cryptocurrency as a legal tender - as in
El Salvador - it view digital assets as
investments differently. Informal video here.
Inner
City Press has submitted a follow up question,
and later in the day received this from IMF
spokesperson: "Can be attributed to IMF
spokesperson. On crypto
assets, although they have some purported
benefits, they can pose macro-financial risks.
To strike a balance between reaping the benefits
of innovation and guarding against risks, a
globally consistent, coordinated, and
comprehensive regulatory framework is vital.
However, crypto assets should not be granted
official currency or legal tender status in
order to safeguard monetary sovereignty and
stability."
As to the US, the IMF was asked about the
regional bank failures, the debt ceiling, the
14th Amendment and even the trillion dollar
coin. Watch this site.
***
By
Matthew Russell Lee, Patreon Maxwell
Book
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
/ SOUTH BRONX, May 4 – Seemingly oblivious to US
regulators stated desire to tighten up their
merger review rules, specifically on fair
lending, Toronto Dominion on February 28
announced a $13.4 billion proposal to buy First
Horizon.
Fair
Finance Watch has been concerned by TD Bank's
lending disparities for some time. Nationwide in
2020, TD Bank denied almost as many applications
from African Americans (833) as it made in
mortgage loans to African Americans (853). It
was far more generous with white borrowers:
23,469 loans made, with only 9009 denials.
Fair
Finance Watch immediately online noted that in
New York State in 2020, TD Bank was even worse.
It denied more mortgage applications from
African Americans (255) that it made loans to
African Americans in NYC (198). Again, TD Bank
was far more generous with white borrowers in
NYS: 3,558 loans made, with only 1714
denials.
And
now on May 4, 2023, TD Bank and First Horizon
Bank announced the termination of their merger
agreement, citing uncertainty about the
timetable to obtain regulatory approvals
Fair
Finance Watch noted when TD bragged that the
deal is "on track" and it is already integrating
with First Horizon - without required regulatory
approvals: "TD Bank Group said in a statement
Wednesday [Nov 2], 'Teams at both TD and First
Horizon are working together to ensure a
seamless integration experience for our
customers as we prepare to introduce First
Horizon customers to TD Bank. We will provide
more details on that when full regulatory
approval is received.'"
Shouldn't that have been IF approval is
received? And how was it legal to be working
together without merger approvals? Watch this
site.
Earlier arrogance (and testimony) here.
Inner City Press will be inquiring under the Freedom of Information Act. Watch this site.
By
Matthew Russell Lee, Patreon Maxwell
Book
SDNY
COURTHOUSE, April 27 – Former Goldman Sachs
investment banker Brijesh Goel was arraigned on
insider trading charges on the morning of July
28, 2022. Inner City Press there - although the
arraignment had not be listed in the docket, nor
announced by prosecutors.
Goel's
case is assigned to U.S. District Court for the
Southern District of New York Judge P. Kevin
Castel, who held the arraignment.
Even
afterward, the docket did not contain any notice
of the arraignment - in contrast to the July 27
arraignment for insider trading of former Indian
Congressman Steve Buyer, Inner City Press story
here,
video here.
Goel, represented by defense lawyer Reed Brodsky
who was still not listed on the docket - no
notice of appearance? - after the proceeding,
pleaded not guilty.
Assistant
US Attorney Joshua Naftalis said his office
agreed to release on $1 million bond, and no
contact with "CC-1."
Brodsky, too, was concerned about CC-1. He
specifically asked that all information about
debriefing sessions with CC-1 be provided in two
or three weeks, so that he or successor counsel
can decide by the September 14 next conference
whether to file motion.
This
was incorporated into Judge Castel's Rule 5(f)
order.
Goel is accused of feeding inside information to
his graduate school friend and squash partner
Akshay Niranjan, at Barclays.
Brodsky
said Goel "could not consent" to excluding time
under the Speedy Trial Act. But then after
conferring, he did not oppose. Time was
excluded.
On
November 17, another conference was held, and
Inner City Press was there. Brodsky said that
the audio in the case is inaudible. Judge Castel
said this came up before him recently - yes, in
US versus former Honduras president Juan Orlando
Hernandez, as Inner City Press reported. Brodsky
said he might make a motion, unlike JOH's
counsel Raymond Colon.
Brodsky
had other motions, some of which Judge Castel
asked why he had "sat on" until this conference.
When the time came to set the trial date,
Brodsky asked for October, but Judge Castel put
it at June 12 with motions due before that.
On
January 4, 2023 Goel filed a motion against the
US Attorney's Office subpoenas before a trial
date was set, citing US v. Tuzman, 15-cr-536. It
includes an email from AUSA Joshua Naftalis,
including that "trial subpoenas issued before
the trial date was set... all these subpoenas
have been withdrawn."
On
March 16, 2023, in turnabout, the US Attorney's
Office moved to quash Goel's subpoenas to Akshay
Niranjan and Barclays - except, perhaps, Request
8 which "seemingly attempts to uncover evidence
that Niranjan learned of the potential M&A
transactions through his employment at Barclays,
rather than from the defendant." But the US
still calls that overbroad.
On
April 27, Judge Castel held another proceeding
in the case. Inner City Press was there. The
defense did not want to provide its list of
witnesses until closer to their use; the AUSA
said fine, they too would delay. A resignation
letter will be sought from Barclays. Trial is
approaching.
Inner
City Press will continue to cover the case -
watch this site.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, April 18 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
The JPM Chase
complaint is on Patreon, here.
On March 20, 2023
Judge Jed S. Rakoff in a
bottom line order
dismissed some but
not all claims,
in the Epstein-related
cases against
JPMC and Deutsche
Bank.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, April 12 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
The JPM Chase
complaint is on Patreon, here.
On March 20, 2023
Judge Jed S. Rakoff in a
bottom line order
dismissed some but
not all claims,
in the Epstein-related
cases against
JPMC and Deutsche
Bank.
by
Matthew Russell Lee, Patreon Book
Substack
UN
GATE, April 7 – What does Bank of America,
with its red, white and blue logo and
partnerships with the United Nations and other,
really think of Ukraine and its leader?
Well,
last week in a meeting with BofA's investors and
insiders, Daniel Sheehan, BofA Securities’ head
of international relations, was critical of
Ukrainian President Volodymyr Zelenskyy,
describing him as 'a master manipulator and
mimic' about whom there were ‘serious concerns’
in the US administration."
And BofA would know, the views of the
Administration. Of the UN, too: BofA is a member
of the dubious "UN Global Compact" and lists its
partnerships with the Organization with
Impunity.
Before Inner City Press was thrown out of the UN
by UNSG Antonio Guterres (who is currently
helping Russia sell ammonia, just as BofA moved
its bond trading back into the country), it
witnessed a meeting with BofA on the
podium.
The speaker, like Sheehan, was allowed to brag.
Then he was taken to a press conference limited
to the members of the UN Correspondents
Associations - with Russian and Iranian state
media on its executive committee - featuring
such questions as "Why does BofA care so much
about the environment?"
Why
indeed.
***
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, March 29 – For two days on Capitol
Hill three regulators answered partisan
questions about two, or two and a half, bank
seizures and re-sales.
It
was not pretty.
Federal
Reserve Vice Chair for Supervision Michael Barr,
FDIC Chair Martin Gruenberg and Treasury Under
Secretary for Domestic Finance Nellie Liang
deferred many of their answers until reports due
on May 1.
Barr
insisted, We want to be transparent. But the
Federal Reserve Board has delayed in responding
to FOIA requests, for example Inner City Press'
FOIA request about its actions on banks and
crypto firms including FTX.
Guenberg told the House, in response to
questions, that Signature Bank's Signet will be
returning digital assets by April 5 - but said
that the Signet business is still for
sale.
There
were no questions about public pre-disclosure
and comment on these acquisitions. Community
Benefits Agreements in California and
Massachusetts were raised, with Gruenberg
calling these private agreements but noting that
the banks are subject to CRA evaluation.
But these same regulators give 98% of banks
Satisfactory or Outstanding CRA ratings.
On Tunisia IMF Tells Inner City Press Board Meeting Postponed Citing Inclusiveness
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
March 22 – When the International Monetary Fund
held a question and answer briefing on March 23,
2023, Inner City Press asked (in advance, and in
the briefing) on Tunisia, please describe the
status of the $1.9 billion staff agreed program,
which Italy for one says it is urging the Fund
to "unblock," and the issues in that
regard.
It
added the more recent comments of US Secretary
of State Antony Blinken, and the EU's Joseph
Borelli. IMF Spokesperson
Julie Kozack replied that the IMF Board meeting
was postponed, and that other states can do more
to help.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, March 20 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
The JPM Chase
complaint is on Patreon, here.
On March 20, 2023
Judge Jed S. Rakoff in a
bottom line order
dismissed some but
not all claims,
in the Epstein-related
cases against
JPMC and Deutsche
Bank:
"ORDER
granting in
part and
denying in
part (37)
Motion to
Dismiss;
granting in
part and
denying in
part (43)
Motion to
Dismiss in
case
1:22-cv-10018-JSR;
granting in
part and
denying in
part (31)
Motion to
Dismiss;
granting in
part and
denying in
part (44)
Motion to
Dismiss in
case
1:22-cv-10019-JSR;
granting in
part and
denying in
part (38)
Motion to
Dismiss in
case
1:22-cv-10904-JSR.
On February 1,
2023, and
February 7,
2023,
defendants
filed motions
to dismiss the
operative
complaints in
the
above-captioned
cases. Upon
consideration
of all
parties'
written
submissions
and oral
argument, the
Court hereby
grants those
motions in
part and
denies those
motions in
part, as
specified
below. An
opinion
explaining the
reasons for
these rulings
will follow in
due course.
The Clerk is
respectfully
directed to
close entry
numbers 37 and
43 on the
docket of
22-cv-10018;
numbers 31 and
44 on the
docket of
22-cv-10019;
and number 38
on the docket
of
22-cv-10904.
SO ORDERED..
(Signed by
Judge Jed S.
Rakoff on
3/20/2023)
Filed In
Associated
Cases:
1:22-cv-10018-JSR,
1:22-cv-10019-JSR,
1:22-cv-10904-JSR
(kv).
March
20, 2023
For Enabling
Jeffrey
Epstein JPMC
3d Party
Complaint on
Staley FinCEN
to be
Summoned?
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, March 16 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
The JPM Chase
complaint is on Patreon, here.
On March 7, 2023 JPM Chase filed a
third party complaint
against James Edward
Staley,
including
"At no point did
Staley disclose to
JPMC, nor did JPMC
otherwise know,
the information
about Staley’s
personal
activities
contained in
paragraphs 22
through 33..
Staley, not JPMC,
is responsible for
any injuries
Epstein may have
caused...."
3d
Party
Complaint on
Inner City
Press'
DocumentCloud
here.
On
March 16, starting
after 4 pm and
running past 8
pm, Judge Rakoff
held a
hearing,
including
settling
(most) trial
dates and
threatening to
summon or
worse the head of
FinCEN,
to get the Suspicious
Activity
Reports or SARs. Inner
City Press
tweeted, including:
OK -
now at
Epstein-related
case of US
Virgin Islands
vs JPMorgan
Chase, in
which Dimon
discovery has
been ordered,
and JPMC has
filed a
third-party
complaint
against Jes
Staley.
Judge
Rakoff: So,
I'm not going
to move trial
dates. For Doe
v. Deutsche
Bank it's
August 8; for
Doe v. JPM
Chase, and
USVI v. JPM
Chase, it's
September 5.
Judge
Rakoff:
Plaintiffs'
counsel, how
long a trial,
assuming one
overall trial?
A: Ten to 14
days.
Judge Rakoff:
What about
October 23,
for three
weeks, which
would be more
than enough?
Judge
Rakoff rules:
I will move
the JPMorgan
trials, and
Jes Staley, to
October 23. If
Deutsche Bank
doesn't want
to join it, it
can remain
August 8. Or
Sept 5. Let me
know quickly,
by close of
business
Monday.
Later:
Plaintiffs'
counsel: We
have requested
the SARs that
were filed by
JPM Chase or
DB, they say
they need
FinCEN's
permission.
Judge
Rakoff: I
think I can
override that.
And I just
decided to.
Bank counsel:
I think this
is statutory.
Judge Rakoff:
This will be
fun. If they
oppose it, I
will set a
time and place
but no later
than next
week, I will
want a
decision maker
present
Judge
Rakoff: And if
they don't
appear, I'll
have no choice
but to ask the
Marshals to
bring them
before me....
I think the
government,
once they know
the situation,
will be happy
to comply. I'm
not sure I
don't have the
power. The
Supreme Court
may consider
it.
Counsel:
There's a
deposition set
for Jes Staley
next week. We
don't want to
be put out of
the room.
Judge Rakoff:
Call me from
the
deposition. If
I'm on the
bench, my
clerk will
inform you to
call during my
next break.
Let's resolve
it right then
and there.
***
March 13, 2023
For Enabling Jeffrey Epstein USVI Sued JPM Chase Now Wins Motion for Dimon Discovery
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, March 9 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
The JPM Chase
complaint is on Patreon, here.
The
USVI asked for discovery from Jaime Dimon; JPM Chase
opposed it. On
March 9, Judge Jed
S. Rakoff
granted the
motion, rejecting
the so-called
apex
doctrine defense.
We'll have
more on this.
***
rch
13, 2023
March
6, 2023
Kevin Chiu Accused of Stealing $2 Million at NYC Bank Gets Free Lawyer & $300000 Bond
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, March 1 – SDNY
prosecutors
announced on
March 1 the
"arrest of
KEVIN CHIU, a
former
business
relationship
manager at a
financial
institution
headquartered
in Manhattan,
for a
years-long
bank fraud and
embezzlement
scheme to
steal over $2
million from
his former
clients’
accounts.
CHIU was
arrested this
morning in
Brooklyn and
will be
presented
today before
U.S.
Magistrate
Judge James L.
Cott."
Inner City
Press went to
the
presentment in
the U.S.
District Court
for the
Southern
District of
New York
Magistrates
Court, the
only media
there.
Chiu
was brought
out, in
sweatpants and
a white
T-shirt.
Despite the $2
million theft
alleged, he
was assigned a
publicly-paid
Federal
Defender (who
had been
summoned up to
an unrelated
proceeding
which Inner
City Press
also covered).
The SDNY
prosecutors
had agreed
that Chiu
could be
released on
$300,000
unsecured
bond, but
wanted three
co-signers as
opposed to the
single
co-signer
requested by
the Federal
Defender, and
recommended by
Pre-Trial
Services.
Judge
Cott, after
argument, said
he would
"split the
baby" and
require two
co-signers, in
two
weeks.
The
case is US v.
Chiu,
23-mj-1575
(Cott)
February
27, 2023
Man Gets 20 Months for Bank Fraud in SDNY now Cooperator in Texas Money Launder Trial
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Feb 22 – A man pleaded guilty to
bank fraud on January 11 in federal court in
Manhattan, with a plea deal of 24 to 30 months.
But
it emerged that he has a cooperation deal in a
separate money laundering case in the Western
District of Texas.
He wants to be sentenced quickly in New York, on
February 22.
Then
the U.S. Marshals would transport him to Texas
to be prepped for trial. Defense counsel asked
for the January 11 court transcript to be
sealed, but Inner City Press was present and
reports. It will voluntarily leave out certain
details.
The defendant's name is Olufemi Nathaniel
Itiowe. He appeared on January 11 with two
Marshals and a unique hairstyle. U.S. District
Court for the Southern District of New York
Judge John G. Koeltl, in the four-defendant SDNY
case, held the sentencing.
It was proceeding normally - the plea deal is
for 24 to 30 months, the defendant allocuted to
ordering check books for accounts not his own -
when the issue of sentencing date came up.
Defense
counsel said, let's seal the transcript, he is a
cooperator in Texas and the Marshals take too
long to transport him back and forth.
(On information and belief this is because
transport is through Oklahoma, which some call
diesel therapy).
Defense counsel said the prosecutors in the WDTX
want to prep his client in late March.
A
cursory search finds a case in that district
against him, 21-cr-224.
On
February 22, Inner City Press followed up and
went to the sentencing. Defense counsel was
saying that identifying his client as a
cooperator in Texas was unfortunate - then
stopped.
Inner City Press' presence was noted. When
asked, identification was offered: I am a
reporter.
The lawyers, then the defendant, went forward to
speak at the sidebar with the white noise turned
out loud. When they returned, the defense lawyer
wouldn't even say what sentence he was asking
for. The prosecutor said the guideline was 21 to
27 months - different from the 24 to 30 month in
the plea agreement read out in January. Judge
Koeltl imposed a sentence of 20 months, very
close to time served. Defense counsel said he
will check into the transfer to Texas to testify
and "put something on the docket." Watch this
site.
February
20, 2023
Lakeland Bank DOJ Deal Left Disparities in NY So Protest Now Fed Questions to Provident Here
By
Matthew Russell Lee, Patreon Maxwell
book
SOUTH
BRONX NY, Feb 10 – When the US
Department of Justice sued and immediately
settled with Lakeland Bank for fair lending
violations, it announced a proposed merger with
Provident Bank.
As
if to sweep it under the carpet.
And
when Fair Finance Watch looked into it, it found
that the DOJ settlement did not address in any
way the banks' disparities in New York. So on
December 1, the FDIC's comment deadline, it
filed the below, with Inner City Press on the
FOIA.
We refer to the
application filed by Provident Financial
Services, Inc. (“Provident”), Jersey City, New
Jersey, for prior approval of the Board of
Governors of the Federal Reserve System (the
“Board”), pursuant to Section 3(a)(3) and
3(a)(5) of the Bank Holding Company Act of 1956,
as amended, and Section 225.15 of Regulation Y,
to acquire Lakeland Bancorp, Inc. (“Lakeland”),
Oak Ridge, New Jersey, and thereby indirectly
acquire Lakeland Bank, Newfoundland, New Jersey
(“Transaction”). Based on our review of the
current record, the following additional
information is requested. Please provide
responses to all the following items, including
those in the Confidential Annex. Supporting
documentation should be provided, as
appropriate. Convenience & Needs/Community
Reinvestment Act (“Act”) 1. Provident’s response
to Question 1 of the November 30 Request for
Additional Information (“November 30 AI
Request”) indicates that “[t]he combined company
will deliver an expanded set of products and
services to its customers and communities.”
Describe those products and services to be
offered by the combined organization that
Provident deems most beneficial to customers in
low- or moderate-income (“LMI”) geographies or
income levels. 2. Indicate whether any consumer
products or community development programs and
services of either bank are expected to be
discontinued as a result of the proposed
transaction, and whether any products, programs
or services that are not currently offered will
be made available in the combined organization’s
markets. 3. The application states “Provident
and Lakeland will determine through the
integration planning process how the Combined
Bank will continue the successful processes,
policies, procedures and technology platforms of
Provident and Lakeland to maintain a strong,
comprehensive and sustainable CRA program.”
Provide an update on these efforts. Mark J.
Menting, Esq. February 8, 2023 2 NONCONFIDENTIAL
// EXTERNAL Compliance Program 4. In the
response to Question 6(a) of the November 30 AI
Request, Provident stated that it anticipated
that its existing compliance risk management
program would “either be the successor policies
and procedures for the combined organization, or
that they may serve as a solid foundation for
revised policies and procedures going forward.”
If available, provide an update on the expected
compliance risk management program at the
combined organization. 5. Describe in greater
detail Provident Bank’s current fair lending
program and risk management controls with
respect to fair lending and discuss the
rationale behind the decision for the combined
organization to adopt the overall framework and
structure of Lakeland Bank’s fair lending
compliance program. To the extent not previously
addressed, include in your discussion any areas
of Lakeland Bank’s existing fair lending program
the combined organization intends to enhance, as
well as all efforts to ensure that the policies
and procedures adopted by the combined
organization will be adequate for the combined
organization to provide equal access to credit
to majority-minority communities in its
assessment area (“AA”). Branching 6. For
Provident Bank, Lakeland Bank, and the combined
organization, provide the number and percentage
of total branches that are or will be located in
LMI and/or majorityminority census tracts. 7. To
the extent not previously addressed, describe
the process by which Provident Bank currently
determines whether and where to open or close a
branch. Include in your discussion any fair
lending considerations the bank takes into
account in making such determinations. Indicate
whether the existing policies and procedures of
Provident Bank or Lakeland Bank will be
implemented at the combined organization.
Staffing 8. Discuss whether any existing staff
of Provident Bank or Lakeland Bank are under
consideration to be the combined organization’s
Chief Compliance Officer or Fair Banking
Officer. If so, identify those individuals and
provide an update regarding the timing and
content of the selection process, if available.
9. Confirm, if such is the case, that Lakeland
Bank’s current Community Development Officer
will continue in that role at the combined
organization. If not, indicate who will assume
that position at the combined organization, if
known. Mark J. Menting, Esq. February 8, 2023 3
NONCONFIDENTIAL // EXTERNAL 10. Provide an
update to the organizational chart provided in
response to question 6(b) of the November 30 AI
Request reflecting all compliance-related
positions at the combined organization. For
those positions where an individual has been
identified to fill the role, indicate that
individual’s name in the organizational chart.
Department of Justice (“DOJ”) Consent Order 11.
Under Section C of the Consent Order, Lakeland
Bank is required to take certain steps with
respect to fair lending training. Indicate
whether the combined organization intends to
continue to adhere to those training
requirements following the proposed acquisition.
If so, indicate whether they will apply to all
employees of the combined organization or only
those employees retained from Lakeland Bank. 12.
Provide an update on the timing of the opening
of the full-service branch in Newark, New
Jersey, as described in Paragraph 19 of the
Consent Order. In addition, provide an update on
the plans of Lakeland Bank or the combined
organization to open a second branch, if
available.
February
13, 2023
Key Bank Amid Data Breach Lawsuits Brags of Grants As Engages In Disparate Loans
By
Matthew Russell Lee, Patreon
SOUTH
BRONX, Feb 8 - Key Bank is in decline,
both in consumer compliance and in fair lending.
Reporting from and on the Federal courts, Inner
City Press has noticed a slew of data breach
cases filed against KeyCorp, since August 2022,
now moving toward a multi-district consolidation
- in February 2023 to the Northern District of
Georgia, to the Honorable Steven D. Grimberg.
Fair Finance Watch, looking at Key Bank's 2021
lending at first in New York State, notes that
while Key Bank made 7916 mortgage loans to
whites, with 1733 denials, it made only 266
loans to African Americans, with fully 140
denial.
It
should be sued by the Department of Justice, and
many
others.
In amateur response, KeyBank on February 7
bragged on the for-pay CSR Wire about grants it
is giving out. But how do they compare to the
lending promises Key made, and broke?
Watch this site.
February
6, 2023
Wells Fargo Sued Brooklyn Man to Collect $6M Loan in SDNY Then Sold To BTC Capital
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Feb 4 – Wells
Fargo sued
Shulem Green
of Brooklyn,
New York, on a
$6.5 million
loan.
On
February 3,
2023 U.S.
District Court
for the
Southern
District of
New York
Judge Lewis J.
Liman held a
proceeding.
Inner City
Press covered
it.
Wells
had sued as
Trustee for
the Benefit of
the Registered
Holders of UBS
Commercial
Mortgage Trust
2018-C11,
Commercial
Mortgage
Pass-Through
Certificates,
Series
2018-C11.
But
now it was
said that the
loan has been
sold, to a
third party
purchaser, BTC
Capital
LLC.
Judge Liman
ruled that the
parties much
show cause by
March 3 why
the case
should not be
dismissed for
failure to
prosecute, if
by that date
the Purchaser
has not
appeared in
the case and
no motion for
substitution
has been
filed.
The case is Wells Fargo Bank, National Association, as Trustee for the Benefit of the Registered Holders of UBS Commercial Mortgage Trust 2018-C11, Commercial Mortgage Pass-Through Certificates, Series 2018-C11 v. Green, et al., 22-cv-4351 (Liman)
January
30, 2023
In Suit Against Cairo Amman Bank For Hamas Bombing Chart of Transactions Due by Jan 27
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Jan 26 – Julie
Averbach sued
Cairo Amman
Bank for
allegedly
helping Hamas,
by
transferring
its and its
leaders' money
through
JPMorgan
Chase, BNY
Mellon and
Standard
Chartered
Bank; it had a
correspondent
banking
relationship
with
Citibank.
On
January 19,
2023 U.S.
District Court
for the
Southern
District of
New York
Magistrate
Judge
Katharine H.
Parker held a
proceeding.
Inner City
Press covered
it.
The
complaint
describes a
Hamas bombing
in Jerusalem.
On
January 19,
Judge Parker
ordered that
the plaintiffs
must provide
the defendants
with an
updated chart
of
transactions
by January 27,
and that the
motion to
dismiss is due
by February
17.
The case is Averbach et al v. Cairo Amman Bank, 19-cv-4 (Woods / Parker)
***
January
23, 2023
Guldi on Trial For Defrauding Ditech Financial Hears his Laughing Calls from Jail in Marcy NY
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Jan 18 – George
Guldi was
imprisoned in
the Marcy
Correctional
Facility in
New York on
March 28, 2017
when he
received in
the mail a
notice that a
lender "has
received your
payment in the
amount of
$253,236.00."
His
mind began to
whirl.
Now
Guldi is on
trial,
presided over
by U.S.
District Court
for the
Southern
District of
New York Judge
Alvin K.
Hellerstein.
On
January 18, he
sat at defense
table as audio
of his jail
calls with
Victoria
Davidson was
played for the
jury.
In
it, Guldi is
surprisingly
upbeat,
laughing
frequently.
Davidson said,
What kind of
attorney do
you need?"
Guldi
replied, "The
kind I was."
Davidson
says, Ha, ha,
who's too
smart for his
own
good."
The
trial in
involves the
multiply-sued
bank Wells
Fargo, on
which Inner
City Press
also reports.
The
prosecutors'
gloss: "George
Guldi and
Victoria
Davidson - the
defendants are
charged with
wire fraud,
bank fraud,
and wire and
bank fraud
conspiracy in
connection
with their
alleged
involvement in
2017 in a
scheme to
fraudulently
induce Ditech
Financial LLC,
a mortgage
lending
business, to
wire them more
than
$250,000."
The case is US v. Guldi et al., 19-cr-126 (Hellerstein)
***
January
16, 2023
Zilberberg Bank Fraud Trial Is Delayed With Niece Loan Nearly Excluded, New FDIC Docs
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Jan 11 – Mendel
Zilberberg was indicted for
bank fraud while he was a
board member of Park Avenue
Bank. His trial was to start
on January 23, 2023.
On January 11,
2023 U.S. District Court for
the Southern District of New
York Judge George B. Daniels
held an in-person final
pre-trial conference.
Inner City Press went to cover
it.
But even as the
next defendant, in a gun case,
had his family setting up in
the gallery, in the well of
the courtroom Zilberberg's
lawyer Ben Brafman was
conferring with the
prosecutors.
When
Judge Daniels took the bench,
the parties asked for an
adjournment, in light of
20,000 pages of FDIC documents
just produced. No new trial
date was agreed. Instead, a
March 28 pre-trial conference
was scheduled.
Judge
Daniels asked about a related
loan, to Zilberberg's niece.
The
prosecutor emphasized that she
was a special education
teacher, and did not have a
business for the business
loan. Judge Daniels said it
might be cumulative, and/or
prejudicial.
Brafman
said the jury could be
confused by the issue of
taking advantage of a younger
relative. Judge Daniels asked
a letter in two weeks,
response in 10 days. Then the
US Marshals brought the next
defendant out.
This case
is US v. Zilberberg, 19-cr-802
(Daniels)
January
9, 2023
HSBC Is Sued For Firing Whistleblower Exposing Front Running Sarb Ox Cited
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Jan 2 – Stephen
Callahan sued
HSBC for
firing him for
exposing
front-running.
The
complaint,
filed in the
U.S. District
Court for the
Southern
District of
New York where
Inner City
Press found
it, recounting
HSBC paying a
$100 million
fine for
front-running,
then fire the
plaintiff for
complaining.
The
Sarbanes-Oxley
Act of 2002 is
cited.
Callahan
says he heard
HSBC's Brian
Yip tell
junior trader
Russell Dean
to "always" by
or sell for
the Bank
before putting
a price on a
transaction
for a
customer. Then
on March 7,
2022, Callahan
was suspended
by
HSBC.
HSBC
Holdings plc's
response was
due December
30, but on
December 28 a
request was
made to extend
its time to
February 6,
2023.
The
case is
Callahan v.
HSBC Holdings
plc, et al.,
22-cv-8621
(Oetken)
Goldman Sachs Indicted Insider Trader Goel Disputed Audio Now Attacks Subpoenas
By
Matthew Russell Lee, Patreon Maxwell
Book
SDNY
COURTHOUSE, Jan 4 – Former Goldman Sachs
investment banker Brijesh Goel was arraigned on
insider trading charges on the morning of July
28, 2022. Inner City Press there - although the
arraignment had not be listed in the docket, nor
announced by prosecutors.
Goel's
case is assigned to U.S. District Court for the
Southern District of New York Judge P. Kevin
Castel, who held the arraignment.
Even
afterward, the docket did not contain any notice
of the arraignment - in contrast to the July 27
arraignment for insider trading of former Indian
Congressman Steve Buyer, Inner City Press story
here,
video here.
Goel, represented by defense lawyer Reed Brodsky
who was still not listed on the docket - no
notice of appearance? - after the proceeding,
pleaded not guilty.
Assistant
US Attorney Joshua Naftalis said his office
agreed to release on $1 million bond, and no
contact with "CC-1."
Brodsky, too, was concerned about CC-1. He
specifically asked that all information about
debriefing sessions with CC-1 be provided in two
or three weeks, so that he or successor counsel
can decide by the September 14 next conference
whether to file motion.
This
was incorporated into Judge Castel's Rule 5(f)
order.
Goel is accused of feeding inside information to
his graduate school friend and squash partner
Akshay Niranjan, at Barclays.
Brodsky
said Goel "could not consent" to excluding time
under the Speedy Trial Act. But then after
conferring, he did not oppose. Time was
excluded.
On
November 17, another conference was held, and
Inner City Press was there. Brodsky said that
the audio in the case is inaudible. Judge Castel
said this came up before him recently - yes, in
US versus former Honduras president Juan Orlando
Hernandez, as Inner City Press reported. Brodsky
said he might make a motion, unlike JOH's
counsel Raymond Colon.
Brodsky
had other motions, some of which Judge Castel
asked why he had "sat on" until this conference.
When the time came to set the trial date,
Brodsky asked for October, but Judge Castel put
it at June 12 with motions due before that.
On
January 4, 2023 Goel filed a motion against the
US Attorney's Office subpoenas before a trial
date was set, citing US v. Tuzman, 15-cr-536. It
includes an email from AUSA Joshua Naftalis,
including that "trial subpoenas issued before
the trial date was set... all these subpoenas
have been withdrawn."
Inner
City Press will continue to cover the case -
watch this site.
January
2, 2023
For Enabling Epstein JPM Chase & Deutsche Bank Face Trials Now JPM Moves to Dismiss
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Dec 30 – J.P. Morgan
Chase and Deutsche Bank were
sued for their enabling of
Jeffrey Epstein, in lawsuits
filed on Thanksgiving in the
U.S. District Court for the
Southern District of New York,
where Inner City Press found
them in the docket.
The
separate lawsuits allege that
"without exorbitantly large
amounts of cash, Epstein's
operations could not run, as
newly recruited victims were
each paid hundreds of dollars
in cash immediately after
Epstein sexually abused them,
as hush money."
But
there's more, and Inner City
Press is on it. For now, the
JPM Chase complaint is on
Patreon, here.
On November 29, both cases were
assigned to SDNY Judge Jed S.
Rakoff, as "related"
to a previous case
against Deutsche
Bank he has. Both had
a proceeding on December
5 that Inner City
Press covered.
In the
courtroom along
with David
Boies, Bradley
Edwards,
Sigrid
McCawley et al
was former
SDNY
prosecutor Robert
Boone (Inner
City Press
covered him in
the Michael
Avenatti -
Stormy Daniels
criminal
case), now representing
JPMorgan
Chase.
Both
cases have the
same pre-trial schedule,
going
forward but for now they
have different
trial dates: "
barring
further order
of the Court,
trial of the
cases will
proceed
separately,
with
22-cv-10018-UA
starting trial
on August 7,
2023 and
22-cv-10019-UA
starting trial
on September
5, 2023. SO
ORDERED."
Buried on
Friday,
December 30 -
filed after 8
pm - JPM
Chase moved to
dismiss,
making
analogies fto
impunity for
banking for Iran
and AL Qaeda.
Apparently,
JPM owes no
duty to
anyone.
Earlier
on December
30, Deutsche
Bank moved to
dismiss the complaint,
emphasizing
that while the
plaintiffs point
to Jes Staley at
Chase and that
Paul Morris
worked there then at
DB, there's no
showing that
Morris knew
Staley. But
Morris
identified
Elstein as a
client, and DB
"onboarded" him.
Watch this
site.
Latein
December 2022,
US Virgin
Islands filed
suit against
JPMorgan
Chase, stating
that "JP
Morgan
knowingly
facilitated,
sustained and
concealed the
human
trafficking
network
operated by
Jeffrey
Epstein from
his home and
base in the
Virgin Islands
and financial
benefited from
this
participating
by failing to
comply with
federal
banking
regulations."
Judge Rakoff
ordered:
"ORDER:
Barring any
objection from
plaintiff
Government of
the United
States Virgin
Islands, which
must be made
by joint
telephone call
to Chambers no
later than
5:00 PM on
January 4,
2023, this
case is hereby
consolidated
for all
pretrial
purposes with
Doe v.
Deutsche Bank,
22- cv-10018
and Doe v. JP
Morgan Chase
& Co.,
22-cv-10019.
Further,
except for any
motion to
dismiss, this
case will be
governed by
the case
management
plan dated
December 5,
2022,
previously
entered in
those cases."
Deutsche
Bank complaint
on Patreon here
Maximum
Maxwell book here.
Meanwhile, the UN
has yet to
answer Inner City Press
on why SG Antonio
Guterres maintained a rep on
the board of Ghislaine
Maxwell's Terramar
Project (instead
bannign the
Press); Norway
won't answer
on its
AMbasador Mona
Juul and
Terje Roed Larsen
taking $130,000
personal loan
from Epstein.
The
JPMC case is
Doe 1 v. JP
Morgan Chase
& Co.,
22-cv-10019
(Rakoff)
Also now
Government
of the United
States
Virgin Islands
v. JP Morgan
Chase Bank,
N.A.,
22-cv-10904
(Rakoff)
Watch this site.
***
Inner City Press/Community on the Move, and the Fair Finance Watch, are engaged in cutting-edge investigative, fair lending, development and government accountability advocacy. Our work is controversial to some, including, it seems, most foundations. We have neither applied for, nor received, government funding. Our struggles are often with government agencies, for lack of enforcement of the Community Reinvestment Act, environmental and other laws, and lack of compliance with the open government laws. More recently our reporting on the United Nations has raised other issues. We decided, early on, that only by remaining independent could we take on the right fights, and achieve the results we have. Much of our support comes from individuals.
You can contribute to Inner City Press/Community on
the Move, Inc. in several ways (it is a private, nonprofit
charity, under Section 501(c)(3) of the Internal Revenue Code, and
donations are deductible from federal taxes). Click here for
information on contributing, use PayPal
or just send checks to Inner City Press/Community on the
Move, Inc.
P.O. Box 580188, Mount Carmel Station,
Bronx, NY 10458
Inner City Press' books cost $19.95 each, add $3.95 shipping & handling for first book and $1 for each additional book, and sales tax if in NYS
Checks, for publications or otherwise, should be made out to "Inner City Press"
[E-mail addresses broken-down to stymie spammers; just paste in and replace [at] with "@" and [dot] with "."]
Click here to return to Inner City Press home page. Or see and click below:
Site Map
Search
This Site Inner City
Press' Community Reinvestment Reporter Global Inner
Cities Citigroup Watch
Inner City
Reporter 
Bank Beat
Inner City
Poetry Community
Reinvestment Environmental
Justice Insurance
Redlining In the Bronx
FCC/Telecommunications About Inner
City Press Inner City
Arts&Culture Inner City
Housing ICP's Freedom of
Information Guide Links/Resources Frequently
Asked Questions The Inner
City Reporter's Federal Reserve Beat Privacy Policy
What's New on
Site Archives For the Media
Inner City
Public Interest Law CenterWhat's New on
Site