Ways to Contact Inner City Press / Fair Finance Watch, et al.

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.

November 14, 2024

Guilty Verdicts in Hwang Trial For Archegos $34B Meltdown Now He Wants No Jail Time

By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, Nov 8 – 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.

And after, stand-up here, short Q&A here.

On June 20, 2023 Judge Hellerstein pushed the trial back: "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)."

Jump cut to November 14, 2023 when Judge Hellerstein held an oral argument on the subpoena requests. Inner City Press attended, in mask, and tweeted, threadette:

Hwang is here at defense table, with COVID mask and foyr lawyers at table, one behind.

Judge Hellerstein: Manipulation for manipulation is meaningless. How was it intended to make money? When? There are many different ways to hedge. I'd like to see them narrowed

Berke: Your Honor, you've done a lot of cases, but this is the 1st one in which DOJ is charging manipulation of swaps

Judge: It's hard to defend against manipulation. Mr Berke deserves a discussion. US v Nixon provides the boundary.

Berke: Thank you

And well he might say that - it seemed the defense won this round. He mocked what he called the prosecution's theory of "pump and brag," that Hwang did it to brag he'd built a family office into a major firm.

On January 3, 2024, still mostly masked, Judge Hellerstein said the proposed experts are qualified, that sufficient notice is the issue. He said he will follow Judge Jed Rakoff's decision in US v. Mrabet, which Inner City Press also covered. At the end Judge Hellerstein said, with a laugh, Don't settle this case, I want to try it.

More details on Substack here

On May 1, 2024, the US Attorney's Office wrote in to specify that at trial they intend to put forward evidence about Archegos' predecessor Tiger Asia, including that the SEC banned Hwang from acting, among other things, as an investment adviser.

On May 6, Halligan's counsel wrote in that the evidence should not be admitted at trial, as little of it involves Halligan but he would be prejudiced by it.

On May 15 in the trial, Mr. Marks of Operations testified about reports only to Bill and Patrick, then Mr. Jones about flying from Dallas amid the meltdown. Thread here

On May 21, the US insisted that evidence of Hwang's "decision not to reimburse employees for lost deferred compensation" should remain in evidence before the jury."

Full letter on Patreon here.

On May 22, Inner City Press live tweeted cross examination of cooperator Becker, here. In the midst of it, an announcement by Judge Hellerstein of the birth of a baby, and applause in the courtroom (it's in the thread).

On May 23, Becker continued - from the thread:

Becker is asked about his message, "Whatevs, we'll just roll with it."

Counsel: Turning to your lost vacation days, Mr. Becker, you felt you had never worked harder than at Archegos, isn't that true? Becker: Yes.

Counsel: You had 3 weeks of vacation - couldn't carry it over and you were angry, right? Becker: Correct.

Halligan's lawyer: You didn't want Mr. Halligan involved in your project, did you? He called you careless-

Judge Hellerstein: Haven't we gone over this? It's done. Finished. Halligan's lawyer: You felt he didn't show appreciation Judge Hellerstein: Move on

Now re-direct: AUSA: Mr. Becker, Mr. Berke didn't show you this sheet, did he? Objection! Overruled. Becker: He didn't.

AUSA: You were asked some questions about conversations with Mr. Halligan. Why was it so frantic? Let me off this March 23 chat, 3745

Judge Hellerstein: Jurors, have a good weekend. [Jurors leave] Defense: Can we discuss schedule for next week? Judge: Tues and Wed 10 to 5. Can't say about Thursday. Government, how are we doing?

AUSA: We expected Becker 1 week, on schedule

Judge Hellerstein: Done in 2 weeks? AUSA: That's aggressive. Adjourned.

On May 28, the US Attorney's Office filed a letter seeking permission in advance to ask "what if you had known" questions of the type blessed by the 2d Circuit in US v. Cuti (2013), starting with Bank of Montreal's Joseph Boccuzzi on May 29. Letter on Patreon here

...

On July 10, after Inner City Press monitored the courtroom and lawyers' answers to jury questions, at 4 pm, live tweeted the (guilty) verdicts, thread:

Now in US v. Hwang courtroom, Hwang has moved next to his lawyer Berke. All rise! Judge Hellerstein: We have a note. It reads, "The jury has reached a verdict." Call them out. Jury coming in! [Hwang has his hands folded in front of him]

Judge Hellerstein: Ms. Jones, please take attendance. [12 names are read out, all say present] Judge Hellerstein: Ms. Jones, please take the verdict from Ms. Pope for my inspection.

Judge Hellerstein: Ms. Jones, please return it to Ms. Pope and ask her to sign it, as foreperson. Please date it. Today's the 10th and the time, 4:34.

Ms. Jones, take the verdict please. Ms Jones: how do you find Defendant Hwang? Foreperson (softly) Guilty

Judge Hellerstein: For both Mr. Hwang and Mr. Halligan, poll the jury. Ms. Jones: Count 1, RICO as to Hwang, guilty. Is that your verdict? [15 times yes] Ms. Jones: Count 1, RICO as to Halligan, guilty. Is that your verdict? 15 Yes

Count 3, Market Manipulation, Viacom CBS - Guilty. Is that your verdict? All say Yes - 15

Count 4, Market Manipulation, Discover Communication, Guilty. 15 Yes.

[US v. Hwang and Halligan] Count 5: Guilty. Count 6, GSX, Guilty. Count 7, IQI... Hwang, NOT Guilty. 15 confirm. Count 8, Guilty. 15 yes. Count 9, Guilty; 15 yes. Count 10, Securities fraud, counterparties. Hwang, Guilty. 15 yes.

[Verdict sheet will go on ECF, we'll screenshot it] Judge Hellerstein: Jurors I discharge you - you even fought to keep your place on the jury. [Jurors leave] Judge Hellerstein: It's been a difficult trial. Motions due in 14 days. Sentencing date Oct 1, 10 am

Hwang's lawyer Berke: Due to some of the issues in the case could we have November? Judge Hellerstein: October 22. Berke: We may seek an adjournment. How about December? Judge Hellerstein: Too long. October 22 at 10 am.

Judge Hellerstein: Bail? AUSA Thomas: The government has no application [not asking for remand or any changes]

Judge Hellerstein: Sentencing October 28, now, a Monday, at 2:30 pm. Adjourned

It was delayed. On November 8, Hwang's lawyers wrote in asking for a "non-custodial" sentence in a 70 page memo, citing among other things age and health.

Back on March 21, 2023 Judge Hellerstein held an hour and a half proceeding in which he denied more than a dozen motions by Team Hwang. Inner City Press was there and live tweeted, thread here.

More including on Halligan on Substack here.

Later - after re-up of book and talk to NYU Journalism School, here and here - in the SDNY Magistrate a defendant was detained until trial, charged as a felon in possession. We'll have more, much more, on this.

The case is US v. Hwang, 22-cr-240 (Hellerstein)

November 11, 2024

Mashinsky of Celsius Wins Order to Depose 4 Witnesses But Not to Delay Trial Nor Dismiss

by Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Nov 7 – After Alexander Mashinsky of Celsius was arrested on July 13, US Attorney Damian Williams held a press conference, and Inner City Press asked him to explain his thinking in agreeing to release on bail for Sam Bankman-Fried but demanding and obtaining pre-trial detention of Avi Eisenberg.

US Attorney Williams responded that every case is different. Inner City Press asked if his office would be seeking the detention of, or agreeing to release, Mashinsky. He declined to say either way, saying you will soon see.

On September 13, Mashinsky's lawyers put in a memo - and 56 sealed exhibits, see here on Patreon - asking for six witnesses (Yarden Noy, Yaron Shalem, Ron Sabo, Johannes Treutler, Daniel Leon, and named co-defendant Roni Cohen Pavon) and noting that the US Attorney's Office Pimintel letter put his guideline sentence if convicted trial as 115 years.

On November 7, an oral arguments (Inner City Press live tweeted here) at the end of which Judge Koeltl granted a motion to preserve the testimony of / depose four witnesses, but not so as to delay the trial; Mashinsky's motion to dismiss two counts was denied. Later Inner City Press saw him, along carrying two legal briefs, going into Pre-Trial Services on the 5th floor.

More on Substack here

The case is US v. Mashinsky, et al., 23-cr-347 (Koeltl)

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November 4, 2024

Webster Bank Is Sued for Unscrupulous Loans on NJ Property by BankESB in SDNY

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Oct 31 – Webster Bank is being sued for unscrupulous loans, in the U.S. District Court for the Southern District of New York which Inner City Press closely covers.

The lawsuit, by the former Easthampton Savings Bank now known as BankESB, was assigned out to SDNY District Judge John G. Koeltl on October 31, 2024. It states that Webster’s predecessor pitched a participation to it in 2020 in a leasehold office property in New Jersey clled American Metro Center or AMC.

It says, "Webster has consistently mismanaged the Webster loan." BankESB asks for recission and $500,000.

The case is BankESB v. Webster Bank, N.A., 1:24-cv-8268 (Koeltl)

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October 28, 2024

Turkey Halkbank Not Immune 2d Cir Decides Again After Supreme Court Now Back to SDNY

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Oct 21 – 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. And see below.

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.

April 8, 2024 letter on Patreon here

On October 22, after going up to the Supreme Court, the Second Circuit ruled "because Halkbank is being prosecuted in the United States for its alleged criminal activity related to its commercial activities as charged in the indictment, we defer to the Executive Branch’s determination, through the U.S. Department of Justice, that Halkbank should not be afforded immunity in this case. Accordingly, we AFFIRM the order of the district court and REMAND for further proceedings consistent with this opinion."

The criminal case is US v. Turkiye Halk Bankasi A.S., 15-cr-867 (Berman) The appeal number is 20-3499

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)

October 21, 2024

Opposing Capital One FFW Watch Raised Case of Customer Info to Meta Fed Thumbs Nose

by Matthew R. Lee

SOUTH BRONX, Oct 18 – 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.

On September 4, Fair Finance Watch and Inner City Press submitted supplemental opposition to the regulators, including about a newly filed class action that "demonstrates Capital One's outrageous, illegal, and widespread practice of disclosing—without consent—the Nonpublic Personal Information1 and Personally Identifiable Financial Information2 (together, “Personal and Financial Information”) of Plaintiffs and the proposed Class Members to third parties, including Meta, Google, Microsoft, DoubleClick, NewRelic, Adobe, Everest, Skai/Kenshoo, Snowplow, BioCatch, Tealium, and possibly others."

Does the Fed care? On October 18, they wrote to FFW: "For this proposal, the initial public comment period was extended until July 24, 2024. Because your letter was received after the end of the public comment period, it will not be made a part of the record of this case unless the Board in its sole discretion determines to consider your late comments." Unreal.

October 14, 2024

Toronto Dominion for Money Laundering Pays $3B First Horizon Denied Why Not Capital One

by Matthew R. Lee

SOUTH BRONX, Oct 10 – Toronto Dominion had to walk away from its planned merger with First Horizon, due to then unspecified regulatory issues. Now on October 10, the Federal Reserve has announced it had "fined Toronto-Dominion Bank $123.5 million for violations related to anti-money laundering laws. This action is being taken in conjunction with criminal and regulatory actions that are being taken by the U.S. Department of Justice, the U.S. Attorney's Office for the District of New Jersey, the Department of the Treasury's Financial Crimes Enforcement Network, and the Office of the Comptroller of the Currency. The penalties announced by the agencies total approximately $3.09 billion." Ah.

October 7, 2024

Inner City Press Asks IMF of China Murky Loans Kenya Graft Review and Egypt Timing

by Matthew Russell Lee, Patreon Book Substack

NYC, Oct 3– When the IMF held its press briefing on October 3, Inner City Press was able to ask the spokesperson three questions: on Kenya and governance / corruption review, on China's murky emergency loans to lower income countries, and the 4th IMF review of Egypt's program.

On Kenya, what is the IMF's response to reported pressure on Kenya to request an IMF assessment of corruption and governance issues as part of a push to unlock lending that has been stalled by the shelving of tax hikes?

On Egypt, can you confirm that the IMF has postponed the fourth review of Egypt's economic reform for the loan program to November?

What is the IMF's response to US Treasury official Brent Neiman saying, as to China, "we must make sure the result is the expansion of transparent, credible and on-budget financing flows or debt relief to countries undertaking reforms, not potentially damaging forms of lending"?

The spokesperson Julie Kozack's replies included that the timing on Egypt hasn't changed, that a list of countries in governance review will be provided - and it was, here, including Cameroon

Q&A: Inner City Press Asks IMF of China Murky Loans (Neiman speech), Kenya Graft / "Governance" Review (1st video below) and Egypt 4th Review Timing - Story: https://t.co/1PKZwnR9Oy pic.twitter.com/IF4UQkMZSV
— Inner City Press (@innercitypress) October 3, 2024

and that the US's - and others' - in put is welcome, including in connection with the Bretton Woods organizations' 80th birthday. More video coming on IMF's website.

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September 30, 2024

After SBF 25 Years Caroline Ellison Asked for No Jail Time Gets 2 Years Minimum Security

by Matthew Russell Lee

SDNY COURTHOUSE, Sept 24 – 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," audio/book here.

On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On September 9 cooperator Caroline Ellison's counsel filed a letter that "Ms. Ellison seeks leave to redact the names of certain people. Counsel for the government consents to this request." Document on Patreon here.

Late on September 9 Inner City Press submitted opposition to sealing. Judge Kaplan docketed the filing on September 10. See here and, on DocumentCloud, here. If SBF's suretors were unsealed, how not these eigth supporters?

Just before midnight on September 10 Ellison's lawyers filed a 60+ page memo, with redactions, asking for... no jail time, time served. Filing on Patreon here.

On September 17, amid the Sean Combs detention hearing, the US Attorney's Office filed that "the Government intends to move at sentencing, pursuant to Section 5K1.1 of the U.S. Sentencing Guidelines(the “Guidelines” or “U.S.S.G.”), that the Court sentence Ellison in light of the factors set forth in Section 5K1.1(a) of the Guidelines." Letter on Patreon here.

On September 24 after praise from the AUSA and Judge, Ellison was sentenced to 24 months, minimum security.

Watch this site.

More on X for Subscribers here, Substack here

This case is US v. Bond, 24-cr-494 (Daniels)

We'll have more on this.

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September 23 2024

Mashinsky of Celsius Wants 6 Witnesses as US Estimates His Guidelines at 115 Years

by Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Sept 13 – On Mashinsky Feb 15 Conflict Hearing Set After His Lawyers Appear for SBF SentencingAfter Alexander Mashinsky of Celsius was arrested on July 13, US Attorney Damian Williams held a press conference, and Inner City Press asked him to explain his thinking in agreeing to release on bail for Sam Bankman-Fried but demanding and obtaining the ongoing pre-trial detention of Avi Eisenberg and Miles Guo.

On February 20 Inner City Press attended, thread

More on Substack here

The case is US v. Mashinsky, et al., 23-cr-347 (Koeltl)

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September 16, 2024

After SBF Got 25 Years Salame Got 90 Months now Grilled if SDNY Assurance about Bond

by Matthew Russell Lee

SDNY COURTHOUSE, Sept 12 – 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," audio/book here.

On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On May 28 Salame was "sentenced to 90 months."

On August 21, Salame filed that "the Government used the plea negotiations to threaten Salame’s domestic partner and the mother of his child, Michelle Bond." Full filing on Patreon here.

On August 22, after Inner City Press published a curtain raiser on Michelle Bond being presented in SDNY Mag court, this: "the unsealing of an Indictment today charging MICHELLE BOND.

On August 29, Saleme purported to withdraw his motion. Filing on Patreon here.

But Judge Kaplan reiterated that papers and appearance are required. On September 5 the US Attorney's Office opposed, and submitted notes from talks with Salame's lawyers, including "charged FCPA Chinese bribery scheme. You previously said RS was generally aware that an account on a Chinese exchange was frozen and FTX/Alameda made a payment of $50M. Our understanding is that he used the PII of people he identified as Thai prostitutes to open the accounts." Document on Patreon here.

On September 12, Judge Kaplan grilled Salame about his allocution, then took things under advisement.

More on X for Subscribers here, Substack here

This case is US v. Bond, 24-cr-494 (Daniels)

We'll have more on this.

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September 9, 2024

As Binance and Iran Sued by Oct 7 Victims in SDNY Now Plaintiff Cite Unsealed Hamas Case

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 6 – People taken hostage by Hamas on October 7, 2023 and other victims of that massacre on January 31 sued Iran, Syria and Binance and its founder in the U.S. District Court for the Southern District of New York.

Binance founder CZ is facing sentencing in a case that Inner City Press is reporting on as it will on this one.

Here, the complaint asserts that Binance "processed numerous transactions associated with Hamas, providing a clandestine financing tool that Binance deliberately hid from U.S. regulators." Its DOJ / OFAC settlement is quoted from.

It is notably that UNRWA has not been sued, despite a dozen staffers actually participating in the October 7 massacre. The UN is only not sued due to its claims of total legal impunity.

On February 1, the case was wheeled out / assigned to District Judge John G. Koeltl, who also has, among many others, the case of the Julian Assange visitors (to Ecuador's embassy in London) against the CIA...

On February 2, Judge Koeltl set an initial conference... for July 2, 2024. The date was postponed, as Binance moved to dismiss.

On July 12 the plaintiff opposed Binance's motion to dismiss, arguing that Binance "knew Hamas, PIJ and the affiliates were transacting on Binance. Defendants' internal communications - epitomized by jokes and deliberate indifference - demonstrate this."

Unlike Binance, the UN's UNRWA which has also been sued for facilitating October 7, and has since admitted at least nine staff may have participated, claims immunity / impunity.

On September 6, the plaintiffs raised to Judge Koeltl the unsealed case against Hamas officials: "LETTER MOTION for Leave to File Sur-Reply and to provide the Court with notice of the DOJ's Unsealed Complaint in the related matter of United States of America v. Haniyeh et al., 24-MAG-438 (S.D.N.Y.) addressed to Judge John G. Koeltl from Jake Nachmani on behalf of Plaintiffs dated September 6, 2024 ."

More analysis here (X subscribers) and on Substack here

This case is Raanan, et al., v. Binance Holdings Limited, et al., 24-cv-697 (Koeltl)

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September 2, 2024

After SBF Got 25 Years Salame Got 90 Months Despite Withdrawn Motion Judge Says Sept 12

by Matthew Russell Lee

SDNY COURTHOUSE, Aug 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," audio/book here.

On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On May 28 Salame was "sentenced to 90 months."

On August 21, Salame filed that "the Government used the plea negotiations to threaten Salame’s domestic partner and the mother of his child, Michelle Bond." Full filing on Patreon here.

On August 22, after Inner City Press published a curtain raiser on Michelle Bond being presented in SDNY Mag court, this: "the unsealing of an Indictment today charging MICHELLE BOND with conspiring to cause and causing unlawful campaign contributions in connection with her unsuccessful run for Congress in 2022."

On August 29, Saleme withdrew his motion: "Mr. Salame is withdrawing the Petition." Filing on Patreon here.

But later on August 29, "ORDER as to Ryan Salame. Notwithstanding defendant's purported withdrawal without prejudice... the parties shall file the papers contemplated by the Court's order of August 21, 2024 on the schedule there set forth. Counsel shall appear for argument on September 12, 2024 as scheduled. Defendant's presence is required and his compliance with this requirement hereby is made a condition of his continued release on bail pending voluntary surrender. (Signed by Judge Lewis A. Kaplan on 8/29/2024)."

Aug 29 extra on X for Subscribers here, Substack here

This case is US v. Bond, 24-cr-494 (Daniels)

We'll have more on this.

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August 26, 2024

After SBF Got 25 Years Salame Got 90 Months Then Motion now Michelle Bond Indicted

by Matthew Russell Lee

SDNY COURTHOUSE, Aug 22 – 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," audio/book here.

On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On May 28 Salame was "sentenced to 90 months."

On August 21, Salame filed that "the Government used the plea negotiations to threaten Salame’s domestic partner and the mother of his child, Michelle Bond." Full filing on Patreon here.

More on X for Subscribers here, Substack here

August 19, 2024

In Suit Against Cairo Amman Bank For Hamas Briefing Due on Supreme Court Twitter Case

By Matthew Russell Lee

SDNY COURTHOUSE, Aug 15 – 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.

Jump cut 20 months forward to August 15, 2024, another conference, which Inner City Press covered, thread

Judge: It has been raised how the Twitter decision on aiding and abetting impacts this case.

Cairo Amman Bank's lawyer: We anticipate the plaintiffs' filing a third amended complaint. Judge: Discovery? CAB's lawyer: One of our experts has a death in the family Cairo Amman Bank's lawyer: Some we need to reach are in areas that are hard to reach right now... Plaintiffs' lawyer: We prefer to brief the Twitter v. Taamneh issues just once, on a Rule 56 motion.

Judge: File a proposed new schedule next week.

The case is Averbach et al v. Cairo Amman Bank, 19-cv-4 (Woods / Parker)

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August 12, 2024

US Sued Javice For Fooling JPMC So She Subpoenaed Chase Now Rulings on Privileges

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Aug 6 – 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.

On September 26, Judge Hellerstein held a conference and ordered: "Briefing schedule: Deft's by 10/13; Govt's by 10/27; Hearing set for 11/2/23 at 2:30 p.m.; Time excluded until 11/2/23; in the interest of justice; Stat. conf. previously set for 10/24/23 is adjourned; Defts. cont'd. on bail."

On November 7 Judge Hellerstein set a trial date of October 15, 2024.

On November 10 - Veteran's Day - Javice's lawyers filed "On November 9, 2023, I served a subpoena to JPMorgan Chase Bank, N.A. (“JPMC”), issued pursuant to Federal Rule of Criminal Procedure 17(c) (the “JPMC Subpoena”), by email to Ms. Kristy Greenberg, partner at Hogan Lovells US LLP, and counsel for JPMC. 3. Also on November 9, 2023, Ms. Greenberg responded confirming that she was willing and authorized to accept service of the JPMC Subpoena by email on behalf of JPMC."

On August 6 there was a hearing, or a series of Judge Hellerstein rulings, on privilege claims. Inner City Press was there. Thread:

Judge Hellerstein: I will read and rule on these messages chronologically... Setting up a call, not privileged. Next, about options, it's advice, it's privileged.

Judge: Counsel, how do I pronounce your name? A: There are at least 2 ways...

Judge: This one involves lawyers, but it is not advice. It is not privileged.

And so on.

This case is US v. Javice, et al., 23-cr-251 (Hellerstein)

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August 5, 2024

SouthState Lending Disparities Trigger CRA Challenge to Independent Merger Application

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, Aug 2 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger, banks whose lending Inner City Press and Fair Finance Watch had been scrutinizing, even more so that the 2023 data is out.

This week Inner City Press filed with the Fed, a timely first comment on, the Applications of SouthState Corporation to merge with Independent Bank Group, Inc., and Independent Bank.

SouthState in South Carolina in 2023 - data not yet included in any CRA exam - made 5013 mortgage loans to whites, and only 228 loans to African Americans. Meanwhile it denied only 670 applications from whites, and fully 195 from African Americans. SouthState should be referred to DOJ.

SouthState in North Carolina in 2023 - data not yet included in any CRA exam - made 1334 mortgage loans to whites, and only FIFTY SEVEN loans to African Americans. Meanwhile it denied only 173 applications from whites, and fully 20 from African Americans.

SouthState in Florida in 2023 - data not yet included in any CRA exam - made 2755 mortgage loans to whites, and only 165 loans to African Americans. Meanwhile it denied only 958 applications from whites, and fully 69 from African Americans.

SouthState in Georgia in 2023 - data not yet included in any CRA exam - made 1176 mortgage loans to whites, and only 318 loans to African Americans. Meanwhile it denied only 304 applications from whites, and fully 88 from African Americans.

SouthState in Alabama in 2023 - data not yet included in any CRA exam - made 945 mortgage loans to whites, and only FIFTY ONE loans to African Americans. Meanwhile it denied only 87 applications from whites, and fully 17 from African Americans. SouthState should be referred to DOJ.

Nationwide in 2023, SouthState made 7798 mortgage loans to whites, and only 947 loans to African Americans. Meanwhile it denied only 2491 applications from whites, and fully 558 from African Americans.

Why would regulators even consider approving its expansion? Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved

***

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July 29, 2024

After SBF Sentenced to 25 Years Now Delay In Getting Funds Back from PACs in DC

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, July 26 – 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," audio/book here.

On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On May 21, the US Attorney's Office on Salame asked for a sentence between five to seven years. 28 page filing on Patreon here.

On May 28 Salame was "sentenced to a term of imprisonment of 60 months on Count (S7)One, and 60 months on Count (S7)Two; the term on Count (S7)Two shall run concurrently with the last 30 months on Count (S7)One, for an aggregate term of imprisonment of 90 months."

On July 26 the US Attorney's Office requested and got a delay from July 26 to September 8 on the forfeitability of funds sent to FF USA PAC, Emily's List, House Majority PAC, Senate Majority PAC and GMI PAC, letter and order on Patreon here.

More on X for Subscribers here, Substack here

We'll have more on this.

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July 22, 2024

Coinbase Presses for Gary Gensler Personal Email Only While SEC Chair Brief Due July 23

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, July 15 – Coinbase in the SEC's case against it is seeking access to Chairman Gary Gensler's personal device and private emails, including from before he chaired the SEC.

On July 11 U.S. District Court for the Southern District of New York Judge Katherine Polk Failla held a hearing. Inner City Press live tweeted it, thread.

On July 15, Coinbase wrote in to drop its request for Gensler's emails from before he chaired the SEC, and to set a schedule: "With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC and not before that time. .. (a) Coinbase’s opening brief will be due July 23, 2024, with the brief limited to twelve pages; (b) the SEC’s opposition brief will be due August 5, with the brief limited to twelve pages, and (c) Coinbase’s reply brief will be due August 12, with the brief limited to six pages." Letter on Patreon here.

More on X for Subscribers here & Substack here

Inner City Press will stay on the case.

The case is Securities and Exchange Commission v. Coinbase, Inc. et al., 23-cv-4738 (Failla)

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July 15, 2024

UMB Bank Application Buy Heartland Hit on Disparties & As Shaky Regional Now Spin

by Matthew R. Lee, Patreon Substack

SOUTH BRONX / SDNY, July 12 – When First Republic Bank failed / was given to JP Morgan Chase, a small list of other regional banks came into focus as in danger. Among them was UMB - a bank whose lending Inner City Press and Fair Finance Watch had been scrutinizing, and now challenge.

UMB is asking its regulators to allow it to expand, buying Denver-based Heartland. The application, Fair Finance Watch on June 21 formally told the Fed, should not be approved. In 2022, the most recent year for which Federal data is available, UMB Bank, N.A. made over 2000 mortgage loans to whites, and only 117 loans to African Americans.

For every denial to an African American, it made only 2.02 loans. But for whites, for every denial it made 3.45 loans. It should be referred to DOJ.

There is litigation, there is also this, reported at the time of Silicon Valley Bank's failure: "UMB Bank, a regional bank headquartered in Kansas City, Missouri, and with branches across the Midwest, Southwest, and Western United States, has total assets of $38 billion and deposits totaling $32 billion, according to the FDIC. However, only 16% of deposits fall under the $250,000 FDIC insurance threshold, leaving 74.11% (equivalent to $28.36 billion) vulnerable to potential losses."

Why would regulators even consider approving its expansion? On June 21, Fair Finance Watch filed a formal Community Reinvestment Act challenge to UMB's application to the Federal Reserve, adding state by state data:

UMB Bank in 2022 in Missouri made 842 mortgage loans to whites, and only 76 loans to African Americans. Meanwhile it denied 41 applications from African Americans, and only 257 from whites.

UMB Bank in Colorado - in which it seeks to expand - in 2022 made 378 mortgage loans to whites, and only 13 loans to African Americans. Meanwhile it denied six applications from African Americans, and only 107 from whites.

UMB Bank in 2022 in Texas made 78 mortgage loans to whites, and only six loans to African Americans. Meanwhile it denied two applications from African Americans, and only 27 from whites.

These disparities cry out for a referral to DOJ, and public hearings on, and denial of, UMB's major expansion application.

On July 8 UMB's outside counsel Davis Polk wrote in that "The average credit score of African American applicants denied due to credit history was 580, while the average originated loan applicant had a credit score of 761" and that "By March 31, 2023, prior to the quoted article’s publication, UMB Bank’s uninsured deposit liabilities constituted approximately 66.6% of all deposits, approximately 8% fewer than had been the case as of December 31, 2022 and as implied by the Comment Letter. UMB Bank’s level of uninsured deposit liabilities have remained steady since March 31, 2023 and, as noted in the Application, as of March 31, 2024, UMB Bank had total deposits of approximately $37.0 billion, of which approximately 68.4% were uninsured." Isn't that a lot?

Watch this site.

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July 8, 2024

Flagstar Bank Is Sued For Discrimination in SDNY On a Basis Not Included in HMDA Data

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, July 5 – A Flagstar Bank employee who says her supervisor spouted homophobic remarks in Flagstar's office has sued the bank. She says that 25 days after she complained to Flagstar's human resources director, she was terminated in retaliation.

She received a right to sue letter from the EEOC and filed suit in the U.S. District Court for the Southern District of New York, which Inner City Press covers closely. It has been assigned to Judge Lewis J. Liman.

While Flagstar's data filed and made public under the Home Mortgage Disclosure Act indicates disparities for some protected classes, the data set does not (yet?) contain this one.

The case is Chavez-Mendoza v. Flagstar Bank, 24-cv-5057 (Liman)

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July 1, 2024

In Menendez Trial FBI Account on M&T Bank Account and Gold in Chase Safety Deposit Box

by Matthew Russell Lee

SDNY COURTHOUSE, June 28 – Amid reports of investigation against Sen. Robert Menendez for taking gold bars, Inner City Press' sources on September 21 it to expect on Friday, September 22 an appearance in Federal court in Manhattan by Menendez and his wife Nadine Arslanian. This scoop was true.

Later a superseder was unveiled, including charges of bribes to act for Qatar...

On April 11, 2024 after Nadine Menendez and then the government asked for delay, to July or undefined, Judge Stein severed her case and reaffirmed May 6, Inner City Press thread

On Sunday night April 14 the US wrote in again asking for a delay to July, six page letter on Patreon here.

But Judge Stein told the parties to confer and report by April 16 at 1 pm. Then he set an April 17 conference, which Inner City Press live tweeted and dubbed "Berate-gate," thread

On May 13, jury selection began - but did not finish. Abit later, Menendez got into an car with FOP NJ plates.

On May 14 jury selection continued but was not yet completed, from the ending, thread

Late on May 14, the US Attorney's Office filed opposition to slides the defense wants to use in its opening arguments, including quotes from Colin Powell and MLK, and when Nadine came into possession of gold - full letter on Patreon here

Inner City Press live tweeted jury selection and then opening arguments here, then filmed Bob's exit (he said he thought it went well and that his guy did great).

On May 21, the US Attorney's Office put on Wael Hana's lawyer, then a US State Department official working on Congressional approval (or holds) on arms transfer to Egypt, thread here.

On May 23, with the trial in haitus, docketed was Menendez' lawyers opposition to quashing his subpoena for Jose Uribe's attorney proffer and communications with SDNY prosecutors, filing on Patreon here

On May 29, Inner City Press live tweeted, omitting Morton's steakhouse but including this

On May 30, Menendez's lawyer's (long) cross, including this.

On May 31, starting 1 pm, the agent was cross examined, and then USDA Ted McKinney on direct, thread

After the trial day, Inner City Press filed Menendez' walk to his Jersey-plated car; asked why he called McKinney he said, Wait for the cross [examination].

Nadine Menendez hired a new lawyer, who previously represented Sydney Powell among others. Then this: "ORDER as to Nadine Menendez: At the request of the defendant and with the consent of the government [Doc. No. 434], the status conference is adjourned from June 10 to June 12 at 5 :00 p.m.(Signed by Judge Sidney H. Stein on 6/3/2024)."

On June 4 Judge Stein dockted a partially redacted Order in which he denied Menendez's request that the prosecutors give him impeachment material about a Confidential Human Source they are not going to call as a witness - but Menendez said he will.

On June 5, Inner City Press live tweeted - and afterward asked Menendez a question. Thread.

On June 6, after more cross of Agent Graves, Gurbir Grewal testified, thread

On June 7, after an FBI fingerprint expert, cooperator Jose Uribe, Inner City Press live tweeted, thread

On June 10, Uribe finished his direct examination around 4 pm, then counsel for Hana, not yet Menendez, began cross examination, thread.

On June 11, Uribe was cross examined - though not on the "strip club issue" after which out on Worth Street Menendez decried Uribe's crimes. Thread

On June 12, after the end of Uribe (including drunk driving and the "little bell"), US Attorney of NJ Sellinger took the stand, thread.

On June 13, trial day - and next day - was canceled by Daibes calling in with COVID: thread.

And then, book: GOLD BAR BAR Menendez Trial I, on Amazon here.

On June 18, after Daibes' COVID, things resumed with Sellinger, followed by Matt Soliman.

On June 20, alongside an FBI agent summary witness, a prosecution office witness out of order, thread.

On June 24, Menendez's staffer Sarah Arkin took the stand, from the thread

On June 25, Sarah Arkin finished up, including about upcoming job at State Department. Then, a currency (and money laundering) expert from the Federal Reserve Bank of New York. From the thread

On June 26, there testimony about currency, and then a jocular Armenian jeweler, from the thread

On June 27, the Senate Ethics Committee director, then a cell site expert, from the thread

On June 28, the last US witness, on Menendez's M&T account, and gold in Nadine's Chase Bank safety deposit box, thread:

OK - now in US v. Menendez, FBI forensic account about Bob's M&T account is last government witness; defense will allude to Anton.

All rise! [Witness is called, and sworn...] AUSA: Which accounts of Senator did you review? FBI accountant: Senate Credit Union and M&T Bank. Also, Schedule E, Rental Income, from the Senator's tax returns.

AUSA: In this chart, how much is indicated in Menendez cash withdrawals from the Senate credit union? FBI accounting: $55,000 between 2018 and June 2022.

AUSA: If all of that were part of the money seized, how does it compare to the bills issued after 2018? Less AUSA: How many gold bars in this chart match bars in the Daibes portfolio? FBI accountant: 13 bars, worth over $200,000.

Cross examination. Menendez's lawyer Adam Fee: How did you first get involved in this case? FBI accountant: I was asked by the prosecutors. Fee: The summary charts, you did not prepare- FBI accountant: I reviewed them for accuracy

Menendez' lawyer Adam Fee: I'm going to have to re-make this exhibit because I don't have Excel... Does the Senate FCU have a branch in the Hart building? FBI accountant: I have no knowledge of the Senate buildings. Judge: We'll break.

Cross examination of FBI accountant continues. Menendez' lawyer Adam Fee: Are you aware that this Chase Bank in Engelwood NJ safe deposit box was held only by Nadine Arslanian? AUSA: We object to the scope of these questions. Judge: Let's see. FBI accountant: Yes

Menendez's lawyer Fee: The cash deposited in the M&T account was accurately reported on the Schedule E? AUSA: Objection! Judge: Sustained. Fee: I want to understand her knowledge of the charts. Judge: But you keep asking the same questions. Go ahead

Now Wael Hana's lawyer Lustberg: This chart has one section on Mr. Daibes, and one on Mr. Hana, right? FBI accountant: Correct... After a brief re-direct the AUSA: The government rests. Judge: Jurors, on Monday you'll see if the defense puts on a case Jury leaves

More on X for Subscribers here and Substack here

The case is US v. Menendez, et al., 23-cr-490 (Stein)

More on Substack here

June 24, 2024

Stock Fraudster Craig Auringer Freed in SDNY Now Bauer Gets Month to Discuss Disposition

by Matthew Russell Lee, Patreon Book Substack

SDNY EXCLUSIVE, June 6 – Craig Auringer who was indicted for a $100 million pump-and-dump stock fraud was extradited in from Milan and immediately released on his own signature, an ICE detainer that was mentioned suddenly disappearing.

Inner City Press was the only media there and live tweeted:

Craig Auringer was set to be presented here in SDNY Magistrates Court and argue for bail- but there's an ICE detainer. Now his lawyers are trying to make it go away. There's still a lot of rushing around about the ICE detainer - which Team Auringer seemed to be disbelieving or denying the existence of

DOJ previously said (no word on today's ICE detainer) that CRAIG AURINGER, a citizen of Canada who resided in the UK, participated in multiple “pump-and-dump” schemes including by coordinating stock promotion campaigns...

From whispered talk here in Mag court it appears they are agreeing to bail conditions with Auringer. But will he, like others are, be immediately picked up by ICE? His lawyers are looking at the courtroom clock. 4:15 pm...

Auringer has been brought out by US Marshals, in white dress shirt with collar. Lot of whispering about this defendant and his detainer. If he was arrested in Milan and extradited, why would he unlike others have release on bail agreed to?

Now AUSA and defense lawyer are being taken back into robing room.

They're back. All rise! Judge: Time of arrest?

AUSA: August 24. Judge: You are charges with 9 counts... AUSA: He shall be freed on $1 million bond, secured by $100,000 cash Defense: Those are the conditions we approved.

AUSA: He will be released today on his own signature. No mention of the ICE detainer which was waived around

Adjourned

By August 31 - six days later - the presentment and release of Craig Auringer was still not in the public docket of the case.

More on Substack here

Jump cut to March 29, 2024, in the Mag, thread:

OK - now in same case $100 million fraudster Craig Auringer was immediately released on in August 2023 (Inner City Press scoop), now co-D Ronald Bauer is to be presented, counsel chatting with AUSA. Inner City Press as only media here will live tweet, thread below

Bauer comes out from the holding cell in a suit jacket. His lawyer shows the AUSA what appears to be a bank check. All rise! Judge: Where was he arrested? AUSA: When he arrived at JFK airport.

AUSA: We've made notification to the United Kingdom. Judge: Your are changed with conspiracy to commit securities fraud, concealment money laundering. Defense: My client pleads not guilty to all charges. AUSA: We have agreed a bail package - a bond of $5 million

AUSA: To secured by $125,000 case, jewelry to his lawyer as bailee, and a property in Coconut Creek, Florida. Co-signed by Samantha Bauer and Martha Bauer. He can only travel to NJ, NJ, CT, MA and the UK - also FLA. Surrender UK and Canadian passports to lawyers

AUSA: Released today on his signature but cannot leave for the UK until the property is posted. Defense: He needs at least one passport today. He would like to go down to Florida, he needs his passport to get on the plane. AUSA: As long as the cash is posted

Judge: He'll get his Canadian passport, that's what we're saying? AUSA: Yes. Judge: No contact with co-defendants [from Inner City Press research, not only Craig Auringer but also Peter Mihaylov and Daniel Ferris - and more?]

On May 30 on Bauer, the US Attorney's Office wrote in and asked for an extra month for discovery, "to give the parties additional time to discuss a potential disposition of this matter."

More on X for Subscribers here & Substack here

The case is US v. Auringer, 22-cr-155 (Engelmayer)

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June 17, 2024

In Hwang Trial For Archegos $34B Meltdown Halligan Says Bank of America Witness Too Late

By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, June 14 – 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.

And after, stand-up here, short Q&A here.

Jump cut to November 14, 2023 when Judge Hellerstein held an oral argument on the subpoena requests. Inner City Press attended, in mask, and tweeted, threadette:

Hwang is here at defense table, with COVID mask and foyr lawyers at table, one behind.

Judge Hellerstein: Manipulation for manipulation is meaningless. How was it intended to make money? When? There are many different ways to hedge. I'd like to see them narrowed

Berke: Your Honor, you've done a lot of cases, but this is the 1st one in which DOJ is charging manipulation of swaps

Judge: It's hard to defend against manipulation. Mr Berke deserves a discussion. US v Nixon provides the boundary.

Berke: Thank you

More details on Substack here

On May 6, Halligan's counsel wrote in that the evidence should not be admitted at trial, as little of it involves Halligan but he would be prejudiced by it.

On May 15 in the trial, Mr. Marks of Operations testified about reports only to Bill and Patrick, then Mr. Jones about flying from Dallas amid the meltdown. Thread here

On May 21, the US insisted that evidence of Hwang's "decision not to reimburse employees for lost deferred compensation" should remain in evidence before the jury."

Full letter on Patreon here.

On May 23, Becker continued - from the thread:

Becker is asked about his message, "Whatevs, we'll just roll with it."

Counsel: Turning to your lost vacation days, Mr. Becker, you felt you had never worked harder than at Archegos, isn't that true? Becker: Yes.

Counsel: You had 3 weeks of vacation - couldn't carry it over and you were angry, right? Becker: Correct.

Halligan's lawyer: You didn't want Mr. Halligan involved in your project, did you? He called you careless-

Judge Hellerstein: Haven't we gone over this? It's done. Finished. Halligan's lawyer: You felt he didn't show appreciation Judge Hellerstein: Move on

Now re-direct: AUSA: Mr. Becker, Mr. Berke didn't show you this sheet, did he? Objection! Overruled. Becker: He didn't.

AUSA: You were asked some questions about conversations with Mr. Halligan. Why was it so frantic? Let me off this March 23 chat, 3745

Judge Hellerstein: Jurors, have a good weekend. [Jurors leave] Defense: Can we discuss schedule for next week? Judge: Tues and Wed 10 to 5. Can't say about Thursday. Government, how are we doing?

AUSA: We expected Becker 1 week, on schedule

Judge Hellerstein: Done in 2 weeks? AUSA: That's aggressive. Adjourned.

May 29 ended with a dispute about a government chart, long and short positions, which Hwang's lawyer Berke called argumentative, from the thread:

Judge Hellerstein: How do you proposed to change your chart before showing it to the jury? The title should change.

AUSA: I can pass up copies. Judge: Just say, Portion of the portfolio. Why do you have to say "long"? AUSA: Achegos has a short portfolio too

Hwang's lawyer: This was, it's argumentative and misleading. AUSA: We can work on something...

Judge Hellerstein: Let's do it now. I have both of you, and I've already canceled my appointment...

On May 30, the US Attorney's Office filed opposition to Hwang's bid to strike testimony of UBS's Christ Salcedo...

On June 5, Inner City Press live tweeted, thread

On June 6, government expert testified about, among other things, dark pools, thread

On June 10, cooperation William Tomita began on the stand, from thread:

Tomita: Yes. They were traders, executing the trades on behalf of Bill. Bill would yell at me, Don't list to Andy, you answer to me

On June 11, Tomita continues. From thread:

Judge: Who picked the stocks? Tomita: We chose stocks that were less liquid, so we could move the stock to the firm limit. Judge: Who set the firm limit?

Tomita: Bill did. Judge: Did you always reach that limit? Tomita: Not always. But we tried. Judge: Were there conversations if you didn't reach the firm limit?

Tomita: He would yell at us... Sometimes he didn't need to vocalize it, we could see his expression and body movement on the Zoom. So we would try to get the price to move as quickly as possible

On June 14 to start the trial day after a two day hiatus, counsel for Halligan complained about Bank of America witness / issue, thread:

"OK - now in US v. Hwang of Archegos, before jury comes in after two days off, AUSA is proffering what a Bank of America witness would say.

Defense: Juror Number 8 is an employee of Bank of America. We were not aware of this during voir dire. Mr. Halligan's right to a fair and impartial jury is being undermined. The jurors have heard evidence for five years, and now this. Judge: Is GX 148 admissible?

AUSA: On page 248 of the voir dire, it was said Bank of America could come up in the trial, so there is no issue.

Halligan's lawyer: We were not on notice they would claim Bank of America was lied to. And his colleague will be on the jury.

And so it goes. Watch this site.

June 10, 2024

After Allianz Global Investors US Pled Guilty Now Tournant Also Pleads Before Sept Trial

By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTHOUSE, June 7– 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.

Jump cut to January 9, 2024 when Chief Judge Laura Taylor Swain held a conference. Inner City Press was there. After lengthy arguments about the timing of defense expert disclosures, and disclosures of what witnesses would say, Chief Judge Swain set an April conference, saying that the September 23 trial date will remain firm regardless. The final pre-trial conference, no matter before what judge, was set for September 12 at 3 pm.

On June 6, 2024, Tournant pled guilty. Inner City Press was there, thread:

He is 57; his lawyer asks if he can allocute from lectern to hold himself up.

Judge: Have you taken medications in the past 24 hours? Tournant (stuttering heavily) Y-y-yes. Judge: Do you wish to plead guilty? Tournant: Y-y-yes.

Judge: Do you agree the loss amount was $3.2 billion? Defense: Only as a factual matter... Judge: You won't appeal any sentence of 120 months or less? Tournant: Y-y-yes.

Tournant: I provided altered and misleading reports to investors, from Allianz in Manhattan. AUSA: There are 2 cooperating witnesses. Judge: I accept your guilty plea.

Judge: Sentencing will be Oct 24 at 11 am.

June 3, 2024

In SDNY Trial of Hwang For Archegos $34B Meltdown US Insists UBS Salcedo Stay In

By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, May 30 – 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.