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.

December 23, 2024

Cancer Survivor from Ground Zero Sues Bank of New York Mellon for ADA Discrimination

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Dec 16 – The Bank of New York Mellon has been sued a former staffer who was fired, he said, for disabilities incurred from a 9/11 related cancer. 

   Seiran Salimov filed suit in the U.S. District Court for the Southern District of New York on December 16; Inner City Press which closely covers the SDNY found it in the docket.

    Salimov complaint recounts how, while he was a BNY senior programmer analyst, he was diagnosed with 9/11 related cancer.

 He asked for an accommodation but BNY questioned it, finally firing him on June 26, 2023. He got an EEOC Notice of Right to Sue and filed the suit.

The case is Salimov v. Bank of New York Mellon Corporation, 1:24-cv-9596 (Unassigned) 

***

December 16, 2024

Tornado Cash Roman Storm Trial Still April 14 2025 as His Lawyers Say May Appeal to Sup Ct

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Dec 9 – Roman Storm is charged using his cryptocurrency mixed Tornado Cash to help launder money for North Korea's hackers in the Lazarus Group.

On September 6, 2023 he was arraigned before U.S. District Court for the Southern District of New York Judge Katherine Polk Failla. Inner City Press was there - thread:

Cash helped North Korea's hackers Lazarus Group...There will be discovery from GitHub 

On December 5, Judge Failla docketed the trial schedule: "SCHEDULING ORDER as to Roman Storm, Roman Semenov. It is hereby ORDERED that the following trial schedule will be in effect: Trial will be set to begin on September 23, 2024, at 9:00 a.m." Full scheduling order on Patreon here

On March 29, 2024, Storm through counsel submitted motions to suppress and to compel discovery, including into MLATs with The Netherlands, and FinCEN and OFAC communications. Memo/motion on Patreon here

On July 5, a court holiday, Storm's lawyer filed an opposed request for a delay into 2025 of the trial: "We write on behalf of our client Roman Storm to respectfully request that the Court grant a continuance of the trial date from September 23, 2024 to late January or February 2025." Letter on Patreon here.

The US on July 9 filed opposition - just as in the Samouri Wallet case a letter from Senator Lummis and Wyden that cites theTornado Cash case, letter now on Patreon, with Samouri story, here.

On July 12, Judge Failla did delay the trial, but not as far as Storm requested: "trial in this matter is scheduled to begin on 12/2/2024 at 9:00 a.m."

On September 26, Judge Failla denied Storm's motions, from the thread:

SDNY Judge Failla is about to start reading out (long) decision on motions to compel and dismiss. Spoiler alert: she is denying both. Judge: The pre-trial discovery is government by Rule 16...

Brady did not create a Constitutional right to discovery. Mr. Storm's request are too speculative, saying "may," "may" and "may." He does not connect the dots.

Judge Failla continues: I reject the void for vagueness argument... Courts should be cautious when assessing vagueness arguments. Consider US v. Howtar (sp)

 Judge Failla: Mr. Storm was arguing that that statutory definition of financial transaction is vague. I reject that. The court finds that the statute gave Mr. Storm adequate notice. He marketed Tornado Cash as a way to conceal, he had notice is was illegal

Judge Failla: So, the motions are denied. I think that is all I need to do today. We have a trial date

On October 10, a hearing Inner City Press covered, from the thread:

oral argument on prosecutors' motion to compel pre-trial disclosuresJudge Katherine Failla: When will the government be producing 3500 material? Assistant US Attorney Nathan Rehn: We have been trying to reach a global agreement on pre-trial disclosures. Judge: Is there a world in which you would not disclose until after testimony?

AUSA: We would hope not- Judge: Mr. Rehn, we're here because you haven't worked that out. It is possible I could propose a schedule for 3500 production? AUSA: There is precedent that the government cannot be ordered to go faster than the statute Judge: I know that

 Roman Storm's lawyer: If they delay on the 3500 material, we'll want more time to make advice of counsel disclosure. Judge: I am uncoupling those two issues. Before ruling, I spoke with other SDNY Judges including, about the Eisenberg trial, with Judge Subramanian

 Judge: I have considered Judge Kaplan's ruling on Bankman-Fried... Last minute tricks, at least they didn't for Bankman-Fried. We'll do Daubert hearings in November in the same week as the final pre-trial conference. We are adjourned.

On November 1, Inner City Press covered the proceeding and first reported the new trial date: April 14, 2024, here. Then: "proceedings held before Judge Katherine Polk Failla: Telephone Conference as to Roman Storm held on 11/1/2024. Defendant Roman Storm present... Trial in this matter is adjourned to 4/14/2025

On December 9 there was a status conference; Inner City Press went and live tweeted, thread:

All rise! Judge Failla: How do you plead? Roman Storm: Not guilty. Storm's lawyer: We're requesting reconsideration. AUSA: 2d circuit, mandamos was denied. Judge Failla: I didn't know. Last week I was in California at Judicial Conference, hearing budgets are bad

Defense: We want 20 pages, then ten on reply. Judge Failla: Our local rules are moving toward word count, not pages.  Defense: We are considering taking the mandamos to the Supreme Court. Judge Failla: Note this, "Judge laughs."  Defense: We know it's a long shot

 Judge Failla: I've been vindicated twice at the Supreme Court, I hope my batting average stays high.

The case is US v. Storm, et al., 23-cr-430 (Failla)

***

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December 9, 2024

In Virginia Disparate TowneBank Wants Village Bank Ignoring HMDA Data and Linkbank Link

by Matthew R. Lee, Patreon Substack

FEDERAL COURT, Dec 4 – In Virginia, a bank is trying to move into the Richmond area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Application by TowneBank to acquire Village Bank & Trust.

  But consider ChoiceOne's disparate lending record:    

In Viginia in 2023 - in HMDA data not yet taken into account in any CRA exam - Towne Bank based on its marketing made 1282 mortgage loans to whites, and only 192 loans to African Americans. Meanwhile it denied 43 applications from African Americans, and only 64from whites. It should be referred to DOJ.  

In North Carolina in 2023 Towne Bank based on its marketing made 1107 loans to whites, and only 80 loans to African Americans. Meanwhile it denied 10 applications from African Americans, and only 92 from whites.

   In Maryland in 2023 Towne Bank based on its marketing made 1172 loans to whites, and only 366 loans to African Americans. Meanwhile it denied 30 applications from African Americans, and only 40 from whites.

The new Merger Guidance should be applied - that is a test case.

TowneBank filed a response on December 4, by Troutman Pepper's Seth A. Winter who claims data documenting HMDA data has nothing to do with a merger - he should know better, since he represented Linkbancorp which was forced to implement a lending plan after Inner City Press documented similar disparities. It is a bad faith response.

Why would regulators even consider approving this merger? Watch this site.

***

December 2, 2024

In SBA Fraud Case Shin Got 14 Months Bid to End Supervision Denied But Travel Allowed

By Matthew Russell Lee, Video, Alamy photos

SDNY COURTHOUSE, Nov 25 – Noah Bank's Edward Shin was on arrested for defrauding the U.S. Small Business Administration on May 29, 2019 and would, it was said, be presented later on May 29 before Magistrate Judge James L. Cott in the U.S. District Court for the Southern District of New York.

  Inner City Press after reporting the arrest went the SDNY Magistrate's Courtroom 5A and was told Shin would be presented at some undefined later hours. But with the door to 5A locked at 4:30 pm, Inner City Press was told Shin "has not been presented, there are no terms.  Tomorrow is more likely." And later, as Inner City Press waited in front of the locked door, staff emerged with a more specific prediction: 2 pm May 30.

  In fact it happened slightly before then. Here are the terms of Shin's release: "Surrender travel documents and no new applications; travel restricted to SD/EDNY, DNJ, EDPA. $1 Million bond secured by $25,000 cash and signed by two co-signors (condition to be met within a week)." And, interestingly, "Alcohol testing / treatment." Inner City Press has been contacted by those covering Shin well before this, who said that Shin "threatened to kill a borrower [and] was sued for reneging on a board control deal."

Then on February 12, 2021 leading up to a trial scheduled for August 16, Judge Woods rejected many of Shin's motions in limine - evidence will come in. (One motion was denied as moot, excluding six loans, which was a win for the defense).

  Jump cut to April 25, 2022. The case was re-assigned to Judge John P. Cronan, who has set trial for April 26. On the eve of it the US put in SBA documents about loans to produce companies, offering to redact some.

On November 7, Judge Cronan denied Shin's application, saying there was no reason to change his previous decision:  "the Court declines to terminate Defendant Edward Shin's period of supervised release. This denial is without prejudice to the Probation Office, Shin, or the Government making another application for early termination in the future if appropriate. The Clerk of Court is respectfully directed to close Docket Number 273. So Ordered. (Signed by Judge John P. Cronan on 11/7/24)"

On November 25, Judge Cronan approved Caribbean and South Korea travel for Shin: "ENDORSEMENT...The request is granted. Mr. Shin may travel to Fort Lauderdale, Florida and Barbados from December 5, 2024 to December 21, 2024. Mr. Shin may also travel to South Korea from December 29, 2024 to February 5, 2025. (Signed by Judge John P. Cronan on 11/23/24)."

The case is USA v. Shin, 1:19-cr-552 (Cronan).

Watch this site.

***

November 25, 2024

In Sudan Case BNP Paribas Was Sued in 2016 Now Case Proceeds With Administrator

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN

SDNY COURTHOUSE, Nov 18 – BNP Paribas was sued, and raised as part of its defense the laws of Switzerland and of Sudan. 

 On November 5, 2020 U.S. then-District Court for the Southern District of New York Judge Alison J. Nathan held an oral argument. Inner City Press covered it.

 The case involves BNP violating Sudan sanctions, and the mass killing of civilians in Darfur and elsewhere by the then Omar al Bashir government, for which BNP claims to bear no responsibility.

  Going back from the docket, neither the complaint nor the amended complaint are available to the public.

But the Rule 44.1 notice of issues of foreign law is.

Jump cut to September 9, 2022, after Judge Nathan ascended to the Second Circuit Court of Appeals. The case was reassigned to District Judge Alvin K. Hellerstein, who held a proceeding. Inner City Press again covered it.

  Now the parties described to District Judge Hellerstein how the case is being processed by Magistrate Judge Jennifer E. Willis.  Judge Hellerstein mulled when and where he will come in - on class certification and Daubert motions, he proposed. The response was that those are intertwined.

  Judge Hellerstein said to proceed before Magistrate Judge Willis, then return to him on with a proposed agenda and schedule.

On May 5, 2023 the case convened again, and Inner City Press was again there. Now there is new bloodshed in Sudan - but it was not mentioned, not only. There was discussion of Daubert motions, a summary judgement briefing schedule moved from August to September 8 due to "vacations and kids," as one of the lawyers put it. No mention of kids currently in Sudan, nor those left abandoned by largely European countries.

On November 18, 2024 the lawyers were back before Judge Hellerstein, but for a break for two criminal cases. Judge Hellerstein has said the class is all refugees or asylees admitted by the US who formerly lived in Suden or South Suden between Nov 4, 1997 and December 31, 2021. Appointed as administrator is Epid Class Action and Claims Solutions.

 Inner City Press will continue to cover the case - and the country.

The case is Kashef et al v. BNP Paribas SA et al., 16-cv-3228 (Hellerstein / Willis)

***

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)."

On July 27, Hwang wrote in seeking approval of subpoenas to Goldman Sachs, Morgan Stanley, Bank of Montreal, Credit Suisse, UBS, Nomura, MUFG, Mizuho, Macquarie, Jeffries and Deutsche Bank, to show he did not "use his lawfully executed swaps to artificially impact the prices of the underlying stocks."

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.

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)

***

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)

***

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."

October 14, 2024

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

by Matthew R. Lee

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.

***

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.  

 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 February 20 Inner City Press attended, thread

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.

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."