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.
January
20, 2020
In SDNY Judge Cave Declines To Stay Millennium Discovery Against Citi BOM Chase and Truist
By
Matthew Russell Lee, Patreon
BBC
- Decrypt
- LightRead - Honduras
-
Source
SDNY
COURTHOUSE, Jan 15 – When Millennium
Laboratories, one of the largest urine testing
companies in the US, declared bankruptcy in
2015, it spawned litigation that gave rise in
the U.S. District Court for the Southern
District of New York to a January 10
teleconference before and January 15 order by
SDNY Magistrate Judge Sarah L. Cave.
The
plaintiff, Marc S. Kirschner as trustee of the
post-bankruptcy litigation trust, was opposing
the bank defendants' request to essentially stay
discovery in the proceeding. Kirschner argued
that he needs access to documents in order to
keep up with the discovery that is going forward
in a related Delaware case.
The banks being sued include JP Morgan Chase,
Citigroup, Bank of Montreal and SunTrust, now
known as Truist since it merged with BB&T.
During the January 10 teleconference, which
Inner City Press covered with the permission of
the Court, the banks' lawyers argued that it is
a threshold legal issue whether the syndicated
leveraged loan at issue is a security, an issue
that should be determined before discovery
proceeds.
But on January 15, Magistrate Judge Cave found
"that is a threshold question only with
respect to the state securities law claims...
Plaintiff has asserted five other common law
causes of action for which that question is not
necessarily determinative."
Therefore
Judge Cave ruled that "a further stay of
discovery is not warranted, and that
discovery should continue, as it has been, in
coordination with the Delaware
Action. Accordingly, this action having
been referred to this Court for general
pretrial supervision, a case management
conference will be held on Tuesday, February
25."
January
13, 2020
Telegram Said SEC Info Request Covers 12+ Nations Now SEC Cites Redacted Durov Depo
By
Matthew Russell Lee, Exclusive Patreon
BBC
- Decrypt
- LightRead - Honduras
-
Source
SDNY
COURTHOUSE, Jan 10 – In the SEC's case against
Telegram and its proposed Gram crypocurrency,
Federal Judge P. Kevin Castel held a
teleconference on the afternoon of January 6.
The SEC on January 2 asked Judge Castel to order
Telegram to disclose bank records before or
during its two day deposition of Telegram
founder Pavel Durov January 7-8 in Dubai.
On the January 6 teleconference, Telegram's
counsel, Alex Drylewski of Skadden Arps, argued
that producing the bank records will requiring
reviewing the privacy rights of financial
counterparties in 30 or more jurisdictions. More
on Patreon here.
Now late on January 10, the SEC has responded
renewing its request for the records and stating
"Telegram does not even mention the names Case
1:19-cv-09439-PKC Document 65 Filed 01/10/20
Page 2 of 5 Hon. P. Kevin Castel January 10,
2020 Page 3 of the foreign countries whose laws
might apply, nor does it cite any specific data
privacy laws. At his deposition two days ago,
Mr. Durov, the CEO of a company holding
approximately $1.3 billion of investor assets,
similarly claimed [TWO LINES REDACTED] See Ex. A
(Excerpts of Dep. of Pavel Durov, dated Jan.
7-8, 2020) at 283:17—284:9. The Court therefore
cannot assess the threshold question of which
country’s data privacy laws may even apply to
Telegram’s handling of the data based on
Telegram’s vague submission." Why the redaction?
Who's more secret? More on Patreon here.
Judge Castel on January 6 declined to extend the
deadlines in the case but directed Telegram to,
by January 9, filed a proposed schedule to
disclose or at least review for privacy the
requested bank records.
January
6, 2020
El
Chapo Bribee
Garcia Luna
Detained in
EDNY for Money
Laundering
After SDNY
Showed Chapo
Funds to JOH
and UNSG
By
Matthew Russell Lee,
Patreon, Thread
Video
Honduras
- The
Source - The
Root - etc
EDNY
COURTHOUSE, Jan 3 – One
of El Chapo's
many bribees,
former Mexican
minister
Genaro Garcia
Luna, was
arraigned and
detained on
January 3 in
Brooklyn in
the U.S.
District Court
for the
Eastern
District of
New York.
Inner City
Press, which
covered the
SDNY trial of
Tony
Hernandez, the
brother of
Honduras'
president Juan
Orlando
Hernandez
whose campaign
was shown to
be funded by
El Chapo, was
in Brooklyn
for this
arraignment
and files this
report.
(Podcast here,
Periscopes I, II
& III).
Garcia Luna
was brought in
from the
holding cell,
wearing a grey
sweatshirt and
waving to a
handful of
supports in
the
Arraignments
Courtroom
gallery. He is
retaining his
own counsel,
but there were
not able to be
present on
January 3.
Cesar de
Castro, whose
work Inner
City Press has
covered in the
SDNY, appeared
for
arraignment
only. Judge
Peggy Kuo said
that if Garcia
Luna wants a
publicly-funded
lawyer going
forward, he
will have to
file a
financial
affidavit.
That
seems
unlikely.
Assistant US
Attorney Erin
Reid said
Garcia Luna
has amassed
riches which
make him a
flight risk.
No bond
package was
presented, so
Garcia Luna
was detained
on consent.
His next
appearance is
on January 21
at 9:45 am
before Judge
Brian Cogan.
Inner City
Press will
remain on this
case - and on
that of JOH
and UN Antonio
Guterres, who
has hidden his
spending
including of
El Chapo
funds, as well
as links to
SDNY convicted
UN briber CEFC
China Energy.
Guterres bans
and censors
the Press to
conceal his
links: but for
immunity, a
crime. Or
crimes.
UN Secretary
General
Antonio
Guterres has
refused to
answer Inner
City Press'
questions
about his
meeting(s)
with JOH, and
about a four
person panel
he sent to the
country to
support JOH.
Inner City
Press even
before the
verdict as the
UN
Spokespeople
Stephane
Dujarric and
Melissa
Fleming in
writing,
"October 18-1:
On Honduras on
which you have
refused to
answer or
respond to
Inner City
Press' as it
covers in SDNY
the US v Tony
Hernandez
trial which
continues jury
deliberations
today and has
asked you why
SG Guterres
did not even
bring up
corruption and
drug
trafficking
when he met
president Juan
Orlando
Hernandez, 1)
please
immediately
describe
activities of
the UN system
and resident
coordinator /
representative
on JOH's
current terms
and 2) what
now are
Guterres'
belated
comments and
actions if any
on that last
night JOH's
National Party
majority in
the Honduran
parliament
passed a law
making itslef
immune, and
that Honduran
police
dispersed
hundreds of
demonstrators
with tear gas
on Wednesday
in Tegucigalpa
who demanded
the
resignation of
President Juan
Orlando
Hernandez,
suspected by
the American
courts of
collaborating
with the drug
traffickers?"
No answer all
all.
The
trial began
with a bang on
October 2 with
the charge
that already
life
imprisoned El
Chapo Guzman
gave the
defendant $1
million for
this brother,
the president.
On October 7,
sworn witness
Alex Ardon
described the
meeting, with
both El Chapo
and Tony
Hernandez
present and
the cash in
plastic bags,
see thread and
see below.
The
trial is
before U.S.
District Court
for the
Southern
District of
New York Judge
P. Kevin
Castel and
Inner City
Press is live
tweeting
it. See also
Patreon here
And
here
the post
arrest
statement as
so far put in
to the jury,
as uploaded to
YouTube by
Inner City
Press, here.
The case is US
v. Diaz
Morales,
15-cr-00379
(Castel).
December
30, 2019
After Virgil Griffith Had Bail Denied Inner City Press Asks UN About Its North Korea Sanctions Violations
By
Matthew Russell Lee, Exclusive Patreon
BBC
- Guardian
UK - Honduras
- The
Source
SDNY
COURTHOUSE, Dec 28 – On North Korea there are
not only US but also ostensibly international UN
sanctions. But what if the UN itself violates
them?
On December 26 Virgil Griffith who a more ago
was arrested
on US charges of illegally traveling to North
Korea and provide crypto currency advice was
denied bail in a U.S. District Court for the
Southern District of New York
proceeding that Inner City
Press exclusively covered,
credited here
here
and here.
On
December 27 Inner City Press
submitted written questions to
the UN, its long vacationing
Secretary General Antonio
Guterres and his spokesman
Stephane Dujarric including:
"On DPRK, what are the
comments and action if any of
SG Guterres on both the
prosecution of Virgil Griffith
for attending a
crypto-currency conference in
Pyongyang in April 2019 and
this, by the UN: 'The United
Nations Green Climate Fund
(GCF) this week approved its
first round of funding for a
project aimed at helping North
Korea deal with climate
change, the agency’s website
indicated on Thursday.
The program, titled “Readiness
and Preparatory Support for
Capacity Building of NDA
(National Designated
Authorities) and establishment
of a National Strategy
Framework for engagement with
GCF in the DPRK,” will be
implemented through the UN
Food and Agriculture
Organization (FAO), to which
GCF will be providing the
funding.' What steps have
these UN bodies take with
regard to sanctions on DPRK?"
The UN, which present itself as in charge of
international sanctions regimes like those on
North Korea and Iran, through its Security
Council set to be taken over on January 1 by
Vietnam, did not answer these questions.
Elsewhere, the GCF illogically or in bad faith
claimed that the mere involvement of UN FAO
would mean that sanctions weren't being
violated.
Guterres, who has been on a European junket for
weeks and now won't disclose where he is,
spending public money, supposedly issued a
statement on blockchain "exclusively" to
capitalist tool
publication Forbes: "'For the United Nations to
deliver better on our mandate in the digital
age, we need to embrace technologies like
blockchain that can help accelerate the
achievement of Sustainable Development Goals,'
said Guterres in the statement provided
exclusively to Forbes."
So Guterres provides exclusive pablum to
capitalist tool Forbes, but bans
independent Inner City Press from even entering
the UN, and has his spokesman ignored its
written questions despite an on
camera promise to answer. We'll have more
on this - and on the case against Virgil
Griffith. More now on December 28 on Patreon here.
As Inner City Press reported on December 26, the
US Attorney's Office cited his text messages to
his parents about renouncing his U.S.
citizenship and setting up a money laundering
business in North Korea.
In the Magistrates Court of the U.S.
District his parents were present, along
with Inner City Press as the only media. They
were there since the morning, and watched the
other cases Inner City Press reported on.
Assistant US Attorney Kimberly Ravener told SDNY
Magistrate Judge Barbara Moses that Griffith had
misled Pre-Trial Services about his residence in
Puerto Rico; his lawyer Mr. Buckley first said
Griffith owned it, then that he rented.
Judge Moses asked why he has a residence in
Puerto Rico. Buckley said Puerto Rico is a
developing area in the crypto space.
Griffith's request to be released was first
stayed by SDNY District Judge Denise Cote,
operating a "Part I" judge at the time. Buckley
at the conclusion near 5 pm of the bail denial
hearing on December 26 said he and a colleague
flying in might seek to appeal to the "Part I"
District Judge, Vernon Broderick.
On December 27, Inner City Press repeatedly
checked the courtroom of Judge Broderick in 40
Foley Square, and also his temporary courtroom
15A in 500 Pearl Street: nothing. The doors were
locked.
December
23, 2019
Sprint T-Mobile Merger Trial Ends With Flurry of Sealed Exhibits Closing Arguments Jan 15
By Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Dec 20 – The two week trial against
the proposed T-Mobile / Sprint merger ended on
December 20 before U.S.
District Court
for the
Southern
District of
New York Judge
Victor
Marrero. There
are papers due
January 8, and
a final four
hour argument
on January 15.
Inner City
Press began
what will be a
trial-long
live-tweet, here.
Day 7 Patreon
here.
On December 20
Professor
Shapiro
testified for
the second
time how the
merger would
allow
coordination
and raise
prices. Day's
thread
here.
Then a final
flurry of
exhibits
entered into
the record,
and more
agreement by
Judge Marrero
to file many
under seal.
The defense
team wanted no
briefs, but
there will be
30-page
proposed
findings of
fact and law
on January 8,
before the
closing
arguments on
January 15.
Watch this
site. More on
Patreon here.
On December 17
Charlie Ergen
of DISH
testified,
saying for
example that
"Sprint is a
laggard."
Judge Marrero
agreed to hear
the parties in
his robing
room, and then
and only then
decide whether
to release a
redacted
transcript.
Some asked,
Public
interest?
Here's some of
how it went
December
16, 2019
In Sprint Trial Legere of T-Mobile Shows Himself As Marrero Cites Flower Children
By Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Dec 13 – After more states lining up
against the proposed T-Mobile / Sprint merger,
on which a two week trial to begin December 9
before U.S.
District Court
for the
Southern
District of
New York Judge
Victor
Marrero. Inner
City Press
began what
will be a
trial-long
live-tweet, here.
Day II morning
here.
More on
Patreon here.
Day III here.
More D3 on
Patreon here.
Day IV here.
More D4 on
Patreon here.
Day V here.
More on D5 on
Patreon here.
On December
13, T-Mobile's
John Legere
was
cross-examined
and let it all
hang out, see
below. It
culminated in
Judge Victor
Marrero asking
him if he
could remain a
flower child
or would
instead, post
merger, join
the boys'
club. Legere
said never -
but his
successor Mike
Sievert then
looked very
much the boys'
club member.
How will it
cut with
Marrero?
Here's some
of how it went
(more on
Patreon here)
Q:
This is a
transcript of
the earnings
call in
February 2018,
do you see
that?
Legere:
Yes I do.
Q:
You said,
"Nobody is
interest in
the wi-fi
phone...
Charter will
be irrelevance
squared." You
said that?
Legere:
Among other
things.
Q:
You know Mr.
Mack, he's the
one you took
your
deposition.
Legere:
And I'm still
afraid of him.
Q:
If you could
look at
Exhibit 1105.
And please, do
not put this
up on the
screen. [Why
not?] It's an
email from you
to Mr.
Huttges?
Legere:
Correct.
Legere:
We were in
contact with
Washington and
I would
summarize it
to Deutsche
Telekom. Q:
You're aware
some companies
told the FCC
they were
opposed to the
merger,
including
DISH? Legere:
That is
correct.
Q:
And T-Mobile
responded, see
Exhibit 1177 -
oh, it's not
in your
binder. Here
is a hard
copy. The
letter
T-Mobile's
lawyers and
DLA Piper sent
to the FCC
responding to
DISH. Legere:
Correct.
Q:
And T-Mobile
said DISH
failed to meet
FCC deadlines,
games the
regulatory
system.
Legere: And
the FCC took
it into
account in
this DISH
remedy. Q: But
this reflects
what T-Mobile
thought of
DISH.
Objection!
[state of
corporate
mind] Judge
Marrero:
Overruled
Q:
Nothing in
your
commitment to
FCC precludes
you from
changing
prices on
devices,
correct?
Legere: Yes,
we could lower
them. Q: But
you could
raise them
too! It's not
covered by the
agreement.
Legere: The
agreement
wasn't
intended to
cover it.
Q:
The quality of
T-Mobile isn't
consistent
across the
country, lower
in some
places, right?
Legere: Yes.
But we're
working on
that. Q: And
your spectrum
assets vary by
market?
Legere: I
would assume
that's true.
Judge
Marrero to
question
John Legere .
Judge Marrero:
Some say
Sprint today
is what
T-Mobile was
in 2012. If
T-Mobile was
able to
achieve this,
why not
Sprint,
without
merger?
Legere: Thank
you your
Honor.
T-Mobile's
situation was
nothing
compared to
Sprint
today
Legere: It's
my opinion
that except
for this
transaction,
Sprint would
be sold in
part. I think
they're in big
trouble. Your
Honor, if
you'll indulge
me, it this
doesn't take
place, Sprint
will go away
and there
won't be a new
DISH
Legere:
The
environment of
a new T-Mobile
and a new
DISH, that's
best.
Judge
Marrero: We
see stories,
about
flower-children
in the 1960,
now you find
them as
investment
bankers. The
relevance is
the idea that
if T-Mobile
gets this, it
will become
one of the
boys
Legere:
That's not a
club I'm
joining.
I'm probably
the person
most hated by
those two. And
I think they
compete, with
the cable
companies
breathing down
their neck.
The brand of
this company
is rooted in
being that
maverick, the
un carrier.
That's
it for Judge
Marrero's
questions to
John Legere
...
Back
from a largely
empty 40 Foley
Square due to
ongoing
elevator outage
to find
T-Mobile
COO-soon-CEO
bragging about
how many
stores they
could close if
the merger
goes forward
As Week 1 of T-Mobile - Sprint trial ends with a whimper, Judge Marrero asks who's up next. On Monday afternoon, a witness from DISH - and they say they want to close the courtroom. Really? (more on Patreon here)
December
9, 2019
SDNY
Judge Berman
Denies
Halkbank
Special
Appearance
Noting 2d
Circuit Logic
on Fugitives
By
Matthew Russell Lee,
Patreon, Thread
Video
Honduras
- The
Source - The
Root - etc
SDNY
COURTHOUSE, Dec 5 – Turkey's Halkbank was
indicted for Iran sanctions violations and money
laundering on October 15 in the U.S. District
Court for the Southern District of New York. On
October 21, Turkey named convicted former
Halkbank executive Hakan Atilla as the new
managing director of Borsa Istanbul.
On December 5 SDNY Judge Richard M. Berman
issued a detailed order denying the application
by King & Spalding to make a "special
appearance" in this criminal case. Judge Berman
last month in his courtroom asked if there is
any Second Circuit Court of Appeals precedent.
On December 5 he wrote and ruled:
"The
Second Circuit recognizes that a defendant may
become a fugitive when, “having learned of
charges while legally outside the jurisdiction,
[the defendant] ‘constructively flees’ by
deciding not to return.” See United States v.
Catino, 735 F.2d 718, 722 (2d Cir. 1984); see
also United States v. Blanco, 861 F.2d 773, 779
(2d Cir. 1988) (“A person can be said to be a
fugitive when, while abroad, they learn that
they are under indictment and make no effort to
return to the United States to face charges.”).
It appears to the Court that this is what
Halkbank – which is an important institution in
Turkey – has done so far in this case. “The
primary purpose of the fugitive disentitlement
doctrine—promoting mutuality of litigation—is
served both when a defendant flees the United
States and when he chooses to remain outside the
United States.” Miller, 166 F. Supp. 3d at 348;
see also Martirossian, 917 F.3d at 890 (where
the Court confirmed that “a defendant need not
be Case 1:15-cr-00867-RMB Document 581 Filed
12/05/19 Page 26 of 27 27 present in
and leave a jurisdiction to become a fugitive;
the mere refusal to report for prosecution can
constitute constructive flight”). Halkbank has
failed to appear following the service of two
summonses, with full knowledge and notice of the
charges in the Indictment and of the related
Atilla and Zarrab cases. See pp. 3–5 above.
Halkbank has also been represented by U.S. legal
counsel, Mr. Hruska of King & Spaulding LLP,
for at least two years in connection with the
U.S. criminal investigation of Halkbank’s
alleged Iran sanctions evasion. See Gov. Letter,
dated Nov. 4, 2019, at 1.
And,
this Court has found that “Halkbank has
willfully and knowingly disobeyed the Court’s
order in the First Summons to appear at the
First Conference.” Order, dated Oct. 23, 2019,
at 3. The fugitive disentitlement doctrine
exists to encourage compliance with the law and
to protect against entities that “‘attempt to
invoke from a safe distance only so much of a
United States court’s jurisdiction as might
secure . . . a dismissal while carefully
shielding [itself] from the possibility of a
penal sanction.’” Hayes, 118 F. Supp. 3d at
625–26 (brackets omitted) (quoting Collazos v.
United States, 368 F.3d 190, 200 (2d Cir.
2004)); see also Niemi v. Lasshofer, 728 F.3d
1252, 1255 (10th Cir. 2013).
IV.
Conclusion & Order For the reasons stated
above, the Court denies Halkbank’s application,
dated November 19, 2019, to make a special
appearance."
Back on November 26 the US Attorney office
opposed the special appearance, noting "Halkbank
participates in a U.S. Department of Agriculture
program that provides guaranteed financing for
certain buyers of U.S. agricultural
exports. In order to shield its access to
these essential U.S. financial markets and
facilities, Halkbank went to extraordinary
lengths to conceal the scheme from Treasury
officials. Because of Halkbank’s relationships
with the Central Bank of Iran, NIOC, and other
Iranian government and private entities,
sanctions against the Government of Iran had
particular significance for Halkbank and
Treasury believed Halkbank was at particular
risk of Iranian sanctions-evasion efforts.
Accordingly, Treasury officials maintained
continuous and in-depth communications with
Halkbank’s top executives. These included
in-person meetings held in Treasury’s
Washington, D.C. offices and Halkbank’s Turkey
offices; telephone calls between Halkbank
executives in Turkey and Treasury officials in
the United States; and letter and email
correspondence." We'll have more on this.
King & Spalding's Andrew C. Hruska
wanted to file by ECF without making a notice of
appearance. Judge Berman said he believes a
notice of appearance is required, and would not
give legal advise on what should be written on
it. King and Spalding said they will file on
paper, presumably meaning their briefing.
December
2, 2019
After OneCoin Trial Tweets Venezuela Launder Links of Dilkinska Exposed By Inner City Press
By
Matthew Russell Lee, Exclusive Patreon
BBC
- Guardian
UK - Honduras
- The
Source
SDNY
COURTHOUSE, Nov 27 – As Inner City Press
covered the OneCoin trial this month, a number
of names of indicted co-conspirators emerged on
which we are now following up.
One of them was Amer Abdulaziz Salman, see
below. Another was and is Irina Dilkinska, who
worked closely on OneCoin money laundering with
detained and cooperating Konstantin Ignatov and
now-convicted Mark Scott.
Today Inner City Press launches a series into
another branch of OneCoin's laundering, perhaps
not surprisingly with Venenzuela's PDVSA oil
company which Inner City Press has separately
been reporting on in the SDNY courthouse, here,
and at the UN or at least in front
of the $15 million mansion of involved UNSG
Antonio Guterres while he bans the Press from
the UN.
It starts with a contract between Bulgaria based
ALECO and H&H Ca, registered
to Ruja Ignatova's then right hand woman Irina
Dilkinska. PDVSA lists the contract, for oil
wells in Maracaibo. Even then it was noted that
ALECO was registered in the country of origin,
but it does not have physical offices, it is
only a website so it is presumed to be a
"briefcase company," a term applicable to many
of OneCoin's money laundering schemes.
H&H CA ran afoul of even Venezuelan law: it
said it was based in and working from the
residential complex Villas Delicias, but the
nation's contractor chamber states that
companies must own their physical space. H&H
CA had capital of 10 million Bolivars, with
which it could not cover the investment
established in the contracts with PDVSA. It was
another OneCoin special, h/t Brazen Capitalist,
now defunct but being followed up on by Inner
City Press even as it pursues its FOIA request
to the US Attorney's Office press office to stop
withholding documents provided in other cases
like those of 6ix9ine
and Honduras.
Other names in the H&H Ca / Venezuela web,
laying out a marker for purpose of further
crowdsourcing: Boris Hernández Vidal and and
Michael Hernández Vidal, and ICOPVE CA. Watch
this site. More on Patreon here.
As Inner City Press also exclusively reported on
November 6, surprise cooperating witness
Konstantin Ignatov brought up Amer Abdulaziz
during his testimony, live-tweeted
@InnerCityPress, and see here.
On November 24 those tweets were used without
any credit in a derivative article by the Racing
Post's Peter Scargill - apparently dodginess
pervades this part of the industry.
Inner City Press has been contacted from Dubai
of Sheikh Mohammed bin Rashid al Maktoum, from
Amer Abdulaziz's native Bahrain and elsewhere by
whistleblowers in the horse racing industry,
with extensive information about Amer
Abdulaziz's previous schemes and sudden windfall
with OneCoin money.
November
25, 2019
In OneCoin Trial Amer Abdulaziz Named As Money Launderer Who Stole 100M Euro Still Horsing Around
By
Matthew Russell Lee, Exclusive Patreon
BBC
- The
Times UK - Honduras
- The
Source
SDNY
COURTHOUSE, Nov 23 – As Inner City Press
covered the OneCoin trial this month, a number
of names of indicted co-conspirators emerged on
which we will now follow up.
One of them was Amer Abdulaziz Salman.
As Inner City Press exclusively reported on
November 6, surprise cooperating witness
Konstantin Ignatov brought up Amer Abdulaziz
during his testimony, live-tweeted
@InnerCityPress:
AUSA:
Who did Gilbert Armenta work with on money
laundering?
Konstantin:
Mark Scott, Amer Abdulaziz...
After a sidebar discussion, the Assistant US
Attorney said "We'll come back to Mr. Aziz who
stole at least 100 million Euros from OneCoin.
AUSA:
Who was this Mr. Aziz?
Konstantin:
One of the main money launderers for Ruja.
AUSA:
Did you ever report to the police any of these
theft?
Konstantin:
No. The money came from a criminal activity."
See here.
So in this US Federal trial, under oath and not
contradicted by any of the cross-examination,
Amer Abdulaziz was named as a launderer of money
from criminal activity, who went beyond that and
stole $100 million Euro from OneCoin and Ruja.
Meanwhile, through his Phoenix fund, Amer
Abdulaziz has been buying up thoroughbred
horses, but industry participants tell Inner
City Press, not selling them. "It's the perfect
front for money laundering," one of them told
Inner City Press on condition of anonymity.
During the trial, Inner City Press tweeted its
surprise the Amer Abdulaziz was, unlike Ruja
Ignatova, living in plain sight. It has
continued: he has re-tweeted as recently as
November 20.
November
18, 2019
In OneCoin Trial BNY Mellon Describes Mark Scott Cayman Islands Business After David Pike Arrested
By
Matthew Russell Lee, Patreon Thread, Plea
BBC
The
Times (UK)
Daily
Mail
SDNY
COURTHOUSE, Nov 15 – After OneCoin's Konstantin
Ignatov got a stay of the civil case against
him, his criminal case was said to have been
kicked down the road for at least another two
months.
It
was a productive two months, at least for the
U.S. Attorney's Office for the Southern District
of New York.
Now
Inner City Press can report that Mark Scott
associate David R. Pike was arrested on OneCoin
charges and quietly presented in and bailed by
the SDNY Magistrate Court on September 12, 2019
by Magistrate Judge James L. Cott, based on a
complaint signed sealed back on August 29 by
this week's Magistrate Judge Katharine H.
Parker.
Since then Special AUSA Julieta V. Lozano has
asked for continuances, during the Scott trial,
to figure out what to do with Pike afterward.
Inner City Pres, cover this closely, will have
more. More on Patreon here.
On November 15, on which the government had said
it might rest its case, AUSA Christopher Demase
questioned a witness from BNY Mellon about
irregularities it found in Mark Scott's Fenero
Funds' business with DMS Bank in Cayman Islands.
The questioning established the FDIC insurance,
an element in bank fraud charges, applies not
only to BNY Mellon but also other involved banks
including TD Bank, JPMorgan Chase, HSBC and
Northern Trust. The implications of the evidence
in the case for these banks is not yet clear.
More on Patreon here.
Near
midnight on November 14 defendant Mark Scott's
lawyer Arlo Devlin-Brown wrote to SDNY Judge
Edgardo Ramos urging admission into evidence of
two emails involving Scott.
Each email, it is argued, undermine the
credibility of Konstantin Ignatov's testimony
that in Ruja Ignatova's July 20, 2016 meet with
Scott, Irina Dilkinska was present.
In the first, Dilkinska tell Scott she will be
traveling that week. In the second she says, in
essence, "Me too" - that she too is traveling.
By footnote, Devlin-Brown implied that
Konstantin Ignatov embellished what he initially
told the prosecutors, from that Ruja asked him
to leave her meeting with Scott to that she
instructed him, as her personal assistant, to
make all OneCoin staff other than Dilkinska
leave OneCoin's Sophia building during the
meeting.
As of 2:30 am before the November 15 trial day
starts at 9:30, Judge Ramos had not ruled on the
request. But it is questionable if the two
proffered emails, even if admitted, would
undermine the rest of Konstantin Ignatov's
extensive cooperating testimony, or the other
evidence entered about Mark Scott's guilty
knowledge. More on Patreon here.
Inner
City Press will continue to report, live, on the
trial.
On
November 13 the prosecution and the defense both
questioned the deputy Chief Operating Officer of
Locke Lord, the law firm Mark Scott worked at
from June 2015 through September 2016. Thread here.
E-mails were shown in which OneCoin's Ruja
Ignatova told
Scott, "I have some cash with me. About 220K
GBP. Can you store it for me in London?" Other
exhibits concerned a bank in Zimbabwe, a
penthouse in London, and funds put into and
quickly taken out of the law firm's escrow
account.
There is also in evidence
an e-mail from the defendant Mark Scott to
now-cooperating witness Konstantin Ignatov, as
his sister Ruja's personal assistant, stating
that "I would prefer not meeting in Sophia as I
don't want too many travels there on my flight
list." More on Patreon here.
On
November 12 Inner City Press obtained and put
online here,
on Scribd, Konstantin Ignatov's plea agreement,
including "On the understandings specified
below, the Office of the United States Attorney
for the Southern District of New York (“this
Office”) will accept a guilty plea from
Konstantin Ignatov (the “defendant”) to the
above-referenced four-count Superseding
Information (the “Information")...
If
the defendant fully complies with the
understandings specified in this Agreement, he
will not be further prosecuted criminally by
this Office for any crimes, except for criminal
tax violations, related to his participation in:
(1) an international cryptocurrency fraud scheme
known as “OneCoin” (the “OneCoin Scheme"), from
in or about 2016, up to and including in or
about 2019, as charged in Counts One and Two of
the Information; (2) a conspiracy to defraud
banks and other financial institutions worldwide
by causing them to transfer proceeds of the
OneCoin Scheme by misrepresenting and omitting
material facts to those banks and financial
institutions, from in or about 2016, up to and
including in or about 2019, as charged in Count
Four of the Information; and (3) a conspiracy to
launder criminal proceeds derived from the
OneCoin Scheme, and to transfer funds
internationally to promote the OneCoin Scheme,
from in or about 2016, up to and including in or
about 2019, as charged in Count Three of the
Information; to the extent that he has disclosed
such participation to this Office as of the date
of this Agreement.
It is understood that Ignatov's truthful
cooperation with this Office is likely to reveal
activities of individuals who might use
violence, force, and intimidation against
Ignatov, his family, and loved ones. Should
Ignatov's cooperation present a significant risk
of physical harm, this Office, upon the written
request of Ignatov, will take steps that it
determines to be reasonable and necessary to
attempt to ensure his safety and that of his
family and loved ones.
These
steps may include application to the Witness
Security Program of the United States Marshals
Service, whereby Ignatov, his family, and loved
ones, if approved, could be relocated under a
new identity...
This
Office will, however, bring the cooperation of
the defendant to the attention of other
prosecuting offices, if requested by him.
It is understood that the sentence to be imposed
upon the defendant is within the sole discretion
of the Court.
This
Office cannot, and does not, make any promise or
representation as to what sentence the defendant
will receive, and will not recommend any
specific sentence to the Court. However, this
Office will inform the Probation Office and the
Court of (a) this Agreement; (b) the nature and
extent of the defendant's activities with
respect to this case and all other activities of
the defendant which this Office deems relevant
to sentencing; and (c) the nature and extent of
the defendant's cooperation with this Office. In
so doing, this Office may use any information it
deems relevant, including information provided
by the defendant both prior to and subsequent to
the signing of this Agreement.
In
addition, if this Office determines that the
defendant has provided substantial assistance in
an investigation or prosecution, and if he has
fully complied with the understandings specified
in this Agreement, this Office will file a
motion, pursuant to Section 5K1.1 of the
Sentencing Guidelines, requesting the Court to
sentence the defendant in light of the factors
set forth in Section 5K1.1(a)(1)-(5).
It
is understood that, even if such a motion is
filed, the sentence to be imposed on the
defendant remains within the sole discretion of
the Court. Moreover, nothing in this Agreement
limits this Office's right to present any facts
and make any arguments relevant to sentencing to
the Probation Office and the Court, or to take
any position on post-sentencing motions. The
defendant hereby consents to such adjournments
of his sentence as may be requested by this
Office.
It
is understood that, should this Office determine
either that the defendant has not provided
substantial assistance in an investigation or
prosecution, or that the defendant has violated
any provision of this Agreement, such a
determination will release this Office from any
obligation to file a motion pursuant to Section
5K1.1 of the Sentencing Guidelines, but will not
entitle the defendant to withdraw his guilty
plea once it has been entered.
It
is understood that, should this Office
determine, subsequent to the filing of a motion
pursuant to Section 5K1.1 of the Sentencing
Guidelines and/or 18 U.S.C. Sec. 3553(e), that
the defendant has violated any provision of this
Agreement, this Office shall have the right to
withdraw such motion."
A
sample TD Bank letter to Gilbert Armenta is here.
We'll have more on this.
On
November 7 in the case against accused OneCoin
money launderer Mark Scott Konstantin Ignatov
for the third and last day took the witness
stand, in prison blues with his neck and arm
tattoos, as a cooperating witness.
Scott's lawyer Arlo Devlin-Brown zeroed in on
Konstantin Ignatov's guilty plea to bank fraud,
asking him to name which FDIC insured bank he
had provided false information to.
Ignatov could not name a US bank, only United
Bank of Dubai.
"No
further questions," Devlin-Brown told Judge
Ramos.
Inner City Press has asked the US Attorney's
Office when it was that Konstantin Ignatov pled
guilty, since he gave no indication of such a
plea in a September 6 status conference that
Inner City Press covered, and has asked if it
was before Judge Ramos, and if it was sealed.
The government's next witness was the anti money
laundering expert Donald Semesky. Inner City
Press will continue to cover the trial. November
7 thread here.
More on Patreon here.
On November 6 Konstantin Ignatov testified that
the bodyguards to took Ruja on her final public
trip told him she was met by "Russian guys," and
that Ruja had told him that in Russia she knew a
rich and powerful person. More on Patreon, here.
The case
is US v.
Scott / Ignatov,
17-cr-630
(Ramos).
November
11, 2019
In OneCoin Trial Konstantin Ignatov Pled To Bank Fraud So Defense Asks Which FDIC Bank
By
Matthew Russell Lee, Patreon,
Thread
SDNY
COURTHOUSE, Nov 7 – After OneCoin's Konstantin
Ignatov got a stay of the civil case against
him, his criminal case was said to have been
kicked down the road for at least another two
months.
It
was a productive two months, at least for the
U.S. Attorney's Office.
On
November 7 in the case against accused OneCoin
money launderer Mark Scott Konstantin Ignatov
for the third and last day took the witness
stand, in prison blues with his neck and arm
tattoos, as a cooperating witness.
Scott's lawyer Arlo Devlin-Brown zeroed in on
Konstantin Ignatov's guilty plea to bank fraud,
asking him to name which FDIC insured bank he
had provided false information to.
Ignatov could not name a US bank, only United
Bank of Dubai.
"No
further questions," Devlin-Brown told Judge
Ramos.
Inner City Press has asked the US Attorney's
Office when it was that Konstantin Ignatov pled
guilty, since he gave no indication of such a
plea in a September 6 status conference that
Inner City Press covered, and has asked if it
was before Judge Ramos, and if it was sealed.
The government's next witness was the anti money
laundering expert Donald Semesky. Inner City
Press will continue to cover the trial. November
7 thread here.
More on Patreon here.
On November 6 Konstantin Ignatov testified that
the bodyguards to took Ruja on her final public
trip told him she was met by "Russian guys," and
that Ruja had told him that in Russia she knew a
rich and powerful person. More on Patreon, here.
November 6 came to an end in the trial with
Scott's lawyer Arlo Devlin-Brown cross examining
Konstantin in detail about his one and only in
person meeting with defendant Mark Scott, when
he visited OneCoin's headquarters in Sophia,
Bulgaria. Inner City Press will have more on
this as the trial continues on November 7.
Back on November 4 before jury selection, in
oral arguments Scott's lawyers asked Judge Ramos
to not allow into evidence information and chats
found on a Samsung Galaxy smart phone for which
Mark Scott paid but was used by his wife, with a
Russian keyboard. Judge Ramos declined to
suppress it.
It also emerged that still-missing Ruja Ignatova rented space underneath cooperator Gilbert Armenta to listen in on him. More on that and on jury selection (which included questions on multi level marketing) is on Patreon, here.
On
Monday, October 28 in a two hour pre-trial
conference covered
by Inner City Press, Judge Ramos said that the
government can show photos of Scott with a yacht
and cars that he purchased.
The government said the trial will take two to
three weeks.
The case
is US v.
Scott / Ignatov,
17-cr-630
(Ramos).
November
4, 2019
In OneCoin Trial Scott Again Urges Statement In About Pyramid Scheme Concern Trial in 2 Days
By
Matthew Russell Lee, Patreon, Thread
SDNY
COURTHOUSE, Nov 2 – After OneCoin's Konstantin
Ignatov got a stay of the civil case against
him, then his criminal case was kicked down the
road for at least another two months. Now the
can looms closer, on November 4 before Judge
Edgardo Ramos in the U.S. District Court for the
Southern District of New York. Inner City Press
will be live-tweeting it.
On
Sunday, October 27 Mark Scott's lawyers asked
Judge Ramos to allow in more of Scott's post
arrest statement, a request that for example in
the recent Honduras narco-trial the defense left
until mid-trial but still got granted in five
instances. More on Patreon here
and here.
On Monday, October 28 in a two hour pre-trial