Inner City
        Press' Bank Beat Reporter

  

     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.

October 26, 2020

Doctor Seeks Citigroup Discovery Cited Dutch Appeal and Unauthorized Surveillance in SDNY

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

SDNY COURTHOUSE, Oct 22 – Heleen Mees filed an application for discovery against Citigroup under 28 USC 1728 back in 2014, when she was represented by Boies Schiller & Flexner. 

 On October 22 U.S. District Court for the Southern District of New York Magistrate Judge Sarah Netburn held a proceeding. Inner City Press covered it.

   Mees insisted that her case is still alive in an appeals court in Amsterdam and so she should get discovery. Judge Netburn disagreed, saying that discover was stayed and that Mees was free to appeal to the District Judge, Loretta A. Preska. 

 Talk turned to sealed documents in the case, including some released to "unauthorized surveillance." Inner City Press aims to have more on this.

The case is Mees v. Citigroup Inc., 15-mc-262 (Preska / Netburn)

October 19, 2020

State Street Bank Is Sued For Boston Club Culture Now Complains About Discovery

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

SDNY COURTHOUSE, Sept 15 –   Two employees sued State State Bank for discrimination. Then their lawyer had some problems   

 On September 15 U.S. District Court for the Southern District of New York Judge Gregory H. Woods held a status conference. Inner City Press covered it.   

State Street's lawyer complained about the plaintiff getting double standards, while purporting to sympathize for their problems. The plaintiffs cite State Street's "notorious male-dominated 'Boston club' culture."

 The case is Shnyra et al v. State Street Bank and Trust Co., Inc., 19-cv-2420 (Woods)

and here's from Fair Finance Watch's timely comment to DOJ: "Re: Timely comment urging DOJ to conduct more public and rigorous review of bank mergers  To Whom It May Concern in the Antitrust Division:     On the behalf of Fair Finance Watch and, where applicable, Inner City Press this is a brief but timely comment on DOJ's review of bank mergers.    FFW has experience in raising anti-competitive impacts on bank mergers to the federal banking regulators, who most often ignore such comments and withhold relevant information, including when requested under FOIA. Mergers such as  Schwab - TD Ameritrade and Morgan Stanley - E*Trade are approved, by bending the rules; the Federal Reserve engages in legal gymnastics to downplay HHI indices while the FDIC and OCC often make no formal finding at all.     Given that, FFW urges the DOJ to ensure public participation in its reviews of proposed mergers, by providing public notice and soliciting comments. More generally, FFW joins in comments it has signed on to with NCRC, in which it is a member.     Antitrust is not only, or even most, to protect competitors for each others. It is for consumers and communities and DOJ should reach out to them.  Very Truly Yours,  Matthew R. Lee Fair Finance Watch (and Inner City Press)"

October 12, 2020

Turkey Halkbank Was Denied Dismissal Now Appeals And Asks For Stay US To File Oct 13

By Matthew Russell Lee, Patreon, Thread Video
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Oct 10 – 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 appeared and agreed to be indicted. Inner City Press live tweeted it here.

  On September 10 Judge Berman scheduled a September 18 oral argument on Halkbank's motion to dismiss. Inner City Press live tweeted it, here and below.

On October 1 Judge Berman has denied Halkbank's motion to dismiss.

On October 9, Halkbank told Judge Berman it had appealed and asked again for a stay: "we respectfully request that this Court vacate all pretrial, trial, and related deadlines.  Neither this motion nor the notice of appeal withdraws Halkbank’s petition for mandamus on recusal. Halkbank continues to object to this case proceeding until the recusal issue has been fully and finally decided."

Now on October 10, Judge Berman has directed the US to respond to October 13: "as to Turkiye Halk Bankasi A.S. re: [680] LETTER MOTION addressed to Judge Richard M. Berman from Robert M. Cary dated October 9, 2020 re: Vacate pending deadlines or stay case during appeal. filed by Turkiye Halk Bankasi A.S. ENDORSEMENT: Government to respond by noon on October 13, 2020. (Signed by Judge Richard M. Berman on 10/10/2020)." Watch this site.

October 5, 2020

JPM Chase Gave Out Customer Funds Now Will Not Timely Give Discovery Due To COVID

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

SDNY COURTHOUSE, Sept 29 – A customer of JPMorgan Chase's private bank had his accounts accessed without his consent and looted. He sued.

  On September 29 U.S. District Court for the Southern District of New York Judge Lewis J. Liman held a proceeding. Inner City Press covered it.

 Judge Liman said the proposed discovery scheduled seemed too slow. The plaintiff's lawyer said that dealing with Chase is like pulling teeth.

Chase's outside counsel acknowledged things are slow, people are working from home but are not allowed to print there - ostensibly to protect, perhaps too late, people like the plaintiff.

  Judge Liman referred the case for settlement talks to Chief Magistrate Judge Gabriel W. Gorenstein, whom he called "experienced."

The case is Lari v. JPMorgan Chase Bank, N.A., 20-cv-952 (Liman)

September 28, 2020

BMO Harris Bank Debtor Principis Was Told To Pay Collections Account Now Receiver Mulled

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

SDNY COURTHOUSE, Sept 24 –   In 2017 Bank of Montreal Harris and First Horizon lent $55 million to Principis Capital LCC of Manhattan and Jersey City. In 2020 Principis stopped paying and BMO sued.  

On September 4 U.S. District Court for the Southern District of New York Judge Lorna G. Schofield held a proceeding. Inner City Press covered it.  

The banks want a received to be appointed. But Principis CEO Jane Prokop says, "We received no warning before the Notice landed in our email box late on August 3... Principlis offered in numerous phone conversations to provide a reconciliation for the August 3 minimum balance shortfall, but BMO's response was to insist that $678,709 was simply to be wired into the Customer's Bank collection account."  

Judge Schofield asked for a status letter.

On September 24 Judge Schofield held another proceeding. Now a receiver is being mulled. But Judge Schofield said she would not order one off the cuff, asking instead for filings on the issue.

The case is BMO Harris Bank N.A. v. Principis Capital LLC et al, 20-cv-6355 (Schofield)

September 21, 2020

Ex-JPMorgan Trader Objected To SDNY Zip Codes Now Gets 8 Months for ForEx Rigging

By Matthew Russell Lee, Patreon
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Sept 17 – Akshay Aiyer, formerly of JPMorgan, was standing trial back in November 2019 for bid rigging and price fixing with regard to the Russian ruble and other currencies in violation of the Sherman Act.

    But somehow the prosecutors forgot, before closing their case, to prove venue: that acts occurred in the Southern District of New York.

   And so SDNY Judge John G. Koeltl on November 14, 2019 gave them a break to find a zip code map, and they did. Aiyer's lawyer Martin Klotz of Wilkie Farr said he did not object to Judge Koeltl taking judicial notice of the map. But he did object to the government re-opening its case to get the evidence in.

   Judge Koeltl overruled the objection, saying that it is within his sound discretion to allow the re-opening of the government's case particularly if there was, as here, no prejudice.

    Except that due to the government's omission, Aiyer might have gone free?

  His Rule 29 motion was denied by Judge Koeltl without prejudice to be renewed. In an oral ruling Judge Koeltl distinguished then-District Judge Walker's decision in APEX Oil; he rejected the argument that the trader was only trying to help his client.

  Price fixing and rig bidding, amended by Judge Koeltl to bid rigging, are per se violations of the Sherman Act.

   For the record, the zip codes entered into evidence were 10019, 10013 and 10167. Judge Koeltl went online to verify they are in Manhattan.

   Aiyer was convicted, and on September 17 appeared for sentencing with a guideline of 37 to 46 months. Judge Koeltl imposed a sentence of ... eight months. This is the SDNY.

The case is US v. Aiyer, 18-cr-333 (Koeltl).

Turkey Halkbank in SDNY Cites Immunity But US Points to Noriega Case and 2012 Email

By Matthew Russell Lee, Patreon, Thread Video
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Sept 18 – 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 appeared and agreed to be indicted. Inner City Press live tweeted it here.

  On September 10 Judge Berman scheduled a September 18 oral argument on Halkbank's motion to dismiss. Inner City Press live tweeted it, here:

Halkbank's lawyer: The government claims that a handful of discussions with Treasury officials constitutes doing business in the US. We disagree. These statements to Treasury can't be used to bring in the non-US activities in the UAE and elsewhere. 

Halkbank's lawyer: Under the commercial activities exception, the non-US activity must have a direct effect in the US. There was the supposed pool of money traded oversea. 95% of that money never even made it to the US.

Halkbank's lawyer: Post-pool, in Turkey and Dubai, the US dollar transactions were not the product of Halkbank's activities. So, this court has not subject matter jurisdiction. As to personal jurisdiction, this will be quick - you have indicated how you will rule. 

Halkbank's lawyer: As to bank fraud, our indictment differs from Zarrab's. To prove conspiracy to violate IEEPA, they must prove conspiracy to violate primary, not secondary sanctions. Thank you your honor.

Judge Richard M. Berman: I got it.

Assistant US Attorney Sidhardha Kamaraju: While Halkbank claims the Attila decision required us to change our allegations, it's not true. The indictment contains 81 paragraphs. Halkbank wants you to look at one sentence in Paragraph 6.

AUSA: But the next sentence says, used to make payments on behalf of Iran, in dollars, passing through the US, in violation of US sanctions laws. And look at Paragraph 33, which makes clear a knowing scheme to route the funds from the US. A June 20, 2012 email...

AUSA: The email says, these gold deposits can be used for international payments... Bank Melli, Bank Sedarat, Bank Mellat in Turkey. So, the bank knowingly participated in enabling Iran's access to the US financial system. Then there's the slush fund in Dubai...

 AUSA: Their argument is essentially, What's a billion dollars among friends? Except that their friend is the world's largest state sponsor of terrorism.... Halkbank tries to apply civil law to this criminal case, in which acts are attributable to all conspirators

AUSA, cites US v. Noriega then says Halkbank is asking Judge Berman to save it from the US Executive Branch's decision it should not have immunity, as it decided with regard to Noriega. Judge Berman: Five minute warning.

Judge Berman says he'll be asking for a copy of the transcript to Chambers. He'll take it under advisement. "We can be adjourned."

September 14, 2020

For PPP Bank Fraud China National Ma Still Jailed But 6th Amendment Argument Sept 30

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, Sept 11 – Amid mounting fraud in the U.S. Paycheck Protection Program, including banks and non-bank fintech lenders refusing to report the most basic data about what they done with the money, an investigative project of Inner City Press, on May 21 there is the arrest of Muge Ma, as known as "Hummer Mars," a Chinese national residing in Manhattan.

At 7 pm he was remanded to custody in jail as a risk of flight, see below.

 On September 11, after various other attempts, Ma tried again before Judge Richard M. Berman. He continued remand but agreed to hear Ma's Constitutional / Sixth Amendment right to counsel arguments, on September 30. Inner City Press live tweeted September 11, here:

Muge Ma, the defendant, has a Mandarin interpreter.  His lawyer says Ma speaks fine English. But the MCC has not produced him. Lawyer wants him present for bail argument. Seems the proceeding may be put over - for more than a week.

 Muge Ma a/k/a Hummer Mars has hired, and is paying (unlike Michael Avenatti in SDNY) his own lawyer: Peter Katz of Princeton NJ.  MCC counsel says they are trying to produce Ma.

 Ma has arrived. Judge Berman recites that Magistrate Judges McCarthy and Cott turned him down for release, as did Judge Rakoff sitting as Part 1 judge. Will Judge Berman go a different way?

Judge Berman says he's never seen so many denials, by 3 different judges, and a re-application. Defense lawyer: There was no bail application to Judge Cott. We knew we had a date with you today. Judge Berman: It's fair to say that Judge Cott continued the remand Ma's lawyer Katz: We've just waited 47 minutes for Mr. Ma.

Judge Berman: What can we draw from that? We were trying to accommodate him with an interpreter. Nothing that we have done or said today has any bearing on the determination whether Mr. Ma is guilty

 Judge Berman: So what's different now, that should persuade us that Mr Ma is not a flight risk? Ma's lawyer Katz: The communication is difficult.  [But that's not on risk of flight] Judge Berman: You can't paint with a huge brush. What you say would apply to all

 Katz: I'm not sure if a pre-trial resolution is possible, since I can't talk to him enough. [Some might say this boils down to saying, Let him out, he might plead guilty.] Katz says he has another case with AUSA Sagar Ravi, about a defendant in another facility

 Judge Berman named another Judge, Magistrate Aaron, as turning Ma down on June 5 and says Ma didn't appeal to Judge Rakoff, also Part 1 Judge, on that day. Implying because Ma knew he would lose with Judge Rakoff, but wants to try again with Judge Berman?

 AUSA Ravi: In person legal visits in MCC will begin again on September 21. Ma's lawyer Katz: That's just testing. Judge Berman: If that's the only issue, I would suggest you submit aConstitutional brief about the attorney client contacts, not content

 Judge Berman: We've succeeded today in narrowing the issue. I'll give you a few days. I've looked at the papers and I can't imagine I'd come to a different conclusion than Judges McCarthy, Rakoff & Aaron. I'll continue the remand; I'll look at whatever you submit

Judge Berman: I'm not asking for a supplement, to what was rejected. I'm looking for something new. How long will it take you? Katz: Next Thurs?

Judge Berman: Sure. Keep it to 10 pages double spaced. US? Ravi: 1 week.  Wed Sept 30, 10:30 conference.

We will continue to cover this case.

Turkey Halkbank Gets Sept 18 Argument on Motion To Dismiss SDNY Indictment

By Matthew Russell Lee, Patreon, Thread Video
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Sept 10 – 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 appeared and agreed to be indicted. Inner City Press live tweeted it here.

  Now on September 10 Judge Berman has scheduled oral argument on Halkbank's motion to dismiss: "ORDER as to Turkiye Halk Bankasi A.S. The Court plans to hear oral argument via teleconference on Friday, September 18, 2020 at 9:30 a.m. regarding Halkbank's motion to dismiss the Indictment. Each party will have up to twenty (20) minutes, including time reserved for rebuttal." Inner City Press will live tweet this

September 7, 2020

BMO Harris Bank Debtor Principis Says It Was On No Notice Told To Pay Collections Account

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

SDNY COURTHOUSE, Sept 5 –   In 2017 Bank of Montreal Harris and First Horizon lent $55 million to Principis Capital LCC of Manhattan and Jersey City. In 2020 Principis stopped paying and BMO sued.  

On September 4 U.S. District Court for the Southern District of New York Judge Lorna G. Schofield held a proceeding. Inner City Press covered it.  

The banks want a received to be appointed. But Principis CEO Jane Prokop says, "We received no warning before the Notice landed in our email box late on August 3... Principlis offered in numerous phone conversations to provide a reconciliation for the August 3 minimum balance shortfall, but BMO's response was to insist that $678,709 was simply to be wired into the Customer's Bank collection account."  

Judge Schofield asked for a status letter next Thursday, and for another telephone conference is necessary the day after. She wished the lawyers good health and a good holiday weekend.

The case is BMO Harris Bank N.A. v. Principis Capital LLC et al, 20-cv-6355 (Schofield)

August 31, 2020

In SDNY Bank Fraud Extraditee From Ghana Has May 3 Trial and TB in Valhalla

By Matthew Russell Lee

SDNY COURTHOUSE, Aug 28 – A woman from Ghana pled guilty to receiving stolen property in The Bronx before U.S. District Court for the Southern District of New York Judge Denise Cote on July 3, 2019. Assana Traore has a plea agreement for a guideline sentence of from 15 to 21 months and will be sentenced on October 4, see below. Before Traore's plea, the same defense lawyer Stephen Turano had another client plead guilty.

But who was it?

  After inquiry with the U.S. Attorney's Office, thankfully Inner City Pres was informed this earlier case was US v. Sadi Fofana, 19-cr-447. There was another defendant in that case, Malick Keita, initially represented by Florian Meidel. So who pled guilty? Whoever it it, their sentencing is said to be October 4 at 3 pm. Only there is someone else scheduled to plead guilty before Judge Cote at that time...

 Assana Traore was accused of receiving $20,000 wired in to her bank account in The Bronx and money laundering.

  It's part of the wide "US v. Rufai" case in which Judge Cote has given four year jail sentences to men involved in the romance scam side of the wider case (one defendant cut off his ankle bracelet and fled). Traore is a U.S. citizen and does not, like the men, face or flee deportation.

  While one of the men claimed he was not part of the romance scam but only aware of it, Judge Cote demurred. The issue of awareness apparently did not arise with Mr. Traore.

 On August 28, 2020, still amid the COVID pandemic, Judge Cote held a proceeding DEBORAH MENSAH, extradited this week from #Ghana for theft of over $10 million through business email compromises and romance scams that targeted the elderly. 

 Judge Denise Cote: I'm going to put this down for a two week trial. What month should we look at? Defense counsel: How about 1st week in May 2021?

Note: MENSAH, 33, is charged with conspiracy to commit wire fraud, wire fraud & money laundering, 20 years in prison

Judge Cote: I'll exclude time under the Speedy Trial Act until the May 3 trial date. If the defendant wishes to use the time to try to negotiate a pre-trial disposition, she can do that.

Defense lawyer: I reserve the right to make a bail application. She has T.B.

 Defense lawyer: If and when we make a bail application, should we file it with you or the Magistrate? Judge Cote: With me. I'm around. AUSA, please follow up with Valhalla [jail] to make sure there is medical care after what I hope was an arraignment.

 The case is US v. Mensah, 18-cr-201 (Cote).

August 24, 2020

Turkey Halkbank Civil Suit By Iran Terrorism Victims Has Names Added Inner City Press On the Case

By Matthew Russell Lee, Patreon, Thread Video
Honduras - The Source - The Root - etc

SDNY COURTHOUSE, Aug 21 – Turkey's Halkbank officially gave up its strategy of refusing to official appear in the US District Court for the Southern District of New York criminal case against it, and on February 25 appeared and agreed to be indicted. Inner City Press live tweeted it here, and below.

  Now on August 21 Inner City Press is looking into a civil case against Halkbank in the SDNY, for the bank's "arm in arm" work with Iran. That's from a sealed complaint, for which the Gibson Dunn law firm was SDNY Judge J. Paul Oetken for additional time to serve Halkbank under the Hague Convention. It was granted by SDNY Judge Denise L. Cote.

On August 21, yet more names were added to the case.  The plaintiffs are individuals who are direct victims and surviving family members of the Embassy Bombings, Beirut Bombing, Jerusalem Bombing Atzmona Attack, 2003 Bus Bombing and two related attacks on U.S. service members serving in Iraq.

 The complaint says Halkbank acquired its Iranian accounts in 2004, when it merged with Pamuk Bank, a Turkish bank with long-standing ties to Iran. The plaintiffs are suing for rescission of fraudulent conveyances, and under the Terrorism Risk Insurance Act. The schedule is on Patreon here.

  On March 31 in a telephone conference Inner City Press also live tweeted, here, Halkbank dropped King & Spalding and swapped in as its counsel Robert Cary of Williams and Connolly. On Halkbank's behalf he pled not guilty to all counts of the indictment.

   Cary said he wants to travel to Turkey for a third time to discuss with Halkbank whether or not to file a motion for recusal of U.S. District Court for the Southern District of New York Judge Richard M. Berman.

  On June 30 Judge Berman held a proceeding. Inner City Press live tweeted it:

Halkbank's new lawyer, Robert Cary of Williams and Connolly, got on late. Blames it on his "help desk." Judge Berman: You need a 13 year old there with you. Is Halkbank waiving physical presence in an SDNY courtroom? Cary: Yes, Your Honor.

 Judge Berman: I'm within the Second Circuit, but I'm outside of the Southern District of New York. Does Halkbank waive my physical presence in the District for this proceeding? Cary: Yes. AUSA: The government, too.

 Judge Berman: At the March 30 conference, former counsel for Halkbank withdrew and Mr. Cary appeared. Now, let's talk about next steps. On June 2, I told parties to be ready to discuss expedited motion schedule today. Has defense met and conferred?

 Cary: We have some disagreement. For a short window we could have gotten to Turkey. We didn't. We've worked from home. We have a stipulation on a protective order, but not on translations. (A beat). We will be filing a recusal motion, and could by July 21.

 Cary: We would file other motion four weeks after the ruling on the recusal motion. We'd file a motion for a bill of particulars three months after we get the discovery. We believe it will be months before we can travel safely. So discovery on a secure platform.

 Cary: The rest of the discovery will be on a one terabyte hard drive, from Amazon if you can believe it. The stipulation on translations is that we are not allowed to rely on the government translations, we'll hire our own translators.

 Cary: The vast majority of witnesses are overseas. We'll have to use MLATs to get their testimony. Given that and #COVID19, we suggest trial in March 2022. Did you say March 2022? Cary: Yes. Judge Berman: You would need a year to do trial prep?

Cary: Yes. Judge Berman: AUSA Lockhart?

AUSA Lockhart: We disagree on trial date. We think the motions can be scheduled now, without regard to recusal.

AUSA Lockhart: If the Court grants recusal, then the newly assigned Judge would have the benefit of the other motions.  Judge Berman: So you'd say all motions at once?

AUSA Lockhart: Perhaps all motions by July 28. Or recusal by July 21 and the others just after.

 AUSA Lockhart: On the trial date, we think March 2020 is too far away. It would be much sooner, like the beginning of 2021. February, depending on the court's schedule. We are not starting from scratch. Halkbank has been responding to investigation since Oct 2017.

 AUSA Lockhart: Halkbank has interviewed its own officers. So it chose to change counsel. But Halkbank has had time to prepare. Trial prep can take place under current circumstances. The main question is whether people can participate in the trial. Early 2021.

 Judge Berman: Rob, did you want to respond? Cary: My struggles getting on this call is an example. Communication is not what it should be. To work with the client, on which motions to file, too fast is not fair and appropriate. We need much more time.

 Cary: We think personal jurisdiction should be considered first. Judge Berman: I can understand recusal being 1st. But I see no reason for the other motions to be separate. Cary: Representing an entire bank is difficult, our defense will be different than Atilla's.

Cary: We believe there will be Classified Information Procedures Act issues - it was testified to in Congress, Turkish deals to be reviewed only in a secure facility. There are also a lot of translations. We think 2022 makes sense.

Judge Berman: Let's move quickly. File the recusal motion by July 14, reply by August 4. While that's pending, the facial motion with several branches should be filed August 10. Responded to by August 31, reply by Sept 7. Then I'd like to think through the trial concerns.

Judge Berman: Mr Cary, will your foreign witnesses be mostly Turkish? Cary: There will be witnesses from other jurisdictions. Judge Berman: Leave with me the question of trial date. And as to when to have oral argument. Sound workable? Cary: We will make that work

 AUSA Lockhart: Would it make sense to schedule a conference in September?

Judge Berman: Do we need oral argument on recusal? Cary: I would want to discuss that with my client. I'm not able to take a position on that today. [This question was foreseeable. Delay.]

Judge Berman: If oral argument on recusal, it would be in August. Which would be an occasion to refine the schedule, if it needs to be refined. The facial motion, resolvable on the papers?

Cary: I need to check with the client.

Judge Berman: I won't set date now. Send me a note about your vacations. I'll work around them. I think that's it for today. On tech, we could send you Chelsea. We'll talk again soon. I'll see what I can put together for the schedule, excluding time to Sept 7 on consent.

August 17, 2020

In JPMorgan Chase Treasury Spoofing Civil Case Long Shadow of DOJ Prosecution

By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source

SDNY COURTHOUSE, Aug 13 – In the shadow of the US Department of Justice actions on (some of) JPMorgan Chase's U.S. Treasury "spoofing" fraud, on August 13 U.S. District Court for the Southern District of New York Judge Paul A. Engelmayer held a proceeding in  Breakwater Trading LLC v. JPMorgan Chase & Co. et al.

Inner City Press live tweeted it - then added some analysis, on Patreon here.

Judge Engelmayer is asking of the links of this civil case filed in May to criminal cases.

 A lawyer tells Judge Engelmayer she spoke with "Mr Sullivan of the DOJ" about the relation of the criminal case and this.

 Judge Engelmayer: Interim lead counsel should discuss the schedule of discovery as relates to any DOJ request... Since Ms. Nussbaum spoke with the relevant figure at DOJ, you all should. [It's Linda P. Nussbaum representing Breakwater Trading LLC] 

Judge Engelmayer: There's reference to a protective order - you should discuss that too. W have a missing party here in the room, a missing entity, the DOJ, and they'll have something to say about discovery in this case... I had an ex parte though fully memorialized under seal discussion with DOJ [More on Patreon here.]

Another lawyer: I speak with Mr. Perry and Mr. Sullivan at the DOJ, often... 

Ms. Nussbaum: We'll reach out to other counsel. We've had discussions with Ms. Davidoff [Amanda Flug Davidoff representing JP Morgan Clearing Corp.] 

Judge Engelmayer: we are adjourned.

The case is Breakwater Trading LLC v. JPMorgan Chase & Co. et al., 20-cv-03515 (Engelmayer)

August 10, 2020