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
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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.
September
16, 2024
After SBF Got 25 Years Salame Got 90 Months now Grilled if SDNY Assurance about Bond
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.
***
Your support means a lot. As
little as $5 a month helps keep us going and grants you access
to exclusive bonus material on our Patreon page. Click here
to become a patron.
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)
***
September
2, 2024
After SBF Got 25 Years Salame Got 90 Months Despite Withdrawn Motion Judge Says Sept 12
SDNY
COURTHOUSE, Aug 29 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," audio/book here.
On March 28, 2024, Inner City Press live tweeted
his sentencing, to 25 years.
On May 28
Salame was
"sentenced to
90 months."
On
August 21,
Salame filed
that "the
Government
used the plea
negotiations
to threaten
Salame’s
domestic
partner and
the mother of
his child,
Michelle Bond."
Full filing
on Patreon here.
On
August 22,
after Inner City
Press published
a curtain
raiser on
Michelle Bond
being
presented in
SDNY Mag
court, this: "the
unsealing of
an Indictment
today charging
MICHELLE BOND
with
conspiring to
cause and
causing
unlawful
campaign
contributions
in connection
with her
unsuccessful
run for
Congress in
2022."
On
August 29,
Saleme withdrew his
motion: "Mr.
Salame is
withdrawing
the Petition." Filing
on Patreon here.
But
later on
August 29, "ORDER
as to Ryan
Salame.
Notwithstanding
defendant's
purported
withdrawal
without
prejudice... the
parties shall
file the
papers
contemplated
by the Court's
order of
August 21,
2024 on the
schedule there
set forth.
Counsel shall
appear for
argument on
September 12,
2024 as
scheduled.
Defendant's
presence is
required and
his compliance
with this
requirement
hereby is made
a condition of
his continued
release on
bail pending
voluntary
surrender.
(Signed by
Judge Lewis A.
Kaplan on
8/29/2024)."
Aug
29 extra on X for Subscribers
here, Substack here
This case is US v. Bond, 24-cr-494 (Daniels)
We'll
have more on this.
***
Your support means a lot. As
little as $5 a month helps keep us going and grants you access
to exclusive bonus material on our Patreon page. Click here
to become a patron.
August
26, 2024
After SBF Got 25 Years Salame Got 90 Months Then Motion now Michelle Bond Indicted
SDNY
COURTHOUSE, Aug 22 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," audio/book here.
On March 28, 2024, Inner City Press live tweeted
his sentencing, to 25 years.
On May 28
Salame was
"sentenced to
90 months."
On
August 21,
Salame filed
that "the
Government
used the plea
negotiations
to threaten
Salame’s
domestic
partner and
the mother of
his child,
Michelle Bond."
Full filing
on Patreon here.
On
August 22,
after Inner City
Press published
a curtain
raiser on
Michelle Bond
being
presented in
SDNY Mag
court, this: "the
unsealing of
an Indictment
today charging
MICHELLE BOND
with
conspiring to
cause and
causing
unlawful
campaign
contributions
in connection
with her
unsuccessful
run for
Congress in
2022."
August
19, 2024
In Suit Against Cairo Amman Bank For Hamas Briefing Due on Supreme Court Twitter Case
SDNY
COURTHOUSE, Aug 15 – Julie
Averbach sued
Cairo Amman
Bank for
allegedly
helping Hamas,
by
transferring
its and its
leaders' money
through
JPMorgan
Chase, BNY
Mellon and
Standard
Chartered
Bank; it had a
correspondent
banking
relationship
with
Citibank.
On
January 19,
2023 U.S.
District Court
for the
Southern
District of
New York
Magistrate
Judge
Katharine H.
Parker held a
proceeding.
Inner City
Press covered
it.
The
complaint
describes a
Hamas bombing
in Jerusalem.
On
January 19,
Judge Parker
ordered that
the plaintiffs
must provide
the defendants
with an
updated chart
of
transactions.
Jump
cut 20 months
forward to
August 15,
2024, another
conference,
which Inner
City Press
covered, thread
Judge:
It has been
raised how the
Twitter
decision on
aiding and
abetting
impacts this
case.
Cairo
Amman Bank's
lawyer: We
anticipate the
plaintiffs'
filing a third
amended
complaint.
Judge:
Discovery?
CAB's lawyer:
One of our
experts has a
death in the
family Cairo
Amman Bank's
lawyer: Some
we need to
reach are in
areas that are
hard to reach
right now...
Plaintiffs'
lawyer: We
prefer to
brief the
Twitter v.
Taamneh issues
just once, on
a Rule 56
motion.
Judge:
File a
proposed new
schedule next
week.
The case is Averbach et al v. Cairo Amman Bank, 19-cv-4 (Woods / Parker)
***
August
12, 2024
US Sued Javice For Fooling JPMC So She Subpoenaed Chase Now Rulings on Privileges
by
Matthew Russell Lee, Patreon Book Substack
SDNY
COURTHOUSE, Aug 6 – JPMorgan Chase
bought a start-up called
Frank, which claimed to have 4
million students signed up to
file their FAFSA forms, for
$175 million. Then Chase
learned Frank had only 300,000
customers.
On April 4,
2023, Frank founder Ms.
Charlie Javice was brought
before U.S. District Court for
the Southern District of New
York Magistrate Judge Barbara
C. Moses, represented by Quinn
Emanuel.
The
complaint quotes Javice
messages with the engineers
she hired to create the false
data, and to enter in data she
bought on the open market. To
one of them, she is quoted,
"We don't want to end up in
orange jumpsuits."
In the
tri-state, it is Westchester
County Department of
Corrections in Valhalla that
dresses its inmates in orange.
MDC Brooklyn uses beige; Essex
County Corrections Facility in
New Jersey uses yellow.
In
any event, white collar
defendant Javice, who took on
an appropriately or
strategically contrite look on
Worth Street still barricaded
for the nearby state court
arraignment of former
President Donald Trump, was
freed on $2 million bond,
travel restricted to SDNY and
EDNY and the Southern District
of Florida, where she lives.
On May 18, Javice was
indicted on bank, wire and
securities fraud counts,
and the case assigned to District Judge Alvin K.
Hellerstein.
In
June the US
prosecutors sought
to intervene in
and stay the
SEC's case
against
Javice. Inner
City Press
attended and covered
the oral
argument and
now first
reports that
Judge Lewis
J. Liman has
granted the
motions to
intervene and
stay, noting
among other
things that "Javice
will have
access to a
vast amount of
material
usable in the
civil case
through the
means of Rule
16 discovery
in the
criminal case.
That discovery
will include
virtually all
of the SEC’s
investigative
file. And it
will include
documents from
at least 30
different
third parties.
She has not
made a
convincing
case that she
needs more
document
discovery to
be prepared to
move quickly
in this case
when the
criminal case
is resolved
and the stay
is lifted."
The
(stayed) civil
case is
Securities and
Exchange
Commission v.
Javice et al,
23-cv-2795
(Liman)
On July
13, Javice and
her co-defendant
were arraigned,
and Judge
Hellerstein
asked why JPMC
didn't find
the fraud in
due diligence. Inner
City Press was
there, thread:
All
rise!
Judge:
How do you
plead? Javice:
Not guilty.
Judge: How do
you pronounce
your name?
Javace?
Javice:
"Jah-veese."
Judge:
And Mr Amar?
Amar
(takes off
COVID mask
still required
in this
courtroom) Not
guilty
Judge
Hellerstein:
I'm puzzled,
why didn't JP
Morgan Chase
figure this
out during due
diligence?
AUSA: They
created fake
data. [Javice
is shaking her
head No, pink
cardigan tied
over her
shoulders]
Judge:
Defense wants
a delay?
Spiro: The US
is just
regurgitating
JPM Chase's
civil case.
AUSA: Mr Spiro
is confused
about Rule 16.
Judge: Can you
subpoena JPMC?
AUSA: We'd
have to see if
that complies
with Rule 17.
Judge to AUSA:
Why don't
*you* subpoena
JPMC?
AUSA: We'll be getting it. Judge: We'll meet in 30 days. August 15 at 11 am. I'll sent a motion schedule at that time. Adjourned.
On July
27, the
prosecutors
wrote it to
say they are
unavailable
on August
15, and that
the Court said
it would be
available
on September
20. But Javice
will not consent to exclude
Speedy Trial
Act time
until then.
Letter on
Patreon here.
On
August 23,
Inner City
Press was
there. Thread.
On September
26, Judge
Hellerstein held a
conference and
ordered:
"Briefing
schedule:
Deft's by
10/13; Govt's
by 10/27;
Hearing set
for 11/2/23 at
2:30 p.m.;
Time excluded
until 11/2/23;
in the
interest of
justice; Stat.
conf.
previously set
for 10/24/23
is adjourned;
Defts. cont'd.
on bail."
On November
7 Judge
Hellerstein
set a trial
date of
October 15,
2024.
On
November 10 - Veteran's Day -
Javice's
lawyers filed
"On November
9, 2023, I
served a
subpoena to
JPMorgan Chase
Bank, N.A.
(“JPMC”),
issued
pursuant to
Federal Rule
of Criminal
Procedure
17(c) (the
“JPMC
Subpoena”), by
email to Ms.
Kristy
Greenberg,
partner at
Hogan Lovells
US LLP, and
counsel for
JPMC. 3. Also
on November 9,
2023, Ms.
Greenberg
responded
confirming
that she was
willing and
authorized to
accept service
of the JPMC
Subpoena by
email on
behalf of JPMC."
On
August 6 there
was a hearing,
or a series of Judge
Hellerstein
rulings, on
privilege
claims. Inner
City Press was
there. Thread:
Judge
Hellerstein: I
will read and
rule on these
messages
chronologically...
Setting up a
call, not
privileged.
Next, about
options, it's
advice, it's
privileged.
Judge:
Counsel, how
do I pronounce
your name? A:
There are at
least 2 ways...
Judge:
This one
involves
lawyers, but
it is not
advice. It is
not
privileged.
And so
on.
This case
is US v. Javice, et al., 23-cr-251 (Hellerstein)
***
Your support means
a lot. As little as $5 a month helps keep us going and grants
you access to exclusive bonus material on our Patreon page. Click here
to become a patron.
August
5, 2024
SouthState Lending Disparities Trigger CRA Challenge to Independent Merger Application
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, Aug 2
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger, banks whose
lending Inner City Press and Fair Finance Watch
had been scrutinizing, even more so that the
2023 data is out.
This week Inner City Press filed with the Fed, a
timely first comment on, the Applications of
SouthState Corporation to merge with Independent
Bank Group, Inc., and Independent
Bank.
SouthState in South Carolina in 2023 - data not
yet included in any CRA exam - made 5013
mortgage loans to whites, and only 228 loans to
African Americans. Meanwhile it denied only 670
applications from whites, and fully 195 from
African Americans. SouthState should be referred
to DOJ.
SouthState in North Carolina in 2023 - data not
yet included in any CRA exam - made 1334
mortgage loans to whites, and only FIFTY SEVEN
loans to African Americans. Meanwhile it denied
only 173 applications from whites, and fully 20
from African Americans.
SouthState in Florida in 2023 - data not yet
included in any CRA exam - made 2755 mortgage
loans to whites, and only 165 loans to African
Americans. Meanwhile it denied only 958
applications from whites, and fully 69 from
African Americans.
SouthState in Georgia in 2023 - data not yet
included in any CRA exam - made 1176 mortgage
loans to whites, and only 318 loans to African
Americans. Meanwhile it denied only 304
applications from whites, and fully 88 from
African Americans.
SouthState in Alabama in 2023 - data not yet
included in any CRA exam - made 945 mortgage
loans to whites, and only FIFTY ONE loans to
African Americans. Meanwhile it denied only 87
applications from whites, and fully 17 from
African Americans. SouthState should be referred
to DOJ.
Nationwide
in 2023, SouthState made 7798 mortgage loans to
whites, and only 947 loans to African Americans.
Meanwhile it denied only 2491 applications from
whites, and fully 558 from African
Americans.
Why would regulators even consider approving its expansion? Inner City Press is requesting an extension of the public comment period, public / virtual evidentiary hearings and that, on the current record, the applications not be approved
***
July
29, 2024
After SBF Sentenced to 25 Years Now Delay In Getting Funds Back from PACs in DC
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, July 26 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," audio/book here.
On March 28, 2024, Inner City Press live tweeted
his sentencing, to 25 years.
On May 21,
the US Attorney's
Office on
Salame asked
for a sentence between
five to seven
years. 28 page
filing on
Patreon here.
On May 28
Salame was
"sentenced to
a term of
imprisonment
of 60 months
on Count
(S7)One, and
60 months on
Count (S7)Two;
the term on
Count (S7)Two
shall run
concurrently
with the last
30 months on
Count (S7)One,
for an
aggregate term
of
imprisonment
of 90 months."
On July
26 the US
Attorney's
Office
requested and
got a
delay from
July 26 to
September 8 on
the
forfeitability
of funds sent
to FF USA PAC,
Emily's
List, House
Majority PAC, Senate
Majority PAC and
GMI PAC,
letter and
order on
Patreon here.
More
on X for Subscribers
here, Substack here
We'll
have more on this.
***
Your support means a lot. As
little as $5 a month helps keep us going and grants you access
to exclusive bonus material on our Patreon page. Click here
to become a patron.
July
22, 2024
Coinbase Presses for Gary Gensler Personal Email Only While SEC Chair Brief Due July 23
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
July 15 – Coinbase in the SEC's case
against it is seeking access to Chairman Gary
Gensler's personal device and private emails,
including from before he chaired the SEC.
On
July 11 U.S. District Court for the Southern
District of New York Judge Katherine Polk Failla
held a hearing. Inner City Press live tweeted
it, thread.
On July 15, Coinbase wrote in to drop its request for Gensler's emails from before he chaired the SEC, and to set a schedule: "With respect to the subpoena to Mr. Gensler, Coinbase has determined to seek the production of Mr. Gensler’s documents only for the period of his tenure as Chair of the SEC and not before that time. .. (a) Coinbase’s opening brief will be due July 23, 2024, with the brief limited to twelve pages; (b) the SEC’s opposition brief will be due August 5, with the brief limited to twelve pages, and (c) Coinbase’s reply brief will be due August 12, with the brief limited to six pages." Letter on Patreon here.
More
on X for Subscribers here
& Substack here
Inner
City Press will stay on the case.
The case is Securities and Exchange Commission v. Coinbase, Inc. et al., 23-cv-4738 (Failla)
***
July
15, 2024
UMB Bank Application Buy Heartland Hit on Disparties & As Shaky Regional Now Spin
by
Matthew R.
Lee, Patreon Substack
SOUTH BRONX /
SDNY, July 12
–
When First Republic Bank failed / was given to
JP Morgan Chase, a small list of other regional
banks came into focus as in danger. Among them
was UMB - a bank whose lending Inner City Press
and Fair Finance Watch had been scrutinizing,
and now challenge.
UMB is asking its regulators to allow it to
expand, buying Denver-based Heartland. The
application, Fair Finance Watch on June 21
formally told the Fed, should not be
approved. In 2022, the most recent
year for which Federal data is available, UMB
Bank, N.A. made over 2000 mortgage loans to
whites, and only 117 loans to African Americans.
For
every denial to an African American, it made
only 2.02 loans. But for whites, for every
denial it made 3.45 loans. It should be referred
to DOJ.
There
is litigation, there is also this, reported at
the time of Silicon Valley Bank's failure: "UMB
Bank, a regional bank headquartered in Kansas
City, Missouri, and with branches across the
Midwest, Southwest, and Western United States,
has total assets of $38 billion and deposits
totaling $32 billion, according to the FDIC.
However, only 16% of deposits fall under the
$250,000 FDIC insurance threshold, leaving
74.11% (equivalent to $28.36 billion) vulnerable
to potential losses."
Why
would regulators even consider approving its
expansion? On June 21, Fair Finance Watch filed
a formal Community Reinvestment Act challenge to
UMB's application to the Federal Reserve, adding
state by state data:
UMB Bank in 2022 in Missouri made 842 mortgage
loans to whites, and only 76 loans to African
Americans. Meanwhile it denied 41 applications
from African Americans, and only 257 from
whites.
UMB Bank in Colorado - in which it seeks to
expand - in 2022 made 378 mortgage loans to
whites, and only 13 loans to African Americans.
Meanwhile it denied six applications from
African Americans, and only 107 from whites.
UMB Bank in 2022 in Texas made 78 mortgage loans
to whites, and only six loans to African
Americans. Meanwhile it denied two applications
from African Americans, and only 27 from
whites.
These disparities cry out for a referral to DOJ,
and public hearings on, and denial of, UMB's
major expansion application.
On
July 8 UMB's outside counsel Davis Polk wrote in
that "The average credit score of African
American applicants denied due to credit history
was 580, while the average originated loan
applicant had a credit score of 761" and that
"By March 31, 2023, prior to the quoted
article’s publication, UMB Bank’s uninsured
deposit liabilities constituted approximately
66.6% of all deposits, approximately 8% fewer
than had been the case as of December 31, 2022
and as implied by the Comment Letter. UMB Bank’s
level of uninsured deposit liabilities have
remained steady since March 31, 2023 and, as
noted in the Application, as of March 31, 2024,
UMB Bank had total deposits of approximately
$37.0 billion, of which approximately 68.4% were
uninsured." Isn't that a lot?
Watch
this site.
***
July
8, 2024
Flagstar Bank Is Sued For Discrimination in SDNY On a Basis Not Included in HMDA Data
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
July 5 – A Flagstar Bank employee who says her
supervisor spouted homophobic remarks in
Flagstar's office has sued the bank. She says
that 25 days after she complained to Flagstar's
human resources director, she was terminated in
retaliation.
She
received a right to sue letter from the EEOC and
filed suit in the U.S. District Court for the
Southern District of New York, which Inner City
Press covers closely. It has been assigned to
Judge Lewis J. Liman.
While
Flagstar's data filed and made public under the
Home Mortgage Disclosure Act indicates
disparities for some protected classes, the data
set does not (yet?) contain this one.
The case is Chavez-Mendoza v. Flagstar Bank, 24-cv-5057 (Liman)
***
July
1, 2024
In
Menendez Trial
FBI Account on
M&T Bank
Account and
Gold in Chase
Safety Deposit
Box
SDNY
COURTHOUSE, June 28 – Amid reports of
investigation against Sen. Robert Menendez for
taking gold bars, Inner City Press' sources on
September 21 it to expect on Friday, September
22 an appearance in Federal court in Manhattan
by Menendez and his wife Nadine Arslanian. This
scoop
was true.
Later a superseder was unveiled, including charges of bribes to act for Qatar...
On
April 11, 2024 after Nadine Menendez and then
the government asked for delay, to July or
undefined, Judge Stein severed her case and
reaffirmed May 6, Inner City Press thread
On
Sunday night April 14 the US wrote in again
asking for a delay to July, six page letter on
Patreon here.
But Judge Stein told the parties to confer and report by April 16 at 1 pm. Then he set an April 17 conference, which Inner City Press live tweeted and dubbed "Berate-gate," thread
On
May 13, jury selection began - but did not
finish. Abit later, Menendez got into an car
with FOP NJ plates.
On
May 14 jury selection continued but was not yet
completed, from the ending, thread
Late
on May 14, the US Attorney's Office filed
opposition to slides the defense wants to use in
its opening arguments, including quotes from
Colin Powell and MLK, and when Nadine came into
possession of gold - full letter on Patreon here
Inner
City Press live tweeted jury selection and then
opening arguments here,
then filmed Bob's exit (he said he thought it
went well and that his guy did great).
On
May 21, the US Attorney's Office put on Wael
Hana's lawyer, then a US State Department
official working on Congressional approval (or
holds) on arms transfer to Egypt, thread here.
On
May 23, with the trial in haitus, docketed was
Menendez' lawyers opposition to quashing his
subpoena for Jose Uribe's attorney proffer and
communications with SDNY prosecutors, filing on
Patreon here
On
May 29, Inner City Press live tweeted, omitting
Morton's steakhouse but including this
On
May 30, Menendez's lawyer's (long) cross,
including this.
On
May 31, starting 1 pm, the agent was cross
examined, and then USDA Ted McKinney on direct,
thread
After the trial day, Inner City Press filed
Menendez' walk to his Jersey-plated car; asked
why he called McKinney he said, Wait for the
cross [examination].
Nadine
Menendez hired a new lawyer, who previously
represented Sydney Powell among others. Then
this: "ORDER as to Nadine Menendez: At the
request of the defendant and with the consent of
the government [Doc. No. 434], the status
conference is adjourned from June 10 to June 12
at 5 :00 p.m.(Signed by Judge Sidney H. Stein on
6/3/2024)."
On
June 4 Judge Stein dockted a partially redacted
Order in which he denied Menendez's request that
the prosecutors give him impeachment material
about a Confidential Human Source they are not
going to call as a witness - but Menendez said
he will.
On
June 5, Inner City Press live tweeted - and
afterward asked Menendez a question. Thread.
On
June 6, after more cross of Agent Graves, Gurbir
Grewal testified, thread
On
June 7, after an FBI fingerprint expert,
cooperator Jose Uribe, Inner City Press live
tweeted, thread
On
June 10, Uribe finished his direct examination
around 4 pm, then counsel for Hana, not yet
Menendez, began cross examination, thread.
On
June 11, Uribe was cross examined - though not
on the "strip club issue" after which out on
Worth Street Menendez decried Uribe's crimes. Thread
On
June 12, after the end of Uribe (including drunk
driving and the "little bell"), US Attorney of
NJ Sellinger took the stand,
thread.
On
June 13, trial day - and next day - was canceled
by Daibes calling in with COVID: thread.
And
then, book:
GOLD BAR BAR Menendez Trial I, on Amazon here.
On
June 18, after Daibes' COVID, things resumed
with Sellinger, followed by Matt Soliman.
On
June 20, alongside an FBI agent summary witness,
a prosecution office witness out of order, thread.
On
June 24, Menendez's staffer Sarah Arkin took the
stand, from the thread
On
June 25, Sarah Arkin finished up, including
about upcoming job at State Department. Then, a
currency (and money laundering) expert from the
Federal Reserve Bank of New York. From the thread
On
June 26, there testimony about currency, and
then a jocular Armenian jeweler, from the thread
On
June 27, the Senate Ethics Committee director,
then a cell site expert, from the thread
On
June 28, the last US witness, on Menendez's
M&T account, and gold in Nadine's Chase Bank
safety deposit box, thread:
OK -
now in US v. Menendez, FBI forensic account
about Bob's M&T account is last government
witness; defense will allude to Anton.
All
rise! [Witness is called, and sworn...] AUSA:
Which accounts of Senator did you review? FBI
accountant: Senate Credit Union and M&T
Bank. Also, Schedule E, Rental Income, from the
Senator's tax returns.
AUSA:
In this chart, how much is indicated in Menendez
cash withdrawals from the Senate credit union?
FBI accounting: $55,000 between 2018 and June
2022.
AUSA:
If all of that were part of the money seized,
how does it compare to the bills issued after
2018? Less AUSA: How many gold bars in
this chart match bars in the Daibes portfolio?
FBI accountant: 13 bars, worth over
$200,000.
Cross
examination. Menendez's lawyer Adam Fee: How did
you first get involved in this case? FBI
accountant: I was asked by the prosecutors. Fee:
The summary charts, you did not prepare- FBI
accountant: I reviewed them for accuracy
Menendez'
lawyer Adam Fee: I'm going to have to re-make
this exhibit because I don't have Excel... Does
the Senate FCU have a branch in the Hart
building? FBI accountant: I have no knowledge of
the Senate buildings. Judge: We'll break.
Cross
examination of FBI accountant continues.
Menendez' lawyer Adam Fee: Are you aware that
this Chase Bank in Engelwood NJ safe deposit box
was held only by Nadine Arslanian? AUSA: We
object to the scope of these questions. Judge:
Let's see. FBI accountant: Yes
Menendez's
lawyer Fee: The cash deposited in the M&T
account was accurately reported on the Schedule
E? AUSA: Objection! Judge: Sustained. Fee: I
want to understand her knowledge of the charts.
Judge: But you keep asking the same questions.
Go ahead
Now
Wael Hana's lawyer Lustberg: This chart has one
section on Mr. Daibes, and one on Mr. Hana,
right? FBI accountant: Correct... After a brief
re-direct the AUSA: The government rests. Judge:
Jurors, on Monday you'll see if the defense puts
on a case Jury leaves
More
on X for Subscribers here
and Substack here
The
case is US v. Menendez, et al., 23-cr-490
(Stein)
June
24, 2024
Stock Fraudster Craig Auringer Freed in SDNY Now Bauer Gets Month to Discuss Disposition
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
EXCLUSIVE, June 6 – Craig
Auringer who
was indicted
for a $100
million
pump-and-dump
stock fraud
was extradited
in from Milan
and
immediately
released on
his own
signature, an
ICE detainer
that was
mentioned
suddenly
disappearing.
Inner
City Press was
the only media
there and live
tweeted:
Craig
Auringer was
set to be
presented here
in SDNY
Magistrates
Court and
argue for
bail- but
there's an ICE
detainer. Now
his lawyers
are trying to
make it go
away.
There's still
a lot of
rushing around
about the ICE
detainer -
which Team
Auringer
seemed to be
disbelieving
or denying the
existence of
DOJ
previously
said (no word
on today's ICE
detainer) that
CRAIG
AURINGER, a
citizen of
Canada who
resided in the
UK,
participated
in multiple
“pump-and-dump”
schemes
including by
coordinating
stock
promotion
campaigns...
From
whispered talk
here in Mag
court it
appears they
are agreeing
to bail
conditions
with Auringer.
But will he,
like others
are, be
immediately
picked up by
ICE? His
lawyers are
looking at the
courtroom
clock. 4:15
pm...
Auringer
has been
brought out by
US Marshals,
in white dress
shirt with
collar. Lot of
whispering
about this
defendant and
his detainer.
If he was
arrested in
Milan and
extradited,
why would he
unlike others
have release
on bail agreed
to?
Now
AUSA and
defense lawyer
are being
taken back
into robing
room.
They're
back. All
rise! Judge:
Time of
arrest?
AUSA:
August 24.
Judge: You are
charges with 9
counts...
AUSA: He shall
be freed on $1
million bond,
secured by
$100,000
cash
Defense: Those
are the
conditions we
approved.
AUSA:
He will be
released today
on his own
signature.
No mention of
the ICE
detainer which
was waived
around
Adjourned
By
August 31 -
six days later
- the
presentment
and release of
Craig Auringer
was still not
in the public
docket of the
case.
More on Substack here
Jump
cut to March
29, 2024, in
the Mag, thread:
OK
- now in same
case $100
million
fraudster
Craig Auringer
was
immediately
released on in
August 2023
(Inner City
Press scoop),
now co-D
Ronald Bauer
is to be
presented,
counsel
chatting with
AUSA. Inner
City Press as
only media
here will live
tweet, thread
below
Bauer
comes out from
the holding
cell in a suit
jacket. His
lawyer shows
the AUSA what
appears to be
a bank check.
All rise!
Judge: Where
was he
arrested?
AUSA: When he
arrived at JFK
airport.
AUSA:
We've made
notification
to the United
Kingdom.
Judge: Your
are changed
with
conspiracy to
commit
securities
fraud,
concealment
money
laundering.
Defense: My
client pleads
not guilty to
all charges.
AUSA: We have
agreed a bail
package - a
bond of $5
million
AUSA:
To secured by
$125,000 case,
jewelry to his
lawyer as
bailee, and a
property in
Coconut Creek,
Florida.
Co-signed by
Samantha Bauer
and Martha
Bauer. He can
only travel to
NJ, NJ, CT, MA
and the UK -
also FLA.
Surrender UK
and Canadian
passports to
lawyers
AUSA:
Released today
on his
signature but
cannot leave
for the UK
until the
property is
posted.
Defense: He
needs at least
one passport
today. He
would like to
go down to
Florida, he
needs his
passport to
get on the
plane. AUSA:
As long as the
cash is posted
Judge:
He'll get his
Canadian
passport,
that's what
we're saying?
AUSA:
Yes.
Judge: No
contact with
co-defendants
[from Inner
City Press
research, not
only Craig
Auringer but
also Peter
Mihaylov and
Daniel Ferris
- and more?]
On
May 30 on
Bauer, the US
Attorney's
Office wrote
in and asked
for an extra
month for
discovery, "to
give the
parties
additional
time to
discuss a
potential
disposition of
this matter."
More
on X for
Subscribers here
& Substack
here
The
case is US v.
Auringer,
22-cr-155
(Engelmayer)
***
June
17, 2024
In Hwang Trial For Archegos $34B Meltdown Halligan Says Bank of America Witness Too Late
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, June 14 – In the wake of the
Archegos meltdown, the other shoe dropped on
April 27, when the US Attorney for the SDNY
unsealed and indictment charging Bill Hwang
Patrick Halligan, Archegos’s CFO with
racketeering conspiracy, securities fraud, and
wire fraud offenses.
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
May
29 ended with a dispute about a government
chart, long and short positions, which Hwang's
lawyer Berke called argumentative, from the thread:
Judge
Hellerstein: How do you proposed to change your
chart before showing it to the jury? The title
should change.
AUSA: I can pass up copies. Judge: Just say,
Portion of the portfolio. Why do you have to say
"long"? AUSA: Achegos has a short portfolio too
Hwang's
lawyer: This was, it's argumentative and
misleading. AUSA: We can work on something...
Judge
Hellerstein: Let's do it now. I have both of
you, and I've already canceled my appointment...
On
May 30, the US Attorney's Office filed
opposition to Hwang's bid to strike testimony of
UBS's Christ Salcedo...
On
June 5, Inner City Press live tweeted, thread
On June 6, government expert testified about, among other things, dark pools, thread
On
June 10, cooperation William Tomita began on the
stand, from thread:
Tomita:
Yes. They were traders, executing the trades on
behalf of Bill. Bill would yell at me, Don't
list to Andy, you answer to me
On
June 11, Tomita continues. From thread:
Judge:
Who picked the stocks? Tomita: We chose stocks
that were less liquid, so we could move the
stock to the firm limit. Judge: Who set the firm
limit?
Tomita:
Bill did. Judge: Did you always reach that
limit? Tomita: Not always. But we tried. Judge:
Were there conversations if you didn't reach the
firm limit?
Tomita:
He would yell at us... Sometimes he didn't need
to vocalize it, we could see his expression and
body movement on the Zoom. So we would try to
get the price to move as quickly as possible
On
June 14 to start the trial day after a two day
hiatus, counsel for Halligan complained about
Bank of America witness / issue, thread:
"OK
- now in US v. Hwang of Archegos, before jury
comes in after two days off, AUSA is proffering
what a Bank of America witness would say.
Defense:
Juror Number 8 is an employee of Bank of
America. We were not aware of this during voir
dire. Mr. Halligan's right to a fair and
impartial jury is being undermined. The jurors
have heard evidence for five years, and now
this. Judge: Is GX 148 admissible?
AUSA:
On page 248 of the voir dire, it was said Bank
of America could come up in the trial, so there
is no issue.
Halligan's
lawyer: We were not on notice they would claim
Bank of America was lied to. And his colleague
will be on the jury.
June
10, 2024
After Allianz Global Investors US Pled Guilty Now Tournant Also Pleads Before Sept Trial
By
Matthew Russell Lee, Patreon Maxwell
Book
SDNY
COURTHOUSE, June 7– A scandal of Allianz
that has been brewing since the collapse of its
investment funds as COVID set has given rise to
guilty pleas of two cooperators, and the
indictment of Gregoire Tournant, by Southern
District of New York prosecutors on May 17,
2022.
Jump
cut to January 9, 2024 when Chief Judge Laura
Taylor Swain held a conference. Inner City Press
was there. After lengthy arguments about the
timing of defense expert disclosures, and
disclosures of what witnesses would say, Chief
Judge Swain set an April conference, saying that
the September 23 trial date will remain firm
regardless. The final pre-trial conference, no
matter before what judge, was set for September
12 at 3 pm.
On
June 6, 2024, Tournant pled guilty. Inner City
Press was there, thread:
He
is 57; his lawyer asks if he can allocute from
lectern to hold himself up.
Judge:
Have you taken medications in the past 24 hours?
Tournant (stuttering heavily) Y-y-yes. Judge: Do
you wish to plead guilty? Tournant: Y-y-yes.
Judge:
Do you agree the loss amount was $3.2 billion?
Defense: Only as a factual matter... Judge: You
won't appeal any sentence of 120 months or less?
Tournant: Y-y-yes.
Tournant:
I provided altered and misleading reports to
investors, from Allianz in Manhattan. AUSA:
There are 2 cooperating witnesses. Judge: I
accept your guilty plea.
Judge:
Sentencing will be Oct 24 at 11 am.
June
3, 2024
In SDNY Trial of Hwang For Archegos $34B Meltdown US Insists UBS Salcedo Stay In
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, May 30 – In the wake of the
Archegos meltdown, the other shoe dropped on
April 27, when the US Attorney for the SDNY
unsealed and indictment charging Bill Hwang
Patrick Halligan, Archegos’s CFO with
racketeering conspiracy, securities fraud, and
wire fraud offenses.
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
May
29 ended with a dispute about a government
chart, long and short positions, which Hwang's
lawyer Berke called argumentative, from the thread:
Judge
Hellerstein: How do you proposed to change your
chart before showing it to the jury? The title
should change.
AUSA: I can pass up copies. Judge: Just say,
Portion of the portfolio. Why do you have to say
"long"? AUSA: Achegos has a short portfolio too
Hwang's
lawyer: This was, it's argumentative and
misleading. AUSA: We can work on something...
Judge
Hellerstein: Let's do it now. I have both of
you, and I've already canceled my appointment...
On May 30, the US Attorney's Office filed opposition to Hwang's bid to strike testimony of UBS's Christ Salcedo: "notwithstanding the defendant’s characterization of Mr. Salcedo’s testimony (Dkt. 208 at 3), no reasonable juror could have understood Mr. Salcedo to be offering an expert opinion on what the defendant intended through his trading. The Government did not elicit, and Mr. Salcedo did not provide, testimony about any mental process of the defendant or any expert opinion of any sort. To the contrary, Mr. Salcedo described his own and UBS’s processes and considerations at the time. Mr. Salcedo’s use of a term from the industry in which he was and remains employed, such as “corner the market,” to convey the importance of the representations at the time did not convert his testimony into expert testimony." Full filing on Patreon here.
And so it goes. Watch this site.
May 27, 2024
In SDNY Trial of Hwang For Archegos $34B Meltdown Becker On Lost Sick Days 2+ Weeks
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, May 23 – 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.
Watch
this site.
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.
May
20, 2024
As Jane Street Sues Millennium Must List Trade Secrets by May 13 Then Discovery to November
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
May 16 – Jane Street Group LLC sued Millennium
Management, Douglas Schadewald and Daniel
Spottiswood, for allegedly taking trade secrets
from them. On April 19 there is
scheduled a court hearing on Jane Street's
request for a temporary restraining order,
before U.S. District Court for the Southern
District of New York Judge Paul A.
Engelmayer.
Judge Engelmayer on April 17 granted a motion to
seal; this was followed on April 18 by not fewer
than seven "selected parties" only letters.
It
is said that some or all of the April 18
proceeding may be sealed. Previously, Inner City
Press petitioned Judge Engelmayer in a trial
with an undercover witness and an audio feed was
made available in another courtroom, on the 5th
floor of 40 Foley Square / 40 Centre
Street.
Should
this civil case be more secret?
How
should notice of a possible sealed proceeding be
given? Alongside a trial in 100 Centre Street,
Inner City Press has had its eye on this case.
We
can report that Jane Street's bid to seal the
courtroom was denied. Then its application for a
TRO was denied, no sufficient showing of
irreparable harm.
On
May 16, this: "ORDER, The Court requires Jane
Street to provide a detailed identification of
all alleged trade secrets upon which it relies
in numbered form and with reasonable
particularity by May 23, 2024, at 5 p.m., per
the procedure for identification of trade
secrets set out in the Federal Judicial Center's
Trade Secret Case Management Judicial Guide,
sections 4.4 to 4.7. The parties are directed to
file a proposed case management plan by May 21,
2024, pursuant to which fact discovery concludes
at the end of September 2024, and expert
discovery in mid-November 2024.The Court
schedules a case management conference for
December 13, 2024."
It is Jane Street Group, LLC v. Millennium Management LLC et al., 24-cv-2783 (Engelmayer)
***
May
13, 2024
Republic Bank Failed with Disparate Record FDIC Gave to Fulton Over OZK and Flushing
By
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, May 10 – There was a bank
board of directors fight and lawsuit in
Philadelphia - but otherwise unreported was the
disparate lending records of the institution as
issue, Republic Bank, subsidiary of Republic
Bancorp.
And
now the bank has failed - and been given to
Fulton Financial, which as Inner City Press
reported commented trying to separately fair
lending from the Community Reinvestment Act:
"Fulton
Financial, on
which ICP has
previously
commented,
perhaps
understandably
given its
lending record
urges 'De-couple
CRA from Fair
Lending... CRA
and Fair Lending
have
complementary
but different
social and
policy
objectives. CRA
ratings should
not be
downgraded based
on the results
of a bank's fair
lending
performance and
exam results.'"
May
6, 2024
Republic Bank
Fails with Disparate Record in PA and NJ Given to Fulton
With Narrow CRA
By
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, April 28 – There was a bank
board of directors fight and lawsuit in
Philadelphia - but otherwise unreported was the
disparate lending records of the institution as
issue, Republic Bank, subsidiary of Republic
Bancorp.
And
now the bank has failed - and been given to
Fulton Financial, which as Inner City Press
reported commented trying to separately fair
lending from the Community Reinvestment Act:
"Fulton
Financial, on
which ICP has
previously
commented,
perhaps
understandably
given its
lending record
urges 'De-couple
CRA from Fair
Lending... CRA
and Fair Lending
have
complementary
but different
social and
policy
objectives. CRA
ratings should
not be
downgraded based
on the results
of a bank's fair
lending
performance and
exam results.'"