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.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Sept 21 – Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
On
August 25 SBF's lawyers wrote in again, saying
two days a week in the holding cell with a
laptop is not enough. Full letter on Patreon here
On
September 15, the prosecutors objected to SBF's
bid to ask jurors about, among others things,
effective altruism. Full letter on
Patreon here.
On
September 21, Bankman-Fried listing as expert
witnesses Thomas Bishop and Brian Kim was denied
by Judge Kaplan, "completely failed to satisfy
the requirements of FRCP 16." Full ruling on
Patreon here.
On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread
More
August 22 details on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Sept 15– Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On September 15, the prosecutors objected to SBF's bid to ask jurors about, among others things, effective altruism, writing to Judge Kaplan that "Whether or not the defense can establish an admissible purpose for the defendant’s purported philanthropic commitments, voir dire is not the appropriate forum to suggest to the jury that the defendant was simply a good guy who wanted to make the world a better place." Full letter on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Aug 30 – Sam Bankman-Fried of
FTX on August 11, 2023 for tampering with
witnesses in the upcoming trial against him was
ordered remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
On
August 25 SBF's lawyers wrote in again, saying
two days a week in the holding cell with a
laptop is not enough. Full letter on Patreon here
On
August 29, the US filed that "the USMS has also
offered to transport the defendant two days per
week to the 500 Pearl Street cellblock... after
only two prior sessions, the defendant declined
this week to take advantage of this
accommodation, citing dissatisfaction" - full
letter on Patreon here
On
August 30, Judge Kaplan held a hearing,
resulting in him asking for a report on
discovery review by Sepember 5, and telling the
defense to ask for an adjournment of trial, if
they're going to, by September 1. Inner City
Press thread:
Judge
Kaplan: We're address the motions in limine, the
MDC situation, then the advice of counsel
defense... SBF's lawyer: We are getting
discovery late, because of the speed with which
the government chose to charge this case -
Judge: It was the grand jury.
SBF's
lawyer: We chose an aggressive date for our
client to clear his name. But we have a right to
discovery. Judge Kaplan: You're complaining that
the government got the information late,
correct?
SBF's
lawyer: They charged the case before they ask
for these docsSBF's lawyer: Our client is in
jail and can't search these documents as he
could when he was out. Judge Kaplan:
Anything else? SBF's lawyer: Do they plan
additional productions? This is too late in the
game. Judge Kaplan: You haven't asked for more
time.
Judge
Kaplan: Would you like to ask [for more time]?
SBF's
lawyer: Not at this time.
Judge
Kaplan: Has you gotten FTX's code base? SBF's
lawyer: We got it from the debtors. But our
client has to look at it online. Judge Kaplan:
What about your 7 expert witnesses? Inner City
Press @innercitypress · 58m SBF's lawyer: It's a
bespoke code base -
Judge
Kaplan: A what?
SBF's
lawyer: A bespoke code base, best understood by
those who designed it. Judge Kaplan: The code
basis edits, did you ask the FTX debtors for it?
SBF's lawyer: I have to go back and check my
notesJudge Kaplan: Both sides proposed this
schedule. I approved it.
Assistant
US Attorney: Correct. The defense keeps asking
for the Slack messages the FTX debtors have. We
are transferring them. They are text searchable.
Then there's the Google docs - they're his own
AUSA
Rehn: The FTX debtors tell us they have provided
the defense to the code base edits, which they
call the Commit history. We told them we had to
processing the Slack messages from Gary Wang's
laptop. There's no surprise. SBF's lawyer
Everdell: There is...
Judge
Kaplan: I'm not going to be precluding any of
them [from use at trial.] In the defense's
letter of Aug 28, the accusations of broken
promises are not at all accurate. In January the
government made clear it would obtain
information on an ongoing basis
Judge
Kaplan: These Google documents, the defendants
had essentially unfettered access to from his
parents' home until he was detained on August
11. Now the defense claims concerning an alleged
deluge of documents is seriously exaggerated. I
will not preclude
Judge
Kaplan: If the defendant feels he needs a
postponement, they can ask for it. I'm not
saying I would necessarily grant it. They'd have
to demonstrate a need - not just recount the
number of documents. There's got to be more meat
on those bones.
Judge
Kaplan: The deadline for me to request a jury
for an October 3 trial is September 7. So if you
are going to move, do it by the end of this
week. We already have a second trial date, March
11, held against the possibility the Bahamas
grants consent.
Judge
Kaplan: I'm not saying I would grant an
extension. I'll just laying all the cards on the
table, reserving all rights. Let's go to the MDC
issues. Why doesn't he have the hard drives? And
to the defendant, what's the problem with the
battery life? Get a cord
Judge
Kaplan: I will want to hear from the defense why
the defendant did not avail himself of the
opportunity to come to the courthouse twice this
week. AUSA Kudla? AUSA Kudla: We got approval
for the laptop, we got it this morning and
delivered it prior to this
AUSA
Kudla: The laptop can be used every weekend 8 am
to 7 pm, Saturday and Sunday from 8 to 3. The
hard drives, BOP Legal has agreed to procedures
which will expedite this - they can give them in
visiting hours. On battery life, it's faster for
them to order it
AUSA
Kudla: He is able to review discovery 70 hours a
week. Counsel can visit him 7 days a week.
This is not a pro se defendant - he has many
lawyers & experts, who prepare around the
clock. Judge Kaplan: What about the
Internet connection? AUSA: It's not 5G
Judge
Kaplan: They complain about the cell block. What
about the proffer room? AUSA Kudla: Using the
Marshals there takes them away from other
defendants. SBF's lawyer Mark Cohen: Until
now, there's been no Microsoft Office suite.
With that, he can take it back
SBF's
lawyer: First time he showed up, there was only
one hour charge on the battery. Judge Kaplan:
You could be the ones to bring backup battery.
SBF's lawyer: He wanted to bring papers, but no.
There always something. We have no faith.
We want temporary release
Judge
Kaplan: I'm not going to rule on this
application now. I'd like a joint report Tuesday
morning concerning the exact situation at
the MDC as of that time. We'll see. If
there'll be an application for more time by the
defense it would best be made by Friday
Judge
Kaplan: On advice of counsel, I'd like a joint
proposal by the close of business Friday.
I'll resolve that over the weekend. I'm grateful
for the zealous advocacy. Anything else? SBF's
lawyer: Not from the defense. AUSA: We don't
think adjournment needed
Judge
Kaplan: I would wish you a good weekend but that
would be rubbing salt in an open wound. Have the
best one you can. Adjourned.
On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread
More
August 22 details on Substack here
More
book sample on Substack here.
Extended on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Aug 23 – 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:
All
rise!
AUSA:
JPM Chase will
finish
producing its
privilege logs
by November.
Then we could
set a motion
schedule.
Javice's
lawyer Alex
Spiro: My
client was
arrested in
April. We want
their internal
communications.
Judge: I want
a conference
earlier, on
privilege
disputes. I'm
not pleased
with
JPMorgan's
delay.
AUSA: We'll
let them know.
[Strange
that JPMC
doesn't have a
lawyer here.
There are 3
people in the
gallery Inner
City Press
doesn't
recognize]
Judge:
I want JPM's
production
complete by
Oct 13, with
privilege logs
on a rolling
basis... We
meet Seot 26,
at 2:30.
Spiro:
Let's not have
groundhog's
day again. JPM
seems to be
driving the
process. We
need the names
of record
custodians
AUSA:
We can't tell
JP Morgan how
to respond to
the subpoena.
It seems the
defendant
wants to drive
the bus--
Judge
Hellerstein:
I'll be
driving the
bus.
Co-defendant's
lawyer
Buckley:
Speaking about
the bus--
Judge
Hellerstein:
Let's not use
that metaphor
anymore.
AUSA:
The Devil's in
the details
[Still using
that one...]
Spiro: We want
a copy of the
subpoena AUSA:
They just keep
demanding
things Judge:
What's new
[Co-defendant's
lawyer Buckley
passes a note
to Spiro, who
doesn't read
it. At least
at first.
Pause is taken
so the two
prosecutors
can whisper;
now it's read]
AUSA: We don't
share
subpoenas due
to grand jury
secrecy Rule
6(e) Spiro: We
can subpoena
the subpoena
Judge:
By Sept 1,
defendants
must make all
their
custodian
demands
Buckley: The
government has
given us
copies of
other
subpoenas, and
riders
thereto-
Judge: The
text of the
subpoenas by
Aug 30
Judge
Hellerstein:
Chase will
have to be
here [in
court] on Sept
26, the
documents
should be
brought to the
courtroom for
my ruling...
Joint letter
by Sept 21 [He
is driving the
bus]
Judge
Hellerstein:
So after Sept
26, we'll get
together, to
discuss a
trial date and
length of
trial,
on Oct 24.
[Speedy Trial
Act time
excluded until
then, on
consent]
Adjourned.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, April 18 – Sam Bankman-Fried
of FTX on August 11 for tampering with witnesses
in the upcoming trial against him was ordered
remained to jail.
U.S.
District Court for the Southern District of New
York Judge Lewis A. Kaplan heard from
prosecutors that in Putnam County Correctional
Facility, SBF could be given access to discovery
material over the Internet.
Kaplan
replied that he assumed the defendant would be
in the Metropolitan Detention Center in
Brooklyn, like fellow crypto-fraud defendant
Miles Guo and others.
On August 12 Inner City Press, which published
the first book about SBF's remand ("Crypto
Creeps," here,
sample on Substack here)
found the Bureau of Prisons notice, listing SBF
in the MDC.
On
August 14, the DOJ prosecutors docketed their
superseding indictment against SBF, with Count
8, Campaign Finance, dropped ostensibly at the
request of the Bahamas. Inner City Press
immediately published the superseding indictment
on its DocumentCloud here.
SBF World was the second largest donor to
Democrats in the 2022 cycle... More analysis,
including of Nishad Singh guilty plea to the
count, on Substack here.
Watch this site.
On
August 18 SBF's lawyers wrote in to ask - or
demand - that he be produced 5 days a week to
the 500 Pearl Street SDNY courthouse into the
fifth floor proffer room - letter on Patreon here. Watch
this site.
More
sample on Substack here.
Extended on Patreon here.
Bankman-Fried
Bail Revoked So Jailed As US Claims Can't
Pursue Campaign Finance Charges
By
Matthew Russell Lee, Patreon
Substack
SDNY
COURTHOUSE, Aug 11 – Sam
Bankman-Fried of FTX was indicted
in the U.S. District Court for
the Southern District of New
York, leading to his arrest in
the Bahamas on December 12, 2022 and
extradition to the US on
December 21, 2022.
On
August 11, 2023 he was
remanded to jail, Inner
City Press thread
OK
- now US v.
Bankman-Fried
hearing on
possible
remand of SBF
to jail for
intimidating
witnesses,
including
leaking
Caroline
Ellison's
Google Docs
(still sealed)
to the NYT.
Inner City
Press moved to
unseal here
&
will live
tweet, thread
below
All
rise! Judge
Kaplan: I
thank you for
coming in.
Judge
Kaplan: I come
to the more
recent event,
the NYT July
20 article,
Inside the
Private
Writings of
Caroline
Ellison. Her
insecurities
are described
and her
personal
relationship
with the
defendant. The
article
doesn't state
the source of
the materials
Judge Kaplan: Mr. Bankman-Fried
entertained
the reporter
at his
parents' home
in Palo Alto
and showed
some portion
of Ms.
Ellison's
private
writings. The
US said it was
to intimidate
her and
others. The
defense says
it's about a
First
Amendment
right
Judge
Kaplan: Was he
motivated in
part by a
desire to
intimidate?
The defense
says he's
gotten bad
press and has
a right to try
to repair his
reputation.
Fair enough.
But I find
that there is
a practical
possibility it
was intended
to have them
back off
Judge
Kaplan: The
defendant had
the reporter
come to his
home and
didn't give
him copies but
rather see it
and take
notes. There
are quotes in
the NYT
identical to
the language
in those
documents
[which are
still sealed
despite this
Judge
Kaplan: This
defendant
tries to go
right up to
the line - his
use of the VPN
to watch a
football game
over an
account he
wasn't
authorized,
there it is..
Judge
Kaplan: He
subscribed
from the
Bahamas and
used a VPN as
if he were in
the Bahamas
when he was in
Palo Alto and
could have
watched it on
public TV. It
shows the
mindset. All
things
considered I
am going to
revoke bail.
Judge
Kaplan: I am
focused on the
possibility
that he will
be detained at
the MDC, not
on anyone's
list of five
star
facilities.
That said, I
understand he
could have a
dedicated
laptop at the
MDC [Many have
it - James
Garlick, for
example] 9,
10, 11 hours a
day
Judge
Kaplan: There
is Section
3142(i), the
judicial
officer can
release the
defendant for
preparation of
defense. What
that says to
me is that on
an appropriate
showing, I
could
entertain an
application
for Mr.
Bankman-Fried
to spend time
in counsel's
office
Judge Kaplan: Ms. Sassoon?
AUSA
Sassoon: The
government
communicated
with the MDC,
you are
correct they
have desktops
and situations
with laptops.
We propose
Putnam because
where we are
in the case,
it could take
weeks to load
a laptop. So
we say Putnam
with 'Net
AUSA
Sassoon: The
FBI would
assist with
transporting
him to Putnam.
During trial,
in the MDC.
The discovery
issues will be
more
manageable
then. On
3142(i), my
understanding
is there are
obstacles
arranging to
bring a
defendant to
an attorney's
office
Judge
Kaplan: If Mr.
Cohen feels he
needs
something like
that, I'll do
it, if I'm
convinced it's
safe. Mr.
Cohen: We
intend to
appeal this.
We need a
written order.
Judge Kaplan:
You'll have
the transcript
overnight. I
can do a short
form order
today
Cohen: We have an application to
stay today's
ruling pending
appeal. AUSA
Sassoon: We
oppose that. Cohen: There are important
issues here.
We have an
unusual
situation
factually. We
think the
Circuit will
take it up
quickly.
AUSA Sassoon: There is a reason
for concern,
who knows what
mischief he
could
accomplish in
the next few
days. Judge
Kaplan: Mr.
Cohen, I deny
your
application
because I
disagree
there's
anything novel
here other
than the
factual issue.
Judge
Kaplan: The
defendant is
remanded. AUSA
Sassoon: This
should not
change the
trial date.
We'll stick to
all deadlines.
[US Marshals
move in - SBF
takes off his
jacket and
tie, leans
down to take
off his
shoelaces
***