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.
June
16, 2025
Charged With Diverting $10M to Crypto Exchanges Overseas Now Lin Gets Time Served
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, June 12 – For a scheme to rob $10
million from banks and move it to foreign
cryptocurrency exchanges, Fei Jiang and two
others were indicted and presented on November
16, 2023.
Fei Jiang was ordered free on $50,000 bond in
the U.S. District Court for the Southern
District of New York Magistrates Court. Inner
City Press was there, the only media in the SDNY
Mag Court.
Magistrate
Judge Robert W. Lehrburger said that if
Pre-Trial Services does not find Jiang's
resident appropriate, his release may be
revisited.
The
AUSA added that his GPS should include an
exclusion for area airports including Atlantic
City and Teterboro. The other defendants are
Naifeng Xu (presented in Oklahoma) and Zhong Shi
Gao, freed on bond in SDNY.
On
November 20, Naifeng Xu was in the SDNY Mag
court, and so again was Inner City Press. He too
was released on bond.
Jump
cut to January 15, 2025, when the trial date was
pushed back to September 8: "Defendants Fei
Jiang, Tommy Lin and Henry Yau arraigned on
Superseding Indictment S8 23 CR 572 (CM)
defendants plead NOT guilty. Court sets motion
schedule for defendant Henry Yau: Defendant's
motions are to be filed by March 14, 2025;
Government's response due April 4, 2025; and
defendant's reply by April 17, 2025 The trial of
this case, previously scheduled for May 12,
2025, is adjourned to September 8, 2025, at 9:30
a.m. The case is adjourned to May 1, 2025, at
2:00 p.m., for a status conference."
On
March 14 co-defendant Lin pled guilty before
Magistrate Judge Sarah Netburn, with sentencing
control date set at June 12.
On
June 12, Lin got time served: "Sentencing held
on 6/12/2025 for Tommy Lin. The defendant is
hereby sentenced to Time Served. Defendant shall
pay restitution in the amount of $20,000.00, to
the victim named in Schedule A, of the
Restitution Order."
The
case is USA v. Gao, at el., 1:23-cr-572
(McMahon)
***
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.
June
9. 2025
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, June 6 – Roman Storm is charged
using his cryptocurrency mixed Tornado Cash to
help launder money for North Korea's hackers in
the Lazarus Group.
On
September 6, 2023 he was arraigned before U.S.
District Court for the Southern District of New
York Judge Katherine Polk Failla. Inner City
Press was there - thread:
Cash
helped North Korea's hackers Lazarus
Group...There will be discovery from
GitHub
On
December 5, Judge Failla docketed the trial
schedule: "SCHEDULING ORDER as to Roman Storm,
Roman Semenov. It is hereby ORDERED that the
following trial schedule will be in effect:
Trial will be set to begin on September 23,
2024, at 9:00 a.m." Full scheduling order on
Patreon here
On
March 29, 2024, Storm through counsel submitted
motions to suppress and to compel discovery,
including into MLATs with The Netherlands, and
FinCEN and OFAC communications. Memo/motion on
Patreon here
On
July 5, a court holiday, Storm's lawyer filed an
opposed request for a delay into 2025 of the
trial: "We write on
behalf of our client Roman Storm to respectfully
request that the Court grant a continuance of
the trial date from September 23, 2024 to late
January or February 2025." Letter on Patreon here.
The
US on July 9 filed opposition - just as in the
Samouri Wallet case a letter from Senator Lummis
and Wyden that cites
theTornado Cash case, letter now on Patreon,
with Samouri story, here.
On
July 12, Judge Failla did delay the trial, but
not as far as Storm requested: "trial in this
matter is scheduled to begin on 12/2/2024 at
9:00 a.m."
On
September 26, Judge Failla denied Storm's
motions, from the thread:
SDNY
Judge Failla is about to start reading out
(long) decision on motions to compel and
dismiss. Spoiler alert: she is denying both.
Judge: The pre-trial discovery is government by
Rule 16...
Brady
did not create a Constitutional right to
discovery. Mr. Storm's request are too
speculative, saying "may," "may" and "may." He
does not connect the dots.
Judge
Failla continues: I reject the void for
vagueness argument... Courts should be cautious
when assessing vagueness arguments. Consider US
v. Howtar (sp)
Judge
Failla: Mr. Storm was arguing that that
statutory definition of financial transaction is
vague. I reject that. The court finds that the
statute gave Mr. Storm adequate notice. He
marketed Tornado Cash as a way to conceal, he
had notice is was illegal
Judge
Failla: So, the motions are denied. I think that
is all I need to do today. We have a trial date
On
October 10, a hearing Inner City Press covered,
from the thread:
oral
argument on prosecutors' motion to compel
pre-trial disclosuresJudge Katherine Failla:
When will the government be producing 3500
material? Assistant US Attorney Nathan Rehn: We
have been trying to reach a global agreement on
pre-trial disclosures. Judge: Is there a world
in which you would not disclose until after
testimony?
AUSA:
We would hope not- Judge: Mr. Rehn, we're here
because you haven't worked that out. It is
possible I could propose a schedule for 3500
production? AUSA: There is precedent that the
government cannot be ordered to go faster than
the statute Judge: I know that
Roman
Storm's lawyer: If they delay on the 3500
material, we'll want more time to make advice of
counsel disclosure. Judge: I am uncoupling those
two issues. Before ruling, I spoke with other
SDNY Judges including, about the Eisenberg
trial, with Judge Subramanian
Judge:
I have considered Judge Kaplan's ruling on
Bankman-Fried... Last minute tricks, at least
they didn't for Bankman-Fried. We'll do Daubert
hearings in November in the same week as the
final pre-trial conference. We are adjourned.
On
November 1, Inner City Press covered the
proceeding and first reported the new trial
date: April 14, 2024, here.
Then: "proceedings held before Judge Katherine
Polk Failla: Telephone Conference as to Roman
Storm held on 11/1/2024. Defendant Roman Storm
present... Trial in this matter is adjourned to
4/14/2025
On
December 9 there was a status conference; Inner
City Press went and live tweeted, thread:
All
rise! Judge Failla: How do you plead? Roman
Storm: Not guilty. Storm's lawyer: We're
requesting reconsideration. AUSA: 2d circuit,
mandamos was denied. Judge Failla: I didn't
know. Last week I was in California at Judicial
Conference, hearing budgets are bad
Defense:
We want 20 pages, then ten on reply. Judge
Failla: Our local rules are moving toward word
count, not pages. Defense: We are
considering taking the mandamos to the Supreme
Court. Judge Failla: Note this, "Judge
laughs." Defense: We know it's a long shot
Judge
Failla: I've been vindicated twice at the
Supreme Court, I hope my batting average stays
high.
On
December 18 Storm's lawyers filed a request for
reconsideration of the denial of their motion to
dismiss, arguing among other things that the
Fifth Circuit's decision in Van Loon v. Dept of
Treasury, No. 23-50669 (5th Cir. 2024) (Slip
op.), in which a group of Tornado Cash users won
a ruling that the immutable smart contracts at
issue could not be considered "property" under
IEEPA.
On
May 15, 2025, with some wondering if the
criminal case or parts of it might be dropped in
light of the Blanche memo and other
determinations, Storm's lawyer wrote it seeking
an order permitting Storm to apply for a Real
ID, saying that probation says an order is
required. So does "travel document" include a
drivers license?
On
May 16 Judge Failla ruled: "Order allowing Mr.
Storm to obtain a Real ID. ENDORSEMENT: Mr.
Storm may obtain a Real ID and does not need his
passport to do so."
On
May 30 Judge Failla held a conference on Storm's
legal teams's arguments about Brady and the
Samourai / Rodriguez case (which Inner City
Press is also covering). At the end, "The
deadlines to file requests to charge, voir dire,
motions in limine, and Daubert motions is
adjourned to 6/6/2025; oppositions to motions in
limine and Daubert motions is adjourned to
6/16/2025."
On
June 6 Storm submitted his proposed voir dire
questions about Bitcoin and Ethereum, DeFi and
North Korea.
The
case is US v. Storm, et al., 23-cr-430 (Failla)
***
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.
May
26, 2025
On India Inner City Press Asked IMF About Subramanian Out and Safeguards Pakistan Funds Not for Military
By
Matthew Russell Lee, Patreon Video Podcast
SDNY
COURTHOUSE, May 22 – When the
International Monetary Fund held its biweekly
embargoed press briefing on May 22, Inner City
Press asked about India, and Pakistan: "In India, there
is some controversy about why
the Modi government abruptly
terminated K.V. Subramanian’s
tenure as India’s executive
director at the International
Monetary Fund - does the IMF
have any comment or insight?
"Given
the IMF's recent moves on Pakistan, over India's
objection / abstention, can you state what
safeguards the IMF has in place to ensure that
program funds do not indirectly support military
or militant activities? [There are posts like
“IMF gave them money for this propaganda”, “They
are spending multi millions to promote
themselves!”, “IMF ka pese use ho rahe
hai”]
Julie Kozack took the questions, saying the executive director is up to India and that there are safeguards, including the the funds stay with the Central Bank. Transcript on IMF's website.
Inner
City Press previously asked: "On Myanmar, since
my question and the answers in previous IMF
briefings, have the authorities in Myanmar
provided anymore disclosure of where the IMF's
million have gone? What steps are being taken by
the IMF on this?"
To this, the IMF Spokesperson said that while
the IMF has not recognized the new government -
that step would require one half of the IMF's
members' votes - the IMF wants the world to know
that the government in control in Myanmar is, in
fact, reporting data.
Inner City Press followed up, asking if this
answers seeming "positive" on the new government
meant that it was complying with the reporting
commitment of the previous, overthrown
government. Rice chaffed at his answer being
called positive, saying the IMF just tries to
report facts.
Previously
Inner City Press asked the IMF about crypto-currency
legislation in Ukraine and
again El Salvador, about the
coup in Guinea and the role of
the Venezuela talks in Mexico
on release of the SDRs. YouTube
of IMF video here.
Full transcript here.
May
19, 2025
Capital One Is Sued for 360 Account by NY AG James and for Predatory Lending in East Harlem
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 22 – Capital One Bank, seeking to
move forward on its much protested but now Fed
approved Discover mega-merger, has been sued by
NYS Attorney General Letitia James. While some,
seeing the caption, thought it might be the
attempt to block the merger that Senator
Elizabeth Warren is asking DOJ to move for, that
was not the case.
Rather, James is suing Capital One for
misrepresentation in its 360 Performance Savings
account. If the CFPB won't do it, let the
state(s). But what about the merger? And Captial
One's predatory lending?
For example, Capital One refused a payment plan
and moved to foreclose on woman's property in
East Harlem in upper Manhattan, NYC.
She
sued in state court - and Capital One moved to
transfer the case to Federal court in the U.S.
District Court for the Southern District of New
York, where Inner City Press found it in the
docket.
The
plaintiff recounts how she was tricked, akin to
predatory lending. She is seeking punitive
damages and an injunction preventing further
foreclosure actions.
On
February 17 Capital One's counsel wrote in
asking to extend its time to answer or otherwise
respond - then it moved to dismiss.
On
April 22 - after a rubber stamp of Capital One's
Discover takeover - the plaintiff opposed the
motion, asserting breach of contract and
wrongful foreclosure.
That
case is Sanders v. Capital One, N.A.,
1:25-cv-1252 (Broderick)
This
newer case is The People of the State of New
York, by Letitia James, Attorney General of the
State of New York, v. Capital One, et al.,
1:25-cv-4037 (unassigned)
***
May
12, 2025
Mashinsky of Celsius Sentenced to 12 Years After Pled Guilty to 30 Year Guideline
by
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, May 8 – After
Alexander
Mashinsky of
Celsius was
arrested on
July 13, US
Attorney
Damian
Williams held
a press
conference,
and Inner City
Press asked
him to explain
his
thinking in
agreeing to
release on
bail for Sam
Bankman-Fried
but demanding
and
obtaining
pre-trial
detention of
Avi
Eisenberg.
US
Attorney
Williams
responded that
every case is
different.
Inner City
Press asked if
his office
would be
seeking the
detention of,
or agreeing to
release,
Mashinsky. He
declined to
say either
way, saying
you will soon
see.
Jump
cut to
December 3,
2024 when
Inner City
Press went to
cover US v.
Mashinsky -
Judge John G.
Koeltl asked,
do you wish to
plead guilty
to Counts 2
and 5? He said
yes. Thread here.
The
plea was
accepted and
sentencing set
for April 8,
2025 - with
plea
agreement,
surprisingly,
has a
guideline of
360 months,
plea agreement
(and analysis)
on Patreon here
Back
on November 7,
oral arguments
(Inner City
Press live
tweeted here).
Later Inner
City Press saw
him, along
carrying two
legal briefs,
going into
Pre-Trial
Services on
the 5th floor.
On
February 5,
2025
Mashinsky's
lawyers wrote
in asking to
push his
sentencing
back a month
from April 8
to May 8,
saying the US
Attorney's
Office does
not for now
consent -
letter on
Patreon here
On
May 8, Inner
City Press
live tweeted
the lengthy
sentencing
proceeding,
here.
Mashinsky got
12 years, with
Otisville
recommended.
More
detail on X
for
Subscribers here and
Substack here
The case is US
v. Mashinsky,
et al.,
23-cr-347
(Koeltl)
***
April
28, 2025
Binance Sought to Dismiss October 7 Victims Lawsuit But Now Reconsideration Denied
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 22 – After the October 7, 2023 attacks by
Hamas from Gaza, and CZ's and Binance's guilty
pleas, the latter two along with Iran and Syria
were sued. Argument on Binance's motion to
dismiss was heard on January 30 by U.S. District
Court for the Southern District of New York
Judge John G. Koeltl. Inner City Press was
there, thread:
OK-
now at case against crypto firm Binance, CZ,
Syria and Iran by victims of Oct 7 attack.
Binance
lawyer [from Cahill Gordon] We are accused of
non-feasance, failures to prevent money
laundering and to file SARS. Such cases are
routinely dismissed-
Judge
Koeltl: I will rule at a later date
On
February 25, Judge Koeltl denied the motion to
dismiss. And on motions for reconsideration
and/or to certify for interlocutory appeal,
Inner City Press attended the April 22 argument
and ruling. Judge Koeltl denied both motions -
this while the Administration has asked for a
week to reconsider its predecessor's support for
UN immunity for its October 7 role. Watch this
site.
More
on X for Subscribers
here and on Substack here
The case is Raanan, et al. v. Binance Holdings Limited, et al., 1:24-cv-697 (Koeltl)
***
April
21, 2025
After Taking $25M from Ethereum Blockchain Peraire Bueno Duo Say Crypto Not Under NSPA
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 14 – James Peraire-Bueno was indicted for
"conspiracy to commit wire fraud, wire fraud,
and conspiracy to commit money laundering.
The charges in the Indictment arise from an
alleged novel scheme by the defendants to
exploit the very integrity of the Ethereum
blockchain to fraudulently obtain approximately
$25 million worth of cryptocurrency within
approximately 12 seconds."
On
May 15 James Peraire-Bueno was brought in
detention before U.S. District Court for the
Southern District of New York Magistrate Judge
Valerie Figueredo. Inner City Press was there,
the only media in the SDNY Mag Court, thread
On May 23, Inner City Press was again the only media present for the arraignment of Anton, and status conference on both, before Magistrate Judge Jennifer E. Willis (to whom Judge Clarke referred the proceeding, and a script). Thread
On
June 21 Judge Clarke permitted the two
defendants to trade and liquidate four accounts
at Chase and Fidelity to pay counsel and for
living expenses.
On
August 19 an October 2025 trial date was set.
On
December 6, the Peraire-Buenos filed a slew of
motions - to dismiss, to suppress, to compel,
for a bill of particulars - including some
redacted, they say, at the US Attorney's
Office's demand, including about Victim-1.
On
April 7 Inner City Press attended the hearing on
the pending motions. The duo's lawyers sought
information victims (asking if they were bots)
and a Franks hearing to question Agent Diaz.
Thread
here;
more on X for Subscribers here
and Substack here.
On
April 14 the defendant filed seeking to dismiss,
saying of Count 4 that crypto is not "property"
under the National Stolen Property Act and that
the prosecution is so novel it violates due
process.
Inner
City Press is covering this case.
The case is USA v. Peraire-Bueno, et al., 1:24-cr-293 (Clarke)
***
April
14, 2025
For Do Kwon Trial Now Set for Feb 17 2026 DOJ Memo Cited so Do Kwon May File Motion
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 10 – After the collapse of the crypto firm
Terraform Labs, Inner City Press covered the
SEC's trial against it and Do Kwon - except that
Kwon was in Montenegro. Now, Do Kwon book
here
Early
on January 2, 2025 Inner City Press learned and
vlogged that Kwon would be presented later in
the day before U.S. District Court for the
Southern District of New York Magistrate Judge
Robert W. Lehrburger.
The
superseding indictment, Inner City Press
immediately put it online here
Just
after noon Do Kwon was presented and pled not
guilty, was detained, thread
The
case was reassigned to Judge Paul A. Engelmayer
to whom the US Attorney's Office on January 6
directed a victims' notice motion, on Patreon here
On
January 8 Judge Engelmayer held a conference and
set a January 26, 2026 trial date, among many
other things. Inner City Press pressed and live
tweeted, thread
On
February 27-28, the US Attorney's Office put in
a four page letter describing discovery
(including documents from a country left
unnamed), and proposed adjourning the upcoming
status conference. Filing on Patreon here
On
April 10 Inner City Press live tweeted the
status conference at which trial was pushed back
to February 17, next conference to June 12, and
this:
Judge
Engelmayer: Let's turn to the Deputy Attorney
General's memo and if it has any implication for
the case. The memo as reported says something
about prosecutions where an issue is whether a
digital asset is a security. AUSA: We are aware
of the memo
AUSA
Lenow: For now we do not have an intention to
change the charges. Judge Engelmayer: To the
degree there is an internal process, do what you
can to move it along so that it comes to rest.
It is an Executive Branch internal issue.
Do
Kwon's lawyer David Patton: We may file a
motion.
More
/ extra on X for Subscribers here,
Patreon (with earlier US case status summary) here
Amid talk of the Administration's crypto executive order and now DOJ memo - and before the SEC moved to drop its case against Coinbase - Inner City Press published a book: "Crypto Death Spiral: Could a Luna Rise Again?" by Matthew Russell Lee, ebook here, audiobook here.
Watch
this site
The
case is USA v. Kwon, 1:23-cr-151 (Engelmayer)
***
April
7, 2025
Rocket Eyes Mr Cooper As Predatory Capital One Discover Merger Pends Amid FOIA Appeal
SOUTH
BRONX, April
2 – After Capital One applied to buy Discover,
in an anticompetitive deal that should be
rejected by regulators, now Rocket announces a
plan to buy Mr. Cooper, after Redfin. Expect
more - including questions.
On
March 3, days after the CFPB dropped its lawsuit
against Capital One, the OCC suddenly declared
Capital One "Outstanding" under the Community
Reinvestment Act. Who's in the OCC's
wallet, now?
Back
on July 26, after a FOIA appeal - and after
closing the public comment period - the OCC
belatedly gave Inner City Press documents
showing Capital One briefed the OCC on a "big"
deal in November 2023; it was code named
"Project Sirius." That and more now on Inner
City Press' DocumentCloud here
Now Inner City Press' FOIA to the Fed resulted
in 1000 plus pages, but redactions. It appealed,
and on March 11 was granted expedited
processing. But will they rule on FOIA before
they rule on the merger? Watch this site.
***
March
31, 2025
Rap Sheet of Banks Fined in 2024 TD Citigroup Capital One as Fed Snubs BIS Antitrust Study
SOUTH
BRONX, March
28 – Before Capital One announced and applied to
buy Discover, they and their law firm were
allowed to meet secretly with the Federal
Reserve.
After they applied late March 20, Inner
City Press submitted a Freedom of Information
Act request to the Fed. While they granted
expedited treatment, they delayed nearly a near
before on March 4 dumping over 1000 redacted
pages.
These begin with ex parte meetings between the
bank, its law firm and the Fed - telephone calls
in February 2024, and a meeting inside the Fed
on March 7, 2024 (the Fed waited until March 4,
2025 to disclose this). 1000 page on Inner City
Press' DocumentCloud here.
200+ more pages here.
FOIA determination letter here
Inner
City Press has filed a FOIA appeal to the
Federal Reserve - and raised it in a March 21
comments, along with a new Bank for
International Settlements study that cries out
for denial of the merger.
On
March 24, the Fed's response: "Because your
letter was received after the end of the public
comment period, it will not be made a part of
the record of this case unless the Board in its
sole discretion determines to consider your late
comments." Yeah, discretion...
Then
as the Fed revoked its CRA rule, this list of
banks fined in 2024:
1
US US TD Bank (Toronto-Dominion
Bank) $3.09B 2024-10-10
2
US US Citigroup
$135.60M 2024-07-10
3
US US Navy Federal Credit
Union $95.00M
2024-11-07
4
US US USAA Federal Savings
Bank $85.00M
2024-12-19
5
Sweden Sweden Klarna Bank
AB $46.00M
Source View Details 2024-12-11
6
US US City National Bank
$65.00M 2024-02-01
7
US US Fifth Third Bank
$20.00M 2024-07-09
8
Finland Finland Nordea
Bank $35.00M 2024-08-27
9
UK UK Starling Bank
$37.44M 2024-10-02
10
US US Green Dot
Corporation
$44.00M 2024-07-19
Dishonorable
mentio: 11 US US
Silvergate Bank
$43.00M Source
View Details 2024-07-01 12
US US JPMorgan Chase &
Co $348.20M
Source View Details 2024-03-14
13 Belgium Belgium BNP
Paribas Fortis
$11.27M Source
View Details 2024-12-20 14
France France Confédération Nationale du
Crédit Mutuel
$3.84M Source View
Details 2024-03-21 15 UK
UK Banque et Caisse d’Epargne de
l’Etat
$1.83M Source View
Details 2024-11-15 16
China China Industrial and Commercial Bank
of China Ltd. (ICBC)
$30.00M Source
View Details 2024-01-19 17
US US Goldman Sachs
$64.80M Source
View Details 2024-10-23 18
UK UK Citigroup Global Markets
Limited
$35.85M Source
View Details 2024-05-22 19
UK UK Metro Bank
$21.53M Source
View Details 2024-11-12 20
UK UK HSBC UK Bank plc
$8.11M Source View
Details 2024-05-23 21
Australia Australia
Westpac
$6.18M Source View
Details 2024-01-31 22 UK
UK Barclays Bank
$12.91M Source
View Details 2024-11-25 23
UK UK Barclays Bank
$38.73M Source
View Details 2024-11-25 24
UK UK Macquarie Bank
Limited
$16.82M Source
View Details 2024-11-18 25
UK UK TSB Bank plc
$14.07M Source
View Details 2024-10-10 26
Australia Australia Macquarie Bank
Limited
$3.15M Source View
Details 2024-09-25 27
Japan Japan MUFG Bank
$1.75M Source View
Details 2024-09-20 28
Austria Austria Raiffeisen Bank
International (RBI)
$2.24M Source View
Details 2024-06-28 29
Australia Australia Commonwealth Bank of
Australia (CBA)
$4.73M Source View
Details 2024-10-17 30
Canada Canada TD Bank (Toronto-Dominion
Bank) $6.40M
Source View Details 2024-05-02
31 Germany Germany N26
Bank AG
$9.97M Source View
Details 2024-05-21 32 US
US State Street Bank
$7.45M Source View
Details 2024-07-26 33
South Africa South Africa Capitec Bank
Limited
$3.04M Source View
Details 2024-12-20 34 US
US Flagstar Bank
$3.55M Source View
Details 2024-12-16 35 US
US Canadian Imperial Bank of
Commerce
$30.00M Source
View Details 2024-09-24 36
US US U.S. Bank
$6.00M Source View
Details 2024-03-19 37 US
US Barclays Bank PLC
$4.00M Source View
Details 2024-10-01 38 US
US Canadian Imperial Bank of
Commerce
$1.25M Source View
Details 2024-09-24
***
March
24, 2025
In Charlie Javice Trial She Subpoenaed a Witness & Wants Judge to Compel Appearance
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, March 20 – 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 and was
freed on $2 million bond.
On
January 24, 2025
Inner City Press
published the
first book on the
case, Fintech
Fraudster? here
February
20
openings, thread here.
On February
21 as Houston
Cowan took the
stand,
then paused
due to audio
problems,
Javice filed that "evidence
and argument
regarding
Bank-1 should
be excluded."
Letter on
Patreon here.
On
March 3 the US
put on a
Google record
custodian
(thread here),
then a former
Frank staffer
Jen Wong who
said she was
pissed
Chase fired
her.
On
March 5 Jen
Wong
finished, then
a man from ASL
(thread)
On
March 6 there
was Sarah
Youngwood, now
of NASDAQ,
about minutiae
(thread)
then the
orange jumpsuit quote
and judge's timing
questions.
On
March 10 US witness
Patrick Vovor
was cross examined
(thread)
including
about his body
talk and
coming onto
Charlie.
On
March 11 US witness
Adam Kapelner
described
Javice doubling
his rate (thread),
the NDA for synthetic in
the
continued
thread on
X for
Subscribers here and
Substack here
On March
12, Kapelner
was cross examined
by Sullivan, thread,
then a Capital
One
witness began
direct.
On
March 13 the
Capital One
witness on cross
could not
remember of
Olivier Amar
(or Matt
Glazer) were
on the video
calls, or is his
camera was on - thread
eextended on
Substack here.
On March 17
the trial
continued,
including with
witness
quoting Charlie
Javice that
Frank's
customer
acquisition
cost was below
$5, thread
On March
18, the US put
on JPMC
witnesss Keono
Drakeford in
from Columbus,
Ohio - and it
set to rest it
case on
March 19,
when the
defense will
be asked if it
will put on a
case. Thread
On March
19, Javice's
lawyers files
a letter
including that
Amar’s desire
to admit this
exhibit
exemplifies
his
antagonistic
defense."Letter
on Patreon
here
On
March 20 the
defense case
proceeded, until one of
Javice's lawyers asked Judge
Hellerstein to
admonish a
witness under
subpoena that
he must remain
and testify.
More on
X for Subscribers
here and
Substack here
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
March 17, 2025
In Charlie Javice Trial US Witness from Capital One No Memory of Olivier Amar on Video Call
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, March 13 – 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 and was
freed on $2 million bond.
On
January 24, 2025
Inner City Press
published the
first book on the
case, Fintech
Fraudster? here
February
20
openings, thread here.
On February
21 as Houston
Cowan took the
stand,
then paused
due to audio
problems,
Javice filed that "evidence
and argument
regarding
Bank-1 should
be excluded."
Letter on
Patreon here.
On
March 3 the US
put on a
Google record
custodian
(thread here),
then a former
Frank staffer
Jen Wong who
said she was
pissed
Chase fired
her.
On
March 5 Jen
Wong
finished, then
a man from ASL
(thread)
On
March 6 there
was Sarah
Youngwood, now
of NASDAQ,
about minutiae
(thread)
then the
orange jumpsuit quote
and judge's timing
questions.
On
March 10 US witness
Patrick Vovor
was cross examined
(thread)
including
about his body
talk and
coming onto
Charlie.
On
March 11 US witness
Adam Kapelner
described
Javice doubling
his rate (thread),
the NDA for synthetic in
the
continued
thread on
X for
Subscribers here and
Substack here
On March
12, Kapelner
was cross examined
by Sullivan, thread,
then a Capital
One
witness began
direct.
On
March 13 the
Capital One
witness on cross
could not
remember of
Olivier Amar
(or Matt
Glazer) were
on the video
calls, or is his
camera was on - thread
eextended on
Substack here.
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
March 10, 2025
Inner City Press asks IMF of Crypto El Salvador And US Proposed Reserve of Bitcoin and Others
by
Matthew Russell Lee, Patreon Book
Substack
NYC,
March 6 – When the IMF
held its press briefing on March 6, Inner City
Press was able to ask the spokesperson two
questions about cryptocurrency, on El Salvador,
including its recent purchase of Bitcoin, and on
proposals in the US:
Inner
City Press: on El Salvador... [and] contrast to
the U.S. I mean, President Trump has announced a
digital assets reserve, including Ethereum and
other coins, as well as Bitcoin. And I wondered
if the IMF could comment on the U.S. program or
how would you distinguish the two countries and
why the IMF might be taking a different
approach?
CRYPTO Q&A: Inner City Press today asked the International Monetary Fund about Crypto El Salvador And US Proposed Reserve of Bitcoin, Ethereum and Others - story: https://t.co/wezNTWHl8p pic.twitter.com/NfFxG8roGK
— Inner City Press (@innercitypress) March 7, 2025
MS.
KOZACK: All right, let me go ahead and take the
El Salvador question in Ethiopia and then we
will go back. I see many hands up
online. So, on El Salvador, as you
know, last week our Executive Board approved a
40-month Extended Fund Facility, EFF, for U.S.
$1.4 billion and with an immediate disbursement
of $113 million. The program is expected to
catalyze financial and technical support from
other IFIs. And this will lead to a combined
total over the program period of about U.S. $3.5
billion of support for El Salvador. The goals of
the program are to restore fiscal
sustainability, rebuild external and financial
buffers, strengthen governance and transparency,
and ultimately create the conditions for
stronger and more resilient growth.
Regarding Bitcoin, in particular, the program
aims to address the risks associated with the
Bitcoin project to protect consumers and
investors, as well as to limit potential fiscal
costs. So, to start, there were recent legal
reforms that have made the acceptance of Bitcoin
voluntary, and taxes can be paid only in U.S.
dollars. Under the program, the government has
committed to not accumulate for their Bitcoins
at the level of the overall public
sector.
Regarding
the recent increase in Bitcoin holding by the
Strategic Bitcoin Reserve Fund, the authorities
have confirmed that these are consistent with
the agreed program conditionality, and we do
remain engaged with the authorities on this
important issue. And then, to your
question. We are obviously closely monitoring
President Trump's announcement in this area. The
Presidential Working Group on Digital Asset
Markets has not yet completed its work. So, we
do not yet have details on the implementation of
this proposal, but we will come back in due
course
***
March
3, 2025
In Charlie Javice Trial JPM Exec Thought BofA Was Bidding Admits User Number Not in Reps
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Feb 27 – 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 and was
freed on $2 million bond.
On
January 24, 2025
Inner City Press
published the
first book on the
case, Fintech
Fraudster? here
In the
February 20
openings, both
defendants'
lawyers hammered JPM
Chase, with
Javice's Baez
naming Jamie Dimon. Thread
here.
On February
21 as Houston
Cowan took the
stand,
then paused
due to audio
problems,
Javice filed that "evidence
and argument
regarding
Bank-1 should
be excluded."
Letter on
Patreon here.
On
February 26,
the second
then third
witness, with
not four but ten
million floated, and
running commentary
from defense
table
called out.
On
February 27 the third
witness Leslie
Wims Morris
of JPMC admitted
they thought
BofA was
bidding and
she's now with
Chase Auto
Continued
thread
and more on X
for Subscriber
here
and
Substack here
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
February
24, 2025
Charlie Javice Trial Opening Hammers JPMC Naming Jamie Dimon US Objections Sustained
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Feb 20 – 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 and was
freed on $2 million bond.
On
January 24, 2025
Inner City Press
published the
first book on the
case, Fintech
Fraudster? here
Inner City Press live tweeted the more than two hour hearing on January 23, here. Trial was delayed one week to February 18.
On
February 4 the
defendants reduced
their request
to eight
staffers. Full thread
here
In the
February 18
openings, both
defendants'
lawyers hammered JPM
Chase, with
Javice's Baez
naming Jamie Dimon
and his hunger
for acquisitions. The
US Attorney's
Office
objected; Judge
Hellerstein
said the case
is not about
JPM Chase.
We'll see.
Full thread here.
Continued
thread
on X for
Subscriber here
and Substack here
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
February
17, 2025
In Florida Disparate United Community Banks Wants ANB But Ignores Lending Disparities
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Feb
11 –
In Florida, United Community Bank is trying to
move into the Miami area via merger, with a
disparate lending record. Fair Finance Watch
with Inner City Press on the FOIA has filed a
timely first comment on, the Application by UCB
to acquire American National Bank.
But consider United Community Bank's disparate
lending record:
In South Carolina in 2023, United Community
Banks made 673 mortgage loans to whites with 282
denials. Meanwhile to African Americans in the
state it made only FIFTY ONE loans, while
denying fully 45 applications.
In
Florida in 2023, United Community Banks made 240
mortgage loans to whites with 86 denials.
Meanwhile to African Americans in the state it
made only TWELVE loans, while denying five
applications.
Nationwide, United Community Banks is scarcely
better. In 2023 overall it made 5576 mortgage
loans to whites with 4114 denials. Meanwhile to
African Americans nationwide it made only 477
loans, while denying fully 1246 applications.
That is to say, while UCB to whites had more
loans then denial, to African Americans it had
nearly three times as many denials as of loans.
To
this, on February 11 UCB through outside counsel
replied that while Fair Finance Watch "cites
data for the Bank’s lending in South Carolina,
Florida and 'nationwide,' the comment’s
assertion that “nationwide” data is relevant is
misplaced. The Bank has a Southeastern—not
nationwide—mortgage lending footprint consisting
of locations in Alabama, Florida, North
Carolina, South Carolina, Georgia and
Tennessee." Then, "the Bank’s self-assessments
have not revealed any evidence of discriminatory
practices." What a surprise. They ignore their
disparities.
Watch
this site.
***
February
10, 2025
In Charlie Javice Feb 18 Trial For Fooling JPMC Jury Not Required to Distinguish Capital One
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Feb 4– 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 and was
freed on $2 million bond.
On
January 24, 2025
Inner City Press
published the
first book on the
case, Fintech
Fraudster? here
Inner
City Press
live tweeted
the more than
two hour hearing
on January 23,
here.
Trial was
delayed one
week to
February 18;
the motion to
sever
was denied.
The basis for
the delay was
late
production of
Amar's Google
Drive, which
Judge Alvin Hellerstein
criticized.
On
January 27
Javice argued
for inclusion of
her two expert
witnesses, Ms.
Carla Holtze
Ceel on
digital analytics,
and Dr.
Konstantinos
Psounis on
"the role of
synthetic
data."
On
January 28
Javice and
Amar filed a
motion to compel JPM
Chase to
disclose the names of
145 employee
they claimed
did not use
messaging
applications
for work.
On
January 31,
Chase's
lawyers at
Davis Polk
opposed giving
any names, arguing
that the
request for
names was "for
the sole
purpose of
impeaching
prospective
Government
witnesses."
On
February 4 the
defendants reduced
their request
to eight
staffers. Full thread
here,
including
Judge
Hellerstein:
Who was the
second bank?
Amar's
lawyer:
Capital One.
But shouldn't
the jury have
to decide
whether
Capital One or
JPM Chase was
the one they
say was
defrauded?
Judge:
Motion
denied.
Figure out
who'll speak
Continued
thread
on X for
Subscriber here
and Substack here
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
February 3, 2025
After Flagstar NYCB Rubber Stamped Despite CRA Now Bank to Close 60 Branches
By
Matthew Russell Lee, Patreon
SOUTH
BRONX / SDNY, Jan 31 Back in April 2021, Fair
Finance Watch and Inner City Press predicted
that the proposed merger of New York Community
Bank and Flagstar would flounder, on disparate
lending and regulatory evasions.
Fair Finance Watch found that in 2019 Flagstar
made 60,982 mortgage loans to whites, with
13,963 denial to whites - while making only 3799
loans to African Americans with fully 1777
denials to African American. This was
significantly worse than other lenders.
New York Community Bank's record as an enabler
of and profiteer off slumlords led Inner City
Press file a Community Reinvestment Act
challenge to its then-proposed merger with
Astoria Bank, which fell
apart.
A
year a half later, the proposed merger was still
not done and the extended deadline was
approaching, amid talk of, as we predicted, fair
lending action.
Then
at 8 am on November 7, the banks bragged
they had Fed approval. But a visit to the Fed's
website at 8:40 am did not find any press
release of approval. The Fed is getting more and
more lax. We'll have more on this.
Inner
City Press has gone back to find Flagstar's
comments on the proposed and still pending
Community Reinvestment Act regulations -
tellingly, full of resistance: "Because Flagstar
supports the goals of the CRA, the Bank submits
this comment letter to highlight concerns about
the Agencies' proposed reforms to the CRA
framework. This Proposal would undermine the
objectives of the CRA and run contrary to the
Agencies' stated effmts to ensure that the law
continues to be an effective force for
strengthening banks and the communities they
serve, which j: intludes (i) low- and
moderate-income ("LMI") individuals, families,
and neighborhoods; (ii) small businesses and
farms; and (iii) communities in need of
financial services and economic development.
Flagstar is particularly concerned about the
proposed retail lending assessment area
requirements, which would impose significant
regulatory, operational, and staffing burdens on
banks (especially when coupled with the proposed
data collection requirements); force banks to
spread limited CRA resources thin and undermine
the effectiveness of their CRA programs; and
place banks at a competitive disadvantage to
nonbanks and other lenders not subject to the
CRA. In our view, these challenges will
discourage banks from engaging in retail lending
and other CRA activities that could otherwise
benefit local communities, contrary to the
spirit of the law. Moreover, as applied to
Flagstar, the proposed retail lending assessment
requirements would be so overly burdensome and
unworkable that they would likely cause us to
question and rethink our business model. 1.
There is insufficient data to justify abandoning
longstanding interpretations of the CRA to
require the delineation of lending-based
assessment areas; Requiring the delineation of a
lending-based assessment area would go beyond
the text and purpose of the CRA." Yeah.
In
late January 2025, Flagstar CFO Lee Smith said
Flagstar is closing about 60 retail branches,
most of which it leases; about 20 private-client
retail locations; and a couple of operating
centers that are owned by the bank.
***
January 27, 2025
Book on Charlie Javice Trial For Tricking JPMC Asks Why Fintech Fraudster in Dimon Blindspot
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Jan 24 – 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 and was
freed on $2 million bond. Inner City Press
was there - and has now
published the first book
about Javice, "Fintech
Fraudster?" Book and
audiobook on Amazon here
On May 18, Javice was
indicted and the case
assigned to District Judge Alvin K.
Hellerstein.
Inner
City Press
live tweeted
the more than
two hour hearing
on January 23,
here.
Trial was
delayed one
week to
February 18.
More on
X for
Subscriber here
and Substack here
This case
is USA v. Javice, et al., 1:23-cr-251 (Hellerstein)
***
January
20, 2025
BitMEX Hayes Got 6 Months at Home as Delo Back to HK Now $100 Million Fine
By
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Jan 15 – Four executives of the
Bitcoin Mercantile Exchange or BitMEX were
criminal defendants for violations of the Bank
Secrecy Act. On February 24, with no
notice, a guilty plea - each to a single count.
Back on October 13, 2021 U.S. District Court for
the Southern District of New York Judge
John G. Koeltlt held a proceeding. Inner City
Press covered it, below.
On
May 20, 2022 after Hayes pleaded guilty, he was
sentenced - to two years probation, the first
six months of which are home confinement with
location monitoring. Inner City Press live
tweeted it here
and below.
On March 17, 2023 Hayes through counsel made a
request to Judge Koeltl - with all substance
redacted, photo here.
When
co defendant Benjamin Delo came up for
sentencing on June 15, Delo's lawyer urged no
home confinement at all, just travel back to
Hong Kong. And he got it - with thirty months
probation the administration of which is
unclear. Inner City Press live tweeted it here:
Delo's
lawyer: Even home confinement is unnecessary. He
is a British citizen, here on a tourist visa. He
cooperated with the CFTC.
Defense: Ben was living in Hong Kong. He gave
money to Oxford. [There are more than a
dozen suited persons here in the gallery]
Judge:
Didn't he know there were US persons im the
platform?
Defense:
He didn't encourage it
Delo:
This case hurts my philanthropy. AUSA: Yes
most messages we used were from Mr Hayes. But
many were to Mr Delo. He knew.
Judge
Koeltl: Guideline is 6 to 12 months. The US
chose not to go for money laundering or fraud.
The co-defenfant [Hayes], I sentenced to 6
months home confinement. But Delo has lived in
Bermuda. So I sentence Delo to 30 months
probation, no home confinement.
On
July 13, Delo's counsel filed notice that he
will submit a letter motion on or before August
1 to redact portions of the transcript.
On
July 18, Delo's counsel emailed Judge Koetlt
proposed redactions, the scope of which the
public and press cannot see, arguing in a cover
letter that the information "should be
treated with caution." If so, why did his
counsel say it in open court seeking a time
served sentence?
Then
this: "MEMO ENDORSEMENT as to Benjamin Delo (2)
granting [376] MOTION to Redact [367]
Transcript. ENDORSEMENT: APPLICATION GRANTED. SO
ORDERED. (Signed by Judge John G. Koeltl on
7/19/2022)." Of course, it doesn't change what
was said in open court.
Later
in July co-defendant Reed was sentenced to 18
months probation, and travel anywhere: "JUDGMENT
IN A CRIMINAL CASE as to Samuel Reed (3). THE
DEFENDANT: pleaded guilty to count ONE OF THE
INDICTMENT. ALL OPEN COUNTS are dismissed on the
motion of the United States. PROBATION: Eighteen
(18) months on Count One. --The Court will not
impose the Special conditions suggested by the
Probation Department at Pages 45 and 46 of the
Presentence Report. --The defendant will be
permitted domestic and international travel, and
will be permitted to have contact with Messrs
Hayes and Delo. -No fine is imposed, because the
fine has already been paid. ASSESSMENT: $100.00.
Special instructions regarding the payment of
criminal monetary penalties: --The special
assessment shall be due immediately. (Signed by
Judge John G. Koeltl on 7/22/2022)."
Docketed
on June 29, this: "CASH BAIL RETURNED as to
Benjamin Delo as per [357] Order, Terminate
Motions, dated 06/22/2022, from Judge John G.
Koeltl, in the amount of $2,000,000.00, No.
03046969, Check Dated 06/28/2022, payable to
SMITH VILLAZOR LLP."
On
July 5, Delo's counsel wrote to Judge Koeltl
asking that the judgment be amended to allow
Delo to speak with Hayes and Reed.
And
he got it: "MEMO ENDORSED granting [364] LETTER
MOTION Request to Amend Judgment (to reflect
that Standard Condition of Supervision Number 8
not apply to contact with Messrs, Hayes and
Reed) as to Benjamin Delo (2)... ENDORSEMENT:
APPLICATION GRANTED. SO ORDERED. (Signed by
Judge John G. Koeltl on 7/5/22)."
On
November 16, co-defendant Gregory Dwyer got
one year probation: "Minute Entry for
proceedings held before Judge John G. Koeltl:
Sentencing held on 11/16/2022 for Gregory Dwyer
(4) Count 1. Deft Dwyer pres w/atty Jenna Dabbs.
AUSA Samuel Raymond. Reporter Sadie Herbert.
Deft Dwyer sentenced to one (1) year probation;
$150,000 fine."
Jump
cut to October 7, 2024, still going, thread:
now
at US v. HDR Global Trading a/k/a BitMEX - today
was to be sentencing but US has asked for a
Fatico hearing, saying loss amount is $128
million.
Judge:
The arguments have gotten too personal in this
case. The defense says the US is pursuing this
because the sentences I imposed on the
individual defendants were too low.
Judge:
I can't impose home confinement on a
corporation.
AUSA:
The Fatico hearing would take one day.
Judge:
Hearing on Nov 6 and 7, 3500 materials by Oct
21. Adjourned
On
January 15, 2025, "HDR GLOBAL TRADING LTD.,
a/k/a BITMEX," was sentenced today to a fine of
$100 million for violating the Bank Secrecy Act
by willfully failing to establish, implement,
and maintain an adequate anti-money laundering
and know-your-customer program."
This
case is USA v. HDR Trading Global Limited,
24-cr-424 (Koeltl)
The case is overall case is US v. Hayes, et al., 20-cr-500 (Koeltl)
***
January 13, 2025
Do Kwon Trial Set for Jan 26 in 2026 as Motion on Count 9 Previewed Inner City Press to Cover
by
Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE,
Jan 8 – After the collapse of the crypto firm
Terraform Labs, Inner City Press covered the
SEC's trial against it and Do Kwon - except that
Kwon was in Montenegro.
Early on
January 2, 2025 Inner City Press learned and
vlogged that Kwon would be presented later in
the day before U.S. District Court for the
Southern District of New York Magistrate Judge
Robert W. Lehrburger.
District Judge
John P. Cronan had signed an order that the
superseding indictment should be unsealed and
available as of 9 am. But it was not, until
nearly noon. Inner City Press immediately put it
online here
Just after noon
Do Kwon was presented and pled not guilty, was
detained, thread
The case was
reassigned to Judge Paul A. Engelmayer to whom
the US Attorney's Office on January 6 directed a
victims' notice motion, on Patreon here
On January 8
Judge Engelmayer held a conference and set a
January 26, 2026 trial date, among many other
things. Inner City Press pressed and live
tweeted, thread
More / extra on
X for Subscribers here,
Patreon (with US case status summary) here
Watch this site
The case is USA
v. Kwon, 1:23-cr-151 (Engelmayer)
***
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January
6, 2025
Cadence Bank Faced Fair Lending DOJ Charge Inner City Press Told Fed Now Proxy Delay
By
Matthew Russell Lee, Patreon
FEDERAL
COURT / BRONX, Dec 30 -- How out of control is
the merger rubber stamping of the U.S. Federal
Reserve and other regulators, even as they are
ostensibly working to improve?
Today it's reported that Cadence Bank is looking
to settle with DOJ on lending discrimination.
But Inner City Press / Fair Finance Watch protested
Cadence to the Federal Reserve in 2018 - and the
Fed approved the merger.
Inner
City Press / Fair Finance Watch wrote: "timely
first comment on, the Applications of Cadence
Bancorporation, Houston, Texas; to acquire State
Bank Financial Corporation, Atlanta, Georgia,
and thereby indirectly acquire State Bank and
Trust Company, Macon, Georgia As an initial
matter, this is a request that the FRS
immediately send by email to Inner City Press
all non-exempt portions of the applications /
notices for which the Applicants have requested
confidential treatment.
Fair
Finance Watch has been tracking Cadence Bank: In
2017 in the Dallas, Texas MSA for convention
home purchase loans, Cadence made 99 such loans
to whites - and NONE, not a single origination,
to African Americans. In 2017 in the Houston
Texas MSA for convention home purchase loans,
Cadence made 236 such loans to whites - and only
15 to African Americans, and only 23 to Latinos.
This is not in keeping with the aggregate, which
made 37,128 such loans to whites, 3151 to
African Americans and 8215 to
Latinos.
In
2017 in the Birmingham, Alabama MSA for
convention home purchase loans, Cadence made 66
such loans to whites - and only ONE to African
Americans. Even combining in Table 4-1, it was
79 home purchase loans to whites and only THREE
to African Americans. This should
also be address in this proceeding, including at
the requested evidentiary hearing: “Cadence Bank
- Racist manager 2800 Post Oak Blvd Suite
101, Houston, TX 77056, USA Oct 14, 2017 NOT
RESOLVED I had my 2 business accounts at the
Williams tower location, I tried talking to the
manager about small business loans she always
avoided me looking at me kind of weird whenever
I done withdrawals she always asked me why I'm
taking money out after 3 months she sent me a
Leter saying she's going to be closing my
account because I take money out ones a week for
payroll and she didn't like that”
This
was covered not only in Inner City Press, here
on FOIA abuses the Fed did nothing about, but
also, for example, Barron's,
here.
And the Fed rubber stamped the merger.
Jump
cut to December 2024 when Cadence had to adjourn
its shareholders meeting, to try to "solicit
proxies from preferred shareholders in favor of
a proposal (Proposal 2) to authorize the Cadence
Bank board of directors to implement repurchases
of stock in accordance with Regulation H." Watch
this site.
***
December 30, 2024
Crypto into banking? Fintech LevelField Financial Inc.
withdrew its application seeking Federal Reserve approval to
acquire Burling Bank on Feb. 12, according to the central bank's
most recent H.2 release, but it plans to refile. The company
withdrew because it "did not yet have sufficient funds to close
the transaction," CEO Gene Grant II told S&P Global Market
Intelligence via email. But LevelField plans to refile the
application in the near future after the completion of an
acceptable funding round, he added. "LevelField continues to
believe in the strength of the proposed LevelField Bank business
model and remains optimistic about the future working together
with the strong team at Burling Bank," Grant said. The
transaction was announced in February 2023. With the bank
acquisition, LevelField aims to provide depository and lending
services directly to cryptocurrency-savvy consumers, Grant
previously said. We'll see...
December
23, 2024
Cancer Survivor from Ground Zero Sues Bank of New York Mellon for ADA Discrimination
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Dec 16 – The Bank of New York Mellon has been
sued a former staffer who was fired, he said,
for disabilities incurred from a 9/11 related
cancer.
Seiran Salimov filed suit in the U.S. District
Court for the Southern District of New York on
December 16; Inner City Press which closely
covers the SDNY found it in the docket.
Salimov complaint recounts how, while he was a
BNY senior programmer analyst, he was diagnosed
with 9/11 related cancer.
He
asked for an accommodation but BNY questioned
it, finally firing him on June 26, 2023. He got
an EEOC Notice of Right to Sue and filed the
suit.
The
case is Salimov v. Bank of New York Mellon
Corporation, 1:24-cv-9596 (Unassigned)
***
December
16, 2024
Tornado Cash Roman Storm Trial Still April 14 2025 as His Lawyers Say May Appeal to Sup Ct
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Dec 9 – Roman Storm is charged using
his cryptocurrency mixed Tornado Cash to help
launder money for North Korea's hackers in the
Lazarus Group.
On
September 6, 2023 he was arraigned before U.S.
District Court for the Southern District of New
York Judge Katherine Polk Failla. Inner City
Press was there - thread:
Cash
helped North Korea's hackers Lazarus
Group...There will be discovery from
GitHub
On
December 5, Judge Failla docketed the trial
schedule: "SCHEDULING ORDER as to Roman Storm,
Roman Semenov. It is hereby ORDERED that the
following trial schedule will be in effect:
Trial will be set to begin on September 23,
2024, at 9:00 a.m." Full scheduling order on
Patreon here
On
March 29, 2024, Storm through counsel submitted
motions to suppress and to compel discovery,
including into MLATs with The Netherlands, and
FinCEN and OFAC communications. Memo/motion on
Patreon here
On
July 5, a court holiday, Storm's lawyer filed an
opposed request for a delay into 2025 of the
trial: "We write on
behalf of our client Roman Storm to respectfully
request that the Court grant a continuance of
the trial date from September 23, 2024 to late
January or February 2025." Letter on Patreon here.
The
US on July 9 filed opposition - just as in the
Samouri Wallet case a letter from Senator Lummis
and Wyden that cites
theTornado Cash case, letter now on Patreon,
with Samouri story, here.
On
July 12, Judge Failla did delay the trial, but
not as far as Storm requested: "trial in this
matter is scheduled to begin on 12/2/2024 at
9:00 a.m."
On
September 26, Judge Failla denied Storm's
motions, from the thread:
SDNY
Judge Failla is about to start reading out
(long) decision on motions to compel and
dismiss. Spoiler alert: she is denying both.
Judge: The pre-trial discovery is government by
Rule 16...
Brady
did not create a Constitutional right to
discovery. Mr. Storm's request are too
speculative, saying "may," "may" and "may." He
does not connect the dots.
Judge
Failla continues: I reject the void for
vagueness argument... Courts should be cautious
when assessing vagueness arguments. Consider US
v. Howtar (sp)
Judge
Failla: Mr. Storm was arguing that that
statutory definition of financial transaction is
vague. I reject that. The court finds that the
statute gave Mr. Storm adequate notice. He
marketed Tornado Cash as a way to conceal, he
had notice is was illegal
Judge
Failla: So, the motions are denied. I think that
is all I need to do today. We have a trial date
On
October 10, a hearing Inner City Press covered,
from the thread:
oral
argument on prosecutors' motion to compel
pre-trial disclosuresJudge Katherine Failla:
When will the government be producing 3500
material? Assistant US Attorney Nathan Rehn: We
have been trying to reach a global agreement on
pre-trial disclosures. Judge: Is there a world
in which you would not disclose until after
testimony?
AUSA:
We would hope not- Judge: Mr. Rehn, we're here
because you haven't worked that out. It is
possible I could propose a schedule for 3500
production? AUSA: There is precedent that the
government cannot be ordered to go faster than
the statute Judge: I know that
Roman
Storm's lawyer: If they delay on the 3500
material, we'll want more time to make advice of
counsel disclosure. Judge: I am uncoupling those
two issues. Before ruling, I spoke with other
SDNY Judges including, about the Eisenberg
trial, with Judge Subramanian
Judge:
I have considered Judge Kaplan's ruling on
Bankman-Fried... Last minute tricks, at least
they didn't for Bankman-Fried. We'll do Daubert
hearings in November in the same week as the
final pre-trial conference. We are adjourned.
On
November 1, Inner City Press covered the
proceeding and first reported the new trial
date: April 14, 2024, here.
Then: "proceedings held before Judge Katherine
Polk Failla: Telephone Conference as to Roman
Storm held on 11/1/2024. Defendant Roman Storm
present... Trial in this matter is adjourned to
4/14/2025
On
December 9 there was a status conference; Inner
City Press went and live tweeted, thread:
All
rise! Judge Failla: How do you plead? Roman
Storm: Not guilty. Storm's lawyer: We're
requesting reconsideration. AUSA: 2d circuit,
mandamos was denied. Judge Failla: I didn't
know. Last week I was in California at Judicial
Conference, hearing budgets are bad
Defense:
We want 20 pages, then ten on reply. Judge
Failla: Our local rules are moving toward word
count, not pages. Defense: We are
considering taking the mandamos to the Supreme
Court. Judge Failla: Note this, "Judge
laughs." Defense: We know it's a long shot
Judge
Failla: I've been vindicated twice at the
Supreme Court, I hope my batting average stays
high.
The
case is US v. Storm, et al., 23-cr-430 (Failla)
***
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December
9, 2024
In Virginia Disparate TowneBank Wants Village Bank Ignoring HMDA Data and Linkbank Link
by
Matthew R.
Lee, Patreon Substack
FEDERAL COURT, Dec
4 –
In Virginia, a bank is trying to move into the
Richmond area via merger, with a disparate
lending record. Fair Finance Watch with Inner
City Press on the FOIA has filed a timely first
comment on, the Application by TowneBank to
acquire Village Bank & Trust.
But consider ChoiceOne's disparate lending
record:
In
Viginia in 2023 - in HMDA data not yet taken
into account in any CRA exam - Towne Bank based
on its marketing made 1282 mortgage loans to
whites, and only 192 loans to African Americans.
Meanwhile it denied 43 applications from African
Americans, and only 64from whites. It should be
referred to DOJ.
In
North Carolina in 2023 Towne Bank based on its
marketing made 1107 loans to whites, and only 80
loans to African Americans. Meanwhile it denied
10 applications from African Americans, and only
92 from whites.
In Maryland in 2023 Towne Bank based on its
marketing made 1172 loans to whites, and only
366 loans to African Americans. Meanwhile it
denied 30 applications from African Americans,
and only 40 from whites.
The
new Merger Guidance should be applied - that is
a test case.
TowneBank
filed a response on December 4, by Troutman
Pepper's Seth A. Winter who claims data
documenting HMDA data has nothing to do with a
merger - he should know better, since he represented
Linkbancorp which was forced
to implement a lending plan after Inner City
Press documented similar disparities. It is a
bad faith response.
Why
would regulators even consider approving this
merger? Watch this site.
***
December
2, 2024
In SBA Fraud Case Shin Got 14 Months Bid to End Supervision Denied But Travel Allowed
By
Matthew Russell Lee, Video, Alamy
photos
SDNY
COURTHOUSE, Nov 25 – Noah Bank's Edward Shin was
on arrested for defrauding the U.S. Small
Business Administration on May 29, 2019 and
would, it was said, be presented later on May 29
before Magistrate
Judge James L. Cott in the
U.S. District Court for the
Southern District of New York.
Inner
City Press after reporting the arrest
went the SDNY Magistrate's Courtroom 5A and
was told Shin would be
presented at
some undefined
later hours.
But with the door
to 5A locked at 4:30 pm,
Inner City Press was told
Shin "has not been
presented, there are no
terms. Tomorrow is
more likely." And later, as
Inner City Press waited
in front of the locked
door, staff
emerged with a more
specific
prediction: 2 pm
May 30.
In fact it
happened
slightly before
then. Here are
the terms of Shin's
release:
"Surrender
travel
documents and
no new
applications; travel
restricted to
SD/EDNY, DNJ,
EDPA.
$1 Million
bond secured
by $25,000
cash and
signed by two
co-signors
(condition to
be met within
a week)." And,
interestingly,
"Alcohol
testing /
treatment."
Inner City
Press has been
contacted
by those
covering Shin
well before
this, who said
that Shin
"threatened to
kill a
borrower [and]
was
sued for
reneging on a
board control
deal."
Then
on February
12, 2021
leading up to
a trial
scheduled for
August 16,
Judge Woods rejected
many of Shin's
motions in limine
- evidence
will come in. (One
motion was
denied as moot,
excluding six
loans, which
was a win for
the defense).
Jump cut to
April 25,
2022. The case
was
re-assigned to
Judge John P.
Cronan, who has set trial
for April 26.
On the eve of it
the US put in
SBA
documents
about loans
to produce
companies,
offering to
redact
some.
On
November 7, Judge Cronan denied Shin's
application, saying there was no reason to
change his previous decision: "the Court
declines to terminate Defendant Edward Shin's
period of supervised release. This denial is
without prejudice to the Probation Office, Shin,
or the Government making another application for
early termination in the future if appropriate.
The Clerk of Court is respectfully directed to
close Docket Number 273. So Ordered. (Signed by
Judge John P. Cronan on 11/7/24)"
On
November 25, Judge Cronan approved Caribbean and
South Korea travel for Shin: "ENDORSEMENT...The
request is granted. Mr. Shin may travel to Fort
Lauderdale, Florida and Barbados from December
5, 2024 to December 21, 2024. Mr. Shin may also
travel to South Korea from December 29, 2024 to
February 5, 2025. (Signed by Judge John P.
Cronan on 11/23/24)."
The
case is USA v. Shin, 1:19-cr-552 (Cronan).
Watch
this site.
***
November
25, 2024
In Sudan Case BNP Paribas Was Sued in 2016 Now Case Proceeds With Administrator
By
Matthew Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY
COURTHOUSE, Nov 18 – BNP Paribas was sued, and
raised as part of its defense the laws of
Switzerland and of Sudan.
On
November 5, 2020 U.S. then-District Court for
the Southern District of New York Judge Alison
J. Nathan held an oral argument. Inner City
Press covered it.
The
case involves BNP violating Sudan sanctions, and
the mass killing of civilians in Darfur and
elsewhere by the then Omar al Bashir government,
for which BNP claims to bear no responsibility.
Going back from the docket, neither the
complaint nor the amended complaint are
available to the public.
But
the Rule 44.1 notice of issues of foreign law
is.
Jump
cut to September 9, 2022, after Judge Nathan
ascended to the Second Circuit Court of Appeals.
The case was reassigned to District Judge Alvin
K. Hellerstein, who held a proceeding. Inner
City Press again covered it.
Now the parties described to District Judge
Hellerstein how the case is being processed by
Magistrate Judge Jennifer E. Willis. Judge
Hellerstein mulled when and where he will come
in - on class certification and Daubert motions,
he proposed. The response was that those are
intertwined.
Judge Hellerstein said to proceed before
Magistrate Judge Willis, then return to him on
with a proposed agenda and schedule.
On
May 5, 2023 the case convened again, and Inner
City Press was again there. Now there is new
bloodshed in Sudan - but it was not mentioned,
not only. There was discussion of Daubert
motions, a summary judgement briefing schedule
moved from August to September 8 due to
"vacations and kids," as one of the lawyers put
it. No mention of kids currently in Sudan, nor
those left abandoned by largely European
countries.
On
November 18, 2024 the lawyers were back before
Judge Hellerstein, but for a break for two
criminal cases. Judge Hellerstein has said the
class is all refugees or asylees admitted by the
US who formerly lived in Suden or South Suden
between Nov 4, 1997 and December 31, 2021.
Appointed as administrator is Epid Class Action
and Claims Solutions.
Inner
City Press will continue to cover the case - and
the country.
The case is Kashef et al v. BNP Paribas SA et al., 16-cv-3228 (Hellerstein / Willis)
***
November
14, 2024
Guilty Verdicts in Hwang Trial For Archegos $34B Meltdown Now He Wants No Jail Time
By
Matthew Russell Lee, Patreon Substack
SDNY
COURTHOUSE, Nov 8 – In the wake of the
Archegos meltdown, the other shoe dropped on
April 27, when the US Attorney for the SDNY
unsealed and indictment charging Bill Hwang
Patrick Halligan, Archegos’s CFO with
racketeering conspiracy, securities fraud, and
wire fraud offenses.
Inner
City Press went to the SDNY press conference to
ask, What about Credit Suisse and Nomura and
people in those banks? What about the massive
family office loophope to the Investment
Advisors Act of 1940? This has come up in the
OneCoin fraud case, on which the Office used
perjured testimony and now agrees to delay after
delay.
Damian
William referred obliquely to Hwang doing it in
the dark, but otherwise the issue - which is
addressed by a pending bill in Congress - did
not come up. Nor did Lisa Monaco, present in New
York for the presser, address it.
On
June 1, newly assigned District Judge Alvin K.
Hellerstein held a conference in the case. Inner
City Press attended and live tweet it here
(and asked defense counsel a question later, here).
Thread
here.
And
after, stand-up here,
short Q&A here.
On
June 20, 2023 Judge Hellerstein
pushed the trial back: "Trial in the
above-captioned criminal matter, by request of
all parties, is adjourned from January 9, 2024
to February 20, 2024 at 10:00 a.m., in Courtroom
14D. The Final Pretrial Conference will be held
on February 14, 2024 at 2:30 p.m. Time is
excluded in the interest of justice from January
9, 2024 to February 20, 2024 pursuant to 18
U.S.C. § 3161. SO ORDERED (Signed by Judge Alvin
K. Hellerstein on 6/20/2023)."
On
July 27, Hwang wrote in seeking approval of
subpoenas to Goldman Sachs, Morgan Stanley, Bank
of Montreal, Credit Suisse, UBS, Nomura, MUFG,
Mizuho, Macquarie, Jeffries and Deutsche Bank,
to show he did not "use his lawfully executed
swaps to artificially impact the prices of the
underlying stocks."
Jump cut to November 14, 2023 when Judge Hellerstein held an oral argument on the subpoena requests. Inner City Press attended, in mask, and tweeted, threadette:
Hwang
is here at defense table, with COVID mask and
foyr lawyers at table, one behind.
Judge
Hellerstein: Manipulation for manipulation is
meaningless. How was it intended to make money?
When? There are many different ways to hedge.
I'd like to see them narrowed
Berke:
Your Honor, you've done a lot of cases, but this
is the 1st one in which DOJ is charging
manipulation of swaps
Judge:
It's hard to defend against manipulation. Mr
Berke deserves a discussion. US v Nixon provides
the boundary.
Berke:
Thank you
And well he might say that - it seemed the
defense won this round. He mocked what he called
the prosecution's theory of "pump and brag,"
that Hwang did it to brag he'd built a family
office into a major firm.
On
January 3, 2024, still mostly masked, Judge
Hellerstein said the proposed experts are
qualified, that sufficient notice is the issue.
He said he will follow Judge Jed Rakoff's
decision in US v. Mrabet, which Inner City Press
also covered. At the end Judge Hellerstein
said, with a laugh, Don't settle this case, I
want to try it.
More
details on Substack here
On
May 1, 2024, the US Attorney's Office wrote in
to specify that at trial they intend to put
forward evidence about Archegos' predecessor
Tiger Asia, including that the SEC banned Hwang
from acting, among other things, as an
investment adviser.
On
May 6, Halligan's counsel wrote in that the
evidence should not be admitted at trial, as
little of it involves Halligan but he would be
prejudiced by it.
On
May 15 in the trial, Mr. Marks of Operations
testified about reports only to Bill and
Patrick, then Mr. Jones about flying from Dallas
amid the meltdown. Thread here
On
May 21, the US insisted that evidence of Hwang's
"decision not to reimburse employees for lost
deferred compensation" should remain in evidence
before the jury."
Full
letter on Patreon here.
On
May 22, Inner City Press live tweeted cross
examination of cooperator Becker, here.
In the midst of it, an announcement by Judge
Hellerstein of the birth of a baby, and applause
in the courtroom (it's in the thread).
On
May 23, Becker continued - from the thread:
Becker
is asked about his message, "Whatevs, we'll just
roll with it."
Counsel:
Turning to your lost vacation days, Mr. Becker,
you felt you had never worked harder than at
Archegos, isn't that true? Becker: Yes.
Counsel:
You had 3 weeks of vacation - couldn't carry it
over and you were angry, right? Becker: Correct.
Halligan's
lawyer: You didn't want Mr. Halligan involved in
your project, did you? He called you careless-
Judge
Hellerstein: Haven't we gone over this? It's
done. Finished. Halligan's lawyer: You felt he
didn't show appreciation Judge Hellerstein: Move
on
Now
re-direct: AUSA: Mr. Becker, Mr. Berke didn't
show you this sheet, did he? Objection!
Overruled. Becker: He didn't.
AUSA:
You were asked some questions about
conversations with Mr. Halligan. Why was it so
frantic? Let me off this March 23 chat, 3745
Judge
Hellerstein: Jurors, have a good weekend.
[Jurors leave] Defense: Can we discuss schedule
for next week? Judge: Tues and Wed 10 to 5.
Can't say about Thursday. Government, how are we
doing?
AUSA:
We expected Becker 1 week, on schedule
Judge
Hellerstein: Done in 2 weeks? AUSA: That's
aggressive. Adjourned.
On
May 28, the US Attorney's Office filed a letter
seeking permission in advance to ask "what if
you had known" questions of the type blessed by
the 2d Circuit in US v. Cuti (2013), starting
with Bank of Montreal's Joseph Boccuzzi on May
29. Letter on Patreon here
On
July 10, after Inner City Press monitored the
courtroom and lawyers' answers to jury
questions, at 4 pm, live tweeted the (guilty)
verdicts, thread:
Now
in US v. Hwang courtroom, Hwang has moved next
to his lawyer Berke. All rise! Judge
Hellerstein: We have a note. It reads, "The jury
has reached a verdict." Call them out. Jury
coming in! [Hwang has his hands folded in front
of him]
Judge
Hellerstein: Ms. Jones, please take attendance.
[12 names are read out, all say present] Judge
Hellerstein: Ms. Jones, please take the verdict
from Ms. Pope for my inspection.
Judge
Hellerstein: Ms. Jones, please return it to Ms.
Pope and ask her to sign it, as foreperson.
Please date it. Today's the 10th and the time,
4:34.
Ms.
Jones, take the verdict please. Ms Jones: how do
you find Defendant Hwang? Foreperson (softly)
Guilty
Judge
Hellerstein: For both Mr. Hwang and Mr.
Halligan, poll the jury. Ms. Jones: Count 1,
RICO as to Hwang, guilty. Is that your verdict?
[15 times yes] Ms. Jones: Count 1, RICO as to
Halligan, guilty. Is that your verdict? 15 Yes
Count
3, Market Manipulation, Viacom CBS - Guilty. Is
that your verdict? All say Yes - 15
Count
4, Market Manipulation, Discover Communication,
Guilty. 15 Yes.
[US
v. Hwang and Halligan] Count 5: Guilty. Count 6,
GSX, Guilty. Count 7, IQI... Hwang, NOT Guilty.
15 confirm. Count 8, Guilty. 15 yes. Count 9,
Guilty; 15 yes. Count 10, Securities fraud,
counterparties. Hwang, Guilty. 15 yes.
[Verdict
sheet will go on ECF, we'll screenshot it] Judge
Hellerstein: Jurors I discharge you - you even
fought to keep your place on the jury.
[Jurors leave] Judge Hellerstein: It's been a
difficult trial. Motions due in 14 days.
Sentencing date Oct 1, 10 am
Hwang's
lawyer Berke: Due to some of the issues in the
case could we have November? Judge Hellerstein:
October 22. Berke: We may seek an adjournment.
How about December? Judge Hellerstein: Too long.
October 22 at 10 am.
Judge Hellerstein: Bail? AUSA Thomas: The government has no application [not asking for remand or any changes]
Judge
Hellerstein: Sentencing October 28, now, a
Monday, at 2:30 pm. Adjourned
It
was delayed. On November 8, Hwang's lawyers
wrote in asking for a "non-custodial" sentence
in a 70 page memo, citing among other things age
and health.
Back on March 21, 2023 Judge Hellerstein held an hour and a half proceeding in which he denied more than a dozen motions by Team Hwang. Inner City Press was there and live tweeted, thread here.
More
including on Halligan on Substack here.
Later - after re-up
of book
and talk to NYU Journalism School, here
and here
- in the SDNY Magistrate a defendant was
detained until trial, charged as a felon in
possession. We'll have more, much more, on this.
November
11, 2024
Mashinsky of Celsius Wins Order to Depose 4 Witnesses But Not to Delay Trial Nor Dismiss
by
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Nov 7 – After
Alexander
Mashinsky of
Celsius was
arrested on
July 13, US
Attorney
Damian
Williams held
a press
conference,
and Inner City
Press asked
him to explain
his
thinking in
agreeing to
release on
bail for Sam
Bankman-Fried
but demanding
and
obtaining
pre-trial
detention of
Avi
Eisenberg.
US
Attorney
Williams
responded that
every case is
different.
Inner City
Press asked if
his office
would be
seeking the
detention of,
or agreeing to
release,
Mashinsky. He
declined to
say either
way, saying
you will soon
see.
On
September 13,
Mashinsky's
lawyers put in
a memo - and
56 sealed
exhibits, see
here
on Patreon -
asking for six
witnesses
(Yarden Noy,
Yaron Shalem,
Ron Sabo,
Johannes
Treutler,
Daniel Leon,
and named
co-defendant
Roni Cohen
Pavon) and
noting that
the US
Attorney's
Office
Pimintel
letter put his
guideline
sentence if
convicted
trial as 115
years.
On
November 7, an
oral arguments
(Inner City
Press live
tweeted here)
at the end of
which Judge
Koeltl granted
a motion to
preserve the
testimony of /
depose four
witnesses, but
not so as to
delay the
trial;
Mashinsky's
motion to
dismiss two
counts was
denied. Later
Inner City
Press saw him,
along carrying
two legal
briefs, going
into Pre-Trial
Services on
the 5th floor.
More
on Substack here
The case is US
v. Mashinsky,
et al.,
23-cr-347
(Koeltl)
***
November
4, 2024
Webster Bank Is Sued for Unscrupulous Loans on NJ Property by BankESB in SDNY
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Oct 31 – Webster Bank is being sued for
unscrupulous loans, in the U.S. District Court
for the Southern District of New York which
Inner City Press closely covers.
The lawsuit, by the former Easthampton Savings
Bank now known as BankESB, was assigned out to
SDNY District Judge John G. Koeltl on October
31, 2024. It states that Webster’s predecessor
pitched a participation to it in 2020 in a
leasehold office property in New Jersey clled
American Metro Center or AMC.
It says, "Webster has consistently mismanaged
the Webster loan." BankESB asks for recission
and $500,000.
The case is BankESB v. Webster Bank, N.A., 1:24-cv-8268 (Koeltl)
***
October
28, 2024
Turkey Halkbank
Not Immune 2d Cir Decides Again After Supreme
Court Now Back to SDNY
By Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Oct 21 – Turkey's Halkbank has
officially given up its strategy of refusing to
official appear in the US criminal case against
it, and on February 25, 2020 appeared and agreed
to be indicted. Inner City Press live tweeted it
here
and below.
On
April 12, 2021 with the case stayed pending
appeal, a three-judge panel of the Second
Circuit heard the arguments. Inner City Press
live tweeted it, here: [& fast podcast here]
On
October 22, 2021, the Second Circuit ruled that
Halkbank is NOT immune. And see below.
On
December 21, Halkbank
filed more than 30 pages with
the Second Circuit, seeking a
stay pending appealing to Supreme Court.
Full filing
on Patreon here.
Halkbank
was indicted for Iran sanctions violations and
money laundering in the U.S. District Court for
the Southern District of New York.
Jump
cut to April 8, 2024 when DOJ in a civil case
filed a motion to intervene in and stay, and a
request to move the civil case to Judge Berman
with the criminal case, in Hughes, et al. v.
Halkbank, et all, 23-cv-6481. In that
case, 151 Americans are suing for death or
injuries by Al Qaeda in Afghanistan from 2012 to
2020 and in Syria 2012 to 2013.
April
8, 2024 letter on Patreon here
On
October 22, after going up to the Supreme Court,
the Second Circuit ruled "because Halkbank is
being prosecuted in the United States for its
alleged criminal activity related to its
commercial activities as charged in the
indictment, we defer to the Executive Branch’s
determination, through the U.S. Department of
Justice, that Halkbank should not be afforded
immunity in this case. Accordingly, we AFFIRM
the order of the district court and REMAND for
further proceedings consistent with this
opinion."
The
criminal case is US v. Turkiye Halk Bankasi
A.S., 15-cr-867 (Berman) The appeal number is
20-3499
The
civil case in which DOJ has moved to intervene,
stay and consolidate is
Hughes, et al. v.
Halkbank, et all, 23-cv-6481
(Vyskocil)
October
21, 2024
Opposing Capital One FFW Watch Raised Case of Customer Info to Meta Fed Thumbs Nose
SOUTH
BRONX, Oct
18 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying.
On
September 4, Fair Finance Watch and Inner City
Press submitted supplemental opposition to the
regulators, including about a newly filed class
action that "demonstrates Capital One's
outrageous, illegal, and widespread practice of
disclosing—without consent—the Nonpublic
Personal Information1 and Personally
Identifiable Financial Information2 (together,
“Personal and Financial Information”) of
Plaintiffs and the proposed Class Members to
third parties, including Meta, Google,
Microsoft, DoubleClick, NewRelic, Adobe,
Everest, Skai/Kenshoo, Snowplow, BioCatch,
Tealium, and possibly others."
October
14, 2024
Toronto Dominion for Money Laundering Pays $3B First Horizon Denied Why Not Capital One
SOUTH BRONX, Oct 10 – Toronto Dominion had to walk away from its planned merger with First Horizon, due to then unspecified regulatory issues. Now on October 10, the Federal Reserve has announced it had "fined Toronto-Dominion Bank $123.5 million for violations related to anti-money laundering laws. This action is being taken in conjunction with criminal and regulatory actions that are being taken by the U.S. Department of Justice, the U.S. Attorney's Office for the District of New Jersey, the Department of the Treasury's Financial Crimes Enforcement Network, and the Office of the Comptroller of the Currency. The penalties announced by the agencies total approximately $3.09 billion." Ah.October
7, 2024
Inner City Press Asks IMF of China Murky Loans Kenya Graft Review and Egypt Timing
by
Matthew Russell Lee, Patreon Book
Substack
NYC,
Oct 3– When the IMF
held its press briefing on October 3, Inner City
Press was able to ask the spokesperson three
questions: on Kenya and governance /
corruption review, on China's murky emergency
loans to lower income countries, and the 4th IMF
review of Egypt's program.
On
Kenya, what is the IMF's response to reported
pressure on Kenya to request an IMF assessment
of corruption and governance issues as part of a
push to unlock lending that has been stalled by
the shelving of tax hikes?
On
Egypt, can you confirm that the IMF has
postponed the fourth review of Egypt's economic
reform for the loan program to November?
What
is the IMF's response to US Treasury official
Brent Neiman saying, as to China, "we must make
sure the result is the expansion of transparent,
credible and on-budget financing flows or debt
relief to countries undertaking reforms, not
potentially damaging forms of lending"?
The spokesperson
Julie Kozack's replies
included that the timing on
Egypt hasn't changed, that a
list of countries in
governance review will be
provided - and it was, here,
including Cameroon
Q&A: Inner City Press Asks IMF of China Murky Loans (Neiman speech), Kenya Graft / "Governance" Review (1st video below) and Egypt 4th Review Timing - Story: https://t.co/1PKZwnR9Oy pic.twitter.com/IF4UQkMZSV
— Inner City Press (@innercitypress) October 3, 2024
and that the US's
- and others' - in put is
welcome, including in
connection with the Bretton
Woods organizations' 80th
birthday. More video
coming on IMF's
website.
***
September
30, 2024
After SBF 25 Years Caroline Ellison Asked for No Jail Time Gets 2 Years Minimum Security
SDNY
COURTHOUSE, Sept 24 – On the US v Sam
Bankman-Fried trial, hours after the guilty
verdict, a book was published: "Crypto Criminal:
The Conviction of Sam Bankman-Fried: As live
tweeted and investigated from inside the SDNY
courthouse by Matthew Russell Lee," audio/book here.
On March 28, 2024, Inner City Press live tweeted
his sentencing, to 25 years.
On September
9 cooperator
Caroline Ellison's
counsel filed
a letter
that "Ms.
Ellison seeks
leave to
redact the
names of certain
people. Counsel
for the
government
consents to
this request." Document on
Patreon here.
Late on September
9 Inner City
Press submitted
opposition to
sealing. Judge
Kaplan docketed the
filing on September
10. See here and,
on DocumentCloud,
here.
If
SBF's suretors were
unsealed, how
not these
eigth
supporters?
Just
before
midnight on
September
10 Ellison's
lawyers filed
a 60+ page
memo, with
redactions,
asking for...
no jail time,
time served.
Filing on
Patreon here.
On September
17, amid the
Sean Combs
detention
hearing, the
US Attorney's
Office filed
that "the
Government
intends to
move at
sentencing,
pursuant to
Section 5K1.1 of
the U.S.
Sentencing
Guidelines(the
“Guidelines”
or
“U.S.S.G.”),
that the Court
sentence
Ellison in
light of the
factors set
forth in
Section
5K1.1(a) of
the
Guidelines."
Letter on
Patreon here.
On
September 24
after praise
from the AUSA
and Judge, Ellison
was sentenced
to 24
months,
minimum security.
Watch
this site.
More
on X for Subscribers
here, Substack here
This case is US v. Bond, 24-cr-494 (Daniels)
We'll
have more on this.
***
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
23 2024
Mashinsky of Celsius Wants 6 Witnesses as US Estimates His Guidelines at 115 Years
by
Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, Sept 13 – On
Mashinsky Feb
15 Conflict
Hearing Set
After His
Lawyers Appear
for SBF
SentencingAfter
Alexander
Mashinsky of
Celsius was
arrested on
July 13, US
Attorney
Damian
Williams held
a press
conference,
and Inner City
Press asked
him to explain
his
thinking in
agreeing to
release on
bail for Sam
Bankman-Fried
but demanding
and obtaining
the ongoing
pre-trial
detention of
Avi Eisenberg
and Miles
Guo.
US
Attorney
Williams
responded that
every case is
different.
Inner City
Press asked if
his office
would be
seeking the
detention of,
or agreeing to
release,
Mashinsky. He
declined to
say either
way, saying
you will soon
see.
On
February 20
Inner City
Press
attended, thread
On
September 13,
Mashinsky's
lawyers put in
a memo - and
56 sealed
exhibits, see
here
on Patreon -
asking for six
witnesses
(Yarden Noy,
Yaron Shalem,
Ron Sabo,
Johannes
Treutler,
Daniel Leon,
and named
co-defendant
Roni Cohen
Pavon) and
noting that
the US
Attorney's
Office
Pimintel
letter put his
guideline
sentence if
convicted
trial as 115
years.
More
on Substack here
The case is US
v. Mashinsky,
et al.,
23-cr-347
(Koeltl)
***
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.'"
Now see
to what that
view would
expand to:
In
Pennsylvania in 2020 Republic Bank made 613
mortgage loans to whites and only 14 to African
Americans.
In New Jersey, insurgent George E. Norcross
III's stomping grounds - literally - Republic
Bank in 2020 made 1662 mortgage loans to whites
and only 67 to African Americans, the Home
Mortgage Disclosure Act data reseach by Fair
Finance Watch finds.
Meanwhile
in the court case, reviewed by SDNY-based Inner
City Press: "Defendant Republic First
Bancorp Inc. (“FRBK”), it is hereby ORDERED
that:
1.
The Parties are required to maintain the status
quo ... The Court may modify Paragraph 3 of this
Order at the request of any party for good cause
shown, following notice to all other Parties."
The order doesn't mention George Norcross - but
the story does. We'll have more on
this.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
April 18 – 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.
By Matthew Russell Lee, Patreon
SDNY
COURTHOUSE, April 8 – Turkey's Halkbank has
officially given up its strategy of refusing to
official appear in the US criminal case against
it, and on February 25, 2020 appeared and agreed
to be indicted. Inner City Press live tweeted it
here
and below.
On
April 12, 2021 with the case stayed pending
appeal, a three-judge panel of the Second
Circuit heard the arguments. Inner City Press
live tweeted it, here: [& fast podcast here]
On
October 22, 2021, the Second Circuit ruled that
Halkbank is NOT immune.
On
December 21, Halkbank
filed more than 30 pages with
the Second Circuit, seeking a
stay pending appealing to Supreme Court.
Full filing
on Patreon here.
Halkbank
was indicted for Iran sanctions violations and
money laundering in the U.S. District Court for
the Southern District of New York.
Jump
cut to April 8, 2024 when DOJ in a civil case
filed a motion to intervene in and stay, and a
request to move the civil case to Judge Berman
with the criminal case, in Hughes, et al. v.
Halkbank, et all, 23-cv-6481. In that
case, 151 Americans are suing for death or
injuries by Al Qaeda in Afghanistan from 2012 to
2020 and in Syria 2012 to 2013. The US
Attorney's Office writes that it relies on the
factual allegations in US v. Zarrab and facts
adduced at the trial of Attila.
April
8, 2024 letter on Patreon here
The
criminal case is US v. Turkiye Halk Bankasi
A.S., 15-cr-867 (Berman)
The
civil case in which DOJ has moved to intervene,
stay and consolidate is
Hughes, et al. v.
Halkbank, et all, 23-cv-6481
(Vyskocil)
by
Matthew Russell Lee, Patreon Substack
IMF,
April 4 – On Bitcoin and El Salvador, Inner City
Press at the International Monetary Fund on
April 4 asked Spokesperson Julie Kozack about
any linkage between an IMF program and reversing
the legal tender status of Bitcoin there.
Ms. Kozack praised some developments in El
Salvador, but said that addressing the risks of
Bitcoin are a "key element." Inner City Press
also asked about Ethiopia, Papua New Guinea and,
full circle, Sri Lanka. From the IMF transcript,
on El Salvador and Bitcoin:
Matthew
Russell Lee, Inner City Press: "on El Salvador,
some are saying that a program there is in some
way linked to possibly removing bitcoin as legal
tender status. I don't know if that's the
case. And just generally, what can you say
about El Salvador's progress and possible
program?"
IMF
Spokesperson Kozack: "IMF staff continue to
engage constructively with the Salvadorian
authorities with the objective of reaching an
agreement on an IMF supported program.
Discussions are focused on policies to
strengthen fiscal and external sustainability
and to boost productivity growth and strengthen
economic governance.
Addressing
risks arising from Bitcoin is a key element of
our discussions with the authorities.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
March 23 – The fintech Current has been sued for
discrimination by former employee Isabelle
Mitura. On March 22, 2024 the parties were
before U.S. District Court for the Southern
District of New York Judge Valerie E. Caproni.
Inner City Press was there, the only media in
the courtroom.
The
complaint alleges that Finco Services / Current
"Head of People" Sergiyenko described
Mitura as "an old Asian woman with no kids" to
CEO Stuart Sopp, "who expressed frustration at
having to interview too many Indians for the
Chief Risk Officer position."
While
Mitura took leave after a breast cancer
diagnosis, her job was given to a replacement
who "had built relationships within the company
while she was on leave" - and she was
terminated.
Now
Current's lawyers want all of her oncology
records. Judge Caproni said they can get some,
but not all. Fact discovery closes on July 19,
with another conference on July 26 at 10 am.
The case is Mitura v. Finco Services, Inc., et al., 23-cv-2879 (Caproni)
***
SOUTH
BRONX, March
22 – Capital One has applied to buy Discover, in
an anticompetitive deal that should be rejected
by regulators if they mean what they have been
saying. While they applied late March 20, as of
1 pm on March 22 there was no notice of the
Federal Reserve's or OCC's websites. Inner City
Press submitted second FOIA requests to each
agency. Public hearings should be held, not only
on antitrust but also lending disparities at
both companies.
On February 20 Capital One CEO Rich Fairbanks
bragged about communications he's had with the
regulators, then referred to "customary
regulatory approvals." Inner City Press
immediately submitted Freedom of Information Act
requests to the Federal Reserve and OCC for all
such communications. Both agencies confirmed
receipt.
But
still no records as of March 22, so this:
This
is a FOIA request for the entirety of Capital
One's applications for regulatory approval of
its Discover proposal, including all portions
for which Capital One has requested confidential
treatment, and all communications by your agency
with the banks since February 19. As of March 22
at 1 am, the Fed's most recent H2A is from March
15
As
documented by Fair Finance Watch, Discover Bank
in 2022 denied mortgage loans application from
African Americans more than twice as frequently
as those of whites.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site.
***
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, March 15 – 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," paperback
coming (in the morning?) for now, 200 page ebook
here.
Soft cover here.
"He
did not know then how it or he would turn out.
It could have been called, Crypto Houdini. But
it wasn't." And a second trial?
Well,
no. Past 6 pm on December 29, 2023 the US
Attorney Office wrote to Judge Kaplan "to
provide notice to the Court and the defendant
that it does not plan to proceed with a second
trial in the above-captioned matter." So no
evidence and cross examination about the
campaign finance and China bribe counts, no
getting to the bottom of who took the money. It
is known that officials in the Bahamas, whose
request to drop these charges DOJ cited in
severing them, took SBF's and FTX customers'
money.
SBF's
new lawyers Mukasey and Young's sentencing
submission was due Feb 27
Past
11 pm on February 27, SBF's memo posited his
sentencing guideline at 63 to 78 months and
asked for a sentence "that returns Sam promptly
to a productive role in society." Memo on
Patreon here
On
March 15, the US Attorney's Office put in a 100+
page memo, asking for a prison term of 40 to 50
years. US memo 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.
by
Matthew Russell Lee, Patreon Substack
SOUTH
BRONX / SDNY, March 7 – A year after the failure
of Silicon Valley Bank and Signature Bank, the
International Monetary Fund has warned of more
trouble, just as NYCB teeters. Inner City Press
on March 7 asked the IMF about it, video here.
The
IMF had said, "the high concentration of CRE
[commercial real estate] exposures represents a
serious risk to small and large banks amid
economic uncertainty and higher interest rates,
potentially declining property values, and asset
quality deterioration.”
Small
banks retain “exceptionally high CRE
concentration for which losses could compromise
their safety and soundness”, it added. Nearly
33% of US banks have commercial property loan
books which are so big versus their capital
buffers that they exceed regulatory guidance. So
where are the regulators?
Inner
City Press asked the IMF spokesperson, noting
the Mnuchin investment in NYCB (and imposition
of Joseph Otting as CEO).
IMF
Spokesperson Julie Kozack replied that the risk
is real and is being studied, with more to come
in the GSFR. Watch this site.
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, Feb 29 – With no public comment
period, New York Community Bank has been handed
the 40 branches of Signature Bank, to re-open
them as braches of Flagstar, which NYCB bought
in a proceeding delayed by fair lending
problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.SOUTH
BRONX,
Feb 23 – As US bank regulators talk about
working to increase the fairness of the
financial system, and closely scrutinizing
mergers and the spread of bad practices, banks
continue to assume they can combine.
Before this week's Capital One - Discover
proposal, and ABA lawsuit against the Community
Reinvestment Act regulation, there was
FirstSun Capital Bancorp of Denver and Dallas
saying it will merge with Homestreet, Inc. and
Homestreet Bank of Seattle, Washington.
On February 23 Fair Finance Watch with Inner
City Press on the FOIA filed with the Federal
Reserve: "FirstSun's flagship Sunflower Bank, in
Texas in 2022, made 694 mortgage loans to
whites, and only 41 to African Americans.
Meanwhile it denied 12 applications from African
Americans, and only 34 from whites.
This is disparate, and more disparate both than
the aggregate in Texas.
Nationwide in 2022, Sunflower Bank made 3059
mortgage loans to whites, and only 194 to
African Americans. Meanwhile it denied 49
applications from African Americans, and only
259 from whites.
For the record, on managerial resources and
otherwise, note that on September 27, 2023,
FirstSun Capital Bancorp, the parent company of
Sunflower Bank, Guardian Mortgage and First
National 1870 (collectively, “Sunflower”), filed
a notice of data breach with the Attorney
General of California... an unauthorized party
likely took advantage of the flaw in the MOVEit
software and downloaded copies of files
[containing] personally identifiable
information."
HomeStreet, meanwhile, is politely said to have
had a "tough" 2023.
FFW and Inner City Press have been deeply
concerned about the rush by the Federal Reserve
to rubber-stamp mergers by redliners, money
launderers and predatory lenders. This has been
killing the Community Reinvestment Act and so a
timely request public hearings.
By
Matthew Russell Lee, Patreon Maxwell
book
SDNY
COURTHOUSE, Feb 9 – Mendel
Zilberberg was indicted for
bank fraud while he was a
board member of Park Avenue
Bank. His trial was to start
on January 23, 2023 - but actually began
on July 5, 2023. Inner City
Press was there - all the way
to the verdict:
" JURY
VERDICT as to
Mendel
Zilberberg (1)
Guilty on Count
1,2,3,4,6." Sentencing
is scheduled
for November
29, 2023,
before Judge
Daniels.
Back on
January 11, 2023 U.S. District
Court for the Southern
District of New York Judge
George B. Daniels held an
in-person final pre-trial
conference. Inner City
Press went to cover
it.
But even as the
next defendant, in a gun case,
had his family setting up in
the gallery, in the well of
the courtroom Zilberberg's
lawyer Ben Brafman was
conferring with the
prosecutors.
When
Judge Daniels took the bench,
the parties asked for an
adjournment, in light of
20,000 pages of FDIC documents
just produced. No new trial
date was agreed. Instead, a
March 28 pre-trial conference
was scheduled.
Judge
Daniels asked about a related
loan, to Zilberberg's niece.
The
prosecutor emphasized that she
was a special education
teacher, and did not have a
business for the business
loan. Judge Daniels said it
might be cumulative, and/or
prejudicial.
Brafman
said the jury could be
confused by the issue of
taking advantage of a younger
relative. Judge Daniels asked
for a letter.
Brafman wrote in the
Loan 2, the Niece Loan,
"has little, if any,
probative value."
On March
21, Judge Daniels had
a final pre-trial conference
and largely agreed,
unless the door
is opened
during the
trial to this
loan. The
trial was
moved up to
July 5 for jury
selection.
On
April 10, co-defendant
Aron Fried who
pled guilty
submitted a
lengthy but
redacted
sentencing submission,
including on
medical
condition,
asking for a
below
guideline
sentence. But
how
much below?
On
April 13, the
US Attorney's
Office asked
for 30 to 37
months.
On
April 18,
Inner City
Press went to
Fried's
sentencing. There
were more than
a half dozen
supporters
in the gallery.
Judge Daniels
asked about
what Fried
knew, and
when. Fried
spoke of bone
cancer and
bad advice.
Judge
Daniels
sentencing
Fried to a
year and a
day. Lead
defense counsel
asked for home
confinement -
Judge Daniels
said no but
that he might
reconsider if
major
(presumably
negative) developments
on health
before the surrender
date. Defense
counsel asked
for a recommendation
of designation
to Otisville.
On July
5 the trial
began. Ben
Brafman told
teh jury to pay
attention to
his cross
examination of
the
cooperator,
and return
with a verdict
of not
guilty. Then
the US put on
the stand a
man who makes
prosthetic limbs and
who
sought a loan
from Park Avenue
Bank.
On July
6, the
prosecution put
on the stand
FDIC Examiner Todd
Goodman and
showed notes
and his and the
NYSBD's
meetings with
Park Avenue
Bank, about
loans in violation
of Reg O and
TARP
subpoenas. Zilberberg
was there.
On July 7,
the prosecution
put on a
witness
drilling down
into particular loan
applications which
Zilberberg had
pushed, based
on "high
credit score and
debt service
coverage ratio."
Some jurors' eyes
rolled. Elsewhere
in the SDNY
courthouse on
July 7 Judge Jed
Rakoff derided
mandatory
minimum sentences
and the trial
penalty they
impose. The former
doesn't apply
here - so would
the
latter?
On July
10, the charge
conference was
held, with the
AUSA asking to add
to the jury
instruction
about being
able to disregard
the testimony
of a witness
found to have
testified
falsely, but
Judge Daniels
saying such an
instruction
might go too
far.
And
then the
verdict: "
JURY VERDICT
as to Mendel
Zilberberg (1)
Guilty on
Count
1,2,3,4,6."
On August
11
Zilberberg's
counsel wrote
to Judge
Daniels that
he "will reply
on the record
and arguments
made as part
of his Rule 29
motion and
will not be
filing post-trial
motions in
this matter."
On
February 5,
2024, Zilberberg's
counsel wrote
in asking
for a sentence
of probation
with a period
of home
confinement -
then redacted. The
submission
does, however,
mention the
Binyan Adey Ad
organization,
and The
Menorah
Project of A
TIME.
Days
later, the US
wrote in
asking for a
sentence of 48
months. Watch
this site.
This case is US v. Zilberberg, 19-cr-802 (Daniels)
***
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX,
NY Feb 5 – When First National Bank of
Pennsylvania applied to the Federal Reserve to
buy Yadkin bank in North Carolina, Fair Finance
Watch challenged it on Community Reinvestment
Act and fair lending grounds.
The
Federal Reserve, as usually, rubber stamped the
merger. Now in February 2024 the
Justice Department had sued and settled with FNB
on fair lending grounds.
Inner City Press had wanted to ask DOJ about the Fed (including in its recent Patriot Bank action), but has been unable so far. Watch this site
February 5, 202424by
Matthew Russell Lee, Patreon Book
Substack
SOUTH
BRONX / SDNY, Feb 3 – With no public comment
period, New York Community Bank has been handed
the 40 branches of Signature Bank, to re-open
them as braches of Flagstar, which NYCB bought
in a proceeding delayed by fair lending
problems.
Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions. And it was delayed.
So, a fair lending rogue benefited from a bail out, or a bank with a former NYS Banking Superintendent Derrick Cephas, and Barney Frank, on its board of directors.by
Matthew Russell Lee, Patreon Book
Substack
SDNY EXCLUSIVE,
Jan 26 – The family of an American contractor
who died in his native Kansas after release from
kidnappers in Iraq has sued HSBC and other banks
- but nearly all of the case is sealed.
On January 26, 2024 a conference in the case was
held. The discussion was about an anonymous Doe
witness about information in the National
Iranian Oil Company.
He cannot be questioned about any of the details
of his work or where he got the information, for
fear of retaliation from Iran. His testimony -
sealed? - will be by Zoom, with him sworn in by
name before the Court, then again without name
before others.
Even the complaint in the case is sealed, as of
January 27. Inner City Press, which has
repeatedly asked the UN about its solicitude
toward Iran, will continue to cover the case
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Jan 19 – 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
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.
By
Matthew Russell Lee,
Patreon
Podcast Order
SDNY
COURTHOUSE, Jan 20 -- For scam crypto currency
OneCoin, Sebastian Greenwood who co-founded the
company with Ruja Ignatova was sentenced to 20
years in prison by U.S. District Court for the
Southern District of New York Judge Edgardo
Ramos on September 12, 2023. Inner City Press
was there and live tweeted, thread here
On
January 19 Mark Scott, convicted at trial,
submitted a heavily redacted sentencing
submission, asking for "no more than five years
of imprisonment." Inner City Press immediately
wrote in seeking to unseal. Later on January 19,
the US Attorney's Office asked for 17 years.
We'll have more on this.
Inner
City Press had sought the unsealing of
Greenwood's 33 sentencing letters but with him
opposing (citing a Mafia case) and the US
Attorney's Office inappropriately taking no
position, it was denied. Judge Ramos'
order is here.
On
October 10, Inner City Press filed Notice of
Appeal of the sealing of all of Greenwood's
letters. On December 21, represented by pro bono
counsel Brian D. Ginsberg of Harris Beech, the
request to extend the time to brief this
important court transparency appeal was
extended, by Second Circuit Judge Jose A.
Cabranes, to March 18, 2024, here.
***
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.
January 15, 2024 For Front Running at Morgan Stanley Passi Gets Deferred Prosecution Agreement Not a Felonby
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Jan 12 – Morgan Stanley conspired in
front-running from 2018 to 2021 and on January
12 got a non prosecution agreement and fine.
Senior
official Pawan Passi got a deferred prosecution
agreement and, to ensure no felony record,
formally pled not guilty before U.S. District
Court for the Southern District of New York
Magistrate Judge Robyn F. Tarnofsky. Inner City
Press live tweeted, thread:
All
rise! Milbank for Pawan Passi [3 lawyer at
defense table] Judge Tarnofsky: You are charged
in an information...We will address your
conditions of release. [Pre-Trial Services is
here, but no formal court reporter]
Judge:
You are charged with securities fraud. Passi:
Not guilty. Defense: We've entered a deferred
prosecution agreement. Judge: OK, no Brady [5f]
order.
DOJ,
giving thr DPA deal, says Passi promised sellers
of equity blocks MORGAN STANLEY would keep info
on their potential sales confidential, knowing
that he would disclose that info to buy-side
investors who usedthe info to trade in advance
of the block sales.
Judge:
DOJ can release you from supervision at any
time, do you understand? Passi: Yes. Judge: You
are released on your own recognisance. Control
date May 13.
It's
signed and done.
Deferred Prosecution Agreement on Patreon here.
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE, Jan 11 – When the International
Monetary Fund held its embargoed press briefing
on January 11, 2024, Inner City Press asked for
the IMF's view of the attacks on ships in the
Red Sea and on the US SEC's approval the day
before of spot Bitcoin EFTs.
The IMF spokesperson put on the screen the
Fund's Port Watch and provided statistics on hte
impact on shipping. After reiterating the IMF's
position on crypto that it has benefits as well
as making monetary policy more difficult, among
other things, she said the IMF is studying the
SEC's approval and may have more to say.
Inner City Press also asked what is the goal of the IMF's current mission in Sri Lanka. To assess the Program, she said, which last month disbursed $337 million.
Back
on September 28 Inner City Press asked the IMF
and crypto, mere days before the SDNY trial of
FTX's Sam Bankman-Fried on fraud charges:
"At
the G20, Deputy Managing Director Gopinath on
crypto-currencies said that 'the good thing is
there’s no talk of banning crypto I mean the
idea that crypto is tough to ban has kind of
gone through...It’s going to be much less of the
Wild West with better data and
transparency.' Can you explain more, and
separate give some/any examples of this better
data and transparency?" Video here
Spokesperson
Julie Kozack directed Inner City Press to the
Fund's recent paper; later in the briefing she
cited concerns at El Salvador and Bitcoin. Watch
this site.
***
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.
January 8, 2024 Netflix BitConned Has Crypto Rat Tripani Bragging Before Time Served SDNY Reviewby
Matthew Russell Lee, Patreon Book
Substack
SDNY COURTHOUSE,
Jan 6 - In covering cryptocurrency cases and
crimes in Federal court in New York, Inner City
Press is often asked to assist on possible
documentaries about OneCoin, Ruja Ignatova and
Sebastian Greenwood, SFB and maybe soon Do Kwon
and SafeMoon's Karony.
But one cryptocurrency true-crime is out this
month on Netflix: BitConned, about Ray Tripani
(the cooperator), Robert Farkas, and Sohrab
Sharma.
Inner
City Press covered their sentencings, and
Sharma's remand for violation of pre-trial
supervision. So now, its review of the Netflix
flick.
The
chutzpa of Tripani, giving interviews about
ongoing scams will awaiting sentencing, is
surprising.
They
show 40 Foley Square, then have an actress read
from the sentencing transcript. Tripani is said
to start a business lending at 50% interest -
illegal in New York State. But he's in
Florida.
Will we see him on a Violation of Supervised Release? Watch this site - and the flick.
***
by
Matthew Russell Lee,
Patreon Book
Substack
SDNY
COURTHOUSE, Dec 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," paperback
coming (in the morning?) for now, 200 page ebook
here.
Soft cover here.
"When
at last the Sam Bankman-Fried trial started on
October 3, 2023 with jury selection, after Sam
had been remanded to the MDC jail, the courtroom
on the 26th floor was full, and an overflow room
established on the 23rd. The author went
back and forth between them, and down to the
Press Room he'd been admitted to after six
months of covering cases here, after he was
thrown out of the UN...
"He
did not know then how it or he would turn out.
It could have been called, Crypto Houdini. But
it wasn't." And a second trial?
Well,
no. Past 6 pm on December 29, 2023 the US
Attorney Office wrote to Judge Kaplan "to
provide notice to the Court and the defendant
that it does not plan to proceed with a second
trial in the above-captioned matter." So no
evidence and cross examination about the
campaign finance and China bribe counts, no
getting to the bottom of who took the money. It
is known that officials in the Bahamas, whose
request to drop these charges DOJ cited in
severing them, took SBF's and FTX customers'
money. We'll have more on this. Letter on
Patreon here.
***
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.