Inner City Press' Bank Beat Reporter

  

     Welcome to Inner City Press’ Bank Beat.  We aim to scrutinize the industry, from high to low. Our other Reporters cover Community Reinvestment, the Federal Reserve, and other beats.   ICP has published a (double) book about the Bank Beat-relevant topic of predatory lending - click here for sample chapters, an interactive map, and ordering information. The Washington Post of March 15, 2004, calls Predatory Bender: America in the Aughts "the first novel about predatory lending;" the London Times of April 15, 2004, "A Novel Approach," said it "has a cast of colorful characters." See also, "City Lit: Roman a Klepto [Review of 'Predatory Bender']," by Matt Pacenza, City Limits, Sept.-Oct. 2004. The Pittsburgh City Paper says the 100-page afterword makes the "indispensable point that predatory lending is now being aggressively exported to the rest of the globe." Click here for that review; click here to Search This Site. Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere, which include bank-related topics.

Click here for Inner City Press' weekday news reports, from the United Nations and elsewhere. Click here for a recent BBC piece on Inner City Press' reporting from the United Nations. New: Follow us on TWITTER   BloggingHeads.tv  Click for March 1, 2011 BloggingHeads.tv re Libya, Sri Lanka, UN Corruption by Inner City Press.  Until next time, for or with more information, contact us.

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)

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June 9. 2025

For Tornado Cash Roman Storm Trial He Wants to Asks Jurors About Cryptos and NoKo DeFi

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)

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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)

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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)

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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) 

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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)

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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)

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April 7, 2025

Rocket Eyes Mr Cooper As Predatory Capital One Discover Merger Pends Amid FOIA Appeal

by Matthew R. Lee

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.

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March 31, 2025

Rap Sheet of Banks Fined in 2024 TD Citigroup Capital One as Fed Snubs BIS Antitrust Study

by Matthew R. Lee

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

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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)

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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)

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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

 

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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)

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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)

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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.

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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)

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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.

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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)

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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)

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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.

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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) 

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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.

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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 October 6, 2022, Judge Cronan sentenced Shin to 14 months "in prison for his role in defrauding a Pennsylvania-based bank (the “Bank”) while serving as its CEO.  SHIN was convicted after a three-week trial before U.S. District Judge John P. Cronan on all counts, which charged SHIN with taking bribes in connection with the Bank’s issuance of loans that were guaranteed by the United States Small Business Administration Judge Cronan sentenced SHIN to three years of supervised release and ordered SHIN to pay forfeiture in the amount of $5,506,050 and a $600 special assessment fee."

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.

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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)

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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.

The case is US v. Hwang, 22-cr-240 (Hellerstein)

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)

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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)

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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

by Matthew R. Lee

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."

Does the Fed care? On October 18, they wrote to FFW: "For this proposal, the initial public comment period was extended until July 24, 2024. 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." Unreal.

October 14, 2024

Toronto Dominion for Money Laundering Pays $3B First Horizon Denied Why Not Capital One

by Matthew R. Lee

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.

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September 30, 2024

After SBF 25 Years Caroline Ellison Asked for No Jail Time Gets 2 Years Minimum Security

by Matthew Russell Lee

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.

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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)

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September 16, 2024

After SBF Got 25 Years Salame Got 90 Months now Grilled if SDNY Assurance about Bond

by Matthew Russell Lee

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.

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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)

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September 2, 2024

After SBF Got 25 Years Salame Got 90 Months Despite Withdrawn Motion Judge Says Sept 12

by Matthew Russell Lee

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.

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August 26, 2024

After SBF Got 25 Years Salame Got 90 Months Then Motion now Michelle Bond Indicted

by Matthew Russell Lee

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."

More on X for Subscribers here, Substack here

August 19, 2024

In Suit Against Cairo Amman Bank For Hamas Briefing Due on Supreme Court Twitter Case

By Matthew Russell Lee

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)

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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)

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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

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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.

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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)

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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.

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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)

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July 1, 2024

In Menendez Trial FBI Account on M&T Bank Account and Gold in Chase Safety Deposit Box

by Matthew Russell Lee

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)

More on Substack here

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)


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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.

And so it goes. Watch this site.

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.

  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.

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)

***

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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.'"

  Then the FDIC to its credit release the names of other bidders, including Bank OZK, Little Rock, AR BankUnited, N.A., Miami Lakes, FL and Flushing Bank, Uniondale, NY. But it seems clear CRA was not considered at all. We'll ahve more on this.

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.     

The case is HILL v. COHEN (E.D. Pa. 2022), 22-cv-01924 (District Judge Paul Steven Diamond)



April 29, 2024 In In the Trump trial in lower Manhattan hattan which Inner City Press is covering (book here), on April 26 a witness previously from First Republic, now at Flagstar, testified as to how First Republic quickly opened accounts for Michael Cohen's LLCs. It's too's too late to call compliance on First Republic - but Chase? April 22, 2024 As Jane Street Sues Millennium Its Request to Seal Courtroom then Request for TRO Denied

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.

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. (H/T FT) Next up, July 15. Watch this site.

April 15, 2024 Turkey Halkbank Not Immune 2d Cir Decided DOJ Wants to Stay & Consolidate Civil 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)


April 8, 2024 On Crypto Inner City Press at IMF Asks of El Salvador Bitcoin Risk Called Key Element Here

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.

With respect to very recent developments, real GDP growth strengthened in 2023, driven by tourism and construction, and this happened on the back of robust remittances and a much-improved security situation.  Inflation came down, the current account deficit narrowed, and this was supported in part by lower global commodity prices.  With respect to fiscal policy, it was somewhat accommodative last year, driven by higher pension spending and public investment, although efforts were made to contain current expenditures and to regularize spending arrears."

April 1, 2024 FinTech Current Accused of Discrimination Is Sued for Firing Mitura as Cancer Docs Sought

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)

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March 25, 2024 Capital One Should Discover Merger Dead amid Stealth Application Inner City Press FOIAs Fed

by Matthew R. Lee

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. 

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March 18, 2024 On SBF 40 to 50 Years in Prison Sought by US As He Asks 63 Months Crypto Criminal Book

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.

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March 11, 2024 On Bank Failures Inner City Press Asked IMF about CRE & NYCB in Wake of Signature Bank

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.

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March 4, 2024 NYCB Was Gifted Signature Bank Barney Frank and Cephas on Board Now CEO Out

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.

 Jump cut to early February 2024 and NYCB's stock price fell by 60%, Valley National down too.

On February 29, NYCB's long time CEO Thomas Cangemi was out and NYCB said it had "identified material weaknesses." Why didn't the regulators identify them, as Fair Finance Watch protested Flagstar, and on Signature? We'll have more on this.
February 26, 2024 Amid Attack on CRA FirstSun HomeStreet Bid Hit on Lending Disparities and Data Breach

by Matthew Russell Lee

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.

February 19, 2024 4 Zilberberg Guilty of Bank Fraud After TARP Subpoena Shown Now US Wants 4 Years

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)

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February 12, 2024 Before FNB Settled on Fair Lending Its Yadkin Merger Was Challenged But Fed Approved It

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, 202424
NYCB Was Gifted Signature Bank Barney Frank and Cephas on Board Now Down 60% Rogues

by 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.

 Jump cut to early February 2024 and NYCB's stock price fell by 60%, Valley National down too. We'll have more on this.
January 29, 2024 Family of Kansan Who Died After Iraq Captivity Sues HSBC with Secret Iran Witness

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

January 22, 2024
US Sued Javice For Fooling JPMC Now Privilege Log by May for Oct 2024 Trial

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.

In January, after a hearing Inner City Press attended, Javice jaunty at the defense table, Judge Hellerstein docketed: "1. JPMC is to produce all documents in the possession or control of the custodians identified in Exhibit B to the transcript of argument, in all forms of media... 2. JPMC shall file by March 29, 2024 a complete and comprehensive privilege log consistent with the requirements of Local Rule 26.2. Defendants shall submit its objections directly to JPMC by April 30, 2024, and enter into conversations with JPMC to resolve issues of privilege. JPMC shall file a modified privilege log, reflecting the results of such conversations, by May 16, 2024. The Court will hear privilege challenges, via a privilege sampling procedure outlined in the transcript, on May 30, 2024 at 2:30 pm...  Final Pre-Trial Conference to be held, as previously set, on October 15, 2024 at 11 a.m.. trial, October 28, 2024."
In OneCoin Case Mark Scott Asks for 5 Years as US Wants 17 More Redactions Amid Appeal

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.

Watch this site. More on Substack here

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January 15, 2024 For Front Running at Morgan Stanley Passi Gets Deferred Prosecution Agreement Not a Felon

by 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.

The case is US v. Passi, 24-cr-__ (Torres)


On SEC Bitcoin ETF Inner City Press Asks IMF Which Says It Is Studying also Yemen Impact

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.

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January 8, 2024 Netflix BitConned Has Crypto Rat Tripani Bragging Before Time Served SDNY Review

by 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. 

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January 1, 2024 On SBF Now US Drops 2d Trial on China Bribe & Campaign Finance Charges Bahama$ Gambit

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.

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