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

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

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 21 –  Sam Bankman-Fried of FTX on August 11, 2023 for tampering with witnesses in the upcoming trial against him was ordered remained to jail.

 U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan heard from prosecutors that in Putnam County Correctional Facility, SBF could be given access to discovery material over the Internet.

Kaplan replied that he assumed the defendant would be in the Metropolitan Detention Center in Brooklyn, like fellow crypto-fraud defendant Miles Guo and others.

  On August 12 Inner City Press, which published the first book about SBF's remand ("Crypto Creeps," here, sample on Substack here) found the Bureau of Prisons notice, listing SBF in the MDC.

On August 14, the DOJ prosecutors docketed their superseding indictment against SBF, with Count 8, Campaign Finance, dropped ostensibly at the request of the Bahamas. Inner City Press immediately published the superseding indictment on its DocumentCloud here.

On August 25 SBF's lawyers wrote in again, saying two days a week in the holding cell with a laptop is not enough. Full letter on Patreon here

On September 15, the prosecutors objected to SBF's bid to ask jurors about, among others things, effective altruism. Full letter on Patreon here.

On September 21, Bankman-Fried listing as expert witnesses Thomas Bishop and Brian Kim was denied by Judge Kaplan, "completely failed to satisfy the requirements of FRCP 16." Full ruling on Patreon here.

On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread

More August 22 details on Substack here

More book sample on Substack here. Extended on Patreon here.

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 15–  Sam Bankman-Fried of FTX on August 11, 2023 for tampering with witnesses in the upcoming trial against him was ordered remained to jail.

 U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan heard from prosecutors that in Putnam County Correctional Facility, SBF could be given access to discovery material over the Internet.

Kaplan replied that he assumed the defendant would be in the Metropolitan Detention Center in Brooklyn, like fellow crypto-fraud defendant Miles Guo and others.

On September 15, the prosecutors objected to SBF's bid to ask jurors about, among others things, effective altruism, writing to Judge Kaplan that "Whether or not the defense can establish an admissible purpose for the defendant’s purported philanthropic commitments, voir dire is not the appropriate forum to suggest to the jury that the defendant was simply a good guy who wanted to make the world a better place." Full letter on Patreon here.

by Matthew Russell Lee, Patreon Book Substack

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Aug 30 –  Sam Bankman-Fried of FTX on August 11, 2023 for tampering with witnesses in the upcoming trial against him was ordered remained to jail.

 U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan heard from prosecutors that in Putnam County Correctional Facility, SBF could be given access to discovery material over the Internet.

Kaplan replied that he assumed the defendant would be in the Metropolitan Detention Center in Brooklyn, like fellow crypto-fraud defendant Miles Guo and others.

  On August 12 Inner City Press, which published the first book about SBF's remand ("Crypto Creeps," here, sample on Substack here) found the Bureau of Prisons notice, listing SBF in the MDC.

On August 14, the DOJ prosecutors docketed their superseding indictment against SBF, with Count 8, Campaign Finance, dropped ostensibly at the request of the Bahamas. Inner City Press immediately published the superseding indictment on its DocumentCloud here.

On August 25 SBF's lawyers wrote in again, saying two days a week in the holding cell with a laptop is not enough. Full letter on Patreon here

On August 29, the US filed that "the USMS has also offered to transport the defendant two days per week to the 500 Pearl Street cellblock... after only two prior sessions, the defendant declined this week to take advantage of this accommodation, citing dissatisfaction" - full letter on Patreon here

On August 30, Judge Kaplan held a hearing, resulting in him asking for a report on discovery review by Sepember 5, and telling the defense to ask for an adjournment of trial, if they're going to, by September 1. Inner City Press thread:

Judge Kaplan: We're address the motions in limine, the MDC situation, then the advice of counsel defense...  SBF's lawyer: We are getting discovery late, because of the speed with which the government chose to charge this case - Judge: It was the grand jury.

 SBF's lawyer: We chose an aggressive date for our client to clear his name. But we have a right to discovery. Judge Kaplan: You're complaining that the government got the information late, correct?

SBF's lawyer: They charged the case before they ask for these docsSBF's lawyer: Our client is in jail and can't search these documents as he could when he was out.  Judge Kaplan: Anything else? SBF's lawyer: Do they plan additional productions? This is too late in the game. Judge Kaplan: You haven't asked for more time.

Judge Kaplan: Would you like to ask [for more time]?

SBF's lawyer: Not at this time. 

Judge Kaplan: Has you gotten FTX's code base? SBF's lawyer: We got it from the debtors. But our client has to look at it online. Judge Kaplan: What about your 7 expert witnesses? Inner City Press @innercitypress · 58m SBF's lawyer: It's a bespoke code base -

Judge Kaplan: A what?

SBF's lawyer: A bespoke code base, best understood by those who designed it. Judge Kaplan: The code basis edits, did you ask the FTX debtors for it? SBF's lawyer: I have to go back and check my notesJudge Kaplan: Both sides proposed this schedule. I approved it.

Assistant US Attorney: Correct. The defense keeps asking for the Slack messages the FTX debtors have. We are transferring them. They are text searchable. Then there's the Google docs - they're his own

 AUSA Rehn: The FTX debtors tell us they have provided the defense to the code base edits, which they call the Commit history. We told them we had to processing the Slack messages from Gary Wang's laptop. There's no surprise. SBF's lawyer Everdell: There is...

 Judge Kaplan: I'm not going to be precluding any of them [from use at trial.] In the defense's letter of Aug 28, the accusations of broken promises are not at all accurate. In January the government made clear it would obtain information on an ongoing basis

 Judge Kaplan: These Google documents, the defendants had essentially unfettered access to from his parents' home until he was detained on August 11. Now the defense claims concerning an alleged deluge of documents is seriously exaggerated. I will not preclude

Judge Kaplan: If the defendant feels he needs a postponement, they can ask for it. I'm not saying I would necessarily grant it. They'd have to demonstrate a need - not just recount the number of documents. There's got to be more meat on those bones.

Judge Kaplan: The deadline for me to request a jury for an October 3 trial is September 7. So if you are going to move, do it by the end of this week. We already have a second trial date, March 11, held against the possibility the Bahamas grants consent.

Judge Kaplan: I'm not saying I would grant an extension. I'll just laying all the cards on the table, reserving all rights. Let's go to the MDC issues. Why doesn't he have the hard drives? And to the defendant, what's the problem with the battery life? Get a cord

 Judge Kaplan: I will want to hear from the defense why the defendant did not avail himself of the opportunity to come to the courthouse twice this week. AUSA Kudla? AUSA Kudla: We got approval for the laptop, we got it this morning and delivered it prior to this

 AUSA Kudla: The laptop can be used every weekend 8 am to 7 pm, Saturday and Sunday from 8 to 3. The hard drives, BOP Legal has agreed to procedures which will expedite this - they can give them in visiting hours. On battery life, it's faster for them to order it

 AUSA Kudla: He is able to review discovery 70 hours a week.  Counsel can visit him 7 days a week. This is not a pro se defendant - he has many lawyers & experts, who prepare around the clock.  Judge Kaplan: What about the Internet connection? AUSA: It's not 5G

Judge Kaplan: They complain about the cell block. What about the proffer room? AUSA Kudla: Using the Marshals there takes them away from other defendants.  SBF's lawyer Mark Cohen: Until now, there's been no Microsoft Office suite. With that, he can take it back

 SBF's lawyer: First time he showed up, there was only one hour charge on the battery. Judge Kaplan: You could be the ones to bring backup battery. SBF's lawyer: He wanted to bring papers, but no. There always something.  We have no faith. We want temporary release

Judge Kaplan: I'm not going to rule on this application now. I'd like a joint report Tuesday morning  concerning the exact situation at the MDC as of that time.  We'll see. If there'll be an application for more time by the defense it would best be made by Friday

Judge Kaplan: On advice of counsel, I'd like a joint proposal by the close of business Friday.  I'll resolve that over the weekend. I'm grateful for the zealous advocacy. Anything else? SBF's lawyer: Not from the defense. AUSA: We don't think adjournment needed

 Judge Kaplan: I would wish you a good weekend but that would be rubbing salt in an open wound. Have the best one you can. Adjourned.

On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread

More August 22 details on Substack here

More book sample on Substack here. Extended on Patreon here.

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Aug 23 – JPMorgan Chase bought a start-up called Frank, which claimed to have 4 million students signed up to file their FAFSA forms, for $175 million. Then Chase learned Frank had only 300,000 customers.

On April 4, 2023, Frank founder Ms. Charlie Javice was brought before U.S. District Court for the Southern District of New York Magistrate Judge Barbara C. Moses, represented by Quinn Emanuel. 

 The complaint quotes Javice messages with the engineers she hired to create the false data, and to enter in data she bought on the open market. To one of them, she is quoted, "We don't want to end up in orange jumpsuits."  

 In the tri-state, it is Westchester County Department of Corrections in Valhalla that dresses its inmates in orange. MDC Brooklyn uses beige; Essex County Corrections Facility in New Jersey uses yellow.

   In any event, white collar defendant Javice, who took on an appropriately or strategically contrite look on Worth Street still barricaded for the nearby state court arraignment of former President Donald Trump, was freed on $2 million bond, travel restricted to SDNY and EDNY and the Southern District of Florida, where she lives.

On May 18, Javice was indicted on bank, wire and securities fraud counts, and the case assigned to District Judge Alvin K. Hellerstein.

In June the US prosecutors sought to intervene in and stay the SEC's case against Javice. Inner City Press attended and covered the oral argument and now first reports that Judge Lewis J. Liman has granted the motions to intervene and stay, noting among other things that "Javice will have access to a vast amount of material usable in the civil case through the means of Rule 16 discovery in the criminal case. That discovery will include virtually all of the SEC’s investigative file. And it will include documents from at least 30 different third parties. She has not made a convincing case that she needs more document discovery to be prepared to move quickly in this case when the criminal case is resolved and the stay is lifted."

The (stayed) civil case is Securities and Exchange Commission v. Javice et al, 23-cv-2795 (Liman)

On July 13, Javice and her co-defendant were arraigned, and Judge Hellerstein asked why JPMC didn't find the fraud in due diligence. Inner City Press was there, thread:

All rise!

Judge: How do you plead? Javice: Not guilty. Judge: How do you pronounce your name? Javace? Javice: "Jah-veese."

Judge: And Mr Amar?

Amar (takes off COVID mask still required in this courtroom) Not guilty

 Judge Hellerstein: I'm puzzled, why didn't JP Morgan Chase figure this out during due diligence? AUSA: They created fake data. [Javice is shaking her head No, pink cardigan tied over her shoulders]

 Judge: Defense wants a delay? Spiro: The US is just regurgitating JPM Chase's civil case. AUSA: Mr Spiro is confused about Rule 16. Judge: Can you subpoena JPMC? AUSA: We'd have to see if that complies with Rule 17. Judge to AUSA: Why don't *you* subpoena JPMC?

 AUSA: We'll be getting it. Judge: We'll meet in 30 days. August 15 at 11 am.  I'll sent a motion schedule at that time. Adjourned.

On July 27, the prosecutors wrote it to say they are unavailable on August 15, and that the Court said it would be available on September 20. But Javice will not consent to exclude Speedy Trial Act time until then. Letter on Patreon here.

On August 23, Inner City Press was there. Thread:

 All rise!

AUSA: JPM Chase will finish producing its privilege logs by November. Then we could set a motion schedule.

 Javice's lawyer Alex Spiro: My client was arrested in April. We want their internal communications. Judge: I want a conference earlier, on privilege disputes. I'm not pleased with JPMorgan's delay.  AUSA: We'll let them know.

[Strange that JPMC doesn't have a lawyer here. There are 3 people in the gallery Inner City Press doesn't recognize]

 Judge: I want JPM's production complete by Oct 13, with privilege logs on a rolling basis... We meet Seot 26, at 2:30.

Spiro: Let's not have groundhog's day again. JPM seems to be driving the process. We need the names of record custodians

 AUSA: We can't tell JP Morgan how to respond to the subpoena. It seems the defendant wants to drive the bus--

Judge Hellerstein: I'll be driving the bus.

Co-defendant's lawyer Buckley: Speaking about the bus--

Judge Hellerstein: Let's not use that metaphor anymore.

AUSA: The Devil's in the details [Still using that one...] Spiro: We want a copy of the subpoena AUSA: They just keep demanding things Judge: What's new

 [Co-defendant's lawyer Buckley passes a note to Spiro, who doesn't read it. At least at first. Pause is taken so the two prosecutors can whisper; now it's read] AUSA: We don't share subpoenas due to grand jury secrecy Rule 6(e) Spiro: We can subpoena the subpoena

Judge: By Sept 1, defendants must make all their custodian demands Buckley: The government has given us copies of other subpoenas, and riders thereto- Judge: The text of the subpoenas by Aug 30

Judge Hellerstein: Chase will have to be here [in court] on Sept 26, the documents should be brought to the courtroom for my ruling... Joint letter by Sept 21 [He is driving the bus]