Monday, March 18, 2024
Sunday, March 17, 2024
Saturday, March 16, 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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SPAC Merger With Battery Company in 2020 Triggers Trial About Warrants in 2024 in SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, March 14 – Kensington Capital was formed as a SPAC in 2020, with a focus on the automotive sector.
In September 2020 it entered into an agreement to combine with QuantumScape Corporation, a make of lithium batteries for electric vehicles.
A dispute arose about the exercise of warrants, and a lawsuit was filed, then removed to the U.S. District Court for the Southern District of New York.
On March 14, 2024 still relatively new SDNY District Judge Margaret M. Garnett convened the parties to rule on motions in limine and Daubert (expert) motions, and to ask them questions. Inner City Press was there, the only media in the courtroom.
Professor Merritt Fox, she ruled, will not be allowed to opine if disclosures were correct or misleading. She surmised that at the upcoming trial, it will probably not end up being disputed that the plaintiffs were and are sophisticated investors.
Defense counsel asked if the trial would be in Judge Garnett's 40 Foley Square courtroom - previously that of now 2d Circuit Judge Nathan - or in the ceremonial courtroom in 500 Pearl Street. (That is reserved for the 9/11 cases, and celebrations of long time judges).
Judge Garnett said she didn't think there'd be that much media interest in the case, though, she said, she saw a familiar face in the gallery.
Inner City Press will continue to follow this and other cases.
This is Jakubiak v. QuantumScape Corporation. et al., 20-cv-10842 (Garnett)
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Bronxite Who Stole Checks Had His Own iPad Stolen by His Father Now Gets 18 Months
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, March 14 – A twenty year old from The Bronx who pled guilty to theft of checks from the mail while also facing gun charges was up for sentencing on March 14 before Judge Paul A. Engelmayer in the U.S. District Court of the Southern District of New York. Inner City Press was there, the only media in the courtroom.
Defense counsel said his client's mother is in jail on kidnapping charges; both of his brothers have case, with one being in the MDC Brooklyn jail. His written submission says when he visited his father in the Dominican Republic, the father stole his son's iPad and headphones.
Found where he was staying were dozens of stolen checks, some already being advertised for sale on Telegram.
Judge Engelmayer noted that USPS now advises people not to mail checks. What about new credit cards?
Judge Engelmayer sentenced the defendant to 18 months and said he hoped it would turn his life around.
The case is US v. Hernandez, 23-cr-564 (Engelmayer)
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For Crypto Defendant Avi Eisenberg Trial Code Is Law Arguments Circumscribed in SDNY
By Matthew Russell Lee, Patreon Maxwell Book
SDNY COURTROOM, March 14 - In the U.S. District Court for the Southern District of New York on December 27, 2022 a complaint was ordered unsealed charging Avraham Eisenberg with commodities fraud. He was arrested in Puerto Rico.
Inner City Press is covering the case(s), often as the only media in the Mag Court. Related Mag Court live-tweeted thread (more on Patreon here) vlog here
On January 9, Inner City Press came across the CFTC case against Eisenberg, just filed (still with no title in PACER) and put it out on Patreon here. The 21-page civil complaint is, as is often the case, more detailed...
On April 12, the US Attorney's Office filed a motion to intervene and stay the Mango Labs v. Eisenberg case, saying that neither side opposed the stay. The US seeks a "full stay until the conclusion of the parallel criminal case."
More on Substack here.
On June 14, Judge Berman held a proceeding to pick a trial date. Inner City Press covered it, thread here.
On July 27 Eisenberg moved to dismiss and to suppress; he submitted a 7-page affadavit including "In the evening of December 26, 2022, I arrived by airplane at The Luis Munoz Marin International Airport in Carolina, Puerto Rico, just outside of San Juan. 3. I disembarked the airplane with my luggage, a backpack and a suitcase. 4. I walked to the United States Customs counter. There, I was questioned by a United States Customs and Border Protection ("CBP") agent regarding the purpose of the trip I had just completed and general questions about the contents of my luggage. 5. The CBP agent directed me to a specific area several feet away from the Customs counter for additional questioning, and there another CBP officer opened the suitcase and backpack. I recall the agent pulling out the laptop and asking me to turn it on" - full affidavit on Patreon here.
Watch this site.
The complaint is on Patreon here
On February 3, Eisenberg in a yellow jump suit and feet shackled was brought into Magistrates Court at SDNY. He had, at least for the proceeding, the same lawyer Ethereum developer Virgil Griffith had in the North Korea sanctions case he pled guilty in: Brian Klein.
His parents were in the gallery and he looked at them, from two rows away. The prosecutor said that (unlike on Sam Bankman-Fried) they were seeking detention, and that he was consenting at least for now. Here is Inner City Press' thread.
There's more detail on Patreon here.
On February 14, there was a very brief arraignment, thread here
On November 2, 2023 Eisenberg's counsel wrote it seeking to push the December 4 trial to March or April. They said Eisenberg was moved from Essex to the MDC, and not allowed to bring his discovery material with him. The SDNY prosecutors acknowledge that's a problem, but want only a one-week delay to December 11 - or to April, citing an unrelated murder trial.
On November 3, it was moved to April 2024. And on November 21, Judge Amit Subramanian set out questions to be answered in early December, including "Whether any transaction involving USDC, even where it is used as a medium of exchange to purchase something that is not a commodity, is nevertheless a “contract of sale of any commodity” given the statutory and regulatory definitions (see Dkt. 37 at 5-6); Whether the indictment alleges manipulation as to the price of USDC, deceptive conduct affecting the USDC market, or deceptive conduct otherwise “in connection with” a contract of sale of USDC (see Dkt. 37 at 7–8); Whether the indictment alleges a manipulative device “in connection with . . . any swap” where Eisenberg was the party on both ends of the MNGO Perpetuals" - full order and questions on Patreon here.
On March 14, 2024, there was a hearing on motions in limine and experts. Inner City Press live tweeted here:
Ok - now at case of US v Avi Eisenberg.Judge is not yet on the bench. Avi Eisenberg, with his 3 lawyers, now has close cropped hair. 4 at the prosecution table, looking back. All rise! Judge: Mr Eisenberg, are you OK? A quiet Yes. Judge: We're hear on motions to exclude and in limine
Judge: The defense wants to call the prosecution claims "novel." AUSA: Mr. Eisenberg tweeted about US v Neil Phillips [which Inner City Press also covered on this site
Eisenberg's lawyer: We intend to object to the Phillips tweet. They're going to say he should have known Mango Markets was in the ambit of CFTC or SEC. AUSA: We're not going to get into which agency. Mens rea is the key
AUSA: We're getting toward a "code is law" inference...Question as to terms of service, in defi, who the duty is between... They will be arguing Mango Markets should have seen this coming Eisenberg's lawyer: What he did was not criminal.
Judge: Now the Daubert [expert] issues. Eisenberg's 2d lawyer: As long as Mr. James doesn't testify what things were designed to do, it's fine. AUSA: He will speak about how USDC was designed. Judge: We have these disclosures. I come at this from the civil side
Judge: No one is going to say the system was designed to do something. AUSA: We appreciate it. They have noticed that Mr. Sheridan is going speak to Mr. Eisenberg's intent - but he is not an expert in that. Judge: It'd be improper for him to testify about strategy
We will continue to cover the case.
In a parallel civil case, on February 24, 2023 there was an hour and a half argument in Mango Labs v. Eisenberg before Judge Lewis J. Liman. Inner City Press live tweeted...
Ultimately Judge Liman extended the TRO for two weeks, after for two letters by Tuesday, and said he will rule on March 10.
On March 10, Inner City Press was there, thread here
More with analysis on Substack here
Watch this site.
Inner City Press will have more on these cases.
The criminal case is US v. Eisenberg, 23-cr-10 (Subramanian)
The stayed CFTC case is Communities Futures Trading Commission v. Eisenberg, 23-cv-173 (Schofield)
The Mango Labbs civil case is Mango Labs, LLC v. Eisenberg, 23-cv-665 (Liman)
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In Sen Menendez Case He Wants 2 Sentences Redacted Due to Media Interest and Jury Pool
SDNY COURTHOUSE, March 13 – 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 January 10 Menendez filed a motion to dismiss, arguing "the government shockingly fails to disclose the exculpatory fact that [REDACTED]." Full filing on Patreon here
Late on January 10, docketed on January 11, Inner City Press filed to unseal Menendez' redactions - and documents "in the vault."
On January 17, after the NYT also requested (and cited Inner City Press), Judge Stein ordered the parties - including DOJ - to respond by January 22.
On February 1, Judge Stein granted some unsealing - including of some of the material in the vault which Inner City Press requested. Order here.
On March 6, after a guilty plea and then a superseding indictment was filed, a conference was requested.
On March 11, Inner City Press live tweeted the arraignment, and Judge Stein's ruling that the May 6 trial data holds, unless the 2d Circuit stays it on an interlocutory appeal. Thread here
On March 13, Menendez' lawyer argued that two sentences must be redacted: "The substance of the Redacted Sentences, if made public, will surely garner significant media attention, which likely would reach potential jurors." Letter on Patreon here.
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On Insider Trading Former FBI Trainee Markin Gets 15 Months Citing Yoga As Others Shackled
By Matthew Russell Lee, Patreon Maxwell Book
SDNY COURTHOUSE, Dec 4 – Seth Markin was the subject of an insider trading press conference on July 25, 2022. Then for his presentment he got a taxpayer-funded lawyer, declaring himself eligible in a still-sealed CJA 23 financial affidavit.
On July 25, U.S. District Court for the Southern District of New York Magistrate Sarah Netburn approved and sealed his Criminal Justice Act 23 affidavit.
Jump cut to December 4, 2023: Markin was in court to plead guilty; Inner City Press was there, thread:
OK - now at guilty plea of ex-FBI Seth Markin for inside trading on a Merck merger...
Markin says he was sheltering with Sophia Park of Covington who got a binder about the merger. Sentencing set for March 13 at 3:30 pm.
Inner City Press went to the sentencing on March 13, 2024. Markin got 15 months - first some live tweets, then link to some analysis
Judge: Whether he found the inside information in her binder or wherever else, how is that mitigation? Defense: My client had been in a relationship with the law office associate for some months; you have to understand locker room banter. This was opportunistic
Defense: Let's turn to Act III of the play. He immediately said he should quit the FBI, he was taken off the campus at Quantico. I have redacted the letter from his roommate [like in US v Greenwood / OneCoin sealing, now on appeal.] He settled with the SEC.
Markin: I was weak...I was in a relationship with an associate at the Covington law firm. I saw information and traded on it. My father saw his son handcuffed. I am degraded (sobs). I am becoming a yoga instructor and have a life coach
Judge: I sentence you, Seth Markin, for 15 months in prison
Afterward, the suited crowd was asked to wait as a shackled defendant was taken out of the courtroom across the hall.
More analysis and comparisons on Substack here and on X for Subscribers here
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In Wake of JOH Guilty Verdict Inner City Press Hears How Close Jury Looked Amid New Book
by Matthew Russell Lee, Substack
SDNY COURTHOUSE, March 12 – In the closing arguments in US v. Juan Orlando Hernandez on March 6, 2024, Assistant US Attorney Tarlow said that narco-trafficking had grown under JOH. On March 7, out of the hearing of the jury and for then the Press, JOH's lawyer Stabile said he'd heard different overnight.
From who?
The defendant's wife he said.
Was this just a play for a mistrial?
Judge Castel concluded it was, and denied Stabile's motion, Order on Patreon here.
Later on March 8, the verdict, here- the a book
, the day after in Spanish, here: Narco Drama.
Afterward, the defendant's wife Ana issued statements that she will be running for the presidency of Honduras - and that the SDNY jury was not fair or impartial.
Inner City Press though its sources has learned that the jury deliberated carefully. That one juror in particular asked to review many, many pieces of information. That the first few votes were certainly not all "guilty" votes by all jurors.
More on Substack here and on X for Subscribers here
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Ex FBI McGonigal Got 50 Months in SDNY For Deripaska Aid Now Wants 11 Week Extension
By Matthew Russell Lee, Patreon Worth St Video
SDNY COURTHOUSE, March 12 - In the U.S. District Court for the Southern District of New York, an arraignment was held by Magistrate Judge Sarah L. Cave former FBI agent Charles McGonigal, for helping Russian oligarch Deripaska in violation of US sanctions, and money laundering.
McGonigal, who'd hired former US Attorney for the Eastern District of NY Seth duCharme, pled not guilty and was given a $500,000 personal recognisance bond bail deal. Thread below. He has also been indicted in the District for the District of Colombia.
SDNYAugust 15, 2023 guilty plea proceeding, thread here: (and video afterward here)
And below, the Nov 30 request for no jail time
McGonigal: I agreed to collect open source information about a business competitor of Oleg Deripaska, to try to put him on the US sanctions list. I knew that it was wrong. I want to thank you for treating me fairly.
[His voice breaks]
Plea agreement letter on Patreon here.
On November 30 McGonigal's counsel Seth DuCharme submitted partially redacted letters and a sentencing memo asking for a "non-custodial sentence" - that is, no jail time. Former FBI Thomas S. Shaughnessy recounts McGonigal "saving" an FBI field agent named Mike, no last name, "rough as a cob with a true potty mouth."
He also recounts McGonigal giving "Angry Kevin" the "Bradley Manning / Julian Assange case ('Wikileaks') and that case made Kevin's reputation." Letter on Patreon here.
On December 7, the US Attorney's Office wrote in and request a sentence of 60 months, and a $200,000 fine.
Some of the letters are touching. Sentencing was set for December 14 at 1:30 pm.
Inner City Press live tweeted it, thread:
Judge: On voluntary surrender? AUSA: Fine, after his sentencing in Washington DC - thirty days after that. Judge: So, Feb 26, 2024, surrender by 2 pm, after the DDC sentencing on Feb 16. Any open counts?
AUSA: We move to dismiss them.Judge: Mr. Scotten, anything more? AUSA Hagen Scotten: No, your Honor. Judge: We are adjourned.
Later the surrender date was moved to March 18 - and on March 12, McGonigal's counsel wrote in to request another 11 week extension, letter on Patreon here.
The case is US v. McGonigal, 23-cr-16 (Rearden)
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UN Fails Amid Resignation of Henry of Haiti Where UN Took Cholera Japan UNSC Useless
by Matthew Russell Lee, Patreon Book Substack
UN GATE, March 11 – Japan gets the UN Security Council presidency on March 1, 2024 - while Inner City Press is still banned from the UN, despite its June 19 application.
Now in just another failure of the UN in March, Ariel Henry of Haiti has resigned, without the UN having confirmed or had any impact, after bringing cholera to Haiti and killing 10,000 plus.
On February 29, Inner City Press wrote to the Japanese Mission: This is a timely request that you allow Inner City Press to enter and cover, and/or provide the WebEx pass code(s) to access Japan's UNSC Presidency press briefing by your Ambassador Yamazaki on March 1, 2024.
I have questions to ask on what you will do this month about Gaza, UNRWA and the coups in Gabon and Niger, Japan, North Korea and the conflicts in Sudan, Ukraine, Ethiopia, Cameroon, Yemen and Libya, and the revelations of El Pollo now in SDNY - and on ongoing cases of sexual abuse and exploitation by UN peacekeepers on many of which Inner City Press first reported
By day's end, no answer from the Japan mission. Only this: "I am seconded to UNDP now. I will be checking emails intermittently, but may delay in response, and please send at below address for any urgent matters. Thank you. Shinobu Yamaguchi." No answer from below address - or Blue Book address.
Watch this site.
Inner City Press on June 19 applied to the UN for access, as it gives 100s, to cover the UNGA week. Inner City Press has a NYC Press Pass and writes about the UN. From Japan and its UN Mission, nothing.
Watch this site.
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Jury Finds Bishop Lamor Whitehead Guilty on All Counts in Trial with Eric Adams Cited
By Matthew Russell Lee, Patreon Substack
SDNY COURTHOUSE, March 11 - In the U.S. District Court for the Southern District of New York on the morning of December 19, 2022 the talk was of flashy pastor Lamor Whitehead, set to be presented in the afternoon.
Inner City Press was present, the only media in the Mag Court in the morning for three procedings. Related Mag Court live-tweeted thread (more on Patreon here) vlog here
Lamor Whitehead was found guilty by the jury on March 11, 2024, see below.
On February 26, 2024 the trial started and Inner City Press live tweeted opening arguments, here
On February 27, Pauline Anderson testified and cried. Inner City Press live tweeted, here
On February 28, Rasheed Anderson was on the stand - then after the jury left, scheduling - including witness who will introduce Eric Adams' communications - was discussed.
On February 29: "ORDER as to Lamor Whitehead. It is hereby ORDERED that the Brandon Belmonte shall testify outside the presence of the jury at 9:00 A.M. on March 5."
Inner City Press went, and saw Belmonte take the 5th to every question, including about Eric Adams.
On March 11 Inner City Press went.Here's from the US rebuttal:
OK - now in US v Lamor Whitehead rebuttal summation, prosecutor says he lied on the stand, that blaming Rasheed was a distraction.
AUSA: Whitehead threatened Brandon Belmonte with violence, to get money. He said, "Eric Adams will do what I want" but only if the property was transferred to him (Whitehead).
Then he lied to the FBI.
AUSA: Whitehead thought you could fool you too - he is guilty as charged.
Then the case went to the jury.
And a guilty verdict: "Jury reached a verdict. Defendant found GUILTY on Counts 1s, 2s, 3s, 4s and 5s. PSR Ordered. Defendants sentencing submission shall be filed by 6/10/2024. The Governments sentencing submission shall be filed by 06/17/2024. The parties shall appear for a sentencing hearing on 07/01/2024 at 11:00 am"
More on Substack here
and on X for Subscribers here
In EDNY, Inner City Press reported on Whitehead appearing in the Mag Court there for two defendants who robbed him of expensive watched as he preached.
On January 12, 2024, the US Attorney's Office filed a motion in limine including as "examples of trial evidence" quotes from Whitehead to Victim-2 that "I'll deal with the Mayor's Office.. But we gotta have ownership. I gotta be able to say, 'Yo, yo [nickname for the Official], I own this. This is what's goin on."
The case is US v. Whitehead, 22-cr-692 (Schofield)
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