By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, August 23 – With OneCoin the subject of criminal prosecution a civil case against it was ordered stayed on August 23 by U.S. District Court for the Southern District of New York Judge Valerie Caproni.
While Konstantin Ignatov's lawyer Jeffrey Einhorn's basis for the stay was "corresponding criminal prosecution," Judge Caproni also chided plaintiffs' lawyers at Levi & Kosinsky for failing to serve or show service on some of the defendants.
Later in the day the firm wrote that "OneCoin Ltd. and Ruja Ignatova are domiciled in Bulgaria and are believed to be evading service. Sebastian Greenwood, similarly, is domiciled in Sweden, and is believed to be evading service." They are proposing service by Facebook, citing FTC v. Pecon Software Ltd, 2013 WL 4016272, at *5 (SDNY Aug. 7, 2013). Whether Judge Caproni will accept this is not yet clear. More on Patreon here. Inner City Press will continue to follow these cases.
Back on June 28 detention was continued for OneCoin defendant Konstantin Ignatov, after he offered to pay armed guards to keep him in an apartment he would rent in Manhattan. U.S. District Court for the Southern District of New York Judge Edgardo Ramos questioned the source of the bail money that Ignatov was offering to put up, as well as issued raised about the propriety of "private prisons" of the type now incarcerated UN briber Ng Lap Seng, whose appeal was just denied, was allowed to live in during the pendency of his case.
Ignatov's lawyer Jeffrey Lichtman noted that Bernie Madoff got bail, and that the government could not show any contact between Ignavov and his sister Ruja, indisputedly higher up in the OneCoin scheme. But Judge Ramos, after more than an hour of argument, was not convinced. The case is US v. Ignatov, 17-cr-630 (Ramos).
Now on August 12, this: "ENDORSED LETTER as to (S7-17-Cr-630-03) Konstantin Ignatov addressed to Judge Edgardo Ramos from Attorney Jeffrey Lichtman dated August 9, 2019 re: submitted to respectfully request an adjournment of the August 16, 2019 status conference in this case until September 6, or a date thereafter that is convenient for the Court. ENDORSEMENT: The status conference is adjourned to September 6, 2019 at 10:15 a.m. SO ORDERED. (Signed by Judge Edgardo Ramos on 8/12/2019)." More on Patreon, here.
In other SDNY corporate crime news, the US quietly filed a criminal antitrust case against Banca IMI trader Larry D. Meyers - who quietly pled guilty and agreed to cooperate on June 27 before Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York, Inner City Press can report.
The case involves violations with the Sherman Act with respect to American Depository Receipts. It is a quiet part of a larger case. On June 27 the representative of DOJ's Antitrust Division said Meyers will get a 5K1.1 letter if he fully cooperates. She then said the sentencing could be set for October 7 at 2:30 pm. So will all of the cooperation be by then?
Judge Engelmayer asked Meyers to explain what he did. Meyers, going beyond the script prepared for him by his new lawyer Mr. Alvarez, said that only a few had access to the pre-release ADRs and had become a "cozy community." He said, "We became too friendly." Not anymore...
The plea almost got delayed again because Meyers old lawyer had not yet formally withdrawn; Judge Engelmayer said a Curcio hearing might be needed then decided not. He asked Ms. Brown of DOJ if anything was needed with regard to the transcript, presumably to seal it.
We don't think that's necessary, Ms. Brown told Judge Engelmayer. So the cooperation is entirely public now, in this cozy community. Inner City Press will continue to follow these cases and others in the SDNY...
Earlier, before issuing his ruling Judge Edgardo Ramos had asked the lawyers for the two banks that got the subpoenas, Deutsche Bank and Capital One, if they wanted to speak. They did not. This even as House counsel Strawbridge detailed Deutsche Bank's long history with money laundering (and theft during the Holocaust, which didn't come up). Capital One is a rough, too, on predatory auto lending and the Community Reinvestment Act. But the banks lay low.
Now under Judge Ramos' 25-page ruling, the banks become required to respond to the subpoenas in seven days, on May 29. That's the time during which the House has agreed not to enforce the subpoena, and the time during which Trump's lawyers seem certain to file an appeal and ask again for a stay from the Second Circuit Count of Appeals higher up, in both senses, in 40 Foley Square.
Earlier still in the May in the SDNY, Congressman Christopher Collins (R-NY) waived his right to be present for a May 3 hearing in the criminal insider trading case against him held past 5 pm in the SDNYcourtroom of Judge Broderick. On May 10, Judge Broderick started on l'affaire Collins at 2 pm, after a case against BuzzFeed (Inner City Press coverage here). Early in the proceeding, before two shackled inmates were led in leading to a brief suspension of the white shoe SEC Congressman matter, Broderick made a joke about Donald Trump and evasive legal moves. I'm not going there, said one of the participants in Collins, who was an early endorser of Trump. Broderick said, "I should have either - but it is what it is."
Three hours later, during which Inner City Press in full disclosure went one story down in the courthouse to cover a Fatico hearing about threats in the MCC, Judge Broderick was setting the time for Collins' lawyers to make motions. He arrived on four weeks after he rules on discovery, with the SEC to provide whatever he directs to the defense one week after the ruling. I'm not saying you're going to get anything, Judge Broderick said. Collins' lead lawyer said he is a optimist. More on Patreon; watch this site.
Collins' team of lawyers have made a slew of suggestions to Judge Broderick on what discovery to seek from the U.S. Attorney's office, from communications with the SEC to information about real estate, Cameron Collins and Lauren Zarsky and their sales of Immunotherapeutics stock after MIS416, aimed at secondary multiple sclerosis, failed the Drug Trial and Rep Collins made his calls from the White House Congressional picnic.
On May 3 Judge Broderick was urging wide disclosure by the government, whether characterized as 3500 material or under Brady or Giglio. The notes to be produced, he said, didn't have to been entirely contemporaneous.He had a series of questions for the U.S. Attorney which he did not get through as it approached 6 p.m. and his courtroom deputy had gone for the day.
Collins' lead lawyer from BakerHostetler, Jonathan R. Barr, directed Broderick to a decision by SDNY Judge Jed Rakoff during the Gumpta case, and Broderick said that he would read it. He confessed he had himself looked up applicable cases on Westlaw, adding that he might have missed some cases. This case is USA v. Collins, et al., 18-cr-00567 (VSB). More on Patreon, here.
Judge Broderick told Collins' lawyers to expect to come back in a week's time on Friday, May 10. One of them said he would only be returning to the United States that morning; another said that he then would be leaving for the same place his colleague had been: Argentina.
Thus is big money, and big politics, law done in the SDNY.
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