By Matthew Russell Lee, Patreon Podcast Filing
BBC - Decrypt - LightRead - Vlog - Source
SDNY COURTHOUSE, Oct 19 -- For money laundering for scam crypto currency OneCoin, lawyer Mark Scott was convicted by a jury after testimony by Konstantin Ignatov and others but was allowed to remain free on bail pending sentencing. Sebastian Greenwood, meanwhile, is in detention and will wait (at least) a year for a trial.
On September 21, 2021 there was a proceeding on and with Greenwood and Inner City Press live tweeted it here and below (and podcast here)
On October 16, Scott's lawyers told Judge Ramos, "the Government conceded that Konstantin had committed perjury with respect to one matter (his disposal of a OneCoin laptop), while arguing that there was no evidence that Konstantin had testified falsely on a second matter raised in Mr. Scott's motion: a supposed meeting involving Mark Scott and Irina Dilkinska at OneCoin's Sofia, Bulgaria offices on July 20, 2016. As previewed in our letter of October 1, 2021 (Dkt. 413), counsel for Mr. Scott received documentary evidence that Ms. Dilkinska was in fact in India at the time of the alleged Sofia meeting, which it has shared with the Government. The Government has advised that it is in the process of obtaining records from foreign authorities with respect to Ms. Dilkinska’s travels. The Government also disclosed on October 12, 2021 that Konstantin obtained and used a contraband cellphone while incarcerated at the MCC, that it was seized in late February 2020, and that the case team was informed of this a year ago, in October 2020. Mr. Scott seeks, with the Government's consent, a two week extension, until October 29, 2021, for the filing of his Reply Brief. The parties also request that the Court adjourn sentencing, currently set for November 9, 2021, until a date convenient for the Court in early December." Full letter on Patreon here.
On October 19, Judge Ramos extended things: "MEMO ENDORSEMENT as to Mark S. Scott re: [417] Letter on extension... ENDORSEMENT: Mr. Scott's reply is now due October 29, 2021. Sentencing is adjourned to December 8, 2021 at 2pm. SO ORDERED. (Replies due by 10/29/2021. Sentencing set for 12/8/2021 at 02:00 PM before Judge Edgardo Ramos.) (Signed by Judge Edgardo Ramos on 10/18/21)."
On October 19, after many postponements, co-defendant David Pike finally pleaded guilty, albeit only to Count 1 of a superseding information. Inner City Press live tweeted it here
David Pike has his long delayed guilty plea proceeding. Inner City Press has been covering the case, including delay on Scott and Armenta
Judge Ramos: Mr. Pike, I understand you want to plead guilty. First I need to determine you understand. So I'll have you placed under oath. Pike: OK. [It's done]
Judge Ramos: Have you consumed any alcohol or medicine? Pike: Only blood pressure medicine.
Judge Ramos: Mr. Folly, what are the elements of the crime? AUSA Folly: For bank fraud, scheme or artifice to defraud a financial institution by false pretenses and it was Federally insured. Judge Ramos: Do you understand how the sentencing guidelines work? Pike: I do.
Judge Ramos: Did you sign this letter? Pike: I did. Judge Ramos: You agree you will not appeal any sentence within or below the stipulated guidelines? Pike: Yes.
AUSA Folly: We would have used phone records, and financial institutions' records. Judge Ramos: Tell me what you did.
Pike: I knowingly withheld information from banks in applications to open deposit accounts with them, information they would have wanted to know.
AUSA Folly: The evidence will establish, or would have established, wires from the Cayman Islands to Manhattan.
Judge Ramos: Mr. Pike was at least one of the banks Federally insured? Pike's lawyer Mr. Raskin: We don't contest that.
Judge Ramos: How do you plead? Pike: Guilty. Judge Ramos: Do you admit to the forfeiture allegations? Pike: Yes, sir.
Judge Ramos: I accept the plea. Sentencing Jan 21 at 10 am. Bail status continued.
Inner City Press: and see this.
On October 6, the prosecutors asked for yet another delay on Gilbert Armenta, who as Inner City Press has exclusively reported continued his businesses during this time: "
The parties write jointly to respectfully request an adjournment of the sentencing proceeding currently scheduled in the above-captioned case at 3:30 p.m. on October 13, 2021. The parties remain in continuing discussions regarding various forfeiture issues, among other sentencing-related issues. To permit the parties to continue engaging in those discussions, the parties respectfully request an adjournment of the sentencing proceeding until sometime during the week of December 13, 2021." Watch this site.
Late on September 24, a month after Inner City Press filed to unseal it, Scott's counsel's allegation that Konstantin Ignatov lied that he threw away a laptop in Las Vegas, when he returned it to OneCoin, has been partially unsealed. Letter on Patreon here.
Scott's counsel's second letter refers to notes in an Exhibit A - still no provided even into September 25 - stating that Konstantin as recently as August 25, 2021 lied about returning the laptop to OneCoin because he didn't think the US Government would believe him... Letter on InnerCityPress' DocumentCloud here.
We asked, But where is Exhibit A? Where is the DOJ's information?
Later on September 25, DOJ filed some, including "Scott argues that he is entitled to a new trial under Rule 33 on the basis that cooperating witness Konstantin Ignatov testified falsely about throwing his laptop computer (the “Laptop”) into a trash bin in Las Vegas in February 2019. (Tr. 206). Scott further alleges that the Government purposefully withheld this information from the defense. To be clear, the prosecutors in this case first learned of these serious allegations only when Scott filed his Supplemental Motion. Since then, the Government has investigated the allegations raised by the letter. Specifically, the Government has spoken with Ignatov regarding the incident (who immediately admitted to the perjury) and to the U.K.-based law enforcement agent who first learned of the allegations against Ignatov. The Government immediately turned over the notes from those interviews to the defense. As explained below, Scott’s Supplemental Motion should be denied for two reasons: (1) the perjured testimony, amounting to only a small piece of Ignatov’s testimony and regarding an event that took place after the charged conspiracy and was unrelated to Scott’s guilt, was not material to the jury’s verdict; and (2) Ignatov’s full testimony had limited relevance to the key issue in dispute at trial, i.e., Scott’s knowing participation in the charged criminal conspiracies. The Government presented overwhelming independent evidence of Scott’s guilt, consisting of emails, chat messages, bank records, travel records, other witness testimony, and recordings, that supported the jury’s verdict on that issue (and all of the other elements of the charged offenses)." 32 pages on Patreon here.
Now on October 1, Scott's lawyer have asked to more time, saying they have more information: "following the unsealing of the Supplemental Motion and the Government's Opposition last week, counsel for Mr. Scott has received credible information that Konstantin's perjury was far more extensive than he has admitted, and included false testimony that Irina Dilkinska attended a three-way meeting with Ruja Ignatova and Mark Scott on July 20, 2016 at OneCoin offices in Sofia, Bulgaria. Defense counsel anticipates that newly obtained documentary evidence will conclusively establish that Dilkinska was not in Bulgaria at that time. Mr. Scott needs time to investigate this additional information concerning Konstantin’s perjury and related disclosure issues.1 Accordingly, Mr. Scott proposes submitting a Reply Memorandum to the Supplemental Motion for a New Trial on October 15, 2021." Letter on Patreon here.
More to follow.
From Sept 21: Assistant US Attorney Dimase: We have nearly completed providing discovery to Mr. Greenwood. Still to be produced is the dump of a cell phone recovered from Mr. Greenwood in jail. The gov't today received a 20 GB download from the phone.
Judge Ramos: After that, discovery will be complete?
AUSA Dimase: We may obtain more... We had discussions about a motion schedule in the first half of 2022, in the Spring with a trial in the summer or fall.
Greenwood's lawyer: We could come back in five months and update you, if we're done with our review of the discovery, with an eye on a Fall trial.
Courtroom Deputy Rivera: February 24 at 3:30 pm. AUSA Dimase: In person? Judge Ramos: I'm always hopeful.
Greenwood's lawyer: Thank you for your time. Judge Ramos: We are adjourned. Please stay well.
On May 24, 2021 Mark Scott's sentencing was again pushed back, this time from June 14 into September.
On August 24, Mark Scott's lawyers asked for yet another postponement of his sentencing, in a heavily redacted letter. The basis is a motion filed under seal, and a medical procedure "due to the COVID-19 situation in Florida."
On August 25, the US Attorney's Office opposed the request, but left the basis mysterious, writing: "The Government is in the process of investigating the allegations raised in the supplemental motion and will respond to the claims raised by the motion. Nonetheless, even the claims in the supplemental motion do not establish a basis for a new trial pursuant to Rule 33 under prevailing legal precedent."
And on August 25, Inner City Press filed a letter with Judge Ramos, cc-ing the prosecutors and Scott's counsel, formally asking that the motion be unsealed - still not docketed as of Aug 30, unlike the practice of other SDNY judges.
(Now on DocumentCloud, here; podcast here).
Vlog here.
On September 13, counsel for Mark Scott and for the US Attorney's Office were told by Judge Ramos' chambers (to its credit), "Judge Ramos directs the parties to respond to this request."
The August 25 letter: Dear Judge Ramos: This concerns, in the above-captioned criminal case that concerns money laundering for the OneCoin scheme, the request to entirely seal a judicial document requesting a new trial for the defendant. The filing(s) should be unsealed in full, or if the Court sees fit, in part. I have been covering the case for Inner City Press, see also, e.g., The Guardian (UK), November 25, 2019, "In testimony live-tweeted by the investigative journalism website Inner City Press, Ignatov reportedly referred to Abdulaziz as 'one of the main money launderers' involved in the scheme."
Yesterday, Scott's counsel filed a letter (Dkt 390) requesting a sentencing adjournment based on "the need for the Court to consider and address the Supplemental Rule 22 Motion (including the request for an evidentiary hearing) filed under seal on August 23, 2021." That motion is a judicial document, within the meaning of United States v. Aref, 533 F.3d 72, 81-83 (2d Cir. 2008) and Lugosch v. Pyramid Co., 435 F.3d 110 (2d Cir. 2006) - it should be made available.
It is not entirely clear to me if the letter has been docketed. There is an August 13 notation of a SEALED DOCUMENT placed in vault. This is a request to unseal that as well, and to review the redaction in Dkt 390. Judge Richard Sullivan, only today, ruled that a discussion of a defendant's COVID status was not entitled to sealing. See US v. Ernest Murphy, 18-cr-373 (Sullivan), dkt 857. This is a case of public import, and these are judicial documents.
Inner City Press routinely files requests to unseal in this District, and other Districts - including as cited in its March 31 request, here And Judge Broderick's docketing of Inner City Press' request to unseal in US v. Ashe / Piao, 15-cr-706, Dkt No 999 (Inner City Press letter) & Dkt 998 (ordering that sealing be justified or removed by April 9).
And see, regarding public access to allegedly confidential information, Judge Furman's recent grant of Inner City Press request to unseal in US v. Avenatti, 19-cr-374 (JMF), Docket No. 134. See also, July 27, 2021, NYLJ, "Judge Orders Release of Michael Avenatti's Financial Affidavits In Stormy Daniels Theft Case," "Journalist Matthew Russell Lee of Inner City Press had intervened, advocating for the affidavits' release."
(Now on DocumentCloud, here; podcast here).Watch this site.
Inner City Press back on March 13 asked the US Attorney's Office Press Office for its filings not yet in the public docket. Here is Inner City Press' Periscope video upon leaving the courthouse. The case is US v. Scott, 17-cr-630 (Ramos).
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