By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN
SDNY COURTHOUSE, May 13– Silicon Valley Bank sued Elliot Smerling for $95 million, asserting fraud and deceit. Citizens Bank was also defrauded - or, negligent.
On May 13, 2021 U.S. District Court for the Southern District of New York Judge Denise L. Cote held the sentencing of Smerling in his criminal case, in which he pleaded guilty. Inner City Press live tweeted it here:
Smerling is in yellow prison jumpsuit. Sentencing guidelines are 97 to 121 months.
US Attorney urges to go on the low end. There is no "sophisticated means" enhancement. Lawyer notes he was transfered from Florida to NY via Oklahoma jail where he got COVID
Smerling has four lawyers at his table. More lawyers here in the gallery. He did proffers with prosecutors, but no 5K1 cooperator's letter.
As Smerling's lead counsel makes claims about receiver, receiver rises. Judge calls a break. Smerling back into holding cell.
Judge is back. During the break, an additional $7 million has been committed to the receiver. Mention of a Cook Islands trust.
Smerling's lawyer wants a variation further down from Probation's 72 months - to 33 or 41 months. Smerling himself: I am changed.
Another of Smerling's lawyer pats his back as he reads his statement.
Judge Cote: Remain standing. This was brazen. I sentence you to 97 months.
The case is US v. Smerling, 21-cr-317 (Cote). More details on Patreon here.
In the civil case, Judge John P. Cronan held a proceeding. Inner City Press covered it.
Smerling was arrested by the FBI on February 26, 2020 and charged with wire fraud.
On February 9, 2022 Smerling pled guilty in the criminal case: "ELLIOT SMERLING pleaded guilty today to a bank fraud scheme that caused the issuance of approximately $140 million in collateralized loans on the basis of forged documents, including subscription agreements from purported limited partners, audit letters attesting to his private equity firm’s finances, and falsified bank account statements.... sentencing is scheduled for May 13, 2022 at 12:00 p.m. before Judge Denise L. Cote."
The criminal case is US v. Smerling,
21-cr-317 (Cote)
Back on March 29, 2021 Judge Cronan held another proceeding; Inner City Press again covered it. Judge Cronan ordered that Silicon Valley Bank can now serve third party discovery on Canes Nineteen LLC, RIchard Annunziata, Adam Bleggi and Martin Nestares.
On June 1, Silicon Valley Bank moved for an Order to Show Cause to attach, among others, a 2018 Alfa Romero, a 2021 Audi, a 2020 Cadillac, a 2017 Ferrari, a 1991 Harley and a 1996 Triumph.
On June 3, Judge Cronan held another proceeding, and Inner City Press again covered it. He was told about the appointment of a receiver, James Feltman of Kroll in Miami, in the Florida case Citizen Bank, N.A. v. JES & Elliot Smerling, 12-cv-80815 (Cannon).
On June 9, Smerling through counsel opposed the attachment of property, arguing that the real properties "have been placed in an irrevocable trust of which Elliott Smerling is not a beneficiary." He says the requirement of NY CPLR 6201 have not been met.
But on June 14, in another proceeding that Inner City Press again covered, Judge Cronan entered judgment for SVB against Smerling on Counts II, III and IV of the company, for $80 million plus interest.
On July 19, in another proceeding that Inner City Press covered, Judge Cronan agreed to consolidated the SVB and Citizens Bank actions, to appoint James Feltman as receiver and expand the receivership.
This SDNY civil case is now called In re Smerling Litigation, 21-cv-2552 (Cronan)
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