By Matthew Russell Lee, Patreon Maxwell Book
BBC-Guardian UK - Honduras - ESPN NY Mag
SDNY COURTHOUSE, June 23 – Sanctions on Russia have an unnamed US financial institution unwilling to process a wire transfer to pay the Brafman & Associates law firm to represented VTB Bank in the case Schansman et al v. Sberbank of Russia PJSC et al.
On June 23 Brafman & Associates' Zach Intrater filed an affidavit about his efforts with U.S. District Court for the Southern District of New York Magistrate Judge Gabriel W. Gorenstein, now on Patreon here:
"Zach Intrater, being duly sworn, deposes and says: 1. I am an attorney licensed in the state of New York. 2. I currently am employed as Of Counsel at Brafman & Associates, P.C., a law firm in New York. 3. I am familiar with the facts set forth in this affidavit.
4. This affidavit incorporates the facts set forth in an affidavit I signed on June 15, 2022, which was included as part of Docket No. 358 in this matter.
5. The Court’s June 16, 2022 Order (Dkt. No. 360) granted an extension of time for VTB Bank to obtain new counsel, but ordered that no further extensions would be granted absent a sworn statement from someone with personal knowledge that provides a daily log of the efforts to arrange for a new attorney to file a notice of appearance. (See Dkt. No. 360.). This affidavit will detail those daily efforts.
6. On Wednesday, June 15, 2022, I spoke with a representative from OFAC regarding my firm’s interpretation of the applicable federal regulations governing payments to attorneys by blocked entities.
7. On Thursday, June 16, 2022, I participated in phone calls with representatives of VTB Bank regarding the retention issue. I also communicated, via e-mail and phone, with a representative of the financial institution (“the Financial Institution”) at which my firm maintains its attorney trust account. I described to the representative of the Financial Institution my June 15, 2022 phone call with the OFAC representative. I also explained our interpretation of the applicable federal regulations...On Monday, June 20, 2022, notwithstanding the federal holiday on which the banks were closed, I communicated, via email, with representatives of VTB Bank regarding this issue, in a continued effort to find a way, consistent with all laws and regulations, to allow my firm to enter an appearance in this matter. At 12:32 pm, the representative of the Financial Institution sent an email on which I was copied. The email stated, in substance, that the representative had met with other employees of the Financial Institution in an effort to resolve the issue. The email further stated that, although the payment of funds by VTB Bank was legal, the Financial Institution would not accept a wire transfer from Russia because it was outside the Financial Institution’s “risk framework.”
14. On Tuesday, June 21, 2022, I participated in communications, via email and phone, with members of my firm and by email with representatives of VTB Bank in a continued effort to figure out a solution to this issue.
15. On Wednesday, June 22, 2022, I participated in communications, via email and phone, with members of my firm and by email with representatives of VTB Bank.
16. Today, June 23, 2022, our firm initiated discussions with another financial institution to receive the payment that has been made by VTB Bank. That financial institution has indicated that it will have an answer for us by early next week – the week of June 27, 2022.
17. As of today, my firm is still unable to receive payment of any funds as a retainer in this matter. This is so notwithstanding that the payment would be legal pursuant to the applicable federal regulations and statutes, and notwithstanding the continued best efforts of representatives of VTB Bank to figure out a way to have new counsel (our firm) represent them in this matter." Inner City Press will continue to cover this.
The case is Schansman et al v. Sberbank of Russia PJSC et al., 19-cv-2985 (Carter / Gorenstein)
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