By Matthew Russell Lee, Patreon Podcast Filing
BBC - Decrypt - LightRead - Vlog - Source
SDNY COURTHOUSE, July 14 -- 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.
On June 30, 2022 the US FBI put Ruja Ignatova on its 10 Most Wanted List. Inner City Press went to the FBI press conference and asked about her security chief Frank Schneider saying she's dead, and the status of his extradition.
The FBI's New York Assistant Director-in-Charge, Michael J. Driscoll, told Inner City Press they have their reasons for putting Ruja on the list. US Attorney for the SDNY Damian Williams said he could not speak about extradition(s). Vlog here.
On July 14, counsel for Gilbert Armenta wrote in with the US Attorney's Office's OK to ask that Gilbert Armenta be allowed out of his apartment four for hours a day: "n behalf of Gilbert Armenta, we respectfully submit this request seeking a modification of Mr. Armenta's bail conditions to permit Mr. Armenta to leave his apartment from 10:00 a.m. to 2:00 p.m. on Mondays through Saturdays each week. Neither the Government nor the supervising Pre-trial Services Office objects to this request. On July 19, 2019, Mr. Armenta was remanded to the Metropolitan Correctional Center. On March 25, 2020, the Court released Mr. Armenta, and imposed a condition of home confinement as part of his release, which condition exists to this day. Mr. Armenta has been in compliance with the conditions imposed by the Court for more than two years now. Mr. Armenta awaits sentencing. The parties have been seeking adjournments of Mr. Armenta's sentencing in order to permit the sentencing in United States v. Mark S. Scott, S 10 17 Cr. 630 (ER) to proceed first, and contemplate seeking a similar adjournment of the upcoming sentencing date. As a result of the extended period of time during which Mr. Armenta has been and will be awaiting sentencing subject to home confinement, we request the above-mentioned modification of his conditions of home confinement in order to permit Mr. Armenta to spend four hours per day, six days per week, outside of his apartment. Neither the Government nor the Pretrial Services Office seeks any additional terms with respect to such periods of time outside the home. We further request that, to the extent Mr. Armenta has good cause to leave his residence, such as for a medical appointment, outside of the allotted four-hour period, and only to the extent such an appointment is scheduled between the hours of 9:00 a.m. and 6:00 p.m., that Mr. Armenta be permitted to shift the four-hour period on that given day." Full letter on Patreon here. Watch this site.
Sebastian Greenwood, meanwhile, is in detention in the MDC and will wait (at least) a year for a trial. And in April 2022, yet more delay: "MEMO ENDORSEMENT as to Karl Sebastian Greenwood on LETTER MOTION addressed to Judge Edgardo Ramos from Juliana Murray dated 4/26/2022 re: Adjournment. ENDORSEMENT."
On June 21, the US pushed Greenwood's trial to May 15, 2023: "Re: United States v. Karl Sebastian Greenwood, S5 17 Cr. 630 (ER) Dear Judge Ramos: The Government respectfully submits this letter, on behalf of the parties (and with the consent of defense counsel), to make the following scheduling requests in the above-captioned case, subject to the Court’s availability: 1. The pretrial conference scheduled for June 28, 2022 is adjourned sine die. 2. The defendant’s pre-trial motions are due on October 17, 2022; the Government’s opposition is due on November 14,2022; and the defendant’s reply is due on December 5, 2022. 3. Oral argument on the defendant’s pre-trial motions, if any is requested, will be held on December 19, 2022. 4. Trial will be scheduled to commence on May 15, 2023." Letter on Patreon here.
David Pike got a lenient six to 12 month plea deal accepted on October 19, 2021.
On April 25 the long delayed argument on Mark Scott's various post-trial motions was held - and took two and a half hours. Inner City Press went in person and live tweeted it here, vlog here:
now at oral argument on Mark Scott's motions on Konstantin Ignatov perjury, etc. Scott's lawyer: The US only cited to 3 FDIC-insured banks for bank fraud. Mr Armenta lied repeatedly to Mr Scott
Now Scott's lawyer complains he was not permitted to call Neil Bush as a witness at trial
Judge Ramos: Didn't the OneCoin folks at some point think Scott was a government informant? Arlo cuts off his colleague to answer Judge Ramos. They are arguing that the defrauding of $54,000 is " de minimis"
Scott's lawyer: #OneCoin was outside the US, as were most of its customers. None of the US funds ended up in the Fenero Funds. AUSA: There is no deminimis exception on wire fraud.
AUSA: We put in a video of Ruja Ignatova in 2015 announcing the "openning of the US market."
AUSA: Mr Armenta even had a romantic relationship [with Ruja - Inner City Press published audio Of Ruja's spurned voicemails to Armenta]
Now Judge Ramos turns to Konstantin Ignatov perjury and illegal cell phone in MCC.
Arlo Devlin-Brown: A new trial is required. Arlo cites his sur-sur-sur reply. Irina was in India, he insists. Say Konstantin Ignatov outright lied, about the laptop, as shown by Duncan Arthur. Demands a hearing
Scott's lawyer Arlo Devlin-Brown: One more before I sit down. [But he's been sitting down throughout. Judge Ramos: Putting aside for the moment the law...
Judge Ramos: Does the US consent to having a hearing? AUSA Folly: No. The perjury was not material. [There is another defense attirney in gallery, who spoke a lot with Arlo Devlin-Brown during Folly's break]
AUSA Folly is still going. Scott - still not in prison this long after conviction - is here in the courtroom. And the OneCoin victims?
Now AUSA Folly recounts that Ftank Schneider told Irina D. that Mark Scott might br an informant. This hearing, now at 2 and 1/2 hours, has gone off the rails. Vlog here
On April 6, 2022 the US Attorney's Office asked for yet more delay in sentencing Gilbert Armenta, this time until July, citing "various forfeiture issues among other sentencing related issues." Hmm.
On March 1, Pike was in court for sentencing. He got two years probation, three months of which have a 7 to 7 curfew. Inner City Press went and live tweeted it, here, then vlog here
Six weeks after Pike was sentenced the US belated filed a draft order to notify OneCoin victims going forward: "MOTION for Victim Rights . Document filed by USA as to Mark S. Scott, Ruja Ignatova, Konstantin Ignatov, David R. Pike, Karl Sebastian Greenwood... While seeking the proposed order earlier in these proceedings would have been preferable, given that there remain a number of charges pending against various defendants, implementing the procedures described therein at this stage of the case is nonetheless appropriate." Filing on Patreon here.
Now One Coin money laundering sentencing of David Pike. DOJ's charge and deal leads to a 6 to 12 month guideline.
AUSA Folly: It should be toward the top. This is a large fraud and Pike participated for nearly 2 years.
AUSA Folly: Scott and Pike were the money laundering duo. After Scott was arrested, Pike lied.
AUSA Folly: Pike got $2 million. Mark Scott got at least $50 million. [Inner City Press: So who got the rest?
AUSA Folly: This was not a one time thing. [Woman two rows ahead of Inner City Press in the nearly empty gallery shakes her head no] Ms Raskin: We reauest a non incarceratory sentence.
Ms Raskin for Pike: Much of this occurred outside of the US. There should be no double counting. Pike believed Ruja Ignatova, Scott's client, was legit. He gradually drawn in.
AUSA Folly: He entered the KYC info from Ruja Ignatova and her team. Pike's lawyer quotes a Miami autism doctor who has written to Judge Ramos. Pike: I would like to apologize to the court and even more to my family. [Those defrauded by OneCoin not mentioned.
Judge Ramos: I sentence Mr Pike to two years probation, with the first three months with location monitoring [7 to 7 curfew] ... I believe that OneCoin is still on the market?
[Inner City Press wonders, How do Scott, and Greenwood, and Schneider awaiting extradiction, and Amr Abdelaziz, and Gilbert Armenta, view this?
On January 19, a French court OK-ed the extradition of Frank Schneider to the US. Order here. Inner City Press in Spring 2021 reported "Frank Schneider, arrested on April 29 in Joudreville in the Pays-Haut Meurthe-et-Mosellan trying to get back into Luxembourg and said to be awaiting extradition. Update: Inner City Press has put questions to the US Attorney's Office - still not answered on this.
On February 23, yet more delay: " MEMO ENDORSEMENT as to Karl Sebastian Greenwood (5) on [457] LETTER MOTION addressed to Judge Edgardo Ramos from Juliana Murray dated 2/23/2022 re: Adjournment. ENDORSEMENT: The pretrial conference is adjourned to April 28, 2022." This after Greenwood switched lawyers. Then delay to June 16, 2022....
Inner City Press previously exclusively reported: Konstantin: I tried to find where OneCoin had money. I spoke with Frank Schneider. AUSA: Who was he? Konstantin: Ruja got her information about law enforcement investigations from him. He was a money launderer.
Meanwhile, Konstantin Ignatov's sentencing has been pushed back to May and he has a new lawyer...
On January 4, the US Attorney's Office requested that Pike's sentencing, set for January 21, be adjourned for approximately 45 days, citing "health concerns arising from the surging COVID-19 pandemic and related travel complications," and that the time for the pre-sentencing report be extended too.
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 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.
During the change of plea proceeding, Judge Ramos did not read out what the plea deal was, only that Pike had signed it, on August 21, 2021. But the deal is for (only) six to twelve months, and forfeiture of $2,099,330. It states name checks the Fenero Funds, not OneCoin.
Nor does this.
On August 25, 2021 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.
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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