By Matthew Russell Lee, Patreon Maxwell book
SDNY COURTHOUSE, Jan 19 – Isidore Handler, Martin Handler, Menachem Lieberman, Harold Schwartz and Ben Werczberger were indicted and then presented on January 11 before U.S. District Court for the Southern District of New York Magistrate Judge Robert W. Lehrburger.
Inner City Press was there, the only media in the Mag Court. There was an argument about the defendants phones being searched, see below.
The charges include wire fraud, theft of government funds, aggravated identity theft and money laundering.
The indictment, while ordered unsealed on January 11, was still not in PACER - in its place were two copies of the order to unseal. Inner City Press has obtained and published it on its DocumentCloud, here.
Summary: They are charged with participating in schemes to steal millions of dollars from government-funded childcare programs for low-income families, including by stealing proceeds from a fake after-school program that received millions in funding and by using funds to purchase private real estate, items at auction, and a luxury vehicle.
The defendants were ordered released on bond on January 11.
There was an argument about phones seized from the defendants. Defense counsel wanted to litigate before any search warrant can be obtained. But Assistant US Attorney Daniel Wolf said the issue wasn't ripe, that they could move to suppress later.
Judge Lehrburger recommended that defense counsel write a letter to the assigned District Judge Jennifer H. Rearden.
On January 18, they did, arguing that "the government has not set forth the basis for the agents' belief that - at the time of the seizure - they had probable cause to believe that these specific phones contained evidence of criminality." And some phones, they say, were not in plain view. Motion on Patreon here
On January 19, Judge Rearden held the arriagnment, and moved on to trial date. Inner City Press thread here, more on Patreon here
OK - now at arraignment of Martin Handler, Menachem Lieberman, Harold Schwartz, Isidore Handler and Ben Werczberger
Five defendants, five lawyers: gallery full of supporters.
All rise!
One of the lawyers is not yet admitted pro hac vice, needs Florida certificate. She's still in the gallery. Now moving into well. It's arraignment time.
Martin Handler is first, pleads not guilty. So say they all. Soon, on to search and seizure of their phones.
First, AUSA Wolf describes the arrests, on 7 count, fraud with 3 companies, fake day care program, secret ownership, theft from a #Bronx program.
Judge: Let's turn to the 41(g) motion, about the phones. Why didn't you seek a search warrant in the past week?
AUSA Wolf: Our search warrant application is ex parte. We contacted Chambers. Some Magistrates take them by email, some only if walked over as hard copy
AUSA Wolf: Judge Moses requires the affiant to show up in person. It was ready, but then the order.
Judge: We will clear the path today.
Mazurek: They had to show probable cause.
Judge: They are applying. [Cites Robinson]
Judge: I'd like defendants'reply tomorrow -by 10 am. [See 3d Circuit judge's proposal for 5 pm deadlines - is a 10 am essentially the same as midnight?]
AUSA: We are digitizing seized documents. And we're hoping for search warrants, then to crack the phones.
The rest on Patreon here.
Inner City Press will continue to cover this case.
The case is US v. Handler, et al., 23-cr-4 (Rearden / Lehrburger)
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