US Settlement Without Fine For Predatory Lending From Malta Needs SDNY Approval Comparative Crime

By Matthew Russell Lee

NEW YORK CITY, February 1 – A dubious settlement of predatory lending claims by the US Consumer Financial Protection Bureau is coming for approval to the US District Court for the Southern District of New York, CFBP announced on Friday afternoon. 

The facts of the case are extreme: a lender pretending to be based off-shore in Malta charging interest rates of 700%. But CFPB is settling out the case with no penalties, no restitution, nothing - and asking the SDNY to sign off on it. Will it?   The case is No. 15cv5211 (CM)(RWL) of which the CFPB says "The proposed settlement covers NDG Financial Corp., E-Care Contact Centers, Ltd., Blizzard Interactive Corp., New World Consolidated Lending Corp., New World Lenders Corp., Payroll Loans First Lenders Corp., New World RRSP Lenders Corp., Northway Financial Corp., Ltd., and Northway Broker, Ltd and corporate officials Kimberly DeThomas, Jeremy Sabourin, and William Wrixon. The defendants were not fined."

  These days Inner City Press is covering a range of cases in the SDNY. Not only Michael Cohen, and the back to back UN bribery cases of Ng Lap Seng then Patrick Ho, but also this week's sentencings for the NYPD's guns for cashscandal (18 months in prison) and conspiracy to commit arson in The Bronx (28 months, see below). So what is system predatory lending worth? Doesn't it, too, ravage communities? Compare and contrast... A Bronx man who pled guilty to conspiracy leading to the burning down of a convenience store in the Bronx on 11 September 2016 was sentenced to 28 months in prison on February 1 by Judge William H. Pauley III in the US District Court for the Southern District of New York. 

  Arson and The Bronx were for a time synonymous, though few of the perpetrators were caught much less sentenced. Times have changed. Present at Friday afternoon's sentencing on the 20th floor of the Daniel Patrick Moynihan U.S. Courthouse were only the defendant Richard Sanchez and his lawyer, a lone prosecutor, three family members and Inner City Press. Yet the tale was heartbreaking, in its way.

  Sanchez' lawyer Patrick Brackley recounted that he had prior run-ins with the law, citing an incident with a dirt bike. But, he said, Sanchez had used his time out free on bail to re-build his life. Sanchez himself read what he called an open letter to Judge Pawley, speaking about his ten year old daughter, a business he was starting and his brand.

   Judge Pauley said he took note of these but found it inexplicable that someone would, for $500, agree to find people to burn down a store in their own neighborhood. Sanchez was contracted by the owner of one deli to burn down a nearly-open competitor; both stores were across the street from where Sanchez lived. Judge Pauley told Sanchez he was lucky no one had been injured or killed, alluding to the felony murder rule which would have held Sanchez liable.

   While the prosecution via Assistant U.S. Attorney Adam S. Hobson sought a sentence of from 46 to 57 months, Pauley imposed 28 months in prison to be followed by three years of supervised release, at a prison as near to New York City as possible. 

   Restitution of $50,000 was ordered, and the same standard $100 mandatory special assessment that SDNY Judge Edgar Ramos had imposed the day before on former NYPD Lieutenant Paul Dean for his admitted role in gun permits for cash scam (see Inner City Press' story here). 

  That sentencing drew a gaggle; that of Richard Sanchez for his role in the arson of a store in the Bronx did not. Pauley said to his mostly empty courtroom, The public must understand that people can't be going around burning down stores in their own neighborhood. 

The case: United States v. Richard Sanchez, 18 Cr. 26 (WHP)

Upcoming in the SDNY is a just-filed complaint by the Bangladesh Central Bank for the $81 million hacking of its funds, which were then wired through the Federal Reserve Bank of New York, a case that Inner City Press will cover. Times change. Watch this site.

For Syria Chemical Weapons, Italian Port for US Ship, Chinese Ambulances and Russian Trucks, France Gives Nothing

By Matthew Russell Lee

UNITED NATIONS, December 18 -- Many countries are helping or offering help to destroy chemical weapons from Syria, according to the statement of Ahmet Üzümcü of the Organization for the Prevention of Chemical Weapons released this morning.

  Italy has offered a port for the trans-loading of chemicals from a Danish Norwegian vessel to a US ship. Of the other Permanent Five members of the Security Council, Russia will provide armored trucks and possibly security; China will provide cameras and ten ambulances.

  Even the UK is lists as among the financial contributors to the OPCW trust fund for the operation.

  The only P5 member not listed in any way in the OPCW statement, which even credits offers promised but not received, is France.

  Back on December 4, Inner City Press asked France's Ambassador to the UN Gerard Araud, on camera, if France was contributing anything at all to the removal from Syria of chemical weapons, of which France had made so much.

Araud looked to his colleague by the side of the UN Security Council stakeout and mentioned "technical assistance" (he also cited "moral" support).

  No French technical assistance, much less moral support, is listed in the OPCW statement. For the OPCW trust fund, donors include the Czech Republic, Germany, Ireland, Italy, Luxembourg, Malta, New Zealand, Norway, Poland, the Republic of Korea, Turkey, and, yes, the United Kingdom of Great Britain and Northern Ireland.

  The OPCW also cites pledges from Finland and South Korea, "amounting to approximately EUR 750,000" and that the "Japanese Government has decided, subject to parliamentary approval, to contribute an amount of nearly USD 15 million, which will be shared between the OPCW and the United Nations."

  But from France, nothing. Perhaps its position on Syria is so focused on removing Assad and installing Ahmad al Jarba, who Araud was bragging about at the same stakeout even on December 17, that it doesn't care if chemical weapons are removed from Syria, or even prefers that they are not.

  Or perhaps it's that France is over-stretched propping up its once and again colonies in Africa, from Central African Republic (where it supported Bokasa and Bozize) to Mali, where it has signed itself a Letter of Assist for airfield support in the north, to receive UN money in an amount Araud refused to disclose when Inner City Press asked.

  One might conclude, while others are contributing to international efforts -- money, ships, ports, trucks and ambulances -- France is taking, and not even disclosing what it takes, through its fourth head of UN Peacekeeping in a row, Herve Ladsous. Sacre bleu! Watch this site.

Footnote / media critique: from the scribes whom France uses, for example at the UN, nothing may be heard about this glaring omission, the only one of the P5 not listed in the OPCW statement. Agence France Presse, largely funded by subscriptions from the French government, defends France to the extent of filing faux complaints leading with Ladsous being asked too-hard questions. Reuters at the UN spies and supplicates for leaks from these same French. It's all the fashion. We'll have more on this.

   

At UN, With Former Israeli Soldier "Breaking the Silence," Accusations of Lies, Maltese Chair Urges Calm

By Matthew Russell Lee

UNITED NATIONS, October 21 -- While at the UN the Security Council for example confines most of its disagreements to behind closed door consultations, the Committee on the Exercise of the Inalienable Rights of the Palestinian People has a working group which Monday let it all hang out.

They invited as a speaker a former Israeli paratrooper Avner Gvaryahu, now of the group "Breaking the Silence" to discuss the book "Our Harsh Logic: Israeli soldiers’ testimonies from the Occupied Territories, 2000-2010."

Gvaryahu described senseless searches of Palestinian homes, in one case simply to commandeer the family's television set to watch sports. He spoke of looting and confiscating kitchen knives as weapons.

Then as the first and third questions in the Q&A session, Gvaryahu was accused of telling "ugly lies" and of slandering the Israeli defense forces.

Gvaryahu shot back that these critics don't live in Israel and are clinging to the past. The deputy representative of the State of Palestine urged Gvaryahu to do more speaking engagements, particularly in the United States. Namibia congratulated him too.

Gvaryahu made a point of saying that his group, of 1000 soldiers, declined to speak with the Goldstone Commission, but that testimonies it collected were used. He said the group would prefer an Israeli inquiry -- not an army inquiry, but not necessarily an independent inquiry. This did not seem to convince the first and third questioners.

The third questioner said, broadcast on the UN's EZTV, that "people in Gaza are not innocent."

The chair of the session, from Malta, handled it with aplomb. He asked speakers to identify themselves, but didn't push when the last questioners declined to. He said this reflected transparency, and the diversity of views.

Malta is a small state, but this is one of its gigs in the UN. Meanwhile in front of the Security Council earlier on Monday, when Israel's jovial Permanent Representative Prosor came to take cell phone photos with three guests, only half-hearted attempts to say that the UNTV "camera is live, don't stand there" were made.

The UN is, it is often pointed out, owned by its member states. But smaller or less high profile states are often made not to take photos at the stakeout. If that's being waived, so much the better - but let it be for all, and not like when the UN let France "reserve" many seats in the "UN" Press Briefing Room during the controlled Q&A with President Francois Hollande.

   Similarly, a double standard has developed as to which media are banned from speaking with diplomats, even when invited to, in the so-called Turkish Lounge, challenged by theFree UN Coalition for Access @FUNCA_info. This is the microcosm that reflects wider problems. Watch this site.

   

At UN, Dodging Questions on End-Game Sri Lanka, Somalia's Pirates of the Pen, Fowler and Nairobi UN Intrigue

Byline: Matthew Russell Lee of Inner City Press at UN
www.innercitypress.com/un4269muse042609.html

UNITED NATIONS, April 26 -- As in Sri Lanka's “No Fire Zone” the dangers for civilians grew throughout the week up to the government's rejection of calls and offers for cease-fire [Inner City Press debate video here], in New York the UN's Spokesperson's Office tried to answer even fewer and fewer questions. For the first time, the Office repeatedly implied that was or is some limit on the questions that can be asked.

It began on Monday, when the Office canceled its normal question and answer session to put all focus on Ban Ki-moon denouncing Iranian President Ahmadinejad. Tuesday Inner City Press asked Deputy Spokesperson Marie Okabe:

Question: I have several questions, in part because the noon briefing was canceled yesterday. First, on Sri Lanka -- on the Secretary-General’s statement yesterday, where he says he deplores the continued use of heavy weapons in the vicinity of civilians and the use of force by the LTTE -– who, is he saying, is using the heavy weapons? And if he is saying it is the Government, why doesn’t he put it in the statement?

Deputy Spokesperson: I think the Secretary-General’s statement was very clear and very strong yesterday. And as I mentioned to you in a note that I was reading to you while you came in and were setting up shop, the highest priority for the United Nations right now is access to the victims, which is precisely why the Secretary-General has done what he can and is doing what he can in order to get the assistance and access to the people who are in desperate need of urgent humanitarian assistance.

And to your comment on the cancellation of the noon briefing yesterday; the reason for that was that, at precisely the same time that the noon briefing was scheduled, the Secretary-General was having an important press conference together with the High Commissioner for Human Rights, Navi Pillay, on a subject that was at the top of the news. Even though we could not get yesterday a two-way Q and A session -– which we hope to do in the future –- because of the importance that item took yesterday morning, we decided to try to get it to reporters here in real time. So that is the explanation for that.

Question: Just on that, it would have been helpful to take questions after his press conference.

Deputy Spokesperson: We took your questions. I took your questions in our Office and we responded to your questions like we normally do, okay?

Question: Fine. On this access in Sri Lanka, can you explain how... It has been said from this podium that the UN staff members who have been detained in the IDP camps, that the UN – although they had not announced it publicly – had repeatedly complained and tried to get them released. The Sri Lanka Government had said the first they heard from the UN had been 15 April, two days after it was raised here. Can you explain the discrepancy, or does the UN say Sri Lanka is mis-speaking as the UN’s complains?

Deputy Spokesperson: I don’t know exactly about the timeline that you are speaking of, so I am going to have to refer to OCHA to provide answers to that. All I can tell you right now is that today our imperative is for UN staff to be allowed to have access to these victims....

Question: There is one question I asked yesterday, so I will ask it again, and there is something new today. What I asked yesterday was what is the UN’s response to more than 100 Sudanese killed in South Sudan and a report that UNMIS had been recommended to do further patrols in Jonglei State and did not done so.

Deputy Spokesperson: My understanding was that Yves had gotten back to you on that, but if he has not, I will ask him to send you the answer on that.

[The correspondent was told that the UN Mission in Sudan (UNMIS) is currently assessing security and humanitarian needs in the wake of last weekend's violence. In the five weeks since the violence of 5-13 March, which rocked Pibor County in Jonglei State, UNMIS has conducted enhanced patrolling activities in various locations in the State, engaged in pre-emptive deployment of UNMIS troops in order to better protect civilians in Bor County, and worked closely with the Jonglei State Government to support its efforts to stabilize the security situation on the ground.]

Question: There is a UN staff member, José Antonio Ortega of the Department of Economic and Social Affairs (DESA), who has been arrested in Halifax, Canada, for procuring child pornography. Does the UN have knowledge of this, and what will the UN do about this?

Deputy Spokesperson: The only thing I have on that story that you refer to is that Mr. Ortega is a staff member of the Department of Economic and Social Affairs. Mr. Ortega was on a personal trip and left on Thursday, 9 April, for Canada. He was expected to be back in the office on 13 April but did not show up. His office could not get in touch with him. We were still trying to find out about his status until late last week, when news of the court case was announced in the Canadian press. The matter is taken very seriously by the United Nations and it has already been referred to UN Security and the Office of Human Resources Management for action. That is all I have for today.

Question: In terms of seriousness, there is a report that the Head of Operations of the UN Centre in Nairobi, Alexander Barabanov, who was found by Kenya to have an illegal weapon, is still serving the UN. A series of letters has been sent to Angela Kane and OLA trying to get authority to discontinue his service to the UN, due to the illegal gun. Is he still in service, and if so, why?

Deputy Spokesperson: I don’t have any information on that. I have to look into that for you.

On that note, have a good afternoon and see you tomorrow.

But no further information was provided. Ban Ki-moon, meanwhile, was in Malta.

On Wednesday things grew even worse:

Inner City Press: Two things: There is a report of the FDLR killing 14 civilians in Kivu Province. Is that something that MONUC can confirm, and what steps are they taking? Also, I have been wanting to ask you about this thing of Ahmedou Ould Abdallah in Somalia, where it has emerged that he raised funds from Norway and, I believe, Kenya, to submit a report to Somalia under the Law of the Sea about drilling rights off shore. Did he check with the Secretary-General before he did that? How does he decide to use a drilling or oil-producing country’s funds to do a filing for Somalia?

Deputy Spokesperson: I am not aware of the report on Mr. Ould Abdallah, so I have to look into that for you. The other one on MONUC, we have not seen anything from MONUC today, but we can follow up.

Question: The UN radio, Radio Okapi, reported the number of 14, so it seems strange... Can we say that it is a UN report that the FDLR is back in action?

Deputy Spokesperson: I am not aware of the report, so we will have to check that, or you will have to check with MONUC.

Have a good afternoon.

Again, there was no follow up, including after a Wednesday email to Ould Abdallah's spokeswoman. Thursday it continued:

Inner City Press: Yesterday, Mr. Nambiar did brief the Council, but he did not speak to the press. Is there some reason... Even Mr. Gambari, when he goes on similar ventures, speaks to the press and answers questions. First, can you say why he did not? Also, some parts of his meetings were described as involving this humanitarian team. But did he have political discussions, and if so, what was the message he carried to the President of Sri Lanka?

Deputy Spokesperson: The message he carried was the message that the Secretary-General has stated publicly many times over. We have been reporting to you about that. The Secretary-General himself has commented now on the situation a short while ago. Those remarks are available to you. News stories have already been picked up on what the Secretary-General said, which is why we asked Catherine Bragg to come here today to brief you on the humanitarian situation, which is the most acute problem that we are trying to address at the moment.

Question: Is it possible to get either a stakeout or a press conference by Mr. Nambiar, because he was the main envoy that went there?

Deputy Spokesperson: I think the Security Council heard his briefing, has commented on that, and has issued a press statement by the Security Council President on which the Secretary-General himself already commented and I would like to draw your attention to that. So the answer: I don’t think so, okay?

Question: Did he stop in India on his way back from Sri Lanka, and if so, did he have any meetings?

Deputy Spokesperson: I am not aware of any meetings that he had in India.

Question: A question about Mr. Fowler. Repeatedly, questions arose while he was detained, and you said that not to jeopardize his safety you would not answer. Now that he has been released, I want to know several things. First of all, is it the case, as reported that he that day visited a Canadian-owned goldmine in Niger? If so, is that a trip he had informed the Government of and was it related to his UN mandate? Why was there no security along? Did he have UN issued travel orders? Was the DSS told of his trip in advance?

Deputy Spokesperson: Security issues are not something that we discuss in public. At the moment, the Secretary-General just recently released the statement welcoming his release. He has just been released. I am sure that after he receives immediate attention, medical attention, other attention that he needs, he will have a debriefing. But, at the moment, I have nothing beyond the fact that we are very relieved that he has been released. The Secretary-General’s statement, I think, reflects that.

Question: Is the UN going to conduct any kind of inquiry into the seeming irregularities...

Deputy Spokesperson: Nothing beyond that. Thank you very much.

Given the UN's silence, we are preparing a follow-up report on the case of Mr. Fowler and his colleagues. On Friday, Sri Lanka was again the initial focus:

Inner City Press; In Sri Lanka, there is an Excel document that was distributed by the UN in Colombo, called “verified data” 6,432 killed. So it is now on the UN relief website. Many people are curious why the UN is distributing what it calls “verified casualties figures” to diplomats. Can we say this is the UN number?

Deputy Spokesperson: I asked the Office for the Coordination of Humanitarian Affairs that question. You asked the senior official of that Department yesterday. They tell us that the numbers are unverified, but while unverified, this might be a reasonable estimate. That is what I have for you.

Question: Okay. I guess we will hear from UNHCR about the humanitarian assessment mission to the north. My questions is: the diplomats of Sri Lanka have been quoted as saying, there is no longer a need for this trip, both the Foreign Secretary and others. Is the trip to Jaffna by Mr. Buhne, that is what Ban Ki-moon was talking about as the “emergency mission”?

Deputy Spokesperson: That is correct. I refer you to what I read at the beginning of the briefing.

Question: My other question has to do with the Medical Service. I just wanted to know a simple thing: the doctors and nurses in the UN Medical Service on the fifth floor -- is it the UN’s position that they have to have licenses, and do they distribute controlled substances like Valium and others. And have recently prescription pads of a number of them been taken away and the DEA...

Deputy Spokesperson: I have no information on what you are referring to.

[The correspondent was later given the following answer:

The Medical Services Division (MSD) provides a comprehensive occupational health service to UN staff system-wide, including health promotion, clinical care, and travel health services, as well as advice to the administration of the UN, its funds and programmes, and the Department of Peacekeeping Operations and the Department of Field Support on clinical and medico-administrative issues. In addition, MSD provides medical advice to UN medical facilities across the globe, coordinating implementation of UN policies on medical and health care. The overall goal is to improve staff health, lower risk, and ensure that job demands are met.

The Medical Services Division in New York does not provide a primary care service to staff, referring staff instead to the local health system for definitive management of any medical conditions detected. A requirement for recruitment of doctors and nurses employed by the United Nations is that they are registered to practice their professions in their country of origin. A limited quantity of medications is maintained on site, and stock control is rigorously performed, and is verifiable, according to standard pharmaceutical control norms.

The recent allegations regarding pharmaceutical control measures at the United Nations are not new and are in fact being investigated by the Office of Internal Oversight Services (OIOS). The Medical Services Division has provided its full cooperation to OIOS in that regard.]

Click here for Inner City Press' exclusive story. We will have more on all this.

And see, www.innercitypress.com/un4269muse042609.html