FTX Bankman-Fried Wants Fenwick & West Subpoena Including about Silvergate Bank

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, May 30 – Sam Bankman-Fried of FTX was indicted in the U.S. District Court for the Southern District of New York, leading to his arrest in the Bahamas on December 12, and extradition to the US on December 21.

On February 28, with Bankman-Fried free on bond, FTX's Nishad Singh pleaded guilty to six criminal charges. Inner City Press put the charging document on its DocumentCloud here.

On March 10, Judge Kaplan held a proceeding. Inner City Press was there and live tweeted, thread here.

On March 27, Bankman-Fried's lawyers filed a sealed version of conditions it said DOJ agreed to - adding that "the Government does not object to the sealing request." Full letter on Patreon here.

 On May 8, SBF's lawyers wrote in to Judge Kaplan, as he presided over closing arguments in Carroll v. Trump: "Samuel Bankman-Fried hereby moves through his counsel as follows: Pretrial Motion No. 1: Motion to dismiss Counts 9, 10, 12 and 13 pursuant to the rule of  specialty, or in the alternative, for disclosure of additional  discovery from the Government pursuant to Fed. R. Crim.  P. 16(a)(1)(E)(i); Pretrial Motion No. 2: Motion to dismiss Counts 7-9 and 1-2 pursuant to Fed. R. Crim.  P. 12(b)(3)(B)(v) for failure to state an offense for failure to  allege a valid property right; Pretrial Motion No. 3: Motion to dismiss Counts 3-4 and 10 pursuant to Fed.  R. Crim. P. 12(b)(3)(B)(v) for failure to state an offense; Pretrial Motion No. 4: Motion to dismiss Counts 12-13 pursuant to Fed. R. Crim P.  12(b)(3)(B)(v) for failure to state an offense, and to dismiss  Count 13 pursuant to Fed R. Crim. P. 12(b)(3)(A)(i) for improper venue or in the alternative, to sever Counts 12-13 pursuant to Fed. R. Crim. P. 12(b)(3)(B)(iv) & 12(b)(3)(D)." Full letter on Patreon here.

On May 23, Judge Kaplan set June 15 for the argument: "Reset Hearing Time as to Samuel Bankman-Fried: Oral Argument regarding DI 136 set for 6/15/2023 at 10:30 AM in Courtroom 21B, 500 Pearl Street, New York, NY 10007 before Judge Lewis A. Kaplan."

On May 30, Bankman-Fried asked for a subpoena to get information from the Fenwick & West law firm, including "Attachment 3: SDNY_03_00054152 (“Confer with Silvergate; prepare material; regulatory advice on foreign jurisdictions”)." Full request on Patreon here.

More with analysis on Substack here

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Ex FBI McGonigal Charged with Deripaska Aid Has His and Shestakov Trial Set for June 2024

By Matthew Russell Lee, Patreon Worth St Video

SDNY COURTHOUSE, May 30 -  In the U.S. District Court for the Southern District of New York, an arraignment was held by Magistrate Judge Sarah L. Cave former FBI agent Charles McGonigal, for helping Russian oligarch Deripaska in violation of US sanctions, and money laundering.

 McGonigal, who'd hired former US Attorney for the Eastern District of NY Seth duCharme, pled not guilty and was given a $500,000 personal recognisance bond bail deal. Thread below. He has also been indicted in the District for the District of Colombia and should appear there on January 25. Inner City Press will cover both cases.

Inner City Press covers the SDNY Mag Court(s). Related Mag Court live-tweeted thread (more on Patreon here) vlog here

January 23 McGonigal thread here:

McGonigal's lawyer, former EDNY US Attorney Seth deCharme asks clerk about starting "paperwork," making it seem his client already has a bail deal.

 All rise!

Time of arrest? Saturday 3:15 pm.

 Russian interpreter will be presented separately.

Magistrate Judge Sarah L. Cave runs through the charges, citing Russian bank and Cyprus corporation.

McGonagal, through deCharme, pleads not guilty.

AUSA: We propose release on $500,000 personal recognisance bond with 2 co-signers.

DuCharme: Both are in court today. [Note, in light of Sam Bankman-Fried's secrecy: they are not wearing masks, not even COVID masks]

DuCharme: Mr McGonigal sometimes needs to travel overseas. [You don't say] He may apply for permission in the future.

On February 9, Judge Rearden held a conference. Inner City Press was there, tweets here. Then: "Minute Entry for proceedings held before Judge Jennifer H. Rearden: Status Conference as to Charles McGonigal, Sergey Shestakov held on 2/9/2023. Defendant Charles McGonigal present with Retained attorney Seth DuCharme and Meagan Maloney. Defendant Sergy Shestakov present with Retained attorney Rita Glavin and Katherine Petrino. AUSA Hagan Cordell Scotten, Rebecca Dell and Derek Wikstrom present for the government. Next conference is scheduled for Thursday, March 9, 2023.

On March 9, Inner City Press was there. Thread here:

OK - now again ex FBI McGonigal and co-defendant oligarch case in SDNY.

McGonigal's lawyer Seth DuCharme: We look forward to our trial. In the short term we can make motions.

Co-D Shestakov's lawyer: We'll say more in our conference this afternoon [Sealed CIPA confetence]

Now talks turns to taking Rule 15 depositions abroad. "There are foreign nationals with exculpatory information," co-D's lawyer says.

Judge: Letter update in 30 days on April 5  conference in 60 days on May 10 at 2 pm at which we'll pick a trial date.

But on May 9, counsel to co-defendant Sergey Shestakov wrote to Judge Rearden asking that "the Court set this matter down for another status conference in September or October, rather than set a trial date at this time."

At the May 10 conference, she asked for 2025.  Inner City Press was there, thread:

now in US v McGonigal, his lawyer DuCharme says he's perplexed by the amount of discovery in DDC and why no CIPA

Shestakov's lawyer complains that DuCharme met with AUSA Scotten today in the SCIF, but she couldn't be there (she still can't under CIPA, no clearance). Does not want to set a trial date.

DuCharme says - twice - that he has no other trials (for now - he's ex  EDNY)

Judge asks about another Deripaska case here  in SDNY  (that Inner City Press is also covering).

Now AUSA saying how he prosecuted the Mafia, some trials are short.

 Now Shestakov's lawyer says she wants the Deripaska discovery, as an unindicted co-conspirator as she gets in a drug case. She wants trial in... 2025.

Judge: So, conference in September. For trial, hold some dates between March 1 and June 30.

 Now Sheshtakov's lawyer cites case against NYPD officer for spying on Tibetans, that EDNY dropped. Hoping that happens here?

Judge: Status reports by June 2 and July 10, not the 3rd... And August 11, with conference on Sept 14 at 11:30.

On May 30, Judge Rearden issued this schedule: "Trial will commence on June 12, 2024 at 10:00 a.m. 2. Defendants' pretrial motions are due February 2, 2024, with the Government's responses due February 16, 2024, and Defendants' replies, if any, due February 23, 2024. 3. Any motions in limine or trial memoranda, as well as proposed voir dire, proposed jury instructions, and proposed verdict forms, shall be filed by May 10, 2024. Any oppositions to motions in limine or trial memoranda shall be filed by May 24, 2024. Any motions to sever are due May 10, 2024, with responses due May 24, 2024. 5. A final pretrial conference will be held on May 30, 2024. (Signed by Judge Jennifer H. Rearden on 05/30/2023)."

More on Substack here

The case is US v. McGonigal, et al., 23-cr-16 (Rearden)

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Trump Filed Notice to Remove Bragg Case to SDNY Now NY Opposition So Hearing June 27

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 30 – Donald Trump filed a notice of removal to Federal court of Manhattan DA Alvin Bragg's indictment of him in state court, on May 4, 2023.

 The notice was assigned to U.S. District Court for the Southern District of New York Judge Ronnie Abrams, but was quickly reassigned to Judge Alvin Hellerstein, as Inner City Press reported.

  Now on May 8, Bragg's office has filed an "unopposed motion" for a conference, emphasizing that "Defendant's Notice of Removal does not operate to stay the court action (up to the point of entering a judgement of conviction," citing 28 USC Section 1455(b)(3). 

   Bragg urged a speedy conference to "minimize disruption to New York's "traditional state authority" to punish 'local criminal activity,'" citing Bond v. US, 572 US 844, 858-9 (2014).

On May 9, Judge Hellerstein set a schedule: "Any motion for remand, and supporting papers, shall be filed by May 30, 2023; Opposition papers shall be filed by June 15, 2023; Reply papers shall be filed by June 23, 2023. An evidentiary hearing, to the extent that there are disputed issues of fact, and argument as to the law, shall be held June 27, 2023, 2:30 pm."

 On May 30, Bragg's office filed, including "Because none of the requirements for federal-officer removal are satisfied in this case, the Court should reject defendant Donald J. Trump’s effort to remove this prosecution from state court. On April 4, 2023, defendant was arraigned in Supreme Court, New York County on thirtyfour counts of Falsifying Business Records in the First Degree, N.Y. Penal Law § 175.10. These charges arose from defendant’s falsification of the business records of various New York-based private enterprises in 2017 to conceal an illegal scheme that was largely perpetrated before defendant became President. On May 4, 2023, defendant filed a Notice of Removal pursuant to 28 U.S.C. § 1442, seeking to remove this prosecution on federal-officer grounds. But defendant has failed to satisfy the legal prerequisites to invoke “so exceptional a procedure,” Maryland v. Soper (No. 1), 270 U.S. 9, 35 (1926), that would require that the state criminal charges against him be litigated in a federal forum. This Court should accordingly remand this matter to state court. Federal-officer removal is available only when (1) a federal officer (2) faces criminal charges for conduct arising under color of his office and (3) identifies a colorable federal defense. New York v. Tanella, 239 F. Supp. 2d 291, 294 (E.D.N.Y. 2003), aff’d, 374 F.3d 141 (2d Cir. 2004). A defendant’s inability to satisfy even one of these prerequisites requires remand. Here, defendant fails to establish all three." Full memo on Patreon here.

 Inner City Press will be reporting on the case, as it has on the Carroll v. Trump trial in SDNY.

  This case is People of the State of New York v. Trump, 23-cv-3773 (Hellerstein). 

More on Bragg's other recent SDNY case including analysis on Substack here

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Defendant Who Wrote Judge Rakoff About 2d Amendment Has Suppression Hearing in SDNY

By Matthew Russell Lee, Patreon Maxwell book

SDNY COURTHOUSE, May 30 – A defendant on home confinement awaiting trial on drug charges sought to modify his conditions to a curfew, and have his ankle monitor removed.  

    On February 15, 2023 U.S. District Court for the Southern District of New York Judge Jed S. Rakoff held a bond hearing. Inner City Press went and covered it.

  The defendant had written a three and a half page letter to "Mister Rakoff," saying that he was ignoring his oath and not upholding the Second Amendment right to bear arms. 

 Judge Rakoff read from the letter, and mused if it might be bear on the factors on bond.

 The Federal Defender said it was covered by the First Amendment, and that the ankle monitor was an irritant. 

 Judge Rakoff, remarking that life can be an irritant sometimes, nevertheless directed the parties to draft a new bond order, with a curfew, albeit in the early evening.

He said, It is my job to apply the law, it does not matter to me if a defendant hates or loves me. Then, deftly, Valentine's Day was mentioned.

On May 30, a suppression hearing was held. Inner City Press was there. Threadette here:

Now Federal Defender cross examines Officer Smalls about his  testimony in People v Adams. Judges doubts relevance. Defense tries again... In Adams, gun was suppressed - before Smalls told grand jury in this case that he saw a bulge

Judge:  Would a heavy-looking bag be enough? AUSA: Yes. The caller identifed the defendant as her friend.

Judge: Former friend. I can't believe the Supreme Court decided the Bruen case the way it did. But I am bound by it

  Judge Rakoff said he - and not ChatGPT - would read the cases, review and video and give at least a bottom line ruling in 10 days, given the August trial date.

  The case is US v. Perez, 22-cr-644 (Rakoff)

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In SDNY adidas Is Denied Order Freezing Ye Accounts in Chase Still Seeks Yeezy Attachment

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 30 – Amid sealed court filings, on May 30 there was a hearing on adidas' request to freeze and retake $75 million from Ye / Yeezy, held in JPM Chase Bank - which, it emerged, is closing Yeezy's accounts.

Inner City Press was there.

  The proceeding was held before U.S. District Court for the Southern District of New York Judge Valerie E. Caproni - who, seeing Press in the gallery, told the parties to think about unsealing the filings. We'll stay on that.  

Debevoise & Plimpton argued that the money adidas transfered to Ye's accounts was still its. Judge Caproni said that Debevoice knew better, and could have drafted differently. 

  After taking a brief break, she denied adidas' motion for a Temporary Restraining Order. adidas declined to withdraw its request for attachment. So filings are due over the coming day. Inner City Press will stay on these - and the necessary unsealing.

More on Substack here

The case is In the matter of Application of Adidas AG for an Order of Attachment in Aid of Arbitration, 22-mc-320 (Caproni) 

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As Honduras Ex Prez Juan Orlando Hernandez Awaits Trial Demands US Emails to Opposition

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 29 – After the president of Honduras' brother Tony Hernandez was convicted of drug trafficking and sentenced to life plus thirty years, on April 21, 2022 the ex-president himself, Juan Orlando Hernandez, was extradited to the United States.

[Espanol aqui]

  Inner City Press which covered the trials of Tony Hernandez and Giovanny Fuentes Ramirez immediately published the unsealed JOH indictment, which was returned on January 27, 2022 but left under seal.

On October 25, JOH's October 27 proceeding was pushed back, to November 15, 2022 - and when it happened, Inner City Press was there, and live tweeted, thread here and below.

On February 3, 2023 JOH's lawyer moved to sever his trial from that of Tigre Bonilla: " it is the defendant’s position that prejudicial spillover will occur in that evidence that is admissible against one or both of the other proposed defendants (i.e. Mauricio Hernandez Pineda and Juan Carlos Bonilla Valladares (i.e. “El Tigre Bonilla”) will be prejudicial to the former Honduran President, Juan Orlando Hernandez Alvarado." Full letter on Patreon here.

On April 2, 2023, Juan Orlando Hernandez through counsel objected to provisions and omissions from the prosecutors' CIPA order, for example seeking to add "Because disclosure of additional individuals to the government’s trial team would reveal defense trial strategy and attorney client communication, approval shall be sought from walled government counsel and not from trial team at the United States Attorney’s Office..."

On April 12, Judge Castel appointed a discovery coordinator for JOH and others: "ORDER APPOINTING EMMA M. GREENWOOD AS COORDINATING DISCOVERY ATTORNEY as to Victor Hugo Diaz Morales, Juan Antonio Hernandez Alvarado, Mario Jose Calix Hernandez, Mauricio Hernandez Pineda, Amado Beltran Beltran, Otto Rene Salguero Morales, Ronald Enrique Salguero Portillo, Fernando Felix Rodriguez, Geovanny Fuentes Ramirez, Juan Orlando Hernandez, Juan Carlos Bonilla Valladares. (Signed by Judge P. Kevin Castel on 4/12/2023)."

On May 29, 2023 - Memorial Day - JOH's lawyer filed a lengthy discovery request including for "71. Provide all U.S. communication with and digital intercepts in Honduras or the United States of Juan Orlando Hernandez Alvarado from 2010 to the present, inclusive of his custodial detention at the Metropolitan Detention Center (MDC) in Brooklyn, New York. 72. Provide all Defense Information Systems Agency Infrastructure information sharing activity and communications across the Department of Defense. 73. Provide all DOS and the Office of Public Diplomacy and Public Affairs communications, Blackberry Messaging, press releases, emails (encrypted, as well as non-encrypted), “cables,” foreign service Honduras desk officer’s emails and texts related to Juan Orlando Hernandez Alvarado, related to his efforts on behalf of the United States’ and Honduras’ efforts and antinarcotics joint operations in the War on Drugs. 74. Provide all U.S. Embassy-Tegucigalpa officials’ meetings, communication, emails, texts with Honduran opposition political parties during the course of Juan Orlando Hernandez Alvarado’s two administrations. 75. Provide any and all internal and external communications, information, changes by U.S. Embassy Officials and DOS Personnel with Honduran press, media and journalists; Specifically, entities such as INFOBAE; Univision, Telemundo, CNN, et al. and opposition parties." Full request on Patreon here.

On March 14, 2023, Judge Castel ruled that Pineda and his lawyers can't take discovery / 3500 material out of the US: "ORDER as to Mauricio Hernandez Pineda. IT IS HEREBY ORDERED that the defendant and his defense team including but not limited to Messrs. Ma and Womble, and any U.S. based paralegals, investigators, and interpreters working for the defendant, Mr. Ma, and Mr. Womble shall not transport or transmit any of the 3500 Material outside of the United States; IT IS FURTHER ORDERED that the defendant and his defense team shall not show or disseminate any of the 3500 Material to anyone other than the defendant and U.S. based paralegals, investigators, and interpreters working for Messrs. Ma and Womble; IT IS FURTHER ORDERED that the defendant shall not possess any of the 3500 Material, either before, during, or after the Trial, except when reviewing the 3500 Material in the presence of Mr. Ma and/or Mr. Womble or U.S.-based paralegals, investigators, and interpreters working for Messrs. Ma and Womble; IT IS FURTHER ORDERED that the defendant and his defense team shall return to the Government, or destroy, all of the 3500 Material at the close of the Trial or when any appeals have become final; and IT IS FURTHER ORDERED that defense counsel may seek authorization of the Court, with notice to the Government, to provide certain specified materials to persons whose access to such materials is otherwise prohibited by this Order, if it is determined by the Court that such access is necessary for the purpose of preparing the defense of the case. (Signed by Judge P. Kevin Castel on 3/14/2023)."

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Lawyer Suing Avianca Used ChatGPT Which Invented 6 Cases Now AI Showdown in SDNY

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, May 26 – As law offices including those of prosecutors begin to use generative artificial intelligence like ChatGPT and Google's Bard, it's worse than a matter of boiler plate or plagiarism.

There are cases and precedents made up out of whole cloth. 

 All of this may come to a head on June 1, when U.S. District Court for the Southern District of New York Judge P. Kevin Castel will head the case of Roberto Mata v. Avianca, Inc., on removal from the Supreme Court of the State of New York in Manhattan.

  Plaintiff's counsel Steven A. Schwartz, not admitted to SDNY, admits in an affidavit signed May 24 and docketed on May 25 that while "Peter Loduca, Esq, an associate for the law firm of Levidow Levidow & Oberman, PC became the attorney of record on the case" he, Schwartz, "continued to perform all of the legal work that the case required."  

 Now problematic for Schwartz, and possibly Loduca, was the use of Chat GPT CGT  to put or slap together Mata's affirmation in opposition.

As Schwartz formally puts it, "your affiant consulted the artificial intelligence website Chat GPT [and]  did locate and cite the following cases in the affirmation in opposition submitted, which this Court has found to be nonexistent: 

Varghese v. China Southern Airlines Co Ltd, 925 F.3d 1339 (11th Cir. 2019) 

Shaboonv. Egyptair 2013 IL App (1st) 111279-U (Il App. Ct. 2013) 

Petersen v. Iran Air 905 F. Supp 2d 121 (D.D.C. 2012) 

Martinez v. Delta Airlines, Inc, 2019 WL 4639462 (Tex. App. Sept. 25, 2019) 

Estate of Durden v. KLM Royal Dutch Airlines, 2017 WL 2418825 (Ga. Ct. App. June 5, 2017) 

Miller v. United Airlines, Inc, 174 F.3d 366 (2d Cir. 1999).  

  Again, those cases do not exist. Schwartz writes that "the citations and opinions in question were provided by Chat GPT which also provided its legal source and assured the reliability of ts content. Excerpts from the queries presented and responses provided are attached" to his affidavit.  

But for Judge Castel, will that be enough? Watch this site.

The case is Mata v. Avianca, Inc., 22-cv-1461 (Castel)

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As UN Guterres Bans Press his Officials False Flag Negative Stories for Removal a la Fleming

 

by Matthew Russell Lee, Patreon Book Substack

UN GATE, May 27 –  On World Press Freedom Day, the United Nations of Antonio Guterres and Melissa Fleming was more hypocritical than usual.  

  While UN Global Communications chief  Fleming put out a video of Guterres equating what he (and she) characterize as disinformation as the threat to press freedom, Guterres has banned Inner City Press from entering the UN since 2018, when it exposed the omission of links to bribery firm CEFC China Energy from his financial disclosure. 

  Jump forward three weeks and Fleming, who has refused to answer a polite pro bono letter from the Quinn Emanuel law firm seeking a dialogue to end her ban of Inner City Press, was intoning, as echoed by another paid UN system communications staffer, "We're creating at the ⁦ UN ⁩ a central capacity to monitor and …rapidly react when mis- and dis information and hate speech threaten not just our people, our operations, but also the issues and causes we're working on," -Melissa Fleming."

  What is the accountability for this "central capacity" that, without explaining or answering, has the Press roughed up and banned?

Now on May 27 we'll give an example of UN officials gaming, or in this case trying to case, the system of social media platforms. Inner City Press received notice from Blogger than two of its articles were being removed, having been "flagged." 

  Inner City Press checked it out - both articles involved UN DGACM, and Franz Bauman. Neither contained any malware - as provide once Inner City Press re-upped them and was informed, restriction removed. They are now (again) here and here.

But how can a platform allow a subject of two investigative articles to have them removed, based on false flagging? This is Melissa Fleming's, and ultimately Guterres, UN of censorship.

 Law firm Quinn Emanuel, on a pro bono basis, wrote to Fleming and the UN Correspondents Association (with state media of China on its board of directors) seeking a dialogue to reinstate Inner City Press.

There has been no answer, nor to an appeal to Guterres head of security Gilles Michaud.   

 Still, ill-informed media run the Guterres video without commentary. Disinformation, indeed. 

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In UN of Guterres Sweden Carl Skau Takes WFP Job After Answered Press But Not Now

by Matthew Russell Lee, Patreon Book Substack

UN GATE, May 27 – On World Press Freedom Day, the United Nations of Antonio Guterres is more hypocritical than usual.  

  While UN Global Communications chief Melissa Fleming put out a video of Guterres equating what he (and she) characterize as disinformation as the threat to press freedom, Guterres has banned Inner City Press from entering the UN since 2018, when it exposed the omission of links to bribery firm CEFC China Energy from his financial disclosure. 

  Before 2018, then Swedish Deputy Permanent Representative Carl Skau answered Inner City Press' questions, at the UNSC stakeout and in writing. But now Skau has been hired by the UN system - some might say, a conflict of interest after having been on bodies ostensibly overseeing Guterres - and does nothing about the UN's ban on Inner City Press, which he used to answer. We have written to him, as before by Twitter DM. More important, what if anything will he do about censorship about which is he is aware and on notice? Watch this site.

 Law firm Quinn Emanuel, on a pro bono basis, wrote to Fleming and the UN Correspondents Association (with state media of China on its board of directors) seeking a dialogue to reinstate Inner City Press.

There has been no answer, nor to an appeal to Guterres head of security Gilles Michaud.   

 Still, ill-informed media run the Guterres video without commentary. Disinformation, indeed. 

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