OneCoin Greenwood Gets 20 Years in Prison For Fraud After Cited Mafia Case to Seal Letters

By Matthew Russell Lee, Patreon Podcast Filing

SDNY COURTHOUSE, Sept 12 -- 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 September 12, 2023 Judge Ramos sentenced OneCoin co-founder Sebastian Greenwood to twenty years in prison. Inner City Press was there and live tweeted, thread here:

Greenwood is in MDC jail tan uniform, with four lawyers here. One introduces his parents and "friends" here in the courtroom - who sealed their letters.

AUSA Folly: This is the culmination [What about Ruja? Frank Schneider, on the lam?]

Folly: #OneCoin was a fraud

Folly: We request 30 years. This was the largest - $4 billion in losses, worldwide. In Madoff, 90% was returned. Here, near zero. Greenwood toured the globe lying this was going to be the next Bitcoin.

 AUSA Folly: Greenwood did it to fund his opulent lifestyle: a Sunseeker yacht -- Judge: What was he doing before? Folly; 2014, an earlier fraud, Bigcoin, with Ignaotva. OneCoin was worse. It used MLM

 Folly: Greenwood targeted the unbanked. Then in private he called them idiots. Money was drawn from college funds. It was laundered. [Mark Scott still out of jail; Armenta light sentence with much sealed and redacted] Folly: The Scott trial showed the maze

 Folly: Greenwood was working at KPMG. But he was greedy. His submission feign kindness [Largely sealed; US Attorney's Office "took no position" on sealing] Folly: Ebbers [of WorldCom], it was a legitimate company. Ebbers got 25 years, though sick.

 Folly: Madoff ripped off thousands [of victims], Greenwood, millions. 30 years, we request. Greenwood's lawyer Potter: He waived Speedy Trial. He has already paid for his crimes. Consider his humanity. He deserves a time served sentence.

Potter: This is not terrorism. Karl has been stripped of his humanity while in prison in these times. The UN has criticized his Thai prison. [Cites her memo, which she sealed]

 Potter: Then he was in the MCC, in 2019 for the death of Epstein, resulting in lockdown. Then MDC.  [She cites exhibits, which she also sealed from the public; now cites Judge Ramos' sentencing of Gilbert Armenta]. He has family and [secret] friends

Potter: We submitted 33 letters [each and every one sealed in full] He was far from his family. He's not eligible for good time credit. Ebbers did not plead guilty, and was released after 13 years.

Potter: They focus on loss amount Judge: Also the number of victims Potter: Karl pled... Mr Armenta had easier pre-sentence detention, with violence. Mr Scott has served only seven days

Potter: His family has suffered shame. As a non citizen he would likely be in a private prison. Give him a time served sentence, or home incarceration in Sweden. Folly: The guideline is sixty years. We're asking for half.

 Folly: Armenta was a cooperator. Greenwood hired him to launder money. Please ask if there any victims here. Judge Ramos: Are there? Silence. Greenwood's nameless friends smile. Greenwood: What I did was wrong. I passed out in Thailand. I prayed

Greenwood: Then I was in MCC. When I stand here [He is sitting. He is reading] Greenwood: I am sorry. I exploited their cryptocurrency drrams. This did not have to be my life. I have been able to help my family [Lawyer whispers] Greenwood: Unable

 Judge Ramos: Mr Greenwood, I sentence you to 240 months [Twenty years] for this massive fraud [Inner City Press will continue to push to unseal]

 Judge Ramos: He took everything from victims who could not afford to lose money. I have considered the conditions of confinement. But general deterrence is needed.  [Team Greenwood, many of them unnamed / sealed, look deflated. There is some hugging of comfort

 Potter: We believe this sentence is excessive. Judge Ramos: The foregoing constitutes the sentence.

On August 29, Greenwood's new lawyers from Patterson Belknap (and two already on the case counsel) filed a 55-page sentencing submission, redacting even the name of a case they cited and withholding an undisclosed number of exhibits. (They left in Greenwood's "MDC Transcript," now on Patreon here). They ask for time served. They quote "Karl's former driver in Thailand" - but redact the quote, and withhold the entire affidavit. This is unacceptable --

so Inner City Press filed to unseal. Judge Ramos  docketed it on August 30, and asked for response by September 6. That afternoon, Greenwood's counsel wrote in but did no provide a single unsealed document. Response here.

Inner City Press immediately replied Reply here.

After that, the US Attorney's Office filed a letter that it "takes no position" on the sealing - and, apparently, on the analogy of OneCoin victims to the Mob. And on September 7, the sealing of all of Greenwood's letters of support was approved.

On September 11, the US Attorney's Office - which took no position on all of the sentencing letters being sealed - filed a proposed forfeiture order for $300 million. Filing on Patreon here. Watch this site.

Watch this site. More on Substack here

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Bankman-Fried Wants Jurors Asked of Effective Altruism and Crypto Political Contributions

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 11 –  Sam Bankman-Fried of FTX on August 11, 2023 for tampering with witnesses in the upcoming trial against him was ordered remained to jail.

 U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan heard from prosecutors that in Putnam County Correctional Facility, SBF could be given access to discovery material over the Internet.

Kaplan replied that he assumed the defendant would be in the Metropolitan Detention Center in Brooklyn, like fellow crypto-fraud defendant Miles Guo and others.

  On August 12 Inner City Press, which published the first book about SBF's remand ("Crypto Creeps," here, sample on Substack here) found the Bureau of Prisons notice, listing SBF in the MDC.

On August 14, the DOJ prosecutors docketed their superseding indictment against SBF, with Count 8, Campaign Finance, dropped ostensibly at the request of the Bahamas. Inner City Press  published the superseding indictment on its DocumentCloud here.

On August 25 SBF's lawyers wrote in again, saying two days a week in the holding cell with a laptop is not enough. Full letter on Patreon here

On August 29, the US filed that "the USMS has also offered to transport the defendant two days per week to the 500 Pearl Street cellblock" - full letter on Patreon here

On September 5, DOJ wrote in to say SBF will come on Sept 6 - and that in MDC he is exempt from prisoner count - full letter on Patreon here

On September 11, days after Ryan Salame pled guilty, SBF's lawyers filed their proposed juror questions, including on crypto losses, political contributions and effective altruism: ". Do you have any negative opinion about amassing wealth to support causes to improve the world?"  Full questionnaire on Patreon here

On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread

More August 22 details on Substack here

More book sample on Substack here. Extended on Patreon here.

Book here

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UN Guterres Flies & Lies With Modi in India about Bharat while Banning Press from UNGA

by Matthew Russell Lee, Patreon Book Substack

UN GATE, Sept 9 – The annual ritual of the UN General Assembly week is getting more and more wan under Antonio Guterres.

  This as he this week spends public money flying and lying from India to Cuba. In Stop 3, India, he offered empty praise to Modi - who is skipping the UNGA "high level" week while his spokesman who refuses real Press questions bloviated to Neha Khanna for 20 minutes about attendance being a responsibility of states, not individuals. Both said the UN would rename it Bharat - just like eSwatini. A censor, not a spokesman.

In 2023 not only Xi of China and Russia's Putin for obvious reasons isn't coming - even French president Macron, and the UK's not-for-long prime minister are blowing it off.

That's four out of the five Permanent Members of the Security Council, those who on paper benefit most from the decaying UN, not bother to come. Guterres is lying about reform, including of the "international financial architecture."

Only Biden is coming - and the US is the country watching as Guterres hands post after post to China, while concealing his financial links to its convicted bribery firm CEFC China Energy, and banning Inner City Press which uncovered and asked about it. 

 The schedule released on September 1 still listed the "head of state" of Gabon, Ali Bongo, who pleading for (and receiving Guterres' useless) support to keep his family in power for another year after fifty.

Inner City Press on June 19 applied to Guterres' censoring sidekick Melissa Fleming for access to UNGA week, which she gives to countless blood-splattered state media of Saudi Arabia, Iran and even Cameroon.

No answers, even as the supposed September 1 deadline passed. The UN's time has passed. Watch this site.

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Bankman-Fried Complains of Slow Internet in SDNY Courthouse After Confined to 2d Bus

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 8–  Sam Bankman-Fried of FTX on August 11, 2023 for tampering with witnesses in the upcoming trial against him was ordered remained to jail.

 U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan heard from prosecutors that in Putnam County Correctional Facility, SBF could be given access to discovery material over the Internet.

Kaplan replied that he assumed the defendant would be in the Metropolitan Detention Center in Brooklyn, like fellow crypto-fraud defendant Miles Guo and others.

  On August 12 Inner City Press, which published the first book about SBF's remand ("Crypto Creeps," here, sample on Substack here) found the Bureau of Prisons notice, listing SBF in the MDC.

On August 14, the DOJ prosecutors docketed their superseding indictment against SBF, with Count 8, Campaign Finance, dropped ostensibly at the request of the Bahamas. Inner City Press  published the superseding indictment on its DocumentCloud here.

On August 25 SBF's lawyers wrote in again, saying two days a week in the holding cell with a laptop is not enough. Full letter on Patreon here

On August 29, the US filed that "the USMS has also offered to transport the defendant two days per week to the 500 Pearl Street cellblock" - full letter on Patreon here

On September 5, DOJ wrote in to say SBF will come on Sept 6 - and that in MDC he is exempt from prisoner count - full letter on Patreon here

On September 8, after Ryan Salame pled guilty, SBF's lawyers filed a letter complaining among other things that "Defense counsel were informed by the one of the Marshals that the delay was because another inmate could not be transported with the rest of the inmates heading to the courthouse. Mr. Bankman-Fried was therefore transported to the courthouse on a later bus." Full letter on Patreon here.

On August 22, SBF was arraigned by SDNY Magistrate Judge Sarah Netburn. Thread

More August 22 details on Substack here

More book sample on Substack here. Extended on Patreon here.

Book here

***

Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

Schwab Moved Bank and CRA Duty to Desert SW After TD Ameritrade Buy, Now Challenge

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, Sept 8 – There are largely non-bank company which buy or charter a bank to serve them, but barely if at all comply with the Community Reinvestment Act.

On September 8, 2023, Fair Finance Watch called out Charles Schwab's two banks, to the Federal Reserve:

On behalf of Fair Finance Watch, this is a timely comment on the CRA performance and plans of Charles Schwab, including as impacted by the TD Ameritrade acquisition.

   That acquisition raised a number of issues adverse for consumers, but there was not FRB comment period.    However, this is a timely comment on the CRA PE of the two Charles Schwab banks, Charles Schwab Bank, SSB and Charles Schwab Premier Bank, SSB, which have in connection with the acquisition moved their headquarters to Texas, with an amorphous additional service area of "the desert Southwest."  

Significantly, looking at the top 100 banks regulated by the Federal Reserve, Charles Schwab has the lowest ratio of CRA lending and investments as a % of total assets.    It cannot pass its CRA exam, and its CRA plan cannot continue to be accepted or approved, on this basis.  

The FRB should convene a public hearing, and should reach out to groups through Schwab's (actual) service area.   Watch this site.

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FTX Ryan Salame Pleads Guilty to Campaign Finance Charges that DOJ Let SBF Avoid

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Sept 7 –   After Sam Bankman-Fried had the campaign finance charged against him dropped, ostensibly at the request of the Bahamas, on September 7, 2023 FTX / Alameda's Ryan Salame pled guilty to them.   There was a proceeding before U.S. District Court for the Southern District of New York Judge Lewis A. Kaplan. Inner City Press live tweeted it, thread:

All rise! Meyer Brown law firm for Ryan Salame, gets admitted pro hac vice. Judge Kaplan reads out the Rule 5(f) order about producing all discovery information.  

Judge Kaplan: I understand the defendant intends to enter a plea of guilty to the S-7 information. I understand your name is pronounced "Salem"? Salame: Yes.

Kaplan: Sit down, this is not going to be four minutes like across the street...   Judge Kaplan: How far did you get in school? Salame: Master's degree. Judge Kaplan: You are waiting the right to be indicted? Salame: I am.  Judge Kaplan: Have you received a copy of the information? Salame: I have.

 Judge Kaplan: You are charged with conspiracy to defraud the Federal Elections Committee - campaign contribution charges. [Unlike SBF...]  AUSA: He is charged with making a campaign contribution on behalf of a corporation, which is illegal... Also, to defraud the FEC.

 Judge Kaplan: Mr Salame, do you understand the charges? Salame: Yes, Your Honor.  Judge Kaplan: The maximum penalty for this count is five years in prison... Also, operating an unlicenced money transmitting business.

AUSA: Section 1960 of Title 18 of the US Code... The business failed to register.  Judge Kaplan: The maximum penalty is the same as on Count 1, and it could be consecutive. You will be required to forfeit to the US... Also you will pay to the US $6 million by the time you are sentenced and give up two properties in Lenox Mass and a Porsche auto

 Judge Kaplan: If any information you provided in your financial affidavit to the US is false, the US is free to enforce a larger money judgment. You will make restitution to persons in the amount of [$5 million] to the debtors of FTX 

Judge Kaplan: The Court cannot sentence you to more that the maximum I have described. I understand you have entered a plea agreement. Is this it? Salame: Yes.  Judge Kaplan: Under this plea agreement, you are waiving any right to appeal any sentence below the stipulated guideline of 120 months. Do you understand? Salame: Yes. 

Judge Kaplan: What did you do?

Salame: I made $10 million in political contributions and called them loans, which I never intended to repay. This was supported by Sam Bankman-Fried. I knew it was prohibited. Judge Kaplan: Government?

AUSA: We can proffer on venue AUSA: Some of the politicians were in the Southern District of New York. Salame: As Alameda's head of settlements I used banks, one used in California. I was unaware licensure was required. But now I know.  AUSA: On venue, wires transferred through the SDNY

Judge Kaplan: How do you plead?

Salame: Guilty.

Judge Kaplan: I accept your plea. What about a sentencing date?

 AUSA Raymond: The normal - four months. In January. Courtroom Deputy, Andy: January 10 at 3 pm. 

AUSA: We would like to make our submission to Probation after the trial of Sam Bankman-Fried. Judge Kaplan: When to you think that will be? AUSA: November. Judge Kaplan: I hope you're right. It's due the day before Thanksgiving.

  Judge Kaplan: We'll have to push back the sentencing, then. Courtroom Deputy Andy: March 6, 3 pm.

Judge Kaplan: Any application concerning bail? AUSA: We have a proposed order. Judge Kaplan: He is released on the terms in the order, $1 million bond, 2 co-signers

 Judge Kaplan: If there is nothing else, we stand adjourned.

More including analysis on Substack here

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OneCoin Greenwood Cited Mafia Case to Keep Letters Sealed, Approved After No DOJ Position

By Matthew Russell Lee, Patreon Podcast Filing

SDNY COURTHOUSE, Sept 7 -- 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 April 11, 2023, Judge Ramos heard argument on, then denied, Sebastian Greenwood's argument that non-US losses should be excluded from his sentencing. Inner City Press was there and exclusively live tweeted, here (vlog here)

On May 10, 2023, Greenwood's counsel wrote in, asking for sentencing after Labor Day - letter on Patreon here.

On May 15, Greenwood got the extension, to September 12.

On August 29, Greenwood's new lawyers from Patterson Belknap (and two already on the case counsel) filed a 55-page sentencing submission, redacting even the name of a case they cited and withholding an undisclosed number of exhibits. (They left in Greenwood's "MDC Transcript," now on Patreon here). They ask for time served. They quote "Karl's former driver in Thailand" - but redact the quote, and withhold the entire affidavit. This is unacceptable --

so Inner City Press filed to unseal. Judge Ramos  docketed it on August 30, and asked for response by September 6. That afternoon, Greenwood's counsel wrote in but did no provide a single unsealed document. Response here.

Inner City Press immediately replied, noting that
"[t]he Response provides not a single additional document but rather cites a single (Mafia) case from the White Plains courthouse.    Notably in that case the US Attorney's Office supported sealing to avoid "violent retribution by a criminal organization" which "expressly disavows cooperation with law enforcement and demands violent retaliation against informants." US v. Pasqua, 16-cr-591 (NSR) Dkt  41 at 13, 3. 

  It is not clear which analogy Greenwood's counsel seeks to make: that OneCoin and his co-founder are linked with organized crime, or that victims of OneCoin's fraud should not know who is supporting a time served sentence for Greenwood. The latter should be rejected, and Greenwood has not assisted the prosecution or victims.     So the analogy and ostensible precedent should be rejected, and the submissions unsealed." Reply here.

After that, the US Attorney's Office filed a letter that it "takes no position" on the sealing - and, apparently, on the analogy of OneCoin victims to the Mob. And on September 7, the sealing of all of Greenwood's letters of support was approved. Watch this site.

Watch this site.

***

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