Narco Tomas Colon Unsealed Sentencing Memo Counsel Blamed Inner City Press for Reporting

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Nov 30 – The entire sentencing submission by Tomas Colon, described as the "leader of a major drug trafficking organization," was filed under seal on November 16, 2023.

That evening, Inner City Press wrote to U.S. District Court for the Southern District of New York Judge Valerie E. Caproni questioning and challenging the sealing. 

 On November 20, Judge Caproni ordered the defense to by November 28 show cause. Colon's sentencing was pushed back to December 1.

On November 27 Colon's counsel asked to seal even his response to the OTSC. Inner City Press filed opposition, which Judge Caproni docketed and denied the sealing:  Order and filing on DocumentCloud here.

  Later on November 28, Colon's late-coming counsel Robert Blossner wrote in, seeming to argue that the memo and all letters are sealed because Colon held a proffer session, and blaming Inner City Press for having reported statements made in open court during the sentencing of another of his paying clients, Ahrman Burke (21-cr-550-VM), who cooperated against Alec Dupuis (21-cr-707-JSR).

   Inner City Press reiterated that the sentencing material should be unsealed. The current record shows that Blossner has received payments originating from Colon's brother Hector, described as a target in the case.

On November 30 past noon, the sentencing memo was unsealed - it is now, in its entirely, on DocumentCloud here. Watch this site.

 This comes as, for example, all of the sentencing letters of OneCoin crypto currency fraudster Sebastian Greenwood were sealed, regarding which Inner City Press filed a notice of appeal, and has consented to email service.

Sentencing materials must be public, to understand the bases of sentencing. Watch this site.

 This case is US v. Colon, 18-cr-526 (Caproni)

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Michael Cohen Seeks End of Supervision Citing His NY AG Trump Org Trial Testimony

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Nov 29 – A month after Michael Cohen testified in the NY Attorney General's lawsuit against the Trump Organization, Cohen on November 29 asked to have his federal supervised released terminated early - calling his state testimony "well received." 

  This is in a filing with U.S. District Court for the Southern District of New York Judge Jesse M. Furman, now on Patreon here. 

 Inner City Press was in NYS Judge Engoran's courtroom when Michael Cohen admitted to having lied to SDNY Judge William Pauley. (The transcript Cohen annexes misspells it "Pauly.') 

 Cohen also annexes an invitation to speak at Oxford and calls certificates from Otisville, including "Doing Time with the Right Mind."

  Judge Furman has given the prosecutors until December 6 to submit their response.

The case is US v. Cohen, 18-cr-602 (Furman)

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After Ernest Murphy Got 260 Months Newton Got 6 Years now Remanded amid Nassau VOSR

By Matthew Russell Lee

SDNY COURTHOUSE, Nov 29 -- A jury returned guilty verdicts on drugs and gun charges on August 20, 2019 against Ernest Murphy, one of 15 defendants in a Brooklyn-based narcotics conspiracy case brought by the U.S. Attorney for the Southern District of New York. Now a co-defendants sentencing is asked to be delayed two months due to Coronavirus and the Bureau of Prisons' response, see below.

   It came after some electronic and laboratory evidence was suppressed by Circuit Judge Richard J. Sullivan, who rather than re-assigning has kept many of his criminal cases in the SDNY.

 On September 8, 2020 Judge Sullivan was to sentence co-defendant Devontae Newton, using the CourtCall platform due to COVID. Inner City Press called in. But first there was a lot of echoing on the line. It was recommended that Judge Sullivan mute himself, and raise his hand to be given the floor. He gamely endeavored, but finally the screen froze up and he said the sentencing would be postponed, probably to next week. He apologized to Newton. Strangely, Judge Swain's simultaneous (re-) sentencing on CourtCall worked fine. Inner City Press later learned there is a difference in capabilities in the computers of District Judges and Circuit Judges.

 On September 25, 2020 the Newton sentencing resumed and was consummated. Newton spoke movingly, and Judge Sullivan agreed that he had been young at the time of the crime. Judge Sullivan recounted a termination of supervised release proceeding earlier in the week, how well that defendant had been doing. Inner City Press covered that as well, but has yet to report on it because at the end, Judge Sullivan said the transcript would be sealed because of discussion of cooperation and where the cooperator now works.

  In this case, Judge Sullivan said he hoped Newton would in the future similarly return for a termination of (five years) of supervised release. Judge Sullivan said in Fort Dix, he can take college classes even in Princeton, "which I couldn't get into," he said.

  He sentenced Newton to 72 months - above the 60 month mandatory minimum, but below the 87 month guideline. Judge Sullivan pointed out he could have faced 15 years if the US Attorney's Office had not dropped the gun charge. He wished Newton well.

Jump cut to November 29, 2023. Newton got out in September, and now there was an alleged violation of supervised release, apparently being in a car with Chanel perfume stolen from a Macy's in Nassau County. In the back of the courtroom were two officers - and two US Marshals. After the recommendation of Probation to remand, Judge Sullivan did.
 
  Newton put up his hand to speak. After being cautioned about self-incrimination, he said he wanted to take his daughter to and from school. Judge Sullivan said that he had already ruled, and then (after more interchanges), that it was not a conversation. Newton was taken away.

 The overall case is US v. Burgess et al., 18-cr-373 (Sullivan)

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As OpenAI Is Sued by Fiction Writers Microsoft Added to January Briefing in SDNY, Fair Use?

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Nov 29– Fiction writers and the Authors Guild have sued OpenAI and on November 29 the intial pre-trial conference was held before U.S. District Court for the Southern District of New York Judge Sidney H. Stein. Inner City Press was there, thread:

Judge Stein: So I got a letter that the plaintiffs intend to file an amended complaint to add Microsoft?

Plaintiffs' counsel: Yes, Your Honor. Judge: File that by Monday... Now, there's this other case that says it is related, I've invited counsel up.   Judge: Do the parties agree they are related?

Plaintiffs' counsel: We agree, both are opt-out class actions, and the rules for relatedness are satified. Judge: What about consolidation?

Plaintiffs' lawyer: We haven't decided yet, we're working cooperatively.

OpenAI lawyer: We agree, they are related. Judge: Certainly it's easier for me if they go forward on a consolidated basis. Ms. Blakely, let the Clerk's office know I've accepted it as related. Plaintiff, tell me what you think the case is about. 

Plaintiffs' lawyer: This is a tight class action, filed here in the center of publishing by professional fiction writers.  [From caption: Christina Baker Kline, David Baldacci,  George Saunders, John Grisham Jonathan Franzen, Michael Connelly,  Scott Turow 

Plaintiffs' lawyer: They stole books. We represent professional fiction writers. We have remedial theories and can move quickly. The cases in California, there are three

Judge: I'm interested in the first filed rule, and/or a stay  Judge: There are exceptions to the first filed rule, but they'll say they don't apply.

Plaintiffs' lawyer: The cases in California allege that LMMs are infringing machines. It's interesting, but it's a broader class. We are not just a subset - we are focused   Judge: Aren't you arguing that too? That they are gobbling up Mr. Baldacci's work?

Plaintiffs' lawyer: He was reproduced wholesale, and even new work produced. Mr Balducci - I mean Baldacci, I was thinking of food - is very concerned.   Judge: Are you saying the violation is if OpenAI spits out another copy of the novel? Plaintiffs' counsel: It is the willful copying and reproduction of his books. 

2d plaintiffs' lawyer: We're focused on the mass copying of works to train LMMs.  Plaintiffs' lawyer: The 3 California cases have been consolidated, there's a hearing on Dec 8 on a motion to dismiss.

OpenAI lawyer: We have not moved to dismiss the reproduction claim, which is the one here. Plaintiffs' lawyer: The court said summary judgment 1st  

OpenAI lawyer: We're not talking about anyone getting copies of Mr. Baldacci's books about of ChatGPT. To the extent there were reproduction is was for a non-infringing reason: learning and training. Plaintiffs' lawyer: We have evidence of output that infringes Plaintiffs' lawyer: This is not remotely like Google Books. 

OpenAI lawyer: This claim is one of the claims in California cases, which are also filed by authors. So we believe in the first filed rule here.

Plaintiffs' lawyer: We are professional fiction writers Plaintiffs' lawyer: Microsoft has only been sued in the cases in New York.

Judge: Let me set a date to move to dismiss or answer - it will be January 12, to give Microsoft time. Last day for plaintiff to response, January 26. Reply, February 2.   Judge: Talk to me about Google Books, and if we should deal with certification first.

 Plaintiffs' counsel: That should be done here. Judge: The 2d Circuit disagreed. Plaintiffs' counsel: That was an inapposite case. Class actions can be accordions

 Plaintiffs' lawyer: It doesn't make sense to have a summary judgment about one or 18 persons' issues that doesn't apply to the others.

Judge: I assume OpenAI will say fair use applies Plaintiffs' lawyer: This underscores the benefits of certification 1st 

Judge: If we know what ChatGPT is doing with the materials that are shoved into its maw is fair use, that would be in line with Google Books.

Plaintiffs' lawyer: Authors are afraid. I think we will win. In this new context, an adverse ruling would not be the end 

 Judge: I want the parties to submit to me, by January 12, their positions on whether fair use should come first, or class certification.  OpenAI lawyer: We think this is all fair use, to train the model to learn and produce non-infringing outputs. 

OpenAI lawyer: We want an answer on summary judgment. We may not need a class certification if it is resolved as in Google Books. Or the disputes of fact could be specific to individual, the particular work

 Judge: I tend to think I don't need this as this point, but does the court need a tutorial on how this thing works? I'm thinking of patent cases, if need to get smart. Plaintiffs' lawyer: In connection with class cert we have have machine learning experts 

OpenAI lawyer: Let's do expert discovery then hold a hearing, with class cert thereafter.  Plaintiffs' lawyer: We anticipate experts in connection with class certification. 

Judge: This is as far as I should take it now. Talk to Microsoft, adhere to these dates. 

 Judge: Let's leave it at that. Adjourned.

The case is Authors Guild et al v. OpenAI Inc. et al., 23-cv-8292 (Stein)

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In DC Senate Act Against Small Business Data Moves Through House Rules, Unfair PPP Cited

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX NY, Nov 29 – The long delayed small business data reporting provision of the Dodd Frank Act is in play again in Congress.

 On November 28 the House Rules Committee held a hearing to move forward S.J.Res. 32, targeting the CFPB's rule.   

Pennsylvania Rep. Scanlon pointed out at the COVID PPP loan program went in the first instance to the "concierge" clients of big banks. (There was also much related fraud, which Inner City Press reported on daily in the SDNY and other Federal courts). 

  New Mexico Rep. Leger Fernandez pointed out the lack of access to capital in rural area.

S.J.Res. 32 is slated to come up on the House floor, like George Santos, this week. NCRC resources here; Inner City Press will stay on this.

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Man Charged With Interstate Threats Plead Guilty Pro Se Mid Trial As Victims Wait in Hall

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Nov 29 – A man charged with threats of physical harm by interstate communications was extradited from Canada to the US and on June 16 demanded to represent himself.

   Jeremy Joseph appeared  in U.S. District Court of for the Southern District  of New York Magistrates Court, which Inner City Press covers. SDNY Magistrate Judge Robert W. Lehrburger had Federal Defenders serve as stand-by counsel.

  He (or they) were to re-appear that afternoon before District Judge J. Paul Oekten at 4:30 pm. Inner City Press went there, but the door was locked.

Subsequently, the Assistant US Attorney wrote in that the proceeding will be on June 23 (and that Jeremy Joseph also faces charges in Texas, with a docket number under which his SDNY 5(f) order was initially mis-filed).

On November 22, in the run-up to the trial scheduled for November 27, the defendant submitted his own request for subpoenas, on which names were redacted. One was denied, the other deemed moot.

On November 28, Inner City Press attended the trial. In the middle of the testimony of a victim witness, a break was taken for Joseph to confer with his stand-by counsel about his options. She re-emerged from the holding cell to say that it is likely Joseph will plead guilty on November 29. The prosecutors said they would be prepared with more victim testimony, just in case.

On November 29, Inner City Press went. Judge Oetken said if there was no plea, the trial would continue. The Federal Defender said it would be inconsistent with the Sixth Amendment for her to take over the cross examination that morning. Half an hour later, Jeremy Joseph said he was talking an open plea. He recounted his graduate degree and more.

 The case is US v. Joseph, 23-cr-68 (Oetken / Lehrburger) 

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#6ix9ine Carjacker Ellison Is On Trial For MCC Bribes As Co-D Counsel Calls Cooperators Rats

By Matthew Russell Lee, Patreon Thread Scope
BBC - Guardian UK - Honduras - Vulture

SDNY COURTHOUSE, Oct 26 – Daniel Hernandez a/k/a Tekashi 6ix9ine was sentenced to 24 months of total imprisonment in a proceeding live tweeted by Inner City Press before U.S. District Court Judge Paul A. Engelmayer.

 Now Hernandez' co-defendant and car-jacker Anthony Ellison a/k/a Harv, already serving a long sentence, has been indicted again for a smuggle conspiracy while in the Metropolitan Correctional Center. The prosecutors on November 4 announced: unsealing of an indictment charging three current or former Bureau of Prisons (“BOP”) employees, as well as eight former inmates of the Metropolitan Correctional Center (“MCC”), of conspiring to smuggle contraband such as drugs, alcohol, and cellphones to inmates at the MCC. Two of the BOP employees were also charged with obstructing justice.  Four of the defendants were arrested today and will be presented before Magistrate Judge Sarah L. Cave later today. During the course of the scheme, in an effort to obtain a lesser sentence for ELLISON, GRIFFITH-MCKNIGHT submitted a letter to the District Judge responsible for sentencing inmate and co-defendant ELLISON that falsely described ELLISON as a “model inmate” even though at the time GRIFFITH-MCKNIGHT was smuggling contraband to ELLISON and therefore knew he was anything but a “model inmate.”  Relying on this letter from GRIFFITH-MCKNIGHT, the District Judge who presided over ELLISON’s sentencing remarked that ELLISON’s purported good behavior in prison was “impressive” and that “[u]nless this is some sort of Grisham novel, and people are all corrupt and making all of this up about [ELLISON], it seems to me that it’s unavoidable that [ELLISON’s] trajectory at the MCC contains a lot of good.”

Inner City Press went to the detention of release hearings of Griffith-McKnight, lead defendant Perry Joyner and another inmate, Valerio, and live tweeted it here and here (podcast here)

OK- detention hearing on David Valerio, US says he admitted wiring money to MCC prson guard to not search his cell

AUSA says Valerio admitted wiring to also indicted guard Mario Felciano. Magistrate Judge Cave says he will be detained OK- hearing on Corrections Officer Perry Joyner for allegedly bringing in contraband to the Metropolitan Correctional Center

Unlike briber Vslerio, detained, US is agreeing to release (ex) guard Joyner on $300,000 bond, no contact with nemed individuals. His mother is a C.O. as well. He is hiring a private lawyer.

 Next up, the defendant Inner City Press focused on earlier today: "trying for a lesser sentence for [Harv] ELLISON, GRIFFITH-MCKNIGHT submitted a letter to the District Judge describing ELLISON as a “model inmate” even though she was smuggling contraband to him"

All counsel disappeared into Mag Court chambers. After a time, they returned. Judge said it was just to save time...

 DOJ is agreeing to release this ex guard, unlike Harv Ellison and Valerio, on $150,000 bond.

  Here's a photo of Griffith-McKnight's letter to Judge Engelmayer. The case was assigned to Judge Andrew L. Carter.

Jump cut to October 26 when this was docketed: "Minute Entry for proceedings held before Judge Andrew L. Carter, Jr:Arraignment as to Anthony Ellison (6) Count 1s,3s and Starlin Nunez (11) Count 1s,2s held on 10/19/2023.  Defendants arraigned and enter pleas of NOT GUILTY to the Superseding Indictment. Jury Trial & Selection set for 11/20/23 at 10 a.m."

On November 28, Inner City Press attended the trial, opening and then the prosecutor's critique. Counsel for Starlin Nunez referred to the cooperating witnesses as rats who made a deal with the Devil.

  Later, outside the presence of the jury, the AUSA noted this, and argued that to compare the gravity of the cooperators' admitted crimes with those the defendants are being tried for is akin to nullification. Judge Carter said he would address things as they arose, that invoking the Devil might be inappropriate but the use of the word rat, at least in closing argument, probably was not. The trial continues.

 The case is US v. Joyner, et al., 21-cr-673, (Carter). More on Patreon here.

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Venezuelan Carlos Orense Trafficked 100 of Tons of Drugs Cooperator Says Citing Pollo Too

By Matthew Russell Lee, Patreon

SDNY COURT, Nov 28 – Venezuelan indicted narco-trafficker Carlos Orense Azocar was presented in Magistrates Court in the U.S. District Court for the Southern District of New York on June 23, 2023 and Inner City Press was (the only media) there. 

 Orense had just been extradited in from Italy and the indictment against him unsealed.

The case was wheeled out and assigned to District Judge Vernon S. Broderick.

  On November 14, Inner City Press covered the final pre-trial conference before Judge Broderick. Thread.

On November 28, Inner City Press at 10 am and  later. Thread:

  Now cooperator Antonio Arvelaez (in court also said Antonio Arbelaez) takes the stand. Says he trafficked over 100 tons of drugs to the US, most of it with Orense. Also, automatic rifles, he says.

 Arvelaez: I pled guilty, in the SDFL court in Miami, as a cooperator.  AUSA: Have you been involved in murders? Arvelaez: Yes. [Orense looks back toward his daughter and slowly shakes his head]

AUSA: Were you transfered to other facilities? Arvelaez: "DRJ" in Georgia, and one in Mississippi. Then back to Miami. AUSA: For proffers? Arvelaez: Yes. With the DEA, and ICE.

AUSA: Where did Orense live? Arvelaez: In Caracas, in narcotrafico. I became his driver, then bodyguard. One of about 15. Then I moved into drug transport logistics.

 AUSA: Did you pay bribes to government officials? Arvelaez: Yes.  AUSA: Who helped in moving the drugs? Arvelaez: Venezuela army and police, and sometimes the FARC. AUSA: Who were Orense's drug partners?  Arvelaez: Hugo Caravajal, El Pollo, and Pedro Luis Martin

 [Jury is shown GX 102, photo of Martin in blue striped Oxford cloth shirt.... Note: El Pollo's lawyer is here in the courtroom. And another defense lawyer, more on which anon

AUSA: What us this? Arvelaez: A photo of General Hugo Caravajal, El Pollo, head of Venezuela military counter- intelligence. He gave us vehicles and passage through the country

Judge: We'll let the jury go.

Inner City Press will continue to cover the trial.

The case is US v. Azocar, 21-cr-379 (Broderick)

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Indicted PPP Fraudster Ray Got Feb 13 Trial Date in SDNY Then Pled Now Gets 212 Months

By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTHOUSE, Nov 28 – Franklin Ray and Joseph Winget are charged with more than $1 million Paycheck Protection Program fraud through their trucking company, CSA Business Solutions LLC.   

On May 18, 2022 U.S. District Court for the Southern District of New York Judge Analisa Torres held a conference. Inner City Press covered it.   

 The complaint details the use of falsified forms.

On May 18 after a discussion of documents seized from Ray's home, Judge Torres set an "aspirational" trial date of February 13, 2023.

On March 28, 2023 Ray pled guilty to four counts of wire fraud, including one count of wire fraud while released under conditions of bail, and one count of aggravated identity theft.

On November 14, the US Attorney's Office asked for a sentence of 204 months, saying it "recognizes it is seeking a lengthy sentence."

But on November 28, Ray got 212 months, the top of the guideline. Inner City Press was there; thread:

OK- at sentencing of PPP trucking fraudster Franklin Ray. His lawyer is asking for 10 years: US wants 17 years.

AUSA: With respect to the Christmas toys, this email refers to 10 families helped - that's not correct. [US Attorney's Office's victims coordinator is here]

Judge: The guideline is 175 to 212 months. Mr Ray was in Operation Desert Storm. He's been convicted before

Judge: He lied to lenders and to the SBA: he defrauded investors that he had a trucking company, as a Ponzi scheme. 

 Judge: Your victims are unlikely to be made whole. You are sentenced to 212 months [top of guideline]

The case is US v. Ray et al., 22-cr-228 (Torres) 

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