Saturday, February 3, 2024

Auction House Sotheby Beats Russian Oligarch In Art Fraud Trial on All 4 Questions & Works


By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Jan 30 –  Sotheby's defrauded two British Virgin Islands companies controlled by Russian oligarch Dmitry Rybolovlev, the companies alleged in a lawsuit in the U.S. District Court for the Southern District of New York that Inner City Press first reported on in 2020. It involved inflated art prices.

On July 15, 2020 SDNY Judge Jesse M. Furman held a proceeding. Inner City Press covered it.  

Judge Furman ordered that defendants "shall submit a copy of the settlement agreement by email to the Court for in camera review."

Jump cut to January 4, 2024, the Thursday before a Monday trial to last the rest of the month. Plaintiff's counsel argued to have the BVI company, Accent Delight International, listed in the Sotheby's opening demonstratives, and that no reference be made to Rybolovlev's "lieutenant," saying that term connotes organized crime.

Judge Furman denied the motion, saying it mostly connotes the military.

On January 8, Inner City Press live tweeted the opening statements, here

On Saturday January 13 Rybolovlev's lawyers filed that "the Court should preclude hearsay testimony from Samuel Valette and Alex Bell about what the sellers of the Modigliani TĂȘte and Da Vinci Salvator Mundi allegedly said to them about their motivations for selling the works or accepting the prices Bouvier offered." Letter on Patreon here

On January 30, the jury came back with a verdict for Sotheby's (not liable for aiding and abetting) on all four counts.

More on Substack here

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For Burnt Bronx Smoke Shop Man Got SDNY Plea to Pot Possession Now Complete Pardon


by Matthew Russell Lee, Patreon Book Substack

SDNY Exclusive, Jan 30 – Mohammed Kassim tried to return marijuana he bought from a smoke shop at 1274 Castle Hill Avenue on March 13, 2023. They refused to take it back.

He returned on March 17 and lit the store on fire. 

 On November 17, 2023 Kassim was brought before U.S. District Court for the Southern District of New York Magistrate Judge Robert W. Lehrburger to plead guilty - to possession of marijuana. While marijuana is now level at the New York State level, it is not at the federal level.  

 This was the SDNY prosecutors' way to finesse the arson charge. They indicated they will agree to a sentence of six months in a halfway house, but successfully opposed release on bond for the holidays.

 In the gallery, along with Inner City Press, the only people were Kassim parents, with interpretation headphones on.

On November 20, the US Attorney's Office put in a letter asking for six months in a halfway house.

More detail and analysis on Substack here

On November 30, Judge Lehburger gave the time served plus seven days so that the defendant can be transferred from BOP to RRC by December 7.

On January 30, Kassim came in before Judge Lehrburger resulting in this docket entry: "D pardoned. Case closed. Probation services discontinued." We will have more on this.

  The case is US v. Kassim, 23-cr-608 (Lehrburger)

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As UN of Guterres Spins UNRWA Terror Role UNDP Bribe Taking in Iraq as Ian Phillips Lies


by Matthew Russell Lee, Patreon Book Substack

UN GATE, Jan 29 – For weeks Inner City Press has asked the UN and its media people, including Stephane Dujarric and News and Media chief Ian Phillips, about evidence that UNRWA workers took part in the October 7 attacks. No answers at all - censorship.

Now after SG Antonio Guterres' belated and begrudging acknowledgment, the UN has assigned its OIOS to cover up, as it has done before, see here.

Tellingly, Guterres' UN system has another separate scandal being drowned out: the taking of bribes in Iraq by UN and UNDP staff, documented by The Guardian. On January 29, no one let into the UN asked about it.

Does the UN corrupt everyone that goes to work for it?

Given the inflated salaries it pays its officials, the UN can collect and try to buttress its credibility with for example name-brand journalists. But what freedoms do they give up, and how low do they go?  

In 2023 the UN hired Ian Phillips, once the Associated Press' head of (get this) journalist safety. His LinkedIn profile, after moving to the UN, states that his "role includes advisory and policy work, with particular focus on press freedom."  

So Inner City Press, having been roughed up by UN Security and then banned from entering or getting even its written questions asked, last week wrote to Ian Phillips at the UN - and through his LinkedIn profile:

Hello Mr. Phillips. I am asking you to look into this and ensure that the UN Media and Accreditation Unit fairly process, and rule on, my pending application for (re) accreditation.   Two separate law firms have written the UN pro bono on my behalf, without answer." 

   No answer at all.

In the past few days, we've sent our daily press questions to Mr. Phillips as well, since he's the head of the UN's "News and Media Division." Questions about Gaza and the Secretary General's finances. And no answers at all.  

 So again:  Does the UN corrupt everyone that goes to work for it? We will continue to report on this.

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Harris After Guilty Plea on Ashley Biden Diary Asks to Appear by Video to Seek to Adjourn


By Matthew Russell Lee, Patreon Maxwell Book
BBC - Guardian UK - Honduras - ESPN

SDNYLIVE EXCLUSIVE, Jan 29 -  For taking and transporting Ashley Biden's diary from Florida to New York, guilty pleas on no notice were entered on August 25 by Robert Kurlander and Aimee Harris. Inner City Press was there, and live tweeted, here and below.

Before U.S. District Court for the Southern District of New York Magistrate Judge Sarah L. Cave, first Kurlander then Harris were brought out of the holding cell by US Marshals, and pled guilty. Inner City Press' thread is here and below.

On January 29, the day before her sentencing scheduled for January 30, Harris wrote in through counsel to ask to appear by video to request an adjournment, saying she is sick and has no childcare.

The case is now US v. Harris, 22-cr-457 (Swain)

This case is In re Search Warrant dated November 5, 2021, 21-mc-813 (Torres)

August 25 thread

[After Inner City Press tweeted about the above, and the detail from Harris' allocution that she said "an organization" paid her $10,000, twice, for the property (diary) via her child custody lawyer, this DOJ press release, here.]

The case is 22-cr-457 (Swain / Cave)

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After Loss in Eaze Bank Fraud Trial Akhavan Hit With $17M Forfeiture After 2d Cir Ruling


by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Jan 29 – Hamid Akhavan was sentenced to 30 months for his role in the Eazy marijuana delivery service bank fraud, in a trial Inner City Press covered and won unsealing of documents in.

  On January 22 Akhavan appeared before U.S. District Court for the Southern District of New York Judge Jed S. Rakoff. Inner City Press went to cover it. Thread:

OK - now at US v Hamid Akhavan, Inner City Press reported on and unsealed the trial, which beyond marijuana delivery service Eaze touched on OneCoin and Hargreaves

Judge Rakoff: This case is here on remand from the Seconf Circuit for resentencing. They said the banks had been exposed to liability, and that Mr Akhavan controlled $17 million... If I do impose the $17 million, what would the payment plan be? 

AUSA: We could explore alternate assets. Judge Rakoff: What if I order 5% of his gross monthly income?

Defense (Quinn Emanuel) We think $17 million is disproportionate. Judge Rakoff: 5% of zero is zero.

AUSA: $17 million is not unconstituonal here. And it's the defense that bears the burden. Akhavan was the leader of this fraud

Judge Rakoff: If there were victims here, I would be more sympathetic to the Government's position. He served 30 months in prison. AUSA: Financial penalties are important in these white collar cases. He pocketed $8.5 million   [Akhavan is whispering animatedly in the ear of 1 of his 2 lawyers]

AUSA: Congess has spoken in the bank fraud statute. Jydge Rakoff (smiling) Yes, banks must be protected.AUSA: We are not seeking to seize any business, only to enter a money judgment. He increased banks' compliance costs. Defense: Mr Akhavan never had these funds. It was an entirely digital world, taking marijuana into it. All he had was the stock options.

AUSA: The money went to Jaw13 - who was Akhavan, referred to as jawbreaker 13 on Telegram. He didn't invest 3 years and take nothing. Defense: This was about the merchant processing banks. Our client never received this money.

  Judge Rakoff: Are you claiming Mr Akhavan did this for ideological and not mercenary reasons? If so he should apply for a Mother Theresa award. But actually he lied to banks that the funds weren't from marijuana. Defense: He didn't intend to harm banks.

Defense: Mr Akhavan is now unbanked. Akhavan: I did this because a dying friend couldn't buy weed with a credit card. I didn't need this. I did not get money from this. The Government is lying. Dispensaries today are not being prosecuted, they take cards... 

Akhavan: I've lost my business, my wife, my kid. I've been living with my parents for the last year and a half. Judge Rakoff: The jury found you guilty. I urge you to look forward, and not hold a grudge - that's just punishing yourself.

 Judge Rakoff: I hope you don't dwell on the past, for your own happiness. I'm not going to rule right now, but in February, with the extra day

AUSA: It has to be in person 

On January 29, Judge Rakoff docketed a ruling that "orders that Akhavan pay forfeiture under 18 U.S.C. § 982(a) (2) in the amount of $17,183,114.57, to be paid at a rate of 5% of Akhavan's gross monthly income, beginning in the month after the amended judgment is entered in this case. In addition to the payments of 5% of his gross monthly income, Akhavan must cooperate with the Government to provide any other forfeitable assets that will be credited toward the $17,183,114.57 upon their tender."

Judge Rakoff wrote that "although the Court previously held such a forfeiture to be an excessive fine prohibited by the Eighth Amendment, the Second Circuit's vacatur order undercut both aspects of the Court's reasoning that tilted in Akhavan's favor."

 Inner City Press will continue to cover the case.

It is US v. Weigard, et al., 20-cr-188 (Rakoff)

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Davis Polk Is Found Not Liable to Kaloma Cardwell after Jeh Johnson Complained 3 Weeks


By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Jan 29 –  Kaloma Cardwell filed a racial discrimination case against his employer, the "white shoe" law firm of Davis Polk and Wardwell.

He'd been employed there from September 2014 through August 2018, then alleged that "defendants quarterbacked and permitted a playbook that marginalized, discriminated against and retaliated against Plaintiff, the only Black male associate in the Davis Polk's 2014 associate class." Then there was a delay in discovery.

 U.S. District Court for the Southern District of New York Judge Gregory H. Woods held a proceeding on July 28, 2022. Inner City Press covered it.  

On March 22, 2021 on very little notice, Judge Woods held another proceeding. Inner City Press covered it. The defendant's lawyer Jeh Johnson was complaining that Kaloma Cardwell had declined to show up for his deposition, despite they said their promises to limit access to the transcript. Cardwell's lawyer said the defense does not have an automatic right to a "fourteen hour deposition."

Jump cut to February 16, 2023, when Judge Wood denied some claims, but allowed others to proceed: MEMORANDUM OPINION AND ORDER re: [220] MOTION for Summary Judgment . filed by John Bick, Brian Wolfe, Thomas Reid, Daniel Brass, Sophia Hudson, Davis Polk and Wardwell LLP. ENDORSEMENT: For the reasons stated above, Defendants' motion for summary judgment is GRANTED in part and DENIED in part. First, Defendants' motion is granted as to Plaintiff's aiding-and-abetting claimscounts six, eight, ten, and twelve. Second, Defendants' motion is granted as to Plaintiff's discrimination-based claimscounts one, three, five, and nine. Third, Defendants' motion is denied as to Plaintiff's retaliation-based claimscounts two, four, seven, and eleven. However, for the reasons explained above, because William Chudd, Sophia Hudson, Harold Birnbaum, Brian Wolfe, and John H. Butler did not have requisite knowledge to take retaliatory action against Plaintiff, they are not subject to liability on these (or any) claims and will be dismissed from the case. Finally, Defendants' motion is granted as to Plaintiff's claimed frontpay and backpay damages but denied as to Plaintiff's claimed compensatory damages, punitive damages, attorneys' fees, and further relief. The Clerk of Court is directed to terminate the motion pending at Dkt. No. 220 and to remove William Chudd, Sophia Hudson, Harold Birnbaum, Brian Wolfe, and John H. Butler from the caption of this case. William Chudd, Harold Birnbaum, John H. Butler., William Chudd, Sophia Hudson, Brian Wolfe, Harold Birnbaum and John H. Butler terminated. (Signed by Judge Gregory H. Woods on 2/16/2023)"

Previously, Jeh Johnson appeared. Inner City Press live tweeted, here

Jeh Johnson of Paul Weiss, for David Polk: They have withdrawn the so-called Black Restaurant allegation.

Jump cut to November 17, 2023 when a lengthy pre-trial conference was held. Inner City Press went. Davis Polk was seeking to exclude what it said where late- or non-disclosed witnesses. Cardwell's lawyer asked until December 11 to brief but that amount of time was denied. Then this order: "ORDER. As stated on the record during the conference held on November 17, 2023, Defendants move under Federal Rule of Civil Procedure 37 to exclude 11 of Plaintiff's listed trial witnesses for failure to timely disclose them under Federal Rule of Civil Procedure 26. See Dkt. No. 334 at 35 & n.3."

On December 5, Judge Woods ordered "Defendants' requests for the exclusion of certain of Plaintiff's witnesses and for the determination of a trial clock on each side are granted in part and denied in part. The following Plaintiff witnesses are excluded from trial: Neil Barr, Gar Bason Jr., Bruce Birenboim, Susanna Buergel, Gina Caruso, Michael Davis, Martin Dellacona, Charles Duggan, Kathleen Ferrell, Michael Flynn, Arthur Golden, Monica Holland, Larry Jacobs, James McClammy, Byron Rooney, James Rouhandeh, and Jill Sterner."

On December 6 Judge Woods ordered: "ORDER. The Court has been advised that a large number of juries are scheduled to be selected on January 8, 2024, the trial date for this matter. Given that fact, and the anticipated length of the trial in this matter, the Court believes that a jury questionnaire will need to be administered to the venire on January 2, 2024."

On December 21, Judge Woods held a telephone conference ruling on motions in limine. Among many other things, he ruled that Davis Polk client identities are not admissible. But other things are, on the issue of retaliation.

On December 26, defense counsel pointedly wrote in that "we contacted Plaintiff's counsel today three times - at 11:29 am, 5:03 pm and 8:08 pm - to ascertain Plaintiff's position and have received no response." So, no modifications to the jury questionnaire...

On January 3, 2024 the submission about jury selection reflected that out of 26 disputed jurors Davis Polk was the objector as to fully 22 of them.

On January 9, Cardwell's counsel was examining a witness now at Cadwalader, Inner City Press live tweeted, threadette here:

OK - now in Davis Polk discrimination trial, Kaloma Cardwell's lawyer is questioning a witness who trained him (before leaving for the Cadwalader firm).

Cardwell's lawyer: What is this?

Witness: It's an email that I wrote. Cardwell's lawyer: How do you recognize it? Witness: Because I'm looking at it? I wrote it.

Cardwell's lawyer: Admit PTX 209 into evidence. Jen Johnson: No objection. Judge: Admitted.

 Now with jury out of courtroom on break, Judge is telling plaintiff's lawyer about the numbering of exhibits, and refreshing recollection.  Now a full break is called.

January 10 ended with counsel for Davis Polk asking for, and Judge Woods encouraging, faster disclosure of the identity, order and anticipated length of testimony of witnesses by plaintiff's counsel, as well as a list of exhibits by 9 pm.

Jump cut to January 29 - after three weeks of trial, the jury found Davis Polk not liable to Cardwell, 13 answers of "No."

 The case is Cardwell v. Davis Polk and Wardwell LLP et al, 19cv10256 (Woods) 

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As NYPD George Floyd Protest Settlement Is Called Rigid by PBA Jan 6 and Gaza Echo

 

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE Jan 29 –   When the City of New York's proposed settlement of George Floyd protest lawsuits was challenged by the NYPD Police Benevolent Association at a hearing on January 29, Inner City Press was there and live tweeted, thread here:

 Police union opponent begins to cite what NYC Mayor Eric Adams has said.   Judge says she's not interested in what politicians are saying.

Police union rep: Under the proposed settlement, the officers on the scene can't call in more unless documented imminent threat of serious crime. What that standard have been met on January 6? When?

Police union rep: The proponents have no answer, it's too cumbersome. Under this, you can't even have police nearby, out of sight. What if it's a KKK rally - Judge: This illegal in itself. Move on to another example. Police union rep: I'm not sure that's true

 Police union rep: But say it is the Proud Boys, presumably they are allowed to rally. Under this, you can't have additional police nearby, at the ready. Why hasn't the current NYPD official been asked?

Police union rep: During the recent Palestine Israel protests there have been problems. And it could get worse. The parties couldn't even agree on any dispute resolution other than coming to your Honor. Proponent: PBA opposes many experts, and practiced in Boston

Judge: Who makes the rules at the NYPD? Proponent: Ms Miller will address that. But patrol officers don't get to make these decisions. They can't show any legal prejudice. Judge: If the Proud Boys were to be in Foley Square, they could start in Tier 2?

 Proponent: Yes. And the January 6 hearings showed us they had ample warning... There is a presumption for approving this settlement. Citibank got its settlement approved.

City's lawyer: Mayor Adams' press release when the settlement was announced is consistent with these principles. My unit will be defending an NYPD officer starting tomorrow here  at SDNY  - I am offended they imply we would not protect officers.

 Judge: What about NY AG Latitia James? NY AG rep: We are an enforcement agency. PBA lawyer Smith: The presumption is Tier 1, unless the protesters invite or request police officers. Judge: On Jan 6 one could predict. PBA rep: Only once barricades pushed

PBA lawyer Smith: The Mayor knows something about policing Judge: Mayor Adams hasn't taken his name off the settlement... PBA rep: He said he had to take his lawyers' advice Judge: Maybe they want to avoid the M word PBA rep: Is a monitor even being considered?

 Judge: I will try to have something else by next week.

More on Substack here

  The case is IN RE: NEW YORK CITY POLICING DURING SUMMER 2020 DEMONSTRATIONS, 20-cv-8924 (McMahon) 

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UN Guterres Brags of UNRWA Funding Staff in Oct 7 Terror Attack News Director Phillips Lies


by Matthew Russell Lee, Patreon Book Substack

UN GATE, Jan 28 – For weeks Inner City Press has asked the UN and its media people, including Stephane Dujarric and News and Media chief Ian Phillips, about evidence that UNRWA workers took part in the October 7 attacks. No answers at all - censorship.

Now after SG Antonio Guterres' belated and begrudging acknowledgment, the UN has assigned its OIOS to cover up, as it has done before, see here.

But consider that Guterres was just bragging to staff: "UN Broadcast Message Sent through The UN Intranet-iSeek Friday, 26 January 2024 | New York | Executive Office of the Secretary-General (EOSG) Secretary-General's letter to staff on UN financial situation   Dear Colleagues... Member States have been very supportive of my proposals regarding the budget for 2024 and have made positive decisions on initiatives, such as increasing funding for core activities of UNRWA." Yeah.

Does the UN corrupt everyone that goes to work for it?

Given the inflated salaries it pays its officials, the UN can collect and try to buttress its credibility with for example name-brand journalists. But what freedoms do they give up, and how low do they go?  

In 2023 the UN hired Ian Phillips, once the Associated Press' head of (get this) journalist safety. His LinkedIn profile, after moving to the UN, states that his "role includes advisory and policy work, with particular focus on press freedom."  

So Inner City Press, having been roughed up by UN Security and then banned from entering or getting even its written questions asked, last week wrote to Ian Phillips at the UN - and through his LinkedIn profile:

Hello Mr. Phillips. I am asking you to look into this and ensure that the UN Media and Accreditation Unit fairly process, and rule on, my pending application for (re) accreditation.   Two separate law firms have written the UN pro bono on my behalf, without answer." 

   No answer at all. Is the money too good? Does journalist safety and free press only count when it is not the UN doing the roughing up, and the censoring?

In the past few days, we've sent our daily press questions to Mr. Phillips as well, since he's the head of the UN's "News and Media Division." Questions about Gaza and the Secretary General's finances. And no answers at all.  

 So again:  Does the UN corrupt everyone that goes to work for it? We will continue to report on this.

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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.

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Ukraine 102nd Week Tower 22 Bombing Iraq Again Blues by Matthew Russell ...