On SafeMoon Karony Gets 100 Months US Asked 120 After Inner City Press Bid to Unseal

by Matthew Russell Lee, Patreon Book Substack

EDNY COURTHOUSE, Feb 10 – On November 2, 2023 SafeMoon's trio were indicted in the U.S. District Court for the Eastern District of New York. Inner City Press covered it.

 Prosecutors charged Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon”  Earlier today, Karony was arrested in Provo, Utah...

 On November 3, Smith was arraigned, bond document on Patreon here ....

On November 13, Inner City Press live tweeted the bail appeal in which Karony was ordered detained and to be brought to EDNY, thread

On November 22, Karony's lawyers filed - Letter on Patreon here.

On November 27, the prosecutors replied that transport will take the time it takes, and there is no basis for release. Letter on Patreon here.

In February, Karony was given a new free lawyer and a $3 million bond package - but the co-signers are confidential, unlike what Inner City Press unsealed as to SBF in SDNY.

Inner City Press on February 17 filed a letter to unseal the co-signers - on February 22 Judge Komitee to his credit had it docketed. But nothing happened (?)

Jump cut to April 29, 2025 when Magistrate Judge Cho held a conference on the jury selection he will run on May 5 (same time as US v. Sean Combs in SDNY), thread.

On May 21, "a federal jury convicted
Braden John Karony on all counts.

On December 29, the US Attorney's Office wrote in asking for a 12 year sentencing on Karony, 22 page sentencing memo on Patreon here

On February 10, 2026 Inner City Press live tweeted the sentencing: Karony got 100 months.

Inner City Press is following the case(s)

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After SBF Got 25 Years Now Pro Se Motion for New Trial Saying Why Salame No Testimony

 

by Matthew Russell Lee

SDNY COURTHOUSE, Feb 10 – On the US v Sam Bankman-Fried trial, hours after the guilty verdict, a book was published: "Crypto Criminal: The Conviction of Sam Bankman-Fried: As live tweeted and investigated from inside the SDNY courthouse by Matthew Russell Lee," audio/book here.

  On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.

On May 28 Salame was "sentenced to 90 months."

On August 21, Salame filed that "the Government used the plea negotiations to threaten Salame’s domestic partner and the mother of his child, Michelle Bond." Full filing on Patreon here.

On February 10, SBF - via his monther - filed a pro se motion for a new trial, arguing why Salame and Daniel Chapsky did not testify. 35 page motion on Patreon here.

More details on X for Subscribers here, Substack here

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On World Liberty Trust Co Fair Finance Watch Challenge Belatedly Noted by OCC Here

 

by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX/SDNY, Feb 9 – Amid the FDIC's bid to eliminate public notice of and public comment on branch applications, when Inner City Press simultaneously challenged Bunq and World Liberty Trust Company, by 7 pm on January 14 the OCC had only acknowledged FFW's comment on Bunq - nothing on WLTC - even on February 8 while the comment period is running, set to expire on February 9 after a January 6 filing.

 This as the OCC says its reviews are apolitical.

On February 8, FFW filed again, including that

"especially now given the UAE investment in World Liberty issues, there is no justification for the OCC not acknowledging timely comments in opposition, such as those filed to date by FFW, and not putting any comment on the application on it webpage of comment on applications."

 Later on February 9, this from the OCC:

"Dear Mr. Lee: The Office of the Comptroller of the Currency (OCC) acknowledges receipt of your emails dated January 14, February 2, and February 8, 2026, regarding the above referenced application. We appreciate your comments and will consider these remarks during our review of the application. Please include the OCC control number on any correspondence related to this filing. If you have any questions, please contact the undersigned. Sincerely, Jonathan S. Borton Analyst, Chartering, Organization and Structure Office of the Comptroller of the Currency." Now on Inner City Press' DocumentCloud here

Now what?

See, e.g., Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra  

 But now the Federal regulator(s) blithely propose(s) to eliminate public notice and public comment on banks' proposals to expand.  The above-quoted reasoning is that few comments are filed. So, that is now changing.

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Melania Trump Moved to Dismiss Wolff Case or Transfer it to SDFL He Files 302 on Zampolli

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Feb 9 – Journalist Michael Wolff filed a defamation lawsuit against Melania Trump in New York State court on October 21, 2025. 

 On December 29, Melania Trump through counsel filed a Notice of Removal to the U.S. District Court for the Southern District of New York, which Inner City Press closely covers and where it found it. The notice says that she is a resident of Florida and therefore diversity jurisdiction applies. 

  Her lawyers also wrote that "plaintiff falsely and maliciously asserted that Mrs. Trump was somehow 'involved' in the 'scandal' relating to Jeffrey Epstein [and] initiated this action in an improper effort to preempt a potential defamation lawsuit against him by Mrs. Trump." 

On January 26 Melania Trump's lawyers moved to dismiss, or to transfer the case to the Southern District of Florida.

On February 9 Wolff's lawyer opposed - and filed Melania Trump's emails with Ghislaine Maxwell, and an FBI 203 about Paulo Zampolli, who Inner City Press reported on at the UN before being thrown out of the UN by Antonio Guterres, introducing the first couple, on Patreon here

More on X for Subscribers here and Substack here

The SDNY case is Wolff v. Trump, 1:25-cv-10752 (Vyskocil)

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Home BancShares Tennessee Proposal Opposed by FFW St Louis Fed Asks of CRA & Branches

by Matthew Russell Lee, Patreon Book Substack

FEDERAL COURT, Feb 9 – Home BancShares, whose Centennial Bank has a disparate lending record in all five states it it is, including an office in New York, as applied to the Federal Reserve to buy a bank in Tennessee, Mountain Commerce.

  Fair Finance Watch has opposed it, in comments filed January 19 with the Federal Reserve Bank of St. Louis and the Federal Reserve Board which recently allowed a $7 billion mega-merger to proceed with no Fed review. From the comment:

 Fair Finance Watch has been monitoring Home BancShares and its Centennial Bank and finds that in Arkansas in 2024 Centennial made 870 mortgage loans to whites while denying only 242 applications from whites, while making only 64 loans to African Americans and denying fully 48 applications from African Americans.    This is disparate - and note Centennial's significant decrease in loans to African Americans in Arkansas, from 113 loans to African Americans in 2020 to only 64 in 2024. Now they want to go into Tennessee - FFW is filing opposition and requesting hearings. 

  Likewise in Florida in 2024 Centennial made 406 mortgage loans to whites while denying only 146 applications from whites, while making only 23 loans to African Americans and denying fully 27 applications from African Americans - that is, more than its loans to African Americans. This is extremely disparate - this application should be denied. 

 In Alabama in 2024 Centennial made 20 mortgage loans to whites while denying only 11 applications from whites, while making only ONE loan to an African American - extremely disparate. 

  In Texas in 2024 Centennial made 477 mortgage loans to whites while denying only 151 applications from whites, while making only 14 loans to African Americans and denying fully 12 applications from African Americans. This again is extremely disparate; the proposal should be denied to prevent these patterns from being imposed on Tennessee. 

   There are extensive consumer complaints against Home's Centennial Bank. Since the Federal Reserve Board now appears dismissive of complaint based on the platform on which they appear, here for the record is a sample complaint from the CFPB site...

On January 20 the St. Louis Fed's Senior Manager  Mergers & Acquisitions emailed FFW: "Receipt confirmed."

Home BancShares responses emphasized that FFW (and Inner City Press) are "domiciled" in New York. And?

On Feb 9 the Fed asked Home BancShares "Page 2 of Bancshares' Y-3 states that Centennial Bank operates from "218 banking offices in Alabama, Arkansas, Florida, New York, Tennessee, and Texas." Public records indicate that Centennial Bank operates 234 offices in Alabama, Arkansas, Florida, New York, and Texas. a. Confirm whether Centennial Bank operates any banking offices in Tennessee. b. Confirm whether the 218 banking offices referred to in the application are full- service branches. c. Indicate whether Centennial Bank operates any limited service branches, loan production offices, or any other locations and, if so, where they are located. 3. Provide an organization chart reflecting the combined organization's consumer compliance, fair lending, and Community Reinvestment Act ("CRA") staff, and discuss whether any management or employees from Mountain Commerce Bank's consumer compliance, fair lending, and CRA staff would be retained at the combined organization."

   Watch this site.

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In Case Over 26 Fed Plaza 10 Floor Conditions Now 9 Floor Revealed Inspection Due March 16

 

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Feb 9 – A class action was filed on August 8 over immigration enforcement conditions in 26 Federal Plaza. (Inner City Press on that day covered the courtrooms on the 12th floor and the ICE activities just outside).  

 The case was assigned to US District Court for the Southern District of New York Judge Lewis A. Kaplan, who held an oral argument on August 12. Transcript, on DocumentCloud here. Judge Kaplan mused about 50 square feet per person and increased and more private legal calls, with a TRO order to follow.

And at 4 pm the TRO issues, on square footage, legal calls and more, Order here

On September 8 plaintiff's counsel filed full 11 page memo of law on Patreon here

On September 16 Judge Kaplan issued a preliminary injunction.

On November 25 plaintiffs' counsel filed a motion for contempt and sanctions, saying the injunction has not been complied with. They seek a monitoring mechanism and attorneys' fees.

On February 9 Judge Kaplan held a conference in a largely empty courtroom. The Assistant US Attorney asked for more than 30 days; Judge Kaplan replied that ICE has billions of dollars.

The petitioners' lawyer said respondent Joyce disputes that the orders apply to detainees elsewhere in  26 Federal Plaza.

The AUSA said detainees are held for up to 12 hours on the 9th floor when the 10th floor hits the capacity of 22. Judge Kaplan said he'll leave asking for relief up to the petititioners, sanctions reply due February 27, discovery (and agreement on inspecting 26 Fed) with a deadline of March 16.

From Inner City Press' August 8 report:

  There are a dozen ICE officers with masks over their faces in front of Courtroom 1237 in 26 Federal Plaza. In the hall outside the media is allowed to stand, waiting. 

  On the morning of August 8, Inner City Press was there when a Latino family came out of the courtroom. A woman was crying, asking "porque?" as she was comforted and taken down a short hallway away from the click of the cameras.  

 "Did they grab somebody?" a journalist asked, without answer.  

 ICE officer told journalists and photographers to stand to the side as the family passed: a man pushing a stroller, a toddler in a blue Oxford cloth shirt, and the crying woman.  

  "Please get against the wall," one of the ICE agents told reporters.   

  There are no overflow courtrooms, allowing the Press to observe the cases, and little transparency.

 The judges in the courtrooms in 1237 appear to be named Sponzo, Harbeck, Sagesse and Nasser - no first names on the sign.

Instead, a sign says "A message to illegal aliens: A warning to self-deport." 

More on X for Subscribers here and Substack here  

  The case is Barco Mercado v. Noem, et al., 1:25-cv-6568 (Kaplan)

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Burke & Hebert Challenged on Bid for LINKBANK After CRA Condition FRB Asks

 

by Matthew Russell Lee, Patreon Book Substack

Federal Court, Feb 9 – As banks rush to merge given rubberstamping signals from US regulators, LinkBank has done too far with Burke & Herbert.   Back in 2023 Fair Finance Watch got the FDIC to impose a Community Reinvestment Act condition on LINKBANK, here.

 Now with no indication of compliance, LINKBANK proposes to sell itself to also-disparate Burke & Hubert.   FFW on December 22 filed challenges with the Federal Reserve Board and FDIC. FRB version:

 Dear Chairman Powell, Secretary Misback:   This concerns the proposal by Burke & Herbert to acquire LINKBANCORP and LINKBANK.  

 This is opposition at the earliest possible time. In light of a recent proposal in which only the OCC is considering a multi-billion merger, we are submitting this to the FRB as soon as possible. Please immediate inform FFW if Burke & Herbert is applying to the FRS, and consider this comment on any and all Burke & Herbert applications. 

  FFW previously raised disparities of LINKBANK to the FDIC - resulting on a CRA condition being opposed on October 3, 2023.  It is imperative that compliance be reviewed, including at the requested public evidentiary hearing. Given recent developments, there is no reason to believe that the FDIC would or will enforce even its own conditions.     

Burke & Herbert in Virginia in 2024 made 83 mortgage loans to whites, and only SEVEN to African Americans. Meanwhile it denied two applications from African Americans, and only four from whites.   This is disparate.  

     Burke & Herbert in West Virginia in 2024 made 165 mortgage loans to whites, and only TWO to African Americans. Meanwhile it denied one application from an African Americans, and only 29 from whites.

    Burke & Herbert in Maryland in 2024 made 18 mortgage loans to whites, and only TWO to African Americans.  

  Now Burke & Herbert wants to buy LINKBANK, on which FFW had a CRA condition imposed. The FDIC wrote:  CRA Protest In the course of reviewing public input on the application, the FDIC received an adverse comment from a protester that was considered a CRA protest... the FDIC decided to approve the application with the following condition.

On January 7, the FRS wrote back: "The Federal Reserve Bank of Richmond received your correspondence on  December 23, 2025, regarding a future application by Burke & Herbert Financial Services Corporation (“B&H”) to acquire LINKBANCORP (“LINK”). The Federal Reserve has not yet received an application by B&H to acquire LINK. Accordingly, no immediate action will be taken on the correspondence dated December 23, 2025. If a filing is received in the next three months, your comment may be considered as part of the application record for the filing."

MAY be considered?

Jump cut to February 9, when the Fed asked the applicant questions, including about branch closing (will they be withheld, unlike on Fifth Third - Comerica) and this:

"In Confidential Exhibit G to the Interagency Bank Merger Act Application, Applicant discussed steps taken by LINKBANK to implement the Fair Lending and CRA Action Plan (“Plan”) implemented in response to a condition imposed by the FDIC in September 2023. Discuss whether the combined organization will adopt any of the practices implemented by LINKBANK under the Plan and, if so, which. Include in your discussion any plans for staff hired by LINKBANK in connection with the Plan or staff responsible for implementing the Plan."

  Watch this site.

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Jrue Holiday Bought Life Insurance of Sick Man Via Cohen Who Wants to Call Agent Baccari

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Feb 7 – Calvin Darden Jr. was on trial for defrauding NBA player Dwight Howard to convince him he was buying the WNBA team the Atlanta Dream. Inner City Press is covering the trial. September 30 thread

Then, the conviction of CALVIN DARDEN, JR. for his role in defrauding former National Basketball Association players Dwight Howard and Chandler Parsons out of $8 million.  The defendant was found guilty following an 11-day jury trial before U.S. District Judge Vernon S. Broderick.

Sentencing was on April 3, 2025.

Inner City Press went. Darden was present, then at his request taken out by Marshals. Judge Broderick after argument sentenced him to 151 months, with Georgia requested.

On July 17 co-defendant Darryl Cohen wrote in waiving personal attendance in favor of telephone presence at a July 18 hearing.

On July 18 Judge Broderick set Cohen's trial date:  "Minute Entry for proceedings held before Judge Vernon S. Broderick: . Defendant Darryl Cohen present remotely. The trial in this matter scheduled for September 23, 2025 is hereby adjourned to January 2026."

On January 23 Judge Broderick issued his initial description, of Cohen being charged with defrauding three players: Jrue Holiday, Chandler Parsons, and Courtney Lee.

On January 30, it was said Jrue Holiday would testify, as he was in town with the Trailblazers to play the Knicks. But to the end of the day it was an SDNY paralegal, reading into the record Cohen's texts about Nyjer Morgan. Then, with an anti-ICE protest in Foley Square, jurors were led out onto Pearl Street and told to turn right.

On Sunday Feb 1 the US Attorney's Office wrote in seeking reconsideration of restrictions on their direct examination of Jrue Holiday, 10 page filing on Patreon here

Early on February 2, Cohen's lawyers replied, on Patreon here.

On February 2, Inner City Press live tweeted as Jrue Holiday took the stand, thread here.

Cohen told him to buy the life insurance policy of a "terminally ill" man - but Cohen took money and Jrue Holiday fired him and sued Morgan Stanley.

On February 7 the US Attorney's Office opposed Cohen's request to call Special Agent Melissa Baccari to testify about the scope of the Government's investigation." The US Attorney's Office says the request is improper and in any event can't be made ex parte.

More on X for Subscribers here and Substack here

The case is USA v. Cohen, et al., 1:23-cr-134 (Broderick)

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Subprime Fraud of Tricolor Led to SDNY Presser now Chu Bank Account Frozen by Letter

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, Feb 7 – Early on December 17 the SDNY US Attorney's Office announced the unsealing of an Indictment charging DANIEL CHU, the founder and former CEO of Tricolor Holdings LLC, with orchestrating a years-long financial crimes enterprise that defrauded multiple banks and other private credit providers - and an 8:30 am press conference.  

Inner City Press raced and went, asked two questions and live tweeted, here

Clayton: Systematic fraud that reaches the C-Suite will not be tolerated. We will meet C-Suite cooperation with open arms. But tacit C-Suite approval of crime will be met with the full array of our prosecutorial resources. 

[Then much praise of the FDIC.  But wait: aren't they deregulating these banks?] 

FBI Assistant Director in Charge Christopher G. Raia, after joking about recent shoulder surgery so not asking him questions: The CFO has pled guilty and Chu has been arrested... We will protect the integrity of the credit markets... Thank you to the FDIC OIG and FBI Dallas and Miami field offices. Have a safe holiday season

 Inner City Press asked if the deregulation of banks - JPM Chase, Fifth Third - isn't making this type of fraud easier to pull off.  Clayton: Supervision would not have stopped this fraud.

Off topic Inner City Press asked Jay Clayton if his office is monitoring the Luigi Mangione suppression hearing in state court. He: Not appropriate to answer

Indictment on Patreon here

  Quietly docketed on December 17 was the December 16 arrest and presentment to plead guilty before Judge Lewis J. Liman of Ameryn Seibold of Tricolor, quickly released on $100,000 bond, filed under seal December 16.

That case is USA v. Seibold, 1:25-cr-585 (Liman)

On January 13 Judge Castel held a proceeding, noting that while Chu will get the contents of 9 of 10 laptops in the case, his co-defendant David Goodgame will not get Chu's for now at least due to privilege issues. A next hearing was set for March 19 at 2 pm.

On February 6 counsel to Chu wrote in that Chu's personal bank account was frozen by a letter from the Government, no warrant or forfeiture order - and asked Judge Castel for action.

More bank analysis on X for Subscribers here and Substack here

The case is USA v. Chu, et al., 1:25-cr-577 (Castel)

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