Monday, October 7, 2024
Sunday, October 6, 2024
Saturday, October 5, 2024
Friday, October 4, 2024
After Verdicts In IcomTech Crypto Ponzi Carmona Is Sentenced to 121 Months in SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 4 – For a cryptocurrency Ponzi scheme called IcomTech, which held a promotional event in or near NYC's Times Square, David Carmona on December 21 pled guilty before U.S. District Court for the Southern District of New York Judge Jennifer L. Rochon. Inner City Press was there to cover it - and a related upcoming trial. But first, pleas.
On January 12, the US Attorney's Office wrote in asking for Ruiz Ochoa a sentence near the top of the 57 to 71 month range.
On January 19, Inner City Press attended the sentencing, to five years, thread
On March 11, the cooperator of the witness stand was asked by the prosecution about a lengthy Excel speadsheet, then cross examined about money laundering for drug dealers, and buying cars including BMWs and what he called a "Lambhor jee-nee."
On March 12, the government had on the stand a witness who had bought into IcomTech then made money bringing in others "down line" from her. On cross examination she repeatedly asked to provide longer explanations, but was told that would have to be on re-direct. But it may be fast: by day's end it was said that closings can be on May 13.
And they were, including Brend being described, or shown, to be demanding a $12 fee on top of $3300 he was taking from a victim. Next up: verdict.
In came late on March 14, not without drama, here:
OK - now in case of Brend / IcomTech, there's a verdict sent out by jury- along with a note expressing concern about juror anonymity and safety. Defense says this is serious, wants time to brief.
Defense counsel cites a case he says was about John Gotti and problems cause by juror fear. Judge: I will not grant a mistrial. I don't see any indication of outside influence. The note does not say there is fear, only concern about confidentiality
Judge: This is very different than a juror being approached by mobsters. So I will take the verdict - any concerns can be raised in post-trial motions, depending on what the verdict is. I will direct the parties not to contact the jurors. Defense: We'd like to contact
Jury entering! Judge: I have an envelope, I'll now open it. I'll ask my Deputy to hand the verdict form to the foreperson, please. On the sole count of conspiracy to commit wire fraud, Brend? Guilty. Gustavo Rodriguez? Guilty. [Jurors are polled]
[There are now US Marshals in the back of the courtroom - will the prosecutors be asking for immediate remand to prison?] Judge: I thank you for your decision making. You are free of your obligation not to discuss the case. It's up to you
Jury leaves. Judge: Does the government have any applications? AUSA: Now post verdict, see 3143(a)(1), the burden is on the defendants. We think Mr. Rodriguez should be detained. Mr. Brend, we'd add home detention, GPS in Tampa where he lives.
AUSA: Mr. Rodriguez is not a US citizen. This is an aggravated felony; he is presumptively deportable. He faces a very significant sentence here. There's an enhancement for over $25 million. He was involved in other MLMs. He has family in South America: 11 trips
Update: in the middle of the post-verdict remand arguments, a woman walking out of the court room collapsed, with her eyes closed. 9-1-1 was called. She was described as defendant Brend's mother in law, speaking only Portuguese. Now a break has been taken
EMS arrived: court resumes. AUSA: Gustavo Rodriguez might just flee to Argentina. Defense: His 18 year old son is here, willing to testify, he would not leave him or his 16 year old. Judge: There is a guilty verdict, Mr Rodriguez will be detained
Rodriguez' lawyer: May my client speak with the son before he is remanded? To tell him how to get home? Judge: Marshals, can you wait a few minutes? Marshal: Yes.
On March 22, the US Attorney's Office argued that the ban on contacting jurors imposed after the verdict should continue, that they not be harassed by the defeated party (citing Moten, 582 F.2d at 664). The only exemption, they say, if if racial animus is expressed, not relevant here.
On June 18, counsel for David Carmona who pled wrote to the Probation Department objecting to the PSR, suggest a guideline of 41 to 51 months and noting that "as to paragraph 75, the matter for which Mr. Carmona was arrested in Las Vegas, Nevada was dismissed and sealed." But the PSR still picked it up...
On July 29 David Brend got a Fatico hearing on loss amounts, appearing for it by video. Inner City Press was in the courtroom, from the thread:
US describing "underestimated" loss amount...
Judge Rochon: What about conscious avoidance?
Assistant US Attorney: It doesn't reduce the loss amount... Brend sent WebEx invites as widely as possible
On September 20, counsel for Cardona wrote in asking for a two year sentence on October 4.
On September 27, the US asked for 188 months on Cardona.
On October 3, Gustavo Rodriguez's requests got shot down: "ENDORSED LETTER as to Gustavo Rodriguez addressed to Judge Ross from Attorney Jeffrey Cohn dated October 1, 2024 re: I write to request that the Court adjourn sentencing in the above-referenced case and set a date for a hearing on Mr. Rodriguez' pending motions pursuant to Rules 29 and 33 of the Federal Rules of Criminal Procedure. It is Mr. Rodriguez' intention to testify at the proposed hearing. As regards the timing of this letter, shortly after undersigned counsel was retained, Mr. Rodriguez had proposed meeting with the government and it was only yesterday that the government informed me that it refused to meet with him. ENDORSEMENT: The request to adjourn sentencing is DENIED. Defendant was found guilty on March 14, 2024 and the sentencing date has already been repeatedly adjourned in this case. Therefore, it will not be moved. The Court will hear argument on Defendant's Rule 29 and Rule 33 motions on October 11, 2024 at 11:00 a.m. SO ORDERED. ( Motion Hearing set for 10/11/2024 at 11:00 AM before Judge Jennifer L. Rochon. ) (Signed by Judge Jennifer L. Rochon on 10/3/2024) "
On October 4, Cardona was sentenced to 121 months. From Inner City Press' thread:
AUSA: Mike Myersnow at sentencing of Carmona in Icomtech Ponzi case, he is already in detention. Prosecutor just quoted "Wayne's World." says, tell two friends, and they tell two friends. That's what happened here, a Ponzi. His loss amount is over $25 million.
Judge: That may be under reported. This scheme targeted vulnerable people, including those without legal immigration status
More on X for Subscribers here and Substack here
The case is US v. Carmona, et al., 22-cr-551 (Rochon)
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First Busey $1B Bid For CrossFirst Hit by Fair Finance Watch As CRA Exhibits Withheld
by Matthew R. Lee, Patreon Substack
FEDERAL COURT, Oct 4 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications
Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture, its disparate lending record:
First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ.
Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans
Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.
Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.
There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation.
And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.
When the Fed provided the application, the banks had withheld their CRA data. So, "This is a formal FOIA request for the withheld exhibits to the First Busey / CrossFirst application, in particular "Confidential" Exhibits 9 ("First Busey Community Reinvestment Act Data") and 10 ("CrossFirst Community Reinvestment Act data"). This is presumptively public." Watch this site.
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As First Tech and Digital Credit Unions Seek to Merge Disparate Lending Ignored by NCUA
by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX, Oct 4 – Two tech-focused credit unions announced this week they intend to merge, if they get approval from the National Credit Union Association.
Digital Federal Credit Union is based on the East Coast, and First Tech is on the West Coast, wanting to follow Microsoft into Atlanta, and Amazon into northern Virginia.
But what are their lending records?
According to 2023 Home Mortgage Disclosure Act data reviewed be Fair Finance Watch, nationwide in 2023, First Technology Credit Union made 1532 mortgage loans to whites, and only 41 loans to African Americans. Meanwhile it denied only 368 applications from whites, and fully 37 from African Americans.
Digital Federal nationwide in 2023 made 2196 mortgage loans to whites, and only 178 loans to African Americans. Meanwhile it denied only 1122 applications from whites, and fully 261 from African Americans.
These disparities should result in the denial of the proposed merger. But credit unions are for now not subject to the Community Reinvestment Act, and NCUA refuses to consider such issues. Watch this site
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After Breach with German FM Russia State Reporter Regains UN Access Through Guterres
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 4 – How corrupt is today's United Nations? Well, during the UNGA "High Level" week a Russian state reporter had accreditation stripped or downgraded after an encounter with Germany's Foreign Minister.
Then after a Russian complaint to SG Antonio Guterres, "the issue is being dealt with between the Russian Federation and our colleagues in the Department of Global Communications," according to Guterres' spokesman Stephane Dujarric.
Inner City Press in writing asked, Dujarric, Melissa Fleming, the Swiss Mission and 50 others: "On the change of UN accreditation to a Russian state media correspondent, and the statement that Melissa Fleming / DGC was "dealing" with it with the Russian Mission, immediately state what happened, and why - and why Fleming has refused to answer letters about the ban on Inner City Press from pro bono law firms Quinn Emanuel and Duane Morris."
Dujarric and 50 others refused to answer, but sent this to others: "The actions of the journalist in question were a breach of the Media Access Guidelines... In light of this breach, the journalist’s status was changed by the Department of Global Communications to non-resident correspondent. He remains an accredited journalist, able to access UNHQ and cover meetings, briefings and other events.
No answer from Dujarric - but Russia's PR on October 4 did another stakeout, about Nordstream, and didn't mention the issue, clearly satisfied with Guterres' capitulation, on this and more important matters.
And this is the same Dujarric who got Inner City Press thrown out of the UN Briefing Room and the UN, and refuses to answer its daily written questions. This is Guterres' UN - and we'll have more, much more, on it.
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Eric Adams Wants Trial Done By March Now US Attorney Asks No Trial Dates Until CIPA
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 3 – The five-count indictment of NYC Mayor Eric Adams was unsealed in the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was the first one in and live tweeted it - as it will his presentment, now set for Friday, September 27 at noon.
The unsealing thread
On September 17 at noon he was arraigned and pleaded not guilty. Thread.
On September 30, Adams' lawyers now including William Burck did file a motion to dismiss... Count V, on the Turkish Mission. 25 page memo of law of Patreon here.
At 5:58 am on October 1, Adams' lawyers filed a motion for sanctions alleging grand jury leaks - memo of law on Patreon here.
On October 2, Inner City Press live tweeted the proceeding here; the next day is November 1, with Adams requesting a February or March trial
On October 3, the US Attorney's Office wrote in that " because the schedule for CIPA practice may inform the overall schedule for other events in the case, the Government respectfully requests that the Court hold the Section 2 conference before finalizing a trial schedule in this case." Letter on Patreon here.
More/extra on X for Subscribers here and Substack here
The case is USA v. Adams, 1:24-cr-556 (Ho).
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Sean Combs Lost Bail Appeal in SDNY Now Case Reassigned to Judge Arun Subramanian
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 3 – At 4:30 pm on September 16 Inner City Press was told by its SDNY source to expect "the big one" - Sean Combs - the next day in the courtroom here.
At 10:30 pm, from SDNY News, this: "USA Damian Williams: Earlier this evening, federal agents arrested Sean Combs, based on a sealed indictment filed by the SDNY. We expect to move to unseal the indictment in the morning and will have more to say at that time."
At US Attorney Damian Williams' press conference Inner City Press asked if his office would be seeking detention - Yes, he said. Detention memo on Patreon here.
In the run-up to the 2:30 pm hearing Combs' counsel file a bail proposal, with $50 million bond - filing on Patreon here.
In a lengthy bail hearing that Inner City Press live tweeted here, Combs was ordered detained.
On September 18, Combs lost his bail appeal, tweeted here, with next conference October 9.
[Inner City Press published book / audio book Diddy Do It? on Sept 20 on Amazon here]
On September 23, Combs' lawyer wrote in re "the location of Mr. Combs’ detention. At this point, there is no request from counsel that the Court take any action." Letter on Patreon here.
On September 30, Combs' lawyers filed a notice of appeal of detention to the 2d Circuit.
On October 3, Combs' SDNY criminal case was re-assigned: "Case as to Sean Combs REASSIGNED to Judge Arun Subramanian. Judge Andrew L. Carter, Jr no longer assigned to the case." Is the October 9 proceeding still on? Either way, Inner City Press will cover it.
More on X for Subscribers here & Substack here
The case is USA v. Combs, 1:24-cr-542 (Carter)
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Delay in Bid to Collect from Giuliani Must End SDNY Judge Says Ordering Apartment Delisted
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 3 – In Ruby Freeman's and Wandrea' Moss' ongoing attempt to collect from Rudy Giuliani, a proceeding was held on September 27 before U.S. District Court for the Southern District of New York Judge Lewis J. Liman. Inner City Press was there; thread:
Judge: Mr. Caruso, I have a beef with your Sept 26 letter...You were seeking relief the deadline in my order, but didn't disclose that
Giuliani's lawyer Caruso: I didn't see it that way Judge: Please do, see it that way
Plaintiffs' lawyer: We are asking for shares to his co-op in 7 days, and his intangible right to legal fees he said are due him from one of the Presidential campaigns in 2020
Plaintiffs' lawyer: There also an account in Parkside Bank & Trust for Giuliani Communications LLC... The deadline is October 1
Plaintiffs' lawyer: Mr Giuliani's disclosure of his properties in the bankruptcy proceedings... In July he declared he is a resident of Florida. But he broadcasts his location on a daily basis and he's anywhere but there
Plaintiffs' lawyer: A person should know where they were during the previous 90 days, we don't think discovery is needed on that... We are not willing to slow down
Plaintiffs' lawyer: His apartments come with hefty monthly maintenance charges, many of them overdue. Then there's the Homestead Act issues...
Judge: I'll hold off on consolidation. Is Mr Giuliani going to turn over, for example, the TV? Caruso: Not today. Judge: What about the Reggie Jackson picture? Can Mr Giuliani live without his World Series ring?
Caruso: I'm sure he can. But we're going to appeal, Florida Homestead law
Caruso: Military members don't use their domicile when they deploy... Domicile is a state of mind - a question of fact. There must be discovery Judge: Respond to the motions to quash, and to enforce. Giuliani's lawyer
Caruso: Can I have 3 more days?
Judge: No. Judge: Your client owes money. This should move quickly. Adjourned
And on October 3, "Giuliani is ordered to delist the New York Apartment with the restraint imposed by this Order to expire (with the possibility of renewal) on October 17, 2024. After October 17, 2024, notwithstanding any expiration of the Order reflected in this paragraph, Giuliani shall continue to be restrained from interfering with the New York Apartment by virtue of the Section 5222(b) restraining notice. Defendant shall file proof on the docket no later than October 4, 2024, that the New York Apartment has been delisted and is no longer being offered for sale. SO ORDERED. (Signed by Judge Lewis J. Liman on 10/3/2024)
More on X for Subscribers here, Substack here
One of these cases is Freeman, et al. v. Giuliani, 1:24-mc-353 (Liman)
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On Honduras Narco Urbina Soto US Asked for 240 Months now He Is Sentenced to 226 Months
by Matthew Russell Lee, Substack
SDNY COURTHOUSE, Oct 3 – In the closing arguments on March 6, 2024 AUSA Tarlow said that narco trafficking had grown under Honduras President Juan Orlando Hernandez. On March 7, out of the hearing of the jury and for then the Press, JOH's lawyer Stabile said he'd heard different overnight.
From who?
The defendant's wife he said.
Was this just a play for a mistrial?
Judge Castel concluded it was, and denied Stabile's motion, Order on Patreon here.
Later on March 8, the verdict, here- then the book Narco Drama in English then Spanish.
On August 28, successor President Xiomara Castro asked Honduran Foreign Minister Enrique Reina to "denounce" the country's extradition treaty with the United States.
Amid that on August 30 Arnaldo Urbina Soto, extradited from Honduras on January 31, 2023 after jail time there, asked for a time served sentence on September 13 at 11 am.
The US Attorney's Office wrote in asking for a 20 year sentence - and on September 12, the eve of sentencing, defense counsel wrote in asking for an eight week adjournment in sentencing, arguing "the government provided cooperating witness testimony that alleges Arnaldo Urbina Soto received bribes from a drug trafficker “in exchange for information from the government” and “in exchange for violence,” among other things. See Gov. Ex. A at 830. This is the first time these issues have been provided to the Court" - letter on Patreon here.
On September 25, sentencing was pushed back to October 3: "ORDER as to Arnaldo Urbina Soto: IT IS HEREBY ORDERED that the sentencing scheduled for September 25 is adjourned to October 3, 2024, at 3:00 PM (Signed by Judge Denise L. Cote on 9/25/2024)
On October 3, Inner City Press went and live tweeted - he got 226 months - thread:
All rise! Judge: The guidelines are 324 to 405 months. The US recommends 240 months while the defendant wants time served...He became mayor of Yoro in 2009. He was convicted of money laundering.
Judge: I understand that co-conspirator(s) did not want him to run again as mayor of Yoro. AUSA: We ask for 20 years. He used political power so that drug trafficking could florish in his district. JOH told him not to run again & hurt JOH's campaign for president
AUSA Robles: Ton quantities of cocaine were sent to the US. Defense lawyer Carla Sanderson: He had a religious conversion. He worked in the kitchen in the MDC. His crimes, he committed with his brothers.Defense: When he was in jail in Honduras, he could have family visits. Not here. No further punishment is needed.
Judge Denise L. Cote: Mr. Urbina Soto? Urbina Soto: I have accepted responsibility. I am 44 years old, with 4 children. I apologize.
Urbina Soto: I wish my wife could be here, but she does not have the right papers to travel. I apologize for my misbehavior. God bless you, Your Honor.
Judge Cote: You used your position as mayor to promote drug trafficking.Judge Cote: I have found the trial testimony [which Inner City Press live tweeted] quite useful. I sentence Mr. Urbina Soto to 226 months in prison and then submit to deportation
Defense: Please recommend prison in Pennsylvania. Judge Cote: I will. Adjourned.
This case is US v. Soto, et al., 18-cr-497 (Cote)
More on X for Subscribers here and Substack here
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