After 1st Day of Nike Trial US Urges Admission of Text Telling Avenatti Not To Go Public

By Matthew Russell Lee, Patreon ThreadBBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Jan 30 –  When after three days of jury selection the trial of Michael Avenatti for allegedly extorting Nike began on January 29, Assistant US Attorney Robert Sobelman told the selected jurors that Avenatti was supposed to look out for the interests of his client, but he did not.

 Avenatti had a very modern weapon, Sobelman said: social media.  Inner City Press live-tweeted the proceedings, here, and will have more. More on Patreon here.

  Avenatti's lawyer Howard Srebnick in his longer opening followed up on that theme, even emphasizing that Avenatti has, or had, 800,000 followers on Twitter and could take on a titan like Nike. He mentioned Stormy Daniel but as ruled on by Judge Paul G. Gardephe before trial, did not name Colin Kaepernick.

   Overnight, AUSA Daniel Richenthal wrote to Judge Gardephe objecting to portions of Howard Srebnick's opening statement and arguing it opened the door to entry into evidence of two text messages from Auerbach to Avenatti:

"The Government respectfully writes with two requests in light of the defendant’s opening statement this afternoon.  First, the Government requests that the Court preclude the defendant from describing or making arguments based on the content of text messages between Jeffrey Auerbach and Gary Franklin, Sr., not seen by the defendant, unless (i) a witness testifies in a manner that is materially inconsistent with those messages, and (ii) the Court determines that a specific message may offered as a prior inconsistent statement.  Second, the Government requests that the Court rule that the defendant has opened the door to the admission of two text messages sent by Mr. Auerbach to the defendant."

  In the first of these March 25, 2019 messages, "Mr. Auerbach, in response to a Twitter post of the defendant prior to his arrest...  stated that the post was 'very upsetting' and that the defendant should “call me before going public in any way."

  One might expect Judge Gardephe to address this on January 30, as well as it seems hearing from a Nike lawyer. Watch this site.

   On January 29 the first witness was Scott Wilson who was a lawyer with Boies Schiller in March 2019 when Mark Geragos came calling saying Avenatti wanted a meeting directly with Nike.

   After some back and forth about meeting at Hudson Yards or Geragos' office on Fifth Avenue, the meeting was held. Wilson said Avenatti began by saying he had evidence of Nike paying the number one draft pick in the last NBA draft.  

Wilson quoted himself asking Avenatti, Are who was that?

    Assistant US Attorney Matthew Podolsky asked Wilson why he asked. 

 To throw Avenatti off, Wilson said. But apparently it didn't. Avenatti said Deandre Ayton and got back to the demands. Ulimately the FBI was called in to secretly record Avenatti. And the US Attorney's office never went after Nike, after jailing Adidas' Jim Gatto.

There's been discussion of subpoenas from the SEC, but as captioned "In Re Athletic Apparel" companies. Inner City Press live-tweeted the proceedings, here, and will have more. More on Patreon here. The case is US v. Avenatti, 19-cr-373 (Gardephe).

Otting Appalled By Community Reinvestment Act Questions Amid FOIA Complaints by Inner City Press

By Matthew Russell Lee, Patreon ThreadBBC - Guardian UK - Honduras - CJR - PFT

SOUTH BRONX / DC, Jan 29 –   The current US Comptroller of the Currency Joseph Otting belatedly took questions from House members on January 29 about his Community Reinvestment Act proposal - and quickly declared the questions "appalling."

   Otting began by insisting he will not provide any more than the 60 day comment period - this so that his proposal could avoid the Congressional Review Act. It went downhill from there. Fair Finance Watch live-tweeted thread here:

Otting begins by telling Rep Waters he will NOT extend the comment period.   The reason? As Inner City Press has reported, to avoid Congressional Review Act if/when Republicans lose the Senate

Otting used his five minutes to play up where he was born in Iowa, and to use his spouse. Now he says the Federal Reserve not signing on to his proposal is just Lael. That's not how the Federal Reserve Board works

Will Otting be asked about the counterfeit comments that went in to support his selling of OneWest to CIT? About his lawless denial of #FOIA requests and fee waiver requests since at OCC? To refusing public comment on 5/3 charter conversion, and Chinatown FSB?

 Now Rep Waters asks "given all of the work you did with OneWest Bank, you have never observed discrimination?"  Otting: My family has told me about it.  Waters: Today I'm telling you about it.

Now Rep McHenry starts by saying doesn't CRA need to be modernized since 1995?  But does that mean let Otting weaken it? As he already has, ignoring public comments? That's key here: CRA is enforced on public comments on merger applications and Otting buries those

 Rep Velasquez just asked Otting if he will share info with the Committee. Otting dodges, then says, "I'd come by your office, but not to the public."  Otting is also destroying FOIA compliance at OCC.  Rep Velasquez says, Let's subpoena it. And release to public? Rep Sherman tells Otting his refusal to extend the comment period show so much contempt including for the Committee that why should they listen to him on LIBOR? Why indeed.

Otting brags that OCC and FDIC control 85% of banking. But CRA is enforced on mergers, most of which have bank holding companies so the applications go to the Fed. And Otting just throws CRA comments into the garbage can, is our experience...

Rep. Scott tells Otting that "even Banks" are concerned about his proposal, that regulation cannot be "my way or the highway." Tells Otting he misrepresented the Federal Reserve's position, and skipped previous hearing. Asks, Why are you doing this? #OneWest

 Otting: "I find somewhat appalling some of the comments you have made to me... How many years do you want this to go on?" For what to go on - the already not strong enough CRA process? Or Otting's world of no-FOIA, no merger comments, retaliation and lawlessness?

 Otting has never visited the office of Rep Clay, tells him that the race discrimination issues he has raised are not relevant under the Community Reinvestment Act.  Oh.

Otting cashed out of his position with OneWest Bank in California by overseeing fake comments in favor its acquisition by the CIT Group.

   Then, emboldened, he devoted the Office of the Comptroller of the Currency to weakening or destroying the Community Reinvestment Act which provides for the public process that he subverted with fake comments.

   Inner City Press, which along with CRC opposed the merger and then pursued a Freedom of Information Act request for all documents about Otting's fraud, soon found its and Fair Finance Watch's comments to the OCC being rejected, or ignored, or returned. 

  While Inner City Press' FOIA requests get fee waivers from the Federal Reserve and a range of agencies in the US and beyond, Otting's OCC suddenly started denying them, hindering access to the merger applications on which CRA is enforced.   

Otting is trying to push through this CRA-killing proposal on a short comment period, cognizant of the other CRA, the Congressioal Review Act. But it is obvious that even banks want more time.

On January 26, in advance of Otting's belated January 29 House of Representatives appearance, Inner City Press / Fair Finance Watch submitted a formal comment, including: January 26, 2020  Re: Docket ID OCC-2018-0008 &  - total opposition to OCC/FDIC plan to weaken CRA 

To whom it may concern at the OCC and FDIC: On behalf of Fair Finance Watch, and Inner City Press, and in my personal capacity, this is a timely comment opposing the proposal by Comptroller Joseph Otting and the FDIC to weaken the CRA.

Enforcing the CRA including through commenting to the Federal Reserve and FDIC, and OCC under previous Comptrollers, the results have been new bank branches in the South Bronx, and lending and consumer protection commitments well beyond.  Some advocacy, from 2001, here;  2002 here (Wells Fargo);  jump cut to 2015, here (due to 5000 character restriction)  and more  

But since Otting became Comptroller, we have seen timely comments ignored, and been denied access to bank merger applications by a retaliatory imposition of FOIA fees. The Federal Reserve and other federal agencies, like the OCC pre-Otting, grant Inner City Press FOIA fee waivers. Under Otting, the OCC does not.

On Chinatown FSB, the OCC refused to consider a timely comment. The OCC unilaterally determined not to accept public comments on a major bank's charter conversion application, which it rubber stamped.  This has been rogue-like behavior. It is in keeping with our experience with Otting when, as head of One West, he oversaw false comments submitted to regulators to support One West's merger with CIT. People wrote it and said they had not commented; the regulators asked Otting's OneWest's counsel - and there the trail of evidence ends, for now. See, for the record (including the record on this timely request that Otting be recused and the proposal withdrawn), here.

  In 2020 we are aware of the OCC calling community groups looking to be able to say they didn't authorize their sign-ons. Well, we proudly signed onto NCRC's letter(s). And for now, in advance of Otting's January 29 House appearance, we re-affirm these views:   Under the NPRM, the definition of affordable housing is relaxed to include middle-income housing in high-cost areas. In addition, housing is assumed to be affordable if lower-income people can afford to pay the rent without verifying that lower-income people will be tenants. Essential infrastructure such as bridges is added as an activity eligible for community development but clearly estimating the benefit to LMI populations of such large-scale projects is difficult and likely to result in ratings inflation as well as diverting funding from community development directly in LMI communities...

Absurdly, the proposal would grant CRA credit for work on stadia, for example. The proposal must be withdrawn.  In short, we are totally opposed to Otting's and the FDIC's proposals and think for the reasons set forth above, including actions at OneWest and more recently trying to intimidate community groups, Otting must be recused and the proposal withdrawn. We will have further comments.  Matthew R Lee Fair Finance Watch (and Inner City Press) New York. Watch this site. 

UN Guterres Lies In Closed Door Meeting Banned Inner City Press Live Str...

Before CIA Leaks Trial of Joshua Schulte Disputes About Fake Names and Court Sealing

By Matthew Russell Lee, PatreonBBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Jan 24 – Ten days before the trial of accused CIA leaker Joshua Schulte, set to begin February 3, a final pre trial conference on January 24 showed continuing disputes about the secrecy and sealing of evidence and witnesses.

   Assistant US Attorney Matthew Laroche argued that while prospective jurors will be shown witnesses real names, it will only by in hard copy and thereafter some 17 of them will be referred to by pseudonyms.

  Schulte's lawyer Sabrina Shroff, still with the Federal Defenders for purposes of this case, insisted on calling these "fake names," and complained about the difficulties imposed in conducting basic research on potential witnesses.

US Attorney for the Southern District of New York Geoffrey S. Berman is asking to have the public excluded from the courtroom during the testimony of several of these CIA witnesses: ten called by the prosecution, and seven the defense seeks to call.

On January 21, SDNY District Judge Paul A. Crotty scheduled a public hearing on US Attorney Berman's request, to be held on January 27 at 2 pm.  Opposition to sealing has already been filed, see Inner City Press filing into the docket on Big Cases Bot, here. Watch this site.

US Urges Banning Public From CIA Leaks Trial of Schulte But SDNY Hearing Jan 27 Inner City Press To Be There

By Matthew Russell Lee, PatreonBBC - Decrypt - LightRead - Honduras - Source

SDNY COURTHOUSE, Jan 21 – For the upcoming trial of accused CIA leaker Joshua Schulte, US Attorney Geoffrey S. Berman is asking to have the public excluded from the courtroom during the testimony of several CIA witnesses.

On January 21, District Judge Paul A. Crotty scheduled a public hearing on Berman's request, to be held on January 27 in the run-up to the trial scheduled to begin February 3. Inner City Press will be there for both.   

Schulte has been charged to providing WikiLeaks with information about the CIA's hacking activities, which WikiLeaks subsequently published in its "Vault7" trove.

Since then Schulte has been accused of further dissemination of information from the Metropolitan Correctional Center, and put into solitary confinement there.   

For months Inner City Press, even as it has complained about being unceremoniously ordered to leave certain courtrooms including that of Judge Crotty (in a case he said would be made public in 60 days but hasn't been - perhaps for reasons, but none explained), has observed lawyers headed to the "SCIF" on the ninth floor of the U.S. District Court for the Southern District of New York at 500 Pearl Street.  

 One of Schulte's lawyers, Sabrina Shroff who also represented former Senegal foreign minister Cheikh Gadio in a UN bribery trial Inner City Press covered, has indicted she was constrained in what she could say. She has complied with all rules, however restrictive. But information wants to be free.    

  On July 22, 2019 Inner City Press went to Judge Crotty's courtroom for the case US v. Perlson but was told by Judge Crotty to leave. Inner City Press said, "I am a reporter. If you are going to try to close a public courtroom there must be specific findings, for specific portions. There is case law."  Inner City Press pointed out US v. Haller, 837 F.2d 84, 87 (before closing a proceeding to which the First Amendment right of access attaches, the judge should make specific, on the record findings demonstrate that closure is essential to preserve higher values and is narrowly tailored to serve that interest). 

 There followed a sidebar, apparently transcribed, from which Inner City Press was excluded. At the end Judge Crotty while ordering Inner City Press to leave said that the government's case was moving along well and that he hoped to unseal the transcript in a month. 

 Six months later, the case still shows up as "cannot find case" in PACER.

Often when the Schulte case has appeared in the day's Events Calendar in PACER, with proceeding scheduled for Judge Crotty's Courtroom 14C, Inner City Press has gone, only to find the courtroom door locked.  

Now, at least on January 27, the door will be open. Inner City Press will be there, and while hoping to live tweet from right there, will publish a full article immediately after. Watch this site. 

UNSG Post Bought For Guterres By Angola dos Santos Family Hence Luanda Leaks Silence From Guterres

By Matthew Russell Lee, PatreonBBC - Guardian UK - Honduras - CJR - PFT

UN GATE / SDNY COURT, Jan 20 – When Antonio Guterres wanted to get the position of UN Secretary General in 2006, he needed money and political support. He found it in long time Angola dictator and kleptocrat Jose Eduardo dos Santos.

    Now Guterres refuses to answer Press questions about the Luanda Leaks scandal, and about his close Angolan staffer Aguinaldo Baptista's online support for Isabel dos Santos. Guterres has roughed up and banned Inner City Press which asks the questions. 

  On March 17, 2016 Angolan state media reported that "José Eduardo dos Santos Thursday in Luanda was informed on the process of candidacy of António Manuel de Oliveira Guterres to the post of the UNSG. Antonio Guterres, who served as Portuguese prime minister, said he presented a program of his candidacy for the world body’s top position.  'It is very important for me to have Angola at the very beginning of this candidacy, as I am an old friend and admirer."   

   Dos Santos, flush with oil money, controlled more embassies and strings throughout Africa than did Guterres' Portugal.  Guterres' son Pedro Guimarães e Melo De Oliveira Guterres' untold business links in Lusophone countries include Angola.

    Guterres' oil connections were not limited to Angola: he was getting paid by Lisbon based Gulbenkian Foundation which in terms was turned by oil company Partex, with business in Angola, that UN briber CEFC China Energy in turn tried to buy.   

   Inner City Press asked about this, and was roughed up by Guterres' UN Security and banned from entering the UN. Guterres' designated censor Melissa Fleming has continued this ban, with no appeals process. His spokesman Stephane Dujarric said he would answer written question from banned Inner City Press. 

 But here's one of the hundreds of questions from Inner City Press that Guterres and his spokespeople have refused to answer: "On corruption and Angola, what are the comments and actions if any of SG Guterres on the Luanda Leaks exposure of Isabel dos Santos of Angola, and as Inner City Press has repeatedly asked, what are his comments and action on the repeated retweeting of Isabel dos Santos' denials by his close staffer Aguinaldo Baptista? After, for example, exposure of the corrupt urban development project near Luanda for which some 3,000 families were driven from their homes to make way for the development?"   No answer at all, and those whom Guterres, Fleming and Dujarric allowed into their noon press briefing on January 20 did not ask about Luanda Leaks, or anything in Africa. It's Guterres' big scam. And it must be ended. Watch this site. 

Honduras Prez JOH Slammed by Bipartisan Congressional Group for Corruption While UNSG Supports Him

By Matthew Russell Lee, Patreon, Thread VideoHonduras - The Source - The Root - etc

SDNY COURTHOUSE, Jan 19 – After Honduras' president's brother was convicted of drug trafficking in a trial that showed the president receiving $1 million from El Chapo, now on January 19 this from Washington DC:

House Foreign Affairs Committee Chairman Eliot L. Engel (D-NY) as well as Lead Republican Michael McCaul (R-TX) along with Subcommittee on the Western Hemisphere, Civilian Security and Trade Chairman Albio Sires (D-NJ) and Ranking Member Francis Rooney (R-FL), issued the following statement condemning Honduran President Juan Orlando Hernández’s decision not to extend the Mission to Support the Fight against Corruption and Impunity in Honduras (MACCIH): 

“With the stroke of a pen, President Juan Orlando Hernández had the opportunity to extend MACCIH – the mechanism put in place to strengthen Honduras’s capacity to address systemic corruption. Unfortunately, President Hernández chose not to exercise his authority and allowed MACCIH to expire. We strongly condemn this decision.  “Corruption in Honduras has had a corrosive effect on the country and remains a key driver of migration to the United States. The Honduran people are the ones who will suffer the most from this ill-advised decision. We stand with them and support their right to live in a country whose government respects the rule of law and holds corrupt actors accountable. We remain committed to the fight against corruption in Honduras and will continue to support civil society-led efforts.” 

In July, the four House leaders sent a letter to President Hernández urging a clean extension of MACCIH, and they reiterated this message in December.

  Meanwhile UN Secretary General Antonio Guterres, himself corrupt, praised JOH in September 2019 and has refused each and every question from banned Inner City Press about it, and his previous support of JOH, since. It is Guterres who should be in jail.

One of El Chapo's many bribees, former Mexican minister Genaro Garcia Luna, was arraigned and detained on January 3 in Brooklyn in the U.S. District Court for the Eastern District of New York. Inner City Press, which covered the SDNY trial of Tony Hernandez, the brother of Honduras' president Juan Orlando Hernandez whose campaign was shown to be funded by El Chapo, was in Brooklyn for this arraignment and files this report. (Podcast here, Periscopes I, II & III).

   Garcia Luna was brought in from the holding cell, wearing a grey sweatshirt and waving to a handful of supports in the Arraignments Courtroom gallery. He is retaining his own counsel, but there were not able to be present on January 3. Cesar de Castro, whose work Inner City Press has covered in the SDNY, appeared for arraignment only. Judge Peggy Kuo said that if Garcia Luna wants a publicly-funded lawyer going forward, he will have to file a financial affidavit.

  That seems unlikely. Assistant US Attorney Erin Reid said Garcia Luna has amassed riches which make him a flight risk. No bond package was presented, so Garcia Luna was detained on consent. His next appearance is on January 21 at 9:45 am before Judge Brian Cogan. Inner City Press will remain on this case - and on that of JOH and UN Antonio Guterres, who has hidden his spending including of El Chapo funds, as well as links to SDNY convicted UN briber CEFC China Energy. Guterres bans and censors the Press to conceal his links: but for immunity, a crime. Or crimes.

  UN Secretary General Antonio Guterres has refused to answer Inner City Press' questions about his meeting(s) with JOH, and about a four person panel he sent to the country to support JOH.

  Inner City Press even before the verdict as the UN Spokespeople Stephane Dujarric and Melissa Fleming in writing, "October 18-1: On Honduras on which you have refused to answer or respond to Inner City Press' as it covers in SDNY the US v Tony Hernandez trial which continues jury deliberations today and has asked you why SG Guterres did not even bring up corruption and drug trafficking when he met president Juan Orlando Hernandez, 1) please immediately describe activities of the UN system and resident coordinator / representative on JOH's current terms and 2) what now are Guterres' belated comments and actions if any on that last night JOH's National Party majority in the Honduran parliament passed a law making itslef immune, and that Honduran police dispersed hundreds of demonstrators with tear gas on Wednesday in Tegucigalpa who demanded the resignation of President Juan Orlando Hernandez, suspected by the American courts of collaborating with the drug traffickers?"

  No answer all all.

 The trial began with a bang on October 2 with the charge that already life imprisoned El Chapo Guzman gave the defendant $1 million for this brother, the president. On October 7, sworn witness Alex Ardon described the meeting, with both El Chapo and Tony Hernandez present and the cash in plastic bags, see thread and see below.

The trial is before U.S. District Court for the Southern District of New York Judge P. Kevin Castel and Inner City Press is live tweeting it. See also Patreon here

 And here the post arrest statement as so far put in to the jury, as uploaded to YouTube by Inner City Press, here. The case is US v. Diaz Morales, 15-cr-00379 (Castel).

Inner City Press will continue to cover this and other SDNY and 2nd Circuit cases - watch this site, and there is more on Patreon, here.