By Matthew Russell Lee, Exclusive Patreon
BBC - Guardian UK - Honduras - The Source
SDNY COURTHOUSE, Jan 27– As Inner City Press covered the OneCoin trial in October 2019, a number of names of indicted co-conspirators emerged on which we followed up.
One of them was Gilbert Armenta, who recorded Ruja Ignatova. Inner City Press has repeatedly asked the US Attorney's Office for the Southern District of New York for more information; it continues even now to withhold the exhibits it flashed on the screen at trial. Inner City Press had to file a FOIA request; the Department of Justice denies expedited processing.
Next we reported this: the US Attorney's Office gave Armenta his own secret docket number and kept it sealed for three years, until AFTER Inner City Press exclusively reported on Armenta's continuing dubious business activities even while a "cooperator." The case was initially assigned to SDNY Judge Willian H. Pauley III, then moved to Judge Edgardo Ramos - who to his credit has now put an end to continued extensions, and set a sentencing date for October 21, 2020. The unsealed indictment is now on Patreon here.
On October 16 the US asked for yet more delayed, now to January 2021: "Re: United States v. Gilbert Armenta, 17 Cr. 556 (ER) Dear Judge Ramos: The parties write jointly to respectfully request an adjournment of the sentencing proceeding currently scheduled in the above-captioned case at 10:00 a.m. on October 21, 2020. The parties are in continuing discussions regarding various forfeiture issues, among other sentencing-related issues. To permit the parties to continue engaging in those discussions, the parties respectfully request an adjournment of the sentencing proceeding until approximately late January 2021, with the defendant’s sentencing submission to be submitted two weeks prior to sentencing, and the Government’s sentencing submission be filed one week prior to sentencing."
On October 19, Judge Ramos ruled "The October 21 sentencing is adjourned to January 29, 2021, at 3:30 p.m.."
And now, as Inner City Press predicted, more delay sought in a January 27 letter: "Dear Judge Ramos: The Court previously scheduled the sentencing of Gilbert Armenta for January 29, 2021. The parties continue to engage in discussions regarding various sentencing-related issues. To permit those continuing discussions, counsel for Mr. Armenta respectfully requests a 60-day adjournment of the sentencing to a date on or about March 30, 2021 that is convenient to the Court. The Government has been contacted and does not object to such an adjournment." Letter on Patreon here. Watch this site.
As Inner City Press looked into it more, documents that were supposed to be unsealed were not. In some cases they were not even docketed. So Inner City Press wrote to Judge Ramos, full letter on Patreon here: "Dear Judge Ramos: On behalf of Inner City Press and in my personal journalistic capacity, this is an application for compliance with this Court's April 29, 2020 Memo Endorsement, Docket No. 10 to docket and unseal materials in US v. Armenta, 17-cr-556 (ER). While Docket No. 10 has a full paragraph and one or more footnotes redacted, it clearly provides for the docketing and unsealing of, inter alia, "the initial pretrial conference before the Honorable William H. Pauley III, held on September 27, 2017" and "the bail proceeding held before this Court on March 25, 2020."
But the docket, viewed today on the PACER terminal in the SDNY Press Room, still has nothing from March 25, 2020. In fact, it has nothing between January 17, 2020 (Notice of Case Reassignment) and April 29, 2020. Similarly, there is nothing in the docket from September 27, 2017. Docket Number 14 says that it is a transcript of a proceeding of that date before Judge Pauley and that "transcript may be viewed at the court public terminal." But even today, the number "14" is not a live link, and the transcript is not available. Non-parties such as Inner City Press and myself have standing to intervene in criminal proceedings to assert the public’s right of access. United States v. Aref, 533 F.3d 72, 81 (2d Cir. 2008). Here, the sealing(s) and withholding here are unacceptable, and go beyond those requested even in the Central Intelligence Agency trial before Judge Crotty, US v. Schulte, 17 Cr. 548. In that case, Inner City Press vindicated the public's right to know, in the docket, see here and here.
Inner City Press recently got even more sensitive filings unsealed in a North Korea sanctions case before Judge Castel, US v. Griffith, 20-cr-15 (PKC), Docket No. 33 (LETTER by EMAIL as to Virgil Griffith addressed to Judge P. Kevin Castel from Matthew Russell Lee, Inner City Press, dated 5/18/2020, re: Press Access to documents in US v. Griffith, 20-cr-15), 40 (order to unseal) and 41 unsealed filings). Inner City Press and I have been closely covering the OneCoin / Mark Scott / Sebastian Greenwood case(s) and ask that the above documents, and all else in these cases that is not subject to withholding under applicable case law be made available, and that this request itself be docketed. It is being copied to the AUSAs whose redacted April 22, 2020 letter, as endorsed, provided for this docketing and unsealing, not yet actually done as of August 13, 2020."
Some hours later, without Inner City Press' application being docketed, Docket 14 went live - the guilty plea transcript, but still with redactions. Here was Armenta's allocution, withheld until today, to the detriment of the public: THE COURT: Mr Armenta, please tell me what you did in connection with each of the crimes to which you're entering a plea of guilty.
ARMENTA: "One Count One, in 2015, I began doing business with OneCoin, through my company. I came to understand that OneCoin was making false statements in order to get people to purchase OneCoin packages or prevent people who had purchased these packages to seek their money back. After knowing this, I continue to do things to assist OneCoin's business, such as by coordinating the opening up of new accounts for OneCoin to receive customers' funds, international wires were used in connection with this activity, and including the transfer of money through corresponding bank accounts in New York." More on Patreon here.
Now on August 21, a Protective Order between the US and Armenta: "UNITED STATES OF AMERICA - v . - GILBERT ARMENTA, Defendant. - x - x PROTECTIVE ORDER 17 Cr. 556 (ER) WHEREAS, the United States of America seeks to provide to the defendant, in unredacted form, certain materials that contain confidential information; and WHEREAS, the Government is willing, under the conditions set forth below, to produce such materials; IT IS HEREBY agreed, by and between the United States of America , Audrey Strauss, Acting United States Attorney , by Christopher J. DiMase and Nicholas Folly, Assistant United States Attorneys, and defendant Gilbert Armenta, by and through his attorneys, Marc Weinstein, Esq. and Dina Hoffer, Esq ., that : 1. The Government will designate and identify as "Confidential" any material containing confidential information ("Confidential Material"). The Government may also designate certain material for review only by the defendant ' s counsel , i . e ., on an "attorneys' eyes only" basis ("AEO Material " ) . 2 . Confidential Material disclosed to the defendant or to his counsel during the course of proceedings in this action : Case 1:17-cr-00556-ER Document 20 Filed 08/21/20 Page 1 of 4 (a) Shall be used by the defendant and his counsel only for purposes of the defense of this action ; (b) Shall be maintained in a safe and secure manner solely by the defendant ' s counsel ; shall not be possessed by the defendant, except in the presence of the defendant ' s counsel ; 1 and shall not be disclosed in any form by the defendant or his counsel except as set forth in paragraph 2(c) below ; (c) May be disclosed by the defendant or his counsel only to the following persons (hereinafter "Designated Persons") (i) investigative, secretarial, clerical, and paralegal student personnel employed full-time or part- time by the defendant ' s counsel ; (ii) independent expert witnesses, investigators, advisors, or litigation support seryice providers retained by the defendant ' s counsel in connection with this action ; (iii) such other persons as hereafter may be authorized by the Court upon motion by the defendant ; and (d) Shall be returned to the Government following the 1 In light of the ongoing COVID-19 pandemic , this Order contemplates the sharing of materials by defense counsel with the defendant through the use of videoconferencing software and/or other secure electronic means, so long as appropriate safeguards are in place to ensure that the defendant cannot and does not record or otherwise copy the materials and thereby take the materials into his own possession in violation of this Order....
3 . The defendant and his counsel shall provide a copy of this Order to Designated Persons to whom they disclose Confidential Material pursuant to paragraph 2(c) . Prior to disclosure of Confidential Material to Designated Persons, pursuant to paragraph 2(c) , any such Designated Person shall agree to be subject to the terms of this Order by signing a copy hereof and providing said copy to defendant ' s counsel , who shall retain it during the course of the proceeding . 4 . The provisions of this Order shall not be construed as preventing the disclosure of any Confidential Materi al in any motion , hearing , trial, or sentencing proceeding held in connection with the above -referenced action or to any District Judge or Magistrate Judge of this Court , or any appellate court , for purposes of the above - referenced action . 5 . With respect to Confidential Material , any filings with any court shall be governed by Rule 49.1 of the Federal Rules of criminal Procedure . 6 . AEO Material shall be prominently marked "Attorneys' Eyes Only ." AEO Material shall not be disclosed in any form, including but not limited to orally disclosing such information, to defendant Gilbert Armenta or to anyone else beyond defense counsel. If counsel for the defendant determines that the AEO Material is material and relevant to the defense of their client and requires counsel to share the information subject to this protective order with their client, counsel for the defendant reserve the right, on notice to the Government, to seek permission from the Court to do so. Dated: AGREED BY: New York, New York August 2020."
Here are the Armenta business moves Inner City Press exclusively reported on December 1, 2019, here:
ESOL B.V. LLC was incorporated on July 8, 2019; the manager is Gilbert Armenta and the agent is Giselle Valentin, both of 500 E. Broward Boulevard, PH 2, Fort Lauderdale, FL 33394. See here. And here.
Armenta's Tblisi, Georgia-based money laundering bank JSC Capital Bank had as its parent a company of exactly this name. See KPMG review of Georgia banking sector here. More on Armenta's ongoing companies on Patreon here.
Inner City Press asked, on December 1, 2019: Is the US Attorney's Office allowing its cooperator to keep on money laundering? Or looking the other way while whatever cooperation agreement exists is openly violated?
Perhaps these and other quesitons will be answered in connection with Armenta's sentencing in the too long seal case against him. Watch this site.
More on Patreon here.
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