Tuesday, January 31, 2023
Monday, January 30, 2023
Saturday, January 28, 2023
FTX Bankman-Fried 2bled Down on Secrecy with Co Signers Secret Now Objects to US Tone
By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, Jan 28 – Sam Bankman-Fried of FTX was indicted in the U.S. District Court for the Southern District of New York, leading to his arrest in the Bahamas on December 12, and extradition to the US on December 21. He was released on $250 million bond - and reappeared on January 3, see below - with the requirement of co-signers.
But he wants them secret: "LETTER MOTION addressed to Judge Lewis A. Kaplan from Mark S. Cohen dated January 3, 2023 re: Request to Redact Names and Identifying Information for Certain Bail Sureties . Document filed by Samuel Bankman-Fried. (Cohen, Mark)."
Inner City Press nearly immediately opposed, here. That was Docket Number 31.
On January 11, Judge Kaplan gave Bankman-Fried until January 19 to respond.
Bankman-Fried waited until past 8 pm on January 19 to file - and then doubled down on secrecy. As of January 27, still no ruling.
But on January 27, the US Attorney's Office asked for two conditions: " (1) the defendant shall not contact or communicate with current or former employees of FTX or Alameda (other than immediate family members) except in the presence of counsel, unless the Government or Court exempts an individual from this no-contact rule; and (2) the defendant shall not use any encrypted or ephemeral call or messaging application, including but not limited to Signal. For purposes of this motion" - full letter on Patreon here.
Then at 2 am between Friday January 27 and January 28 SBF's lawyers wrote it opposing.... the "tone" of the prosecutors who agreed to the bond deal, and took no position on co-signer secrecy: "the defense objects to the nature and tone of the Government’s submission. In an apparent effort to portray our client in the worst possible light, the Government’s letter makes it appear as if it were prompted by exigent circumstances that required it to file on a Friday night and seek these new bail conditions. In fact, the Government first raised its concerns regarding Mr. Bankman-Fried’s contact with the person it now describes as Witness-1 over a week ago, on January 19" and "The Existing Bail Condition Related to Crypto Asset Transfers Should be Removed" - full letter on Patreon here.
Judge Kaplan set a tight reply schedule on both - Inner City Press will stay on it.
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After Hild Guilty Verdict He Gets 44 Months But Wants Pending Appeal on Dusing Grounds
By Matthew Russell Lee, Patreon, Podcast Vlog
SDNY EXCLUSIVE, Jan 27 – Michael Hild was arraigned for fraud on Live Well Financial's reverse mortgages and home equity conversion mortgages by U.S. District Court for the Southern District of New York Judge Ronnie Abrams on September 5, 2019. Inner City Press covered it, here.
On January 27, 2023, Hild was sentenced to 44 months (and, it seems, $22 million in forfeiture). Inner City Press was there and live tweeted, here
OK- now at sentencing of mortgage fraudster Hild, which starts an hour late
Hild's lawyer contests loss amount, says it "may well be zero." Judge rejects argument. Says loss may be over $69 million, 24 level enhancement.
Judge: The guidelines will be higher than the sentencing I am considering. But I am imposing the 2 levels for obstruction of justice. He made false statements under oath. Hild's lawyer: Yes he got over $1 million, but it was for his work.
Judge: Guideline is 324 to 405 months. The parties agree to a variance, but not as to how much.
Hild's lawyer: His wife and brother in law are here. They lived modestly. He has 40 letters. We want zero to 36 months
Hild's lawyer: He is not a risk to re-offend. We rest on our papers AUSA: He paid himself large personal guarantee payments to the end. We are asking for 15 years. It was about greed.
[Hild shakes his head]
Hild: Can I use the podium? I'm sorry to all impacted
Hild: I'm sorry to the City of Richmond, and to those seeking to preserve the Chesapeake Bay. I have a bottomless pit of remorse. My wife's life and career have been devastated. There has been a stalker.
Judge Abrams: Mr Hild's conduct was brazen. He cashed out with millions. He looked for a "slimy" counterparty. There were recorded calls. He tried to hide money by transfers to his wife. There is a need for general deterrence. I sentence Mr Hild to 44 months. [$22 million forfeiture mentioned]
Hild's lawyer: We want bail pending our appeal, which has a novel issue.
Judge Abrams: I don't think Mr Dusing's outrageous conduct will result in a new trial. AUSA: We'll brief.
Judge: I won't set a surrender date yet.
After the guilty verdict, one of the Hild jurors requesting anonymity has told Inner City Press: "The 3 week trial was definitely an interesting and wild one that's for sure but I'm happy that it's finally coming to a close after a year and eight months since our verdict. The background for me was easy from having experiences with reverse mortgages in the past so everything that was described in court was straight forward. I thought Hild's attorney did a fine job in representing him, I think the evidence against Hild was just too high of a mountain to climb and get out.
"The most damaging part of the case was obviously the testimony from Stumberger and Rohr. Knowing that they were cooperating with the government. I had my doubts on what they were saying at first and tried to have an open mind. But once the recordings were played I think everyone in that courtroom all knew what they were doing was wrong. I think the quote from Hild on the recording was something along the lines of the Scenario... I forgot the number... was a self generating money machine. Between all of the recordings, the visualizations of the HECM IO bonds being grossly inflated and increased perfectly which is something that would never happen.
I think once they realized that IDC was publishing their pricing exactly, it opened up all of those opportunities. I think Hild testifying really didn't do that much for me. When he first got on the stand I wanted to believe him and was keeping an open mind with all of the evidence presented before hand. But I think once he got on the stand I think he realized what he did was wrong and once he started crying on the stand it reminded me of crocodile tears.
The final nail in the coffin was when Rohr resigned and the new exec. didn't want to sign the statements as they understood the walls were caving in to the whole plan and didn't want to be a part of it for how much they inflated the portfolio.
Once we went into deliberations that morning, I think we all looked at each other and within 30 minutes we all knew that we were all on the same page with a guilty verdict on all the counts and there really was no doubt for how well the government proved their case.
That's the reason why it only took us less than half of the day to deliberate, the evidence against Hild was far too strong for anyone to get him out of that hole. We went count by count taking the evidence that was provided and seeing what would place a guilty verdict for each and it was clear.
One or two of us tried to play devil's advocate and tried to raise any sort of doubt in the government's evidence but if any doubt was made at one thing there was a mountain of five or six other things to back it up. Other than that, I'm curious to see what the court's sentence is going to be next Friday and love following you and your other cases you report on."
It was said Hild's sentencing would be on September 10. But on September 3 Hild submitted an affidavit trashing his trial attorney Dusing, that he refused to using funds he was given for expert witnesses, and "did not cover the subjects we have previously agreed he would in my direct examination."
In March 2022, the Ohio Supreme Court joined Kentucky in temporarily suspending Dusing from practicing law after Dusing threatened two attorneys in a profanity-laced video played in court.
On March 7, 2022, this: "ORDER as to Michael Hild. As discussed with the parties, the oral argument scheduled for March 8, 2022 is adjourned to April 29, 2022 at 2:00 p.m. The Court shall hold the argument in Courtroom 1506 at the U.S. Courthouse, 40 Foley Square." Inner City Press wrote, Be there or be square. And Inner City Press was there, see below.
Now on January 13, 2023, Hild has filed his sentencing submission - and he wants probation, or "a sentence below 37 months imprisonment." The US's memo is due next week. Watch this site.
Back on April 29 Hild's new lawyer argued. Inner City Press live tweeted, thread here (vlog here)
Hild's new lawyer starts by saying trial evidence was inadequate. Now against Dusing on conflict of interest "in his Kentucky litigation."
Hild's new lawyer: Dusing had to appear in Kentucky on May 4 in his own case so he shortened the Hild defense case. Dusing's affidavit is inaccurate and "stunning."
Hild's new lawyer: Dusing then lied to the court in Kentucky, that they'd be on trial in NY until the end of May. Cites video of "unprepared" lawyer in Kentucky
Hild's new lawyer: Mr Dusing has since been suspended, not only in Kentucky but also Ohio.
Now AUSA says evidence was sufficient. Says Dusing's was not an actual conflict, just a "scheduling issue."
Now Hild's new lawyer in reply says Dusing violated ethical rules, Dusing threatened to kill a judge who then recused himself and called law enforcement. Wants to cross examine Dusing.
Judge Abrams: I'll take it under advisement
On April 29, after Hild took the witness stand and claimed he was just along for the ride, an SDNY jury in less than four hours of deliberation declared him guilty on all counts. "HILD, 46, of Richmond, Virginia, was convicted of five counts: one count of conspiracy to commit securities fraud; one count of conspiracy to commit wire and bank fraud; one count of securities fraud; one count of wire fraud; and one count of bank fraud." Photo here.
Hild's post-trial motions include allegations of conflict of interest of prior counsel. Judge Abrams to her credit put into the record an email of May 7, Katy Lawrence saying Joe and Paul joked about getting KFC for lunch one day, so maybe we can cater in KFC for everyone? With covid restrictions, I wasn't sure if a mailed package of some Kentucky / Cincinnati specific items would be acceptable like Skyline chili or Graeter's ice cream (can be mailed with dry ice)."
Now on August 3 from Judge Abrams, this: "ORDER as to Michael Hild: The Government's motion to permit Defendant's prior counsel to provide statements responding to the allegations of ineffective assistance is hereby GRANTED. Dkt. 106. By separate order, the Court will sign and docket the Government's proposed order on the matter. See id. Defendant also requests that the Court order the Government to "disclose... any 'information' not previously disclosed on which the government is relying... including all past communications with prior counsel, if any, regarding the issues raised in defense counsel's post-trial motions, such as emails, text messages, and notes from telephone calls." Dkt. 111. The Court has previously issued an order confirming the Government's obligations pursuant to Brady v. Maryland, 373 U.S. 83 (1963), Giglio v. United States, 405 U.S. 150 (1972), and their progeny. See Dkt. 34. The Court presumes that the Government remains well aware of these obligations and has, and will continue to, comply with them fully. The Clerk of Court is respectfully directed to terminate the motions pending at docket entries 106, 108 and 111. (Signed by Judge Ronnie Abrams on 8/3/2021)." Watch this site
On May 12, approval of new counsel for Hild, and a delay in his sentencing: "MEMO ENDORSEMENT as to Michael Hild on re: [68] LETTER MOTION filed by Michael Hild addressed to Judge Ronnie Abrams from Attorney Brian A. Jacobs dated May 12, 2021 re: Extension of Time For Post-Trial Motions and Sentencing. ENDORSEMENT: Application granted. Mr. Jacobs is substituted as counsel on behalf of Mr. Hild. The deadline to file post-trial motions is extended until July 27, 2021. The sentence date is adjourned to September 10, 2021."
More than a year after that, on December, 7, 2022, Judge Abrams ruled: "OPINION & ORDER as to Michael Hild. Hild's motions are denied. The Clerk of Court is respectfully directed to terminate the motions pending at docket entry 102. Sentencing is hereby scheduled for January 27, 2023 at 4:00 p.m. The parties shall refer to the Rule 10(A)(i) of the Individual Rules and Practices in Criminal Cases for the appropriate filing timeline for their sentencing submissions. (Signed by Judge Ronnie Abrams on 12/7/2022)." Full Order on Inner City Press' DocumentCloud here.
On December 28, 2022, Hild's lawyer threw a Hail Mary, noting that since Judge Abrams recused herself from the US v. Bankman-Fried case due to her husband's partnership in Davis Polk, why not on Hild, where David Polk represented Hild victim Mizuho?
On January 3, 2023, Judge Abrams denied the motion. From the docket: "ORDER as to Michael Hild. Defendant Hild is scheduled to be sentenced by this Court on January 27, 2023. By letter dated December 28, 2022, his counsel "ask[s] that the Court address whether possible conflicts in this case should have led this Court to disqualify itself pursuant to Section 455, Title 28, United States Code," and whether it should recuse itself for purposes of sentencing. Dkt. 141. Without citing any caselaw, Hild suggests that recusal is appropriate because the law firm of Davis Polk & Wardwell LLP, at which my husband is a partner, appears to have represented parties whose interests are "potentially adverse" to Hild. Id. at 2. Specifically, it lists Davis Polk's representations of Mizuho Bank and Industrial and Commercial Bank of China Limited (ICBC)---two of numerous victims of Hild's fraud---and Intercontinental Exchange---the owner of Interactive Data Corp. (IDC), which the government contended Hild "controlled" to perpetrate his fraud---as requiring recusal in this action. The Court was unaware of these representations until the filing of Hild's letter, and my husband has had no involvement with any representation of these clients. For the reasons set forth below, and based on longstanding interpretations of Section 455 by both the Second Circuit and the Advisory Committee on Judicial Ethics, the Court declines to recuse itself from this action....[*** See this Order ***]... Courts in this district have thus regularly declined to recuse themselves from proceedings wherein partners at a spouse's law firm have represented an interested party. See, e.g., Couri v. Pavia, No. 19-cv-5436, 2019 WL 3553357, at *3 (S.D.N.Y. Aug. 5, 2019) (denying recusal motion where the Court's husband was a partner at the law firm Proskauer Rose LLP, to which plaintiff claimed to be an "adversary"); Six W. Retail Acquisition, Inc. v. Sony Theatre Mgmt. Corp., No. 97-cv-5499, 2003 WL 282187, at *57 (S.D.N.Y. Feb. 7, 2003) (denying recusal motion where the Court's husband was a partner at the law firm Cahill Gordon & Reindel, which represented interested parties); see also Gench v. Hostgator.com, LLC, No. 14-cv-3592, 2015 WL 4579147, at *2 (S.D.N.Y. July 29, 2015) (this Court denying recusal motion where partners at Davis Polk may have represented an interested party in an unrelated matter). Accordingly, the Court concludes that recusal in this matter is unnecessary. SO ORDERED. (Signed by Judge Ronnie Abrams on 1/3/2023)." Watch this site.
Back on April 14, Judge Abrams started the trial. Inner City Press live tweeted the morning, below, and noted that Hild worked at Capital One, and was building an empire in South Richmond which some locals denounced as gentrification. Hild, of course, has another story.
And on April 27, defendant Hild took took the witness stand, which is rare. Inner City Press tweeted, here:
Hild: At Capital One, I worked to get them into the mortgage industry.... Livewell Financial was founded in 2005: he and a bunch of papers in my kitchen.
Hild: We needed $20 million. We went to Customers Bank. They said they could do it, they had to go to the credit committee but it should be no problem. Still, there would be delay and we were at the limit of our Zenith Bank warehouse line. So we went with re-po
OK - defendant Hild now continues on direct examination after lunch break. He hired people - who have testified against him in this trial as cooperators. This cross-examination should be a doozy.
Watch this site.
Back on Saturday, April 24, the US filed this: "Re: United States v. Michael Hild, 19 Cr. 602 (RA) Dear Judge Abrams: The Government writes in advance of the charge conference scheduled for April 26, 2021, to propose an addition to the Court’s jury instructions. Given the testimony and cross-examination on the disclaimer that Live Well provided to IDC (Tr. 153-55, 388-89, 918, 1078-79), the Government proposes that the second paragraph on page 28 of the draft charge be revised as follows, with proposed additions in bold: Any testimony that you may have heard from any witness with respect to whether a particular fact would or would not have been important to him in general reflect that witness’s individual views. Although you may consider such testimony, it is not controlling. It is for you to determine whether a particular fact would have been significant to a reasonable person in making an investment decision. In considering whether a statement or omission was material, let me caution you that it is not a defense if the material misrepresentation or omission would not have deceived a person of ordinary intelligence. Nor does a disclaimer regarding the accuracy of information render that information immaterial as a matter of law." We'll see...
On April 15, cooperator Darren Stumberger was asked on cross examination how he selected when to tape record, and when not. He tried to dismiss selectivity, tying his recording to the "Scenario 14 era."
Simultaneously on April 15, in Stumberger's separate case before SDNY Judge J. Paul Oetken, 19-cr-608, his lawyer "asked the Court to seal Docket Number 13." That's appears to be an unnumbered Minute entry of a motion hearing for withdrawal of counsel. There is no item numbered 13 anymore, not even "sealed document placed in vault." Why not? Why now?
On April 19, as the trial continued, the abrupt closure of Live Well was portrayed, with a lending who flew from Detroit to demand a meeting to Hild on the stand. Hild had refused to meet; later the lender was told that a warehouse line of credit might be paid back over time.
On April 20, the US Attorney's Office asked Judge Abrams to "impose a deadline for the defendant to decide whether he will waive the attorney client privilege in support an of advice- or presence of counsel defense... prior to the completion of the direct testimony of Eric Rohr, Live Well's form CFO."
There is Hild's line that every business failure is not a criminal act. On this one, we'll see. The trial continue on April 21.
From April 14: Assistant US Attorney, in opening, says it unraveled in 2018 when lenders asked for more info. $200 million stolen; the cooperating witness are criminals, sure, AUSA says, but they have accepted responsibility.
Next up: Ben Dusing. And he's laying it on thick
[Note: "“It is the Yankee Stadium of financial fraud worldwide,” Dusing told Cincinnati ABC affiliate WCPO shortly after his hiring in March]
[And: Hild has a website of his endeavors, here]
Ben Dusing: I'm from Kentucky, I speak with an accent, you're going to hear it a lot. My daddy told me, A trial is a search for the truth. We begin together to search for the truth. And that's the exciting thing. We can all be proud. These are interesting times
Ben Dusing: Never before have I been confined by plexi-glass. We'll have to lean over more, to find the truth. But it is a common purpose. We haven't seen any proof yet. At the end I will ask you to find Mr. Michael Hild not guilty based on the facts and law
Ben Dusing: It will come down to, did Mr. Hild intend to defraud people. It's complex. You're going to hear about pre-payment speed. Truth is found within the complexity, not despite it.
Ben Dusing: This case is about throwing people under the bus. Bigger fish. I thank you for the sacrifice you are about to make. [Then a 5 minute break, during which: Could you tell them not to clean the windows now? Courtroom 110 is big, with a lot of history]
It's 11:25 am and Judge Abrams is back with more jury instructions: "You must follow the law as I explain it to you, whether you agree with it or not," etc.
First government witness against Michael Hild of Live Well is a cooperator, who previously worked at Morgan Stanley then Goldman Sach
As this witness Darren Stumberger, drones on, Inner City Press has looked up the transaction being asked about: "Ernie Calabrese and Vice President Dan Foster who will also join Live Well alongside Stumberger.
On April 13, Judge Abrams picked a jury of 12, with three alternates, in the large Jury Assembly Room of the SDNY, with the venire in masks and individual chairs, socially distanced. Inner City Press was there.
The Juror Questionnaire asked about any links to or knowledge of Bank of New York, Customers Bank, First Bank of Tennessee, Flagstar Bank, ICBC, International Data Corporation (IDC), Mizuho Securities, NRMLA, Nomura, Republic Bank, U.S. Bank and others.
In the run-up to the trial, which starts on April 14 at 10:15 am and which Inner City Press will cover, the US Attorney's Office filed a motion in limine seeking to preclude "evidence suggesting that IDC or the lenders were negligent or careless in failing to stop the fraud."
Echoes of the Eaze trial of US v. Weigard, earlier this year before Judge Jed S. Rakoff, unsealing order won by Inner City Press here.
Again, beyond mortgage fraud, we note for now that Hild worked at Capital One, and was building an empire in South Richmond which some locals denounced as gentrification. Hild, of course, has another story. Watch this site.
The case is US v Hild, 19-cr-602 (Abrams). There is and will be more on Patreon, here.
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Amirov Detained For Pay to Mehdiyev with AK47 by Home of Iran Dissident Masij Alinejad
By Matthew Russell Lee, Patreon Jan 27 vlog
SDNY MAG COURT, Jan 27 - A man from Azerbaijan has been arrested with an AK-47 style assault rifle surveilling the Brooklyn home of an Iranian journalist, Inner City Press exclusively reported learned on July 29, 2022,
In the U.S. District Court for the Southern District of New York past 5 pm that day, a detention or release proceeding was held by Magistrate Judge Sarah Cave on defendant Khalid Mehdiyev. He was heavy-set and in a black T-shirt, escorted in by two US Marshals. Inner City Press was the only media there. Complaint on Patreon here
On January 27, 2023, Mehdiyev's paymaster was presented, again before Judge Cave. He was in a black t-shirt, repeating "Da" sullenly, detained on consent with a taxpayer-funded lawyer. He will next appear before Judge Colleen McMahon on January 31 at 4 pm. Inner City Press will stay on the cases, including of Polad Omarov, set to be extradited in from the Czech Republic. Vlog here
Back on July 29, Assistant US Attorney Matthew Hellman described Mehdiyev in a borrowed car, a gray Subaru Forester SUV with an Illinois license plate, with 66 rounds of ammunition and the gun, outside the house of a person he described as an Iranian dissident and human rights activist who was previously the targets of an indicted plot by Iranian government operatives to kidnap her.
Inner City Press' research upon leaving the Magistrates Court found that Alireza Shavaroghi Farahani, Mahmoud Khazein, Kiya Sadeghi and Omid Noori, all living in Iran — were accused of conspiring to kidnap a Brooklyn journalist, human rights activist who has been critical of the Iranian regime, with a fifth, Niloufar Bahadorifar, accused of providing financial support. The target was identified as Masih Alinejad.
Mehdiyev's assigned Criminal Justice Act lawyer argued that he faces only five years in prison on the gun charge, and for release. But Judge Cave found his a danger, and a flight risk, and ordered him detained.
The preliminary hearing was set in two weeks.
The case is US v. Mehdiyev, 22-mj-6185 (Cave)
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Nadim Ahmed For EB-5 Immigration Scam of Taxi Fleet Arrested & Released on $2M Bond
By Matthew Russell Lee, Patreon Maxwell Book
SDNY MAG COURT EXCLUSIVE, Jan 27 - In the U.S. District Court for the Southern District of New Yor on January 25, a bail or detention proceeding was held by Magistrate Judge Sarah L. Cave on a man charged with defrauding the EB-5 immigration program and shifting $100,000 from New York to California.
Inner City Press covers the SDNY Mag Court(s). Related Mag Court live-tweeted thread (more on Patreon here) vlog here
The defendant Nadim Ahmed had in the gallery his son and wife, looking unhappy. His charges were quickly read, and the complaint was still sealed. He was released on $2 million bond. He had been arrested at his home in Old Westbury, New York and presumably returned there.
The complaint describes a scheme to "develop a fleet of taxis in NYC" and get immigration status.
The case is US v. Ahmed, 23-mj-563 (Cave)
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Fentanyl Death Trial of Ortega Has Dispute If Still Guilty If Drugs Came From Another
By Matthew Russell Lee, Patreon Maxwell Book
SDNY COURTROOM EXCLUSIVE, Jan 27 - In the U.S. District Court for the Southern District of New York on December 16, 2022 Billy Ortega was brought in by US Marshals and pleaded not guilty to his role in the death by fentanyl laced cocaine of Julia Ghahramani, 26, a first-year lawyer at Akin Gump, Ross Mtangi, 40, a trading executive at Credit Suisse Group AG, and Amanda Scher, 36, a social worker.
There were four family members in the gallery, where Inner City Press was the only media.
District Judge Ronnie Abrams asked about recently provided discovery, in advance of the trial scheduled for January 18. The Assistant US Attorney replied that some phones had only recently been accessed; there are many text messages on them.
The defendant's opening argument on January 19 triggered a US Attorney's Office request for a curative instruction - and their request to unseal Ortega's CJA affidavit, citing Inner City Press' win in US v. Avenatti, 550 F. Supp. 3d 36 (SDNY 2021). Meanwhile the same Office is consenting by taking no position to the secrecy of Sam Bankman-Fried's co-signers. Watch this site.
Back on January 13, Judge Abrams held the final pre-trial conference in Courtroom 110 where the trial will be. Inner City Press was there. Judge Abrams ruled on a number of motions in limine, asking the prosecution why they couldn't redact information about Ortega being behind on child support from one of their exhibits; she asked the defense to consider, before trial, who Ortega allegedly being a family man would be relevant and not an invitation to nullification, like a mention of the sentenced - 25 years mandatory - that he faces.
On January 16, one of Ortega's lawyers filed a memo alleging, with exhibits, that Kaylen "Rainer who is now a government cooperator... who is HIV positive prostitutes himself with inmates at the MDC without the knowledge of the inmates of Rainey's HIV status" and "sells fentanyl laced marijuana and synthetic heroin at the MDC." The allegation is that the US Attorney's Office has never looked into this, or spoken with letter-writer Jonathan DeLaura - who has been subpoenaed.
On January 17, after a barely redacted copy of the memo and letter(s) went into the docket, the US Attorney's Office filed opposition to DeLaura testifying, and seeking to exclude from cross examination of Rainer any reference to the allegations he spreads HIV in the MDC, calling it "inflammatory."
On January 18, while jury selection was proceeding in Courtroom 110, Billy Ortega's lawyer put in another letter, that "I met with Jonathan DeLaura at the MDC today. DeLaura states that he first met Rainey at the MDC in Brooklyn in 12/2021, or 1/2022, and thereafter spoke with Rainey about the events continued in DeLaura's letter, or observed those events until 8/2022, a period of 8 months." So what if anthing will he be allowed to testify about?
On January 20, the US put another of Ortega's customers on the stand, under subpoena. He got an immunity deal. He testified about buying cocaine from Ortega - somehow he didn't know if it was powder or crack - and then being texted to not use a particular packet, it would be swapped out.
Dawn Florio asked if he took any of the cocaine that was recalled. No he said, otherwise I might not be here. Bernard Seidler objected, but Judge Abrams said, one lawyer at a time. Florio get the second half of the response stricken.
He said after Billy Ortega a/k/a Jason a/k/a J, a friend of his friend Phil, stopped answering his texts, he found another dealer or "delivery service," by a woman named Mils.
On January 23, Rainey was on the stand. He described delivering cocaine to 37 Warren Street and 232 Elizabeth Street. He said he kept $100 a day, and delivered the profits to Josefina, "Billy's mother." A NYCHA floor plan of 431 West 17th Street, Apartment 4E was shown. The drug safe was in the closet.
After Rainey was taken out in detention back to the MDC, after the jury left, talk turned to Ms. White, represented by Federal Defenders. One of Ortega's lawyers insisted White wants to speak with him or Ortega without Federal Defenders present, and that while he insists no ethical violation has taken place, even if it had, he should be punished, not Ortega.
On January 24, Rainey on cross acknowledged texting "Booty" about his gun (which he said was Billy's). Rainey liked a customer Amanda at 50 East 8th Street, also sold at 185 Avenue B and 303 Lexington, as well as New Jersey.
At the end, the US Attorney's Office asked to speak with Rainey's lawyer about logistics and Rainey's safety. The charge conference will be January 26 after court, with closings on January 27, when Judge Abrams has a sentencing. Ms. Maurice "Reese" Whyte remains up in the air - counsel, escorting ex-doctor Hadden on Worth Street on January 24, had referred to a proffer. But was it this one?
On January 25, Ortega's counsel completed her cross of Rainey. She asked him if he prefers men (yes) and if he prostituted himself in the MDC (no). He asked if he called a co-defendant "Daddy." There was an objection, sustained on relevance grounds.
After running again through the addresses of the deliveries, she asked, You don't know if they had other suppliers, do you? No, was the answer.
On January 26, Billy Ortega's counsel who submitted the letters about Rainey argued that the prosecutors were trying in essence to amend the indictment, by adding in the conduct and acts of others. He cited a 1990 case from the 11th Circuit, which he said was directly on point, cited 160 times without opposition, and two Second Circuit cases he said were less on point. Judge Abrams asked for the citations.
On January 27 after the US closing argument, Ortega's counsel argued that it had impermissibly said it didn't matter if the fentanyl came from Ortega. Judge Abrams repeatedly asked if the defense is arguing that even if Ortega sent Rainey to deliver drugs, if Rainey got the fenantyl from another, must Ortega be found not guilty. The prosecution said, repeatedly, no. Countdown toward verdict...
Inner City Press will continue to cover the case.
The case is US v. Ortega, et al., 22-cr-91 (Abrams)
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