Tuesday, February 28, 2023
Monday, February 27, 2023
Saturday, February 25, 2023
After Hild Guilty Verdict He Gets 44 Months US Opposes Bail Pending Appeal Citing Dusing
By Matthew Russell Lee, Patreon, Podcast Vlog
SDNY EXCLUSIVE, Feb 24 – 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.
On February 24, the US Attorney's Office opposed Hild's bid for bail pending appeal, saying that the Dusing arguments had already been rejected, that whether the Strickland or Sullivan standard applies to Dusing's performance is merely academic, Hild's motion for a new trial is without merit.
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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Melzer Who Wanted Mid East War Pled Guilty now Admits Antifa Talk But Says It Was Bluster
By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - The Source
SDNY COURTHOUSE, Feb 24 – Ethan Melzer a/k/a Etil Reggad was charged with conspiring to target his U.S. Army unit, allegedly because "another 10 year war in the Middle East would definitely leave a mark."
Since his indictment his lawyers at Federal Defenders have sought information about the selection of the grand jury, and the constitution of the Master and Qualified Jury Wheels (others are seeking this too, as covered by Inner City Press here).
Jump cut to June 23, 2022, two weeks before trial, word of a guilty plea: "ENDORSED LETTER as to Ethan Phelan Melzer addressed to Judge Gregory H. Woods from AUSAs Sam Adelsberg / Matthew Hellman / Kimberly Ravener, dated June 23, 2022 re: Following consultation with Your Honor's Chambers earlier today, the parties write jointly to advise they have reached a plea agreement, which they believe will obviate the need for any trial in this matter, and to request that the Court schedule a change-of-plea hearing... ENDORSEMENT: Application granted in part. The Court will hold a change of plea hearing."
On February 3, 2023, Melzer's Federal Defenders filed his sentencing memo, asking for 15 years rather than the 45 year Guideline Sentence the calculation of which they do not object to. They cite a troubled background in Kentucky complete with "role-playing video games." Next he was in a US Army base in Vincenza, Italy drinking heavily and "spending too much time online." Before a deployment to Turkey he disseminated info about the deployment on chat rooms on Telegram. Nearly all of page 18 is redacted.
On February 17, the US Attorney's Office filed its sentencing request: the full 45 year guideline.
After that, Melzer's Federal Defender filed objections to the PSR, for example not denying Melzer said he trained with antifa but adding it was just bluster "in order to impress his fellow chat participants." Judge Woods has asked for filings by February 27, if a Fatico hearing is necessary. Watch this site.
Back on July 6, 2020 he was arraigned before U.S. District Court for the Southern District of New York Magistrate Judge Sarah Netburn. Inner City Press live tweeted it, below.
In November, Melzer through his Federal Defenders filed a motion to dismiss based on the racial and ethnic make up of the Jury wheel used during the COVID-19 pandemic - in White Plains.
On July 26, 2021, this: "ORDER as to Ethan Phelan Melzer. Trial in this matter will commence at 9:00 a.m. on April 25, 2022."
On March 3, Judge Woods moved it up: "ORDER as to Ethan Phelan Melzer. On July 26, 2021, the Court scheduled trial in this matter for April 25, 2022. The trial will now begin on April 19, 2022. This is the first priority trial for that day. Trial will take place in a courtroom to be determined in the United States District Court for the Southern District of New York, Daniel Patrick Moynihan U.S. Courthouse at 500 Pearl Street, New York, New York, 10007. All other deadlines laid out in the Courts July 26, 2021 order remain in effect. SO ORDERED. (Signed by Judge Gregory H. Woods on 3/3/2022)."
Hours later the Federal Defenders wrote in, saying that the US Attorney's Office agreed that the trial should be delayed to July.
Docketed on March 7, this: "ORDER [101] JOINT LETTER MOTION addressed to Judge Gregory H. Woods from Jonathan Marvinny dated March 3, 2022 re: Adjourn trial. The parties' March 3, 2022 request for an adjournment of the trial in this case, which was previously scheduled to begin on April 19, 2022, is granted. Trial will commence at 9:00 a.m. on July 5, 2022."
And on June 16, a more detailed schedule including a Daubert hearing: "the Court is currently reviewing the Governments motion to exclude the testimony of Defendants expert, Dr. David Greenfield. The parties are requested to hold June 22, 2022 at 10:00 a.m. for a Daubert hearing to address that motion. Absent any indication otherwise from the Court, the Daubert hearing will proceed at that time in Courtroom 12C, Daniel Patrick Moynihan Courthouse, 500 Pearl Street, New York, NY 10007. Any application to hold that hearing remotely, which should include the legal basis for the Court's ability to do so, is due no later than June 19, 2022. In addition, and as discussed on the record during the June 16, 2022 hearing, the Court will hold a hearing to discuss the jury questionnaire and voir dire in this case on June 27, 2022 at 10:00 am."
On May 4, after a proceeding that ranged into how WhatApp messages are downloaded and saved - or not - this: "ORDER as to Ethan Phelan Melzer: the Government's motions in limine are granted in part and denied in part. The Court determines that, based on the information currently available, the probative value of the materials referred to by the Government as the "Jihadist Materials" and the "O9A Materials" is not substantially outweighed by risk of unfair prejudice or the other concerns articulated in Federal Rule of Evidence 403. The Court also determines that, at this point, it is likely that the Government will be able to prove by a preponderance of the evidence that a conspiracy existed between Defendant, CC-1, and CC-3 as required to admit their statements pursuant to Federal Rule of Evidence 801(d). However, the Government has not provided a sufficient basis to admit statements by CC-1 and CC-3 as statements against interest under Federal Rule of Evidence 804(b)(3). At this point, the Court will not preclude, under Federal Rule of Evidence 403, the admission of Defendant's statement regarding his lack of patriotism made to Individual-1. The Court will also refer the military base described in the parties' briefs as the "Military Base" at trial, and will prevent the disclosure of the jurors' names and other identifying information to the public. As further discussed during the pretrial conference, the parties are directed to submit a joint letter setting forth their positions as to whether the use of a jury questionnaire would be appropriate and preferable in this case no later than May 13, 2022. In that joint letter, the parties should also indicate whether there are any issues regarding the phrasing or scope of the proposed voir dire questions to be provided by the Court. Further, as discussed during the conference, the parties are ordered to meet and confer and submit any proposed limiting instructions to the Court no later than June 3, 2022. If the parties cannot agree on any particular limiting instruction, they should submit a joint letter along with that submission setting forth their respective positions. In addition, and as discussed during the conference, no later than June 21, 2022, the parties are ordered to submit a joint letter setting forth their respective positions regarding any statements that the Defendant seeks to admit pursuant to the rule of completeness. If there is no disagreement regarding the statements Defendant seeks to admit pursuant to that rule, the parties need not file a joint letter. (Signed by Judge Gregory H. Woods on 5/4/2022)." Watch this site.
On May 24, Melzer's Federal Defenders filed a 24-page motion to dismiss arguing that "counts must be dismissed because the charged statutes do not reach Mr. Melzer's overseas conduct." They cite a 2018 Georgetown Law Journal article.
As to the Order of Nine Angles, which the US calls a "Satanic anarchist group founded in the UK," the argument is for that reason, the UK HQ, US law cannot reach it. They continue: "in the civil context, federal courts have repeatedly held that certain civil laws do no reach conduct on overseas U.S. military bases because these bases are not within the 'jurisdiction' of the United States." Watch this site.
Days earlier, on May 20, the US Attorney Office has put in a letter that Melzer was taken into custody at a U.S. military facility in Europe on June 10, 2020 - and was flown directly to Stewart International Airport in Newburgh, north of New York City. Watch this site.
On September 9 the assigned District Judge, Gregory H. Woods, arraigned Melzer on the superseding indictment. Inner City Press again live tweeted it, below.
At week's end the US Attorney's Office previewed for Judge Woods requests for sealing they will make under CIPA: "To the extent the Court would like additional information about the Government’s anticipated CIPA § 4 motion, the Government is available to participate in an ex parte classified CIPA § 2 conference at the Court’s convenience. See 18 U.S.C. app. 3 § 2 (establishing that the court, at a party’s request or on its own initiative, can hold “a pretrial conference to consider matters relating to classified information that may arise in connection with the prosecution”); see also United States v. Saipov, No. S1 17 Cr. 722 (VSB), 2019 WL 5558214, at *2 (S.D.N.Y. Oct. 29, 2019) (concluding that it was proper for the Court to conduct several ex parte conferences, including a conference pursuant to CIPA § 2). The Government anticipates that by the time of the next conference, defense counsel will have had an opportunity to review the limited amount of classified discovery that the Government plans to produce and the Government’s CIPA § 10 notice. Accordingly, at that conference, the Government will ask the Court to set the deadline for the Government’s CIPA § 4 motion as the same date as the deadline for the defendant’s pretrial motions, and to set a schedule for the defendant’s CIPA § 5 notice and for CIPA § 6 briefing." Inner City Press will continue to report on this.
The case is US v. Melzer, 20-cr-314 (Woods / Netburn)
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Masoud Wants Six Months But US Insists on 18 to 24 for Assaulting Man Waving Israel Flag
By Matthew Russell Lee, Patreon Maxwell Book
SDNY COURTHOUSE, Feb 24 – Saadah Masoud was indicted for punching and dragging Matt Greenman, who was wearing a flag of Israel, on 42nd Street near the United Nations.
On July 5, 2022 U.S. District Court for the Southern District of New York Judge Denise L. Cote held the arraignment of Masoud on Federal hate crimes charges. Inner City Press covered it, as the only media in the courtroom. (Tweets here)
After Masoud pled guilty and while he was out on bond awaiting sentencing in March, his Pre Trial Services officer compiled and filed a list of violations of conditions, not abiding by curfew, not proving employment. A hearing was held on February 3 by Judge Cote and Inner City Press was exclusively there.
The Assistant US Attorney said Masoud had refused to work with an Office Rothman --
Masoud's defense lawyer said, This is about Israel, not about being Jewish.
Masoud was ordered "remanded" - two US Marshals moved in and handcuffed him. Inner City Press will cover his sentencing by Judge Cote on March 3.
More was said - on Substack here.
Back on October 6, there was a superseding indictment, moving from one Hate Crime Act to two charges, including now Conspiracy to Commit Hate Crimes and adding conspiracy with CC-1, and attacks on Victim-2 (for wearing a yarmulke) and Victim-3 (for wearing a Star of David).
On November 3, another retained counsel filed a notice of appearance.
On November 10, Judge Cote docketed: "ORDER as to Saadah Masoud. IT IS HEREBY ORDERED that the defendant in this matter is scheduled to enter a change of plea on November 22, 2022.
It happened: "Minute Entry for proceedings held before Judge Denise L. Cote: Change of Plea Hearing as to Saadah Masoud held on 11/22/2022. Change of Plea hearing held. Defendant withdraws his not guilty plea and pleads guilty as charged to count 2 of the S1 indictment. The Court accepts the guilty plea. PSI Ordered. Sentence date set for March 3, 2023 at 3:30 PM. Defendant's sentencing submission shall be due February 17. Government's response due February 24."
Inner City Press has put the plea agreement on its DocumentCloud here. The deal is for a guideline of 18 to 24 months.
On February 17, Massoud's lawyer put in their sentencing memo asking for six months, and saying that "Chief U.S. Probation Officer Jonathan Sparks has recommended... eighteen months. It is our understanding that the Government does not intend to argue for a sentence outside the Guidelines Range."
On February 24, the US Attorney's Office submitted its sentencing memo, for the 18 to 24 month guideline, noting chats about bringing Molotov cocktails and wearing masks: "No Face No Case." Afterward, the defendant texted, "I'm Gucci. No face no case." The US Attorney's Office quotes the defendant on Instagram about slaughtering people like sheep. Watch this site.
Back on July 5, Assistant US Attorney Lindsey Keenan told Judge Cote that Masoud, after his arrest, said upon being bring to the courthouse, "All this for one Jew?"
Judge Cote set a February 21, 2023 trial date. Masoud's Criminal Justice Act (publicly-funded) lawyer said while Masoud is on home confinement he wants to travel to Florida for a wedding on July 7.
AUSA Keenan replied that her Office and Pre-Trial Services previously opposed a social event permission for Masoud and would likely oppose this. She added that her review of social media found inconsistencies in Masoud's statements about his employment.
Masoud's lawyer said his client has a moving business. Judge Cote asked if he files taxes. The response was that the business is cash, and has no website keeping track of what is moved for whom.
The request to travel to Florida was filed and quickly denied.
The case is US v. Masoud, 22-cr-359 (Cote)
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SDNY Memoir of Geoffrey Berman Sidestepped Garagos and OneCoin, Could SBF Be Next?
By Matthew Russell Lee, Patreon Maxwell book
SDNY COURTHOUSE, Feb 24 – With the disparities mounting in the Sam Bankman-Fried case, in which unlike for other defendants the Southern District of New York US Attorney's Office did not even seek detention, it seems important to know how the Office, and wider Department of Justice, work.
Damian Williams hasn't written a book on it, at least not yet, so Inner City Press has turned about to Geoffrey Berman's "Holding the Line."
There are many holes in it. Just a few examples: in recounting in detail the Michael Avenatti prosecutions, Berman mentions but does not explain not charging Mark Garagos, who was with Avenatti during the Nike shake-downs at Boies Schiller.
In expressing disgust at Tekashi 6ix9ine's music while saying how quickly he flipped, Berman does not mention the death threats again him at that time of flipping.
In fairness, Berman does add to nitty-gritty knowledge by describing 6ix9ine sleeping in the SDNY office walking to testify through the third floor bridge to 40 Foley Square. And here we were, waiting on Pearl Street to spot the transport from the GEO cooperators' private prison in Queens....
Also interesting are details in how prosecutions are doled out to various US Attorney's Office. Ultimately, Berman write, Main Justice decides, if the two or more US Attorney's cannot agree. So how did it go on Bankman-Fried?
Near the end of the book, Berman quotes his own answer on Lev Parnas at a press conference, on what he calls a racehorse drugging case. So US v. Navarro, et al. wasn't big enough to merit a Berman chapter? And not One Coin?
Rather than focusing on the holes, this mini-review will end with a vignette. Early in COVID, Inner City Press was in the SDNY Magistrates Court, as so often, the only media there. And who came in to see how it was working? Geoffrey Berman, alone.
Now that... was holding the line.
We'll wait for Damian Williams' book - as we write our own. The more the merrier, at and about the SDNY.
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NBT Bank Bid To Combines Its Disparities With Salisbury Is a CRA Litmus Test for the OCC
By Matthew Russell Lee, Patreon Maxwell Book
SOUTH BRONX, Feb 24 – New York and Connecticut are portrayed as diverse and progressive places. But their banks, not so much.
Consider for example the proposed merger between New York-based NBT Bank NA and Salisbury Bank & Trust with branches in Connecticut and New York, where it is closing one in Poughkeepsie.
New York-based Inner City Press and Fair Finance Watch have long exposed redlining - and in this vein, on February 24 they filed a Community Reinvestment Act challenge with the Office of the Comptroller of the Currency:
This is a timely first comment opposing and requesting an extension of the OCC's public comment period on the Applications by NBT Bank NA to acquire Salisbury Bank & Trust. The applicant NBT Bank NA in 2021 based on its disparate marketing made 1813 mortgage loans to whites, with 666 denials to whites -- while making only TWENTY THREE loans to African Americans, with fully 21 denials. This is far out of keeping with the demographics, and others lenders, in NYS and beyond - this is outrageous. NBT is in fact worse in New York State, where in 2021 it made 1332 mortgage loans to whites, with 508 denials to whites -- while making only 12 loans to African Americans, with fully 18 denials. This is even more outrageous. A combination with Salisbury would be toxic. In Connecticut in 2021, Salisburn made 125 mortgage loans to whites with 7 denied - and NO loans to African Americans. Notably, in preparation for this proposed transction, Salisbury is engage in branch closing: SALISBURY BANK AND TRUST COMPANY 5 Bissell Street, Lakeville, CT 06039 Notice of intention to close branch office at 2064 New Hackensack Road, Town of Poughkeepsie, Dutchess County, New York 12603 There is no public benefit to this proposal. FFW and Inner City Press have been deeply concerned about the rush by the OCC's penchant to rubberstamp mergers by redliners, contrary to its rhetoric. We timely request public hearings.
If the regulators at the OCC mean what they claim, this application should be denied. Watch this site.
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