By Matthew Russell Lee, Patreon Podcast Filing
SDNY COURTHOUSE, July 20 -- For money laundering for scam crypto currency OneCoin, lawyer Mark Scott was convicted by a jury after testimony by Konstantin Ignatov and others but was allowed to remain free on bail pending sentencing.
On December 5, 2022, the related indictment against Frank Schneider was unsealed and Inner City Press immediately uploaded it here. Now in June 27, after being released by the French courts to house arrest, Schneider is on the lam.
On June 27, 2023, the US Attorney's Office wrote to Judge Edgardo Ramos to cancel Irina Dilkinska's July 6 court appearance, to late September.
On June 29, Judge Ramos granted it: "MEMO ENDORSEMENT as to Irina Dilkinska (7) on [553] LETTER MOTION addressed to Judge Edgardo Ramos from Juliana Murray dated 6/27/2023 re: Adjournment and Exclusion of Time. ENDORSEMENT: The pretrial conference is adjourned to September 21, 2023 at 10 a.m. Speedy trial time is excluded from July 6, 2023 to September 21, 2023, in the interest of justice"
Then on July 18, Dilkinska's appointed lawyer wrote to Judge Ramos that his client wants to replace him with another lawyer, and to see up a conference on the issue.
And on July 20, it happened, to the CJA on duty who also picked up a half dozen other cases that day: "ORDER as to Irina Dilkinska: The C.J.A. attorneys assigned to this case, Jeremy Schneider and Rachel Nicole Perillo, are hereby ordered substituted and the representation of the defendant in the above captioned matter is assigned to John Busa. Attorney Rachel Nicole Perillo terminated in case as to Irina Dilkinska. (Signed by Judge Edgardo Ramos on 7/20/2023)"
On May 26, 2023, as to Ruja Ignatova's brother (and cooperator) Konstantin, this: "ORDER as to Konstantin Ignatov: It is hereby ORDERED that the defendant's bail be modified to include mental health evaluation/treatment as directed by Pretrial Services. (Signed by Judge Edgardo Ramos on 5/26/2023)."
On April 11, 2023, Judge Ramos heard argument on, then denied, Sebastian Greenwood's argument that non-US losses should be excluded from his sentencing. Inner City Press was there and exclusively live tweeted, here (vlog here)
OK - now at One Coin argument on if sentencing based on global loss (over $550 million) or only US loss.
Sebastian Greenwood is here, with US Marshals.
Greenwood's lawyer is citing a 2d Circuit case about trafficking of Pakistani heroin, saying including non-US harm in sentencing is plain error. Says, selling OneCoin from Bulgaria to China is not US wire fraud
Judge Ramos: What if the funds are laundered through US wires? Greenwood's lawyer: That's not what happened here. [Greenwood is here in pony tail, with glasses in MDC beige prison garb]
Greenwood's lawyer says" this is a case of a domestic tail wagging a global dog; he keeps name checking Gilbert Armenta, as money launderer. Armenta's still not in jail.
Judge Ramos: Why can't I consider the global fraud as relevant conduct? Greenwood's lawyer: The Azim case says you can't.
Judge: You should have made that argument before pleading guilty. Greenwood's lawyer: We only pled to what he allocuted to
Assistant US Attorney: OneCoin was global: the funds were laundered through the US, to the tune of at least $700 million, which maxes out the sentencing guideline.
Judge Ramos: Is cryptocurrency a security?
AUSA: That's our position.
Judge Ramos: Has the [2d] Circuit spoken? AUSA: No.
Greenwood's lawyer: In any event, a *fake* crypto can't be a security.
Argument over - Judge Ramos takes 5 minutes (drum roll) Interim story soon. Inner City Press remains on the case(s)
Judge Ramos is back and says: I am denying the defendant's motion. I am not deciding if crypto is a security. The money laundering was primarily in the US, Mr Armenta and Mr Scott...
(vlog here)
On May 1, 2023 Greenwood's counsel submitted, absurdly under seal, exhibits from the US v. Scott trial, arguing for a low US loss figure for sentencing. Meanwhile Armenta, whatever the legitimacy, is still not in detention. Most defendants are not treated this way.
On May 2, the US asked for additional delay: "Re: United States v. Karl Sebastian Greenwood, S16 17 Cr. 630 (ER) Dear Judge Ramos: The Government respectfully submits this letter, on behalf of the parties (and with the consent of defense counsel), to request a brief adjournment of the parties’ deadline to submit a joint status letter providing a proposed pre-sentencing schedule. (See Minute Entry for 4/11/2023 Proceedings.) The parties respectfully request that the Court adjourn the joint letter deadline from today (May 2, 2023)" - letter on Patreon here.
On May 10, 2023, Greenwood's counsel wrote in, asking for sentencing after Labor Day - letter on Patreon here.
On May 15, Greenwood got the extension, to September 12: "MEMO ENDORSEMENT [544] LETTER MOTION addressed to Judge Edgardo Ramos from Justin S. Weddle dated May 10, 2023 re: Request to Set Sentencing Date on consent as to Karl Sebastian Greenwood... ENDORSEMENT...Sentencing scheduled for September 12, 2023 at 11am (Signed by Judge Edgardo Ramos on 5/15/2023)."
On January 18, 2023, Gilbert Armenta's sentencing was request to be pushed back, yet again, this time from January 24 to February 16.
On January 27 Armenta's lawyer filed a heavily redacted sentencing memo - 12 pages about his crimes are blacked out - asking for a time served sentencing. Memo on Patreon here.
On January 31, Inner City Press filed a two-page motion to unseal - which Judge Ramos endorsed on February 8, with responses due February 10 and a hearing on February 14 at 10 am. Endorsed letter on DocumentCloud here.
(Just) before 5 pm on February 10, the US Attorney's Office filed a letter that Armenta's counsel would be unredacting - but when they did, after 9 pm, it was begrudging, and not enough. Amenta's letter, citing Jen Shah, here on Patreon.
And when Armenta's lawyers put in an after-hours response trying to use Inner City Press' filings on Jen Shah to support secrecy, it still redacted far too much - letter here on DocumentCloud, still too redacted filing on Patreon here. Now until May, Armenta remains out.
On March 30, the argument on Sebastian Greenwood was delayed: "NOTICE as to Karl Sebastian Greenwood; Oral argument previously scheduled for April 4, 2023, is hereby rescheduled for April 11, 2023, at 2:00 p.m., will be held at the Thurgood Marshall United States Courthouse, 40 Foley Square, New York, New York 10007, Courtroom 619."
Back on March 21, SDNY prosecutors announce unsealing of charges against IRINA DILKINSKA in connection with her participation in the massive OneCoin fraud scheme. OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network. As a result of misrepresentations made about OneCoin, victims invested over $4 billion worldwide in the fraudulent cryptocurrency. DILKINSKA was extradited from Bulgaria yesterday and will be presented before United States Magistrate Judge Sarah Netburn later today." More on Substack here.
On April 6, after a delay, Dilkinska was brought by US Marshals into Judge Ramos' courtroom. Inner City Press was there, but her lead CJA counsel was not. His stand-in consented to the exclusion of Speedy Trial Act time to July 6, the next conference. Judge Ramos asked, Wasn't much of the discovery provided for the extradition? Apparently not.
The AUSA said he thinks OneCoin is closed in Bulgaria, but there may still be promoters about there. Watch this site.
Back on December 16, on a mere hour's notice, Sebastian Greenwood was brought into court and pleaded guilty to three counts. His sentencing is set for April 5, but there will be briefing on a dispute if the sentencing guideline should be based on US or global losses.
On Patreon, superseding information and
Pimintel letter estimating 720 months both here
Inner City Press vlog here, live tweeted thread here:
OK- on OneCoin and Sebastian Greenwood, headed to hastily scheduled proceeding before Judge Ramos
Greenwood has been brought in, shackled. AUSA Nick Folly is signing papers. Inner City Press the first media here.
Folly apologizes to Judge Ramos' Deputy, somethong about "in 10 minutes." He has a jury out in trip 'n fall scan trial US v Dowd, which Inner City Press is also covering.
Greenwood is sporting a thin mustache and small pony tail / bun. He has a lawyer on each elbow, and 2 US Marshals behind him. Folly just stepped out, with umbrella. Will this proceed without him? Another AUSA just came in.
AUSA Ravi: There is a superseding information that Mr Greenwood will be pleading guilty to. Greenwood's lawyer: Yes. And there is no plea agreement. Judge Ramos: We are starting 20 minutes late.
AUSA Ravi: Mr Folly just had a verdict come in [in US v Dowd]
Judge: Are you being treated for any mental health issue? Greenwood's lawyer: He is having counseling, we could describe it but under seal. He is competent to plead. Judge: You are charged with wire fraud and conspiracy to commit money laundering and wire fraud
Judge Ramos: Maximum penalty (on count 3) is twenty years, more if consecutive - up to 60 years.
Greenwood: I understand. Judge: I could also order restitution to any victims. What is your status in this country? Greenwood: I am an inmate [laughs]. I am a citizen of the UK and Sweden. Greenwood's lawyer: He was arrested in Thailand.
Judge: Separate from the maximums, there are sentencing guidelines. There is a Pimintel letter from the government, estimsting your guideline. It is not a promise. Greenwood: I understand.
AUSA Folly [he's back] OneCoin was a ponzi scheme. Between 2014 and 2016 it made 4 billion Euros, with profits of 2.7 billion. It lacked a real blockchain: it marketed into the US.
Greenwood: I met Ruja Ignatova, we started OneLife, packages including OneCoin. We mis-compared it to Bitcoin. But I knew OneCoin had no intrinsic value. We targeted the US and concealed the source. I knew it was wrong.
Greenwood: I plead guilty. Judge Ramos: I find you guilty. Sentencing date? Greenwood's lawyer: We disagree on how the guideline apply: worldwide or US-based conduct? We'll brief it.
Greenwood's sentencing was set for April 5 at 2 pm. But before that, briefs on whether sentencing guidelines should be based of global billions, or US only- Greenwood like Scott says $57,000: AUSA says US is tens of millions.
We'll have more on this.
Days earlier on December 12, 2022, the US Attorney's Office wrote to Judge Edgardo Ramos that his OneCoin case is related to another, unsealed this month, against Christopher Hamilton and Robert MacDonald (for whom their request for extradition has been denied in the UK). They are proposing that the cases, and the Armenta Case, be consolidated. Watch this site.
This case, for now, is US v. Hamilton, et al., 18-cr-793 (Broderick)
On June 30, 2022 the US FBI put Ruja Ignatova on its 10 Most Wanted List. Inner City Press went to the FBI press conference and asked about her security chief Frank Schneider saying she's dead, and the status of his extradition.
The FBI's New York Assistant Director-in-Charge, Michael J. Driscoll, told Inner City Press they have their reasons for putting Ruja on the list. US Attorney for the SDNY Damian Williams said he could not speak about extradition(s). Vlog here.
On November 9, 2022, the US Attorney's Office wrote to Judge Ramos asking to again extend the sentencing of Konstantin Ignatov, with a November 10 control date, for yet another 90 days, "because Defendant's cooperation is not yet complete."
On November 10, this: "Set/Reset Hearings as to Konstantin Ignatov: Sentencing set for 2/16/2023 at 02:30 PM before Judge Edgardo Ramos." Watch this site.
On October 25, Gilbert Armenta's sentencing was pushed back (again) to December 16: "ENDORSED LETTER as to Gilbert Armenta addressed to Judge Edgardo Ramos from Attorney Marc A. Weinstein dated October 24, 2022 re: We are writing to request: (i) an adjournment of Mr. Armenta's sentencing, scheduled for October 25, 2022 (ECF 47); and (ii) a corresponding adjournment of the parties' deadlines to file and serve their sentencing submissions. ENDORSEMENT: Sentencing is adjourned to December 16, 2022 at 10 a.m. SO ORDERED. ( Sentencing set for 12/16/2022 at 10:00 AM before Judge Edgardo Ramos. )(Signed by Judge Edgardo Ramos on 10/25/2022)."
And on October 14 for Sebastian Greenwood, yet more delay: "MEMO ENDORSEMENT as to Karl Sebastian Greenwood on [489] LETTER MOTION addressed to Judge Edgardo Ramos from Justin S. Weddle dated October 13, 2022 re: Adjourn Motion Schedule. ENDORSEMENT: The modified schedule is approved. The motion hearing is adjourned to February 1, 2023, at 2 p.m. Speedy trial time is excluded from October 13, 2022, until February 1, 2023, in the interest of justice. SO ORDERED."
On September 6, 2022, Ruja Ignatova's one time lover Gilbert Armenta asked Judge Edgardo Ramos for permission to modify the conditions of his release to allow him to travel from Miami (where Ruja spied on him, and vice versa) to New York City from September 11 to 15 to meet with his lawyers in advance of his much-delayed sentencing now set for October 25.
Judge Ramos endorsed / approved it: "ENDORSEMENT: Armenta is granted leave to travel to New York to meet with his attorneys in preparation for his sentencing. (Signed by Judge Edgardo Ramos on 9/6/2022)." Watch this site.
On August 8, 2022, the US Attorney's Office wrote in: "Re: United States v. Konstantin Ignatov, S7 17 Cr. 630 (ER) Dear Judge Ramos: A sentencing control date is presently set in the above-captioned case for August 10, 2022. Because the defendant’s cooperation is not yet complete, the Government respectfully requests that the sentencing control date be adjourned for approximately 90 days. The defense consents to this application." To testifying against his sister if she is found in the next 90 days?
On July 14, counsel for Gilbert Armenta wrote in with the US Attorney's Office's OK to ask that Gilbert Armenta be allowed out of his apartment four for hours a day: "on behalf of Gilbert Armenta, we respectfully submit this request seeking a modification of Mr. Armenta's bail conditions to permit Mr. Armenta to leave his apartment from 10:00 a.m. to 2:00 p.m. on Mondays through Saturdays each week. Neither the Government nor the supervising Pre-trial Services Office objects to this request." Full letter on Patreon here.
It was endorsed. On July 25, the US Attorney's Office asked to push Armenta's sentencing off off, this time to Oct 25-27. Watch this site.
That case is US v. Armenta, 17-cr-556 (Ramos)
Sebastian Greenwood, meanwhile, is in detention in the MDC and will wait (at least) a year for a trial. And in April 2022, yet more delay: "MEMO ENDORSEMENT as to Karl Sebastian Greenwood on LETTER MOTION addressed to Judge Edgardo Ramos from Juliana Murray dated 4/26/2022 re: Adjournment. ENDORSEMENT."
On June 21, the US pushed Greenwood's trial to May 15, 2023: "Re: United States v. Karl Sebastian Greenwood, S5 17 Cr. 630 (ER) Dear Judge Ramos: The Government respectfully submits this letter, on behalf of the parties (and with the consent of defense counsel), to make the following scheduling requests in the above-captioned case, subject to the Court’s availability: 1. The pretrial conference scheduled for June 28, 2022 is adjourned sine die. 2. The defendant’s pre-trial motions are due on October 17, 2022; the Government’s opposition is due on November 14,2022; and the defendant’s reply is due on December 5, 2022. 3. Oral argument on the defendant’s pre-trial motions, if any is requested, will be held on December 19, 2022. 4. Trial will be scheduled to commence on May 15, 2023." Letter on Patreon here.
David Pike got a lenient six to 12 month plea deal accepted on October 19, 2021.
On April 25 the long delayed argument on Mark Scott's various post-trial motions was held - and took two and a half hours. Inner City Press went in person and live tweeted it here, vlog here:
now at oral argument on Mark Scott's motions on Konstantin Ignatov perjury, etc. Scott's lawyer: The US only cited to 3 FDIC-insured banks for bank fraud. Mr Armenta lied repeatedly to Mr Scott
Now Scott's lawyer complains he was not permitted to call Neil Bush as a witness at trial
Judge Ramos: Didn't the OneCoin folks at some point think Scott was a government informant? Arlo cuts off his colleague to answer Judge Ramos. They are arguing that the defrauding of $54,000 is " de minimis"
Scott's lawyer: #OneCoin was outside the US, as were most of its customers. None of the US funds ended up in the Fenero Funds. AUSA: There is no deminimis exception on wire fraud.
AUSA: We put in a video of Ruja Ignatova in 2015 announcing the "openning of the US market."
AUSA: Mr Armenta even had a romantic relationship [with Ruja - Inner City Press published audio Of Ruja's spurned voicemails to Armenta]
Now Judge Ramos turns to Konstantin Ignatov perjury and illegal cell phone in MCC.
Arlo Devlin-Brown: A new trial is required. Arlo cites his sur-sur-sur reply. Irina was in India, he insists. Say Konstantin Ignatov outright lied, about the laptop, as shown by Duncan Arthur. Demands a hearing
Scott's lawyer Arlo Devlin-Brown: One more before I sit down. [But he's been sitting down throughout. Judge Ramos: Putting aside for the moment the law...
Judge Ramos: Does the US consent to having a hearing? AUSA Folly: No. The perjury was not material. [There is another defense attirney in gallery, who spoke a lot with Arlo Devlin-Brown during Folly's break]
AUSA Folly is still going. Scott - still not in prison this long after conviction - is here in the courtroom. And the OneCoin victims?
Now AUSA Folly recounts that Ftank Schneider told Irina D. that Mark Scott might br an informant. This hearing, now at 2 and 1/2 hours, has gone off the rails. Vlog here
On April 6, 2022 the US Attorney's Office asked for yet more delay in sentencing Gilbert Armenta, this time until July, citing "various forfeiture issues among other sentencing related issues." Hmm.
On March 1, Pike was in court for sentencing. He got two years probation, three months of which have a 7 to 7 curfew. Inner City Press went and live tweeted it, here, then vlog here
Six weeks after Pike was sentenced the US belated filed a draft order to notify OneCoin victims going forward: "MOTION for Victim Rights . Document filed by USA as to Mark S. Scott, Ruja Ignatova, Konstantin Ignatov, David R. Pike, Karl Sebastian Greenwood... While seeking the proposed order earlier in these proceedings would have been preferable, given that there remain a number of charges pending against various defendants, implementing the procedures described therein at this stage of the case is nonetheless appropriate." Filing on Patreon here.
Now One Coin money laundering sentencing of David Pike. DOJ's charge and deal leads to a 6 to 12 month guideline.
AUSA Folly: It should be toward the top. This is a large fraud and Pike participated for nearly 2 years.
AUSA Folly: Scott and Pike were the money laundering duo. After Scott was arrested, Pike lied.
AUSA Folly: Pike got $2 million. Mark Scott got at least $50 million. [Inner City Press: So who got the rest?
AUSA Folly: This was not a one time thing. [Woman two rows ahead of Inner City Press in the nearly empty gallery shakes her head no] Ms Raskin: We reauest a non incarceratory sentence.
Ms Raskin for Pike: Much of this occurred outside of the US. There should be no double counting. Pike believed Ruja Ignatova, Scott's client, was legit. He gradually drawn in.
AUSA Folly: He entered the KYC info from Ruja Ignatova and her team. Pike's lawyer quotes a Miami autism doctor who has written to Judge Ramos. Pike: I would like to apologize to the court and even more to my family. [Those defrauded by OneCoin not mentioned.
Judge Ramos: I sentence Mr Pike to two years probation, with the first three months with location monitoring [7 to 7 curfew] ... I believe that OneCoin is still on the market?
[Inner City Press wonders, How do Scott, and Greenwood, and Schneider awaiting extradiction, and Amr Abdelaziz, and Gilbert Armenta, view this?
On January 19, a French court OK-ed the extradition of Frank Schneider to the US. Order here. Inner City Press in Spring 2021 reported "Frank Schneider, arrested on April 29 in Joudreville in the Pays-Haut Meurthe-et-Mosellan trying to get back into Luxembourg and said to be awaiting extradition. Update: Inner City Press has put questions to the US Attorney's Office - still not answered on this.
On February 23, yet more delay: " MEMO ENDORSEMENT as to Karl Sebastian Greenwood (5) on [457] LETTER MOTION addressed to Judge Edgardo Ramos from Juliana Murray dated 2/23/2022 re: Adjournment. ENDORSEMENT: The pretrial conference is adjourned to April 28, 2022." This after Greenwood switched lawyers. Then delay to June 16, 2022....
Inner City Press previously exclusively reported: Konstantin: I tried to find where OneCoin had money. I spoke with Frank Schneider. AUSA: Who was he? Konstantin: Ruja got her information about law enforcement investigations from him. He was a money launderer.
Meanwhile, Konstantin Ignatov's sentencing has been pushed back to May and he has a new lawyer...
On January 4, the US Attorney's Office requested that Pike's sentencing, set for January 21, be adjourned for approximately 45 days, citing "health concerns arising from the surging COVID-19 pandemic and related travel complications," and that the time for the pre-sentencing report be extended too.
On September 21, 2021 there was a proceeding on and with Greenwood and Inner City Press live tweeted it here and below (and podcast here)
On October 19, after many postponements, co-defendant David Pike finally pleaded guilty, albeit only to Count 1 of a superseding information. Inner City Press live tweeted it here.
During the change of plea proceeding, Judge Ramos did not read out what the plea deal was, only that Pike had signed it, on August 21, 2021. But the deal is for (only) six to twelve months, and forfeiture of $2,099,330. It states name checks the Fenero Funds, not OneCoin.
Nor does this.
On August 25, 2021 Inner City Press filed a letter with Judge Ramos, cc-ing the prosecutors and Scott's counsel, formally asking that the motion be unsealed - still not docketed as of Aug 30, unlike the practice of other SDNY judges.
(Now on DocumentCloud, here; podcast here).
Vlog here.
On September 13, counsel for Mark Scott and for the US Attorney's Office were told by Judge Ramos' chambers (to its credit), "Judge Ramos directs the parties to respond to this request."
The August 25 letter: Dear Judge Ramos: This concerns, in the above-captioned criminal case that concerns money laundering for the OneCoin scheme, the request to entirely seal a judicial document requesting a new trial for the defendant. The filing(s) should be unsealed in full, or if the Court sees fit, in part. I have been covering the case for Inner City Press, see also, e.g., The Guardian (UK), November 25, 2019, "In testimony live-tweeted by the investigative journalism website Inner City Press, Ignatov reportedly referred to Abdulaziz as 'one of the main money launderers' involved in the scheme."
Yesterday, Scott's counsel filed a letter (Dkt 390) requesting a sentencing adjournment based on "the need for the Court to consider and address the Supplemental Rule 22 Motion (including the request for an evidentiary hearing) filed under seal on August 23, 2021." That motion is a judicial document, within the meaning of United States v. Aref, 533 F.3d 72, 81-83 (2d Cir. 2008) and Lugosch v. Pyramid Co., 435 F.3d 110 (2d Cir. 2006) - it should be made available.
Inner City Press routinely files requests to unseal in this District, and other Districts - including as cited in its March 31 request, here And Judge Broderick's docketing of Inner City Press' request to unseal in US v. Ashe / Piao, 15-cr-706, Dkt No 999 (Inner City Press letter) & Dkt 998 (ordering that sealing be justified or removed by April 9).
And see, regarding public access to allegedly confidential information, Judge Furman's recent grant of Inner City Press request to unseal in US v. Avenatti, 19-cr-374 (JMF), Docket No. 134. See also, July 27, 2021, NYLJ, "Judge Orders Release of Michael Avenatti's Financial Affidavits In Stormy Daniels Theft Case," "Journalist Matthew Russell Lee of Inner City Press had intervened, advocating for the affidavits' release."
(Now on DocumentCloud, here; podcast here).Watch this site.
Inner City Press back on March 13 asked the US Attorney's Office Press Office for its filings not yet in the public docket. Here is Inner City Press' Periscope video upon leaving the courthouse. The case is US v. Scott, 17-cr-630 (Ramos).
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