By Matthew Russell Lee, Patreon Podcast Filing
SDNY COURTHOUSE, Aug 29 -- 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)
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 August 29, Greenwood's new lawyers filed a 55-page sentencing submission, redacting even the name of a case they cited and withholding an undisclosed number of exhibits. (They left in Greenwood's "MDC Transcript," now on Patreon here). They ask for time served. They quote "Karl's former driver in Thailand" - but redact the quote, and withhold the entire affidavit. This is unacceptable - Inner City Press has appealed to the Second Circuit.
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.
Armenta got five years - but on March 15, 2024, after less than a year, he filed to be released immediate, time served, for medical reasons which he redacts.
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.
This case is US v. Armenta, 17-cr-556 (Ramos)
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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