Wednesday, July 31, 2024
Tuesday, July 30, 2024
Monday, July 29, 2024
Saturday, July 27, 2024
Friday, July 26, 2024
After SBF Sentenced to 25 Years Now Delay In Getting Funds Back from PACs in DC
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, July 26 – On the US v Sam Bankman-Fried trial, hours after the guilty verdict, a book was published: "Crypto Criminal: The Conviction of Sam Bankman-Fried: As live tweeted and investigated from inside the SDNY courthouse by Matthew Russell Lee," audio/book here.
On March 28, 2024, Inner City Press live tweeted his sentencing, to 25 years.
On May 21, the US Attorney's Office on Salame asked for a sentence between five to seven years. 28 page filing on Patreon here.
On May 28 Salame was "sentenced to a term of imprisonment of 60 months on Count (S7)One, and 60 months on Count (S7)Two; the term on Count (S7)Two shall run concurrently with the last 30 months on Count (S7)One, for an aggregate term of imprisonment of 90 months."
On July 26 the US Attorney's Office requested and got a delay from July 26 to September 8 on the forfeitability of funds sent to FF USA PAC, Emily's List, House Majority PAC, Senate Majority PAC and GMI PAC, letter and order on Patreon here.
More on X for Subscribers here, Substack here
We'll have more on this.
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In Honduras Narco Case US Asks 30 Years on Bonilla Who Asks 10 Years Sentencing Aug 1
by Matthew Russell Lee, Patreon Substack
SDNY EXCLUSIVE, July 25 – After the president of Honduras' brother Tony Hernandez was convicted of drug trafficking and sentenced to life plus thirty years, on April 21, 2022 the ex-president himself, Juan Orlando Hernandez, was extradited to the United States.
[Espanol aqui]
On December 19, 2023 as to co-defendant Tigre Bonilla, Judge Castel ruled: "ORDER as to Juan Carlos Bonilla Valladares; The trial of this action has been long set for February 5, 2024. The Court does not anticipate moving that trial date or granting a severance."
It was moved to February 6. After Pineda plead guilty, on February 6 on no notice, and with Inner City Press the only media in the courtroom, Tigre Bonilla pled guilty. Thread
Four months later on June 6 Bonilla's new lawyer asked for a 45 day delay in sentencing.
On July 19 Bonilla's lawyer asked for a 10 year sentence, citing ill health. The sentencing is scheduled for August 1.
He put in letters by lawyer Ilsi Johana Ventura Escobar, Elmer Cohen and others
On July 25 the US Attorney's Office wrote in that it "respectfully submits that a 30-year sentence (below the applicable Guidelines sentence of life imprisonment, which is also the sentence recommended by the Probation Office) is warranted."
More details on X for subscribers here and Substack here
The case is US v. Diaz Morales, et al., 15-cr-379 (Castel)
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Man Indicted for Armed Robbery of Bronx Dunkin Donut Pled Guilty Gets 7 Plus 13 Years
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, July 25 – Leandre Barnett on July 17, 2023 was indicted for allegedly robbing a Dunkin Donuts on 132nd Street and Bruckner Boulevard in The Bronx on October 30, 2021. Inner City Press is covering the case.
The initial complaints recount that Leandre was in CC-1's phone as "Dre" and on the morning of October 30, 2021 texted CC-1 "Bouta try some money sh*t out real quick trynna find something."
When CC-1 replied, "I was about to rob Dunkin' Donuts," Barnett replied "I'm wit it" and later "Gotta ski on u," which prosecutors says refers to wearing a ski mask.
They say that Barnett delivered contraband to his inmate brother in 1 Hallack Street, The Bronx on April 14, 2023 - and there had his phone seized and searched, unearthing the evidence.
On July 25, Barnett appeared before SDNY Magistrate Judge Valerie Figueredo and was arraigned - and ordered released on $100,000 bond with father and mother to sign, to live with his grandmother in Yonkers with only a flip phone, no phone with Internet access. "Defendant to be detained until all conditions are met" - with an appearance before Chief Judge Laura Taylor Swain on August 1 at 11:30 am.
Inner City Press went. Chief Judge Swain solicited and listened to Barnett's lawyer's arguments, including that in fleeing the police precinct his client had panicked. (He hastened to add that he was not offering an excuse).
The Assistant US Attorney said that Magistrate Judge Figueredo had not been able to see the video(s) of the Dunkin Donut incident. (Neither has the public). An open case in North Carolina was cited.
Judge Swain told a moment then explained she would detain Barnett on danger to the community groups. She thanked Barnett's friends and family in the courtroom for accepting it.
In January 2024, a guilty plea: "Minute Entry for proceedings held before Judge Laura Taylor Swain: Change of Plea Hearing as to Leandre Barnett (1) held on 1/10/2024. Defendant sworn. Defendant waived reading of the S1 Indictment and entered a plea of guilty as to Count Three (3) of the S1 Indictment. PSI ordered. Sentencing is scheduled for 5/1/2024 at 11:00am. Defendant continued remanded."
On April 26, for the sentencing set for May 1, the US Attorney's Office wrote in to request seven years.
On May 1, Inner City Press attended the sentencing, as did family and friends of the defendant. Barnett said he wants to start fresh for the people who look up to him. But the minimum was the minimum: seven years. And to that he was sentenced.
On July 25 Barnett's co-defendant Amier Wilson was up for sentencing before Chief Judge Swain. Wilson on July 10 had been sentenced to 156 months in another of his cases, by Judge Mary Kay Vyskosil. Judge Swain reviewed Wilson's tough upbringing - his mother stabbed his father - then imposed 84 months on top of the 156 for a total of 20 years. Restitution is still an open question...
The case is US v. Barnett, 23-cr-353 (Swain)
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After NYCHA Extortion Take Down McCreary Pleads Guilty as Starks Cites Snyder Decision
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, July 26 – For days Inner City Press had heard from its sources there would be a "takedown" on February 6, each SDNY Magistrate Judge would handle seven to 10 defendants.
Arrests happen at 6 am. So at 5:55 am Inner City Press tweeted it, first to X subscribers with the spoiler alert: the expectation was that each of the current or former NYCHA employees would be released on bond the same day.
And then hours later at 9:39 am the prosecutors announced it. Media rushed around reporting it. Inner City Press had it first, and after discretely waiting, published it first. Then this thread of presentments, here
Now in Courtroom on 9 Charles Starks, 57, of NYCHA70 with a Big Law CJA lawyer argues for no bond, release on own recognisance. He's accused of $7000 in bribes over 3 years. He's already fired. "This is not Bernie Madoff."
Judge: $50,000 bond; wife can co-sign
On March 5, this defendant's case was indicted and assigned to District Judge Jennifer L. Rochon.
On July 18, Judge Rochon held a status conference with Starks; Inner City Press was there. Starks' lawyer said he might be moving to dismiss under the Supreme Court's decision on June 2024 in US v. Snyder. Judge Rochon gave him until September 16 to make that motion. We will be covering it - as it has implications for the other NYCHA cases, many of which are already pled out.
Including on July 26, when before Chief Judge Laura Taylor Swain Erick McCreary pled guilty and waive appeal rights to any sentence 14 months or below. Inner City Press understand that some are not citing Snyder because the plea offers are pre-discovery...
Meanwhile a sentencing chart requested by Judge Swain in another NYCHA case shows that the overall case began in 2022 - we'll have more on this.
The case is US v. McCreary 24-cr-451 (Swain)
Watch this site.
The other case is US v. Starks, 24-cr-126 (Rochon)
Watch this site - and these feeds: X and X for subscribers.
And Substack here
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Amid Venezuela Election UN Guterres Prepares Cover Up Report Like for JOH in Honduras
by Matthew Russell Lee, Patreon Book Substack
UN GATE, July 26 – How corrupt is today's UN?
Well, two days before the election in Venezuela, UNSG Antonio Guterres' deputy spokesman Farhan Haq said while Guterres is spending public money to send some people down to Caracas, whatever they report on the election will be "confidential" and only for him.
From the UN transcript: "an invitation by the Venezuelan electoral authorities. And what we did is we undertook a needs assessment which determines that there was broad national support for this type of UN electoral assistance. So, a panel of four experts was deployed in early July. They're going to remain in country until a little bit after election day. Unlike UN electoral observer missions, these panels of electoral experts do not issue public statements on the conduct of the electoral process or the results. Instead, the panel will prepare a confidential internal report to the Secretary-General."
This is the same cover up Guterres did for now imprisoned former Honduras president Juan Orlando Hernandez - a report that was never made public. Haq and his sidekick / boss (mentor?) Stephane Dujarric have refused to answer banned Inner City Press' written questions about that report. And this one? Watch this site.
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Handler Indicted For Day Care Fraud Pled Now Arie Rangott Hears Chelsea & Cited Fischer
By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, July 25 – Isidore Handler, Martin Handler, Menachem Lieberman, Harold Schwartz and Ben Werczberger were indicted and then presented on January 11 before U.S. District Court for the Southern District of New York Magistrate Judge Robert W. Lehrburger.
Inner City Press was there, the only media in the Mag Court. There was an argument about the defendants phones being searched, see below.
The charges include wire fraud, theft of government funds, aggravated identity theft and money laundering.
On August 31, a change of plea (to guilty) hearing was docketed: "ORDER as to Isidore Handler: The Court has been informed that Defendant Isidore Handler may wish to enter a change of plea."
He did, and on February 16, 2024 Isidore Handler asked for a non-custodial sentence.
On March 7, it emerged that the lead defendant is to plead guilty: "ORDER as to (23-Cr-00004-1) Martin Handler. The Court has been informed that Defendant Martin Handler may wish to enter a change of plea. Accordingly, on Tuesday, March 12, 2024 at 10:15 a.m., a plea proceeding will take place... (Signed by Judge Jennifer H. Rearden on 3/7/2023)."
This was pushed back to March 15 at 10:30 am. Inner City Press went, see
Ok - now at guilty plea of Martin Handler.
AUSA: He needs to be arraigned on the S-2 indictment first.
The plea deal is to tax evasion.
Handler: ... On counts 5 and 7, from for profit day care NY Early Learning Co., I misapplied more than $5000...On the superseding information, I claimed charitable deductions for funds that weren't given until later. I am sorry.
Then they went back to the S-2 indictment...
On July 22, with Arie Rangott on trial, Judge Rearden addressed his request to cross examination CW-1 about a divorce proceeding more than ten years ago, and a night the witness spent in the jail. Judge Rearden denied the request, or to put it another way, precluded that cross. She asked the sealed filings highlight in the copy to Chambers what is being withheld from the public. In this case, the US Attorney's Office's filings, too, have a many redactions.
On July 23, the prosecutors played for the jury voice notes between Rangott and Isidore Handler, about installing Chelsea in the financial position previously held by Sarah, and showing Head Start paperwork to back it up. And so it proceeds.
On July 24 it emerged that Chelsea will be the US' next witness, after Peralta. There is a pending motion for a defense witness.
On July 25 Chelsea was on the stand, in person - not as she was initially interviewed, by Zoom. In the docket, we can now report, Rangott has raised the Supreme Court's decision in Fischer v US about 18 USC 1512... Inner City Press remains on the case.
The indictment, while ordered unsealed on January 11, was still not in PACER - in its place were two copies of the order to unseal. Inner City Press has obtained and published it on its DocumentCloud, here.
Docketed on April 15, another co-defendant now intends to plead guilty: "ORDER as to Ben Werczberger. The Court has been informed that Defendant Ben Werczberger may wish to enter a change of plea. Accordingly, on April 18, 2024 at 2:15 p.m., a plea proceeding will take place (Signed by Judge Jennifer H. Rearden."
Summary: They are charged with participating in schemes to steal millions of dollars from government-funded childcare programs for low-income families, including by stealing proceeds from a fake after-school program that received millions in funding and by using funds to purchase private real estate, items at auction, and a luxury vehicle.
The defendants were ordered released on bond on January 11.
There was an argument about phones seized from the defendants. Defense counsel wanted to litigate before any search warrant can be obtained. But Assistant US Attorney Daniel Wolf said the issue wasn't ripe, that they could move to suppress later.
Judge Lehrburger recommended that defense counsel write a letter to the assigned District Judge Jennifer H. Rearden.
On January 18, they did, arguing that "the government has not set forth the basis for the agents' belief that - at the time of the seizure - they had probable cause to believe that these specific phones contained evidence of criminality." And some phones, they say, were not in plain view. Motion on Patreon here
On January 19, Judge Rearden held the arraignment, and moved on to trial date. Inner City Press thread here, more on Patreon here
On March 14, 2023, the US Attorney's Office docketed redacted letters as to Martin Handler and Martin Lieberman, asserting their lawyers have conflicts of interest - that could be waived - with the blacked out material said to "address ongoing non-public matters before the grand jury."
On March 16, Judge Rearden ordered: "ORDER as to Martin Handler, Menachem Lieberman. Defendant Martin Handler, his counsel, and the Government shall appear for a Curcio Hearing on March 22, 2023 at 11:00 a.m. Defendant Menachem Lieberman, his counsel, and the Government shall appear for a Curcio Hearing on March 22, 2023 at 2:00 p.m." Inner City Press asked in its March 16 story, Can they hold a Curcio hearing which does not disclose the conflicts?
Almost, is the answer. Inner City Press attended and covered both Curcio hearings on March 22. The 11 am, or Menachem Lieberman, when smoothly: he waived the conflict. But at 2 pm, Martin Handler's lawyer contested several of the questions - and then argued that the Court cannot order her client to speak to another lawyer. Judge Rearden asked for a letter by 5 pm on March 23 before she issues an order.
At the end, the AUSA asked to redact the transcript, as the name of one of the companies was said. Inner City Press heard it and wrote it down, but is voluntarily not reporting it here.
On the afternoon of March 23, Handler proposed his own Curcio counsel, citing Supreme Court precedent on a defendant's right "to choose who will represent him."
On March 23, the US Attorney's Office responded that the Court should question the counsel Handler has proposed. Then it separately reported on cellphones, some of which it has still been unable to decrypt or extract.
On March 30, Judge Rearden ordered: "ORDER as to Martin Handler: Martin Handler's application to retain Stacey Richman as independent Curcio counsel, ECF No. 74, is GRANTED. Mr. Handler, his counsel, his independent counsel, and the Government shall appear ... on April 11, 2023 at 10:30 am to continue the March 22, 2023 Curcio hearing."
Inner City Press was there. Midway through the more than an hour hearing, Handler said he couldn't or wouldn't waive the right to cross examine employees of the two entities. His lawyer added that is not what in her understanding the law or ethics requires - only that information gained in the previous representation cannot be used. It emerged that both entities in the last 24 hours provided waivers. But the AUSA sought and got a question on that these waivers are not necessarily forever. After all this, a knowing acceptance of the (possible) conflict was found, and the case proceeds.
On April 18, all defendants and their counsel were before Judge Rearden. The defense requested a trial date in mid May 2024 but Judge Rearden said that was too far off. One has a conflict in EDNY in March; Judge Rearden asked for emailed about other dates in the first quarter of 2024.
Watch this site.
Inner City Press will continue to cover this case.
The case is US v. Handler, et al., 23-cr-4 (Rearden)
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Lawsuit for Non Payment by PDVISA Features Improper Service Motion & Rakoff Joke Review
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, July 25– Two big law firms faced on Thursday in a nearly empty courtroom about, among other things, who the proper President of Venezuela is.
Listed as representing Petroleos de Venezuela, S.A., counsel from Vinson & Elkins referred dismissively to the "Madura regime" and said that service of process on the firm had not been proper. The suit if for breach of contract, failure to pay. They will file a motion on August 1.
U.S. District Court for the Southern District of New York Judge Jed S. Rakoff noted that August 1 is his birthday, then quipped that "I am running 49." He asked if counsel with an August 17 birthday was also a Leo.
Plaintiff Girard Street Investment Holdings LLC's lawyer from Steptoe & Johnson asked for time to file opposition, noting a planned vacation with his wife.
Judge Rakoff asked how long he has been married, and when told 22 years noted that he and his wife are approaching their 50th, and jokingly referred to legal slavery and the 13th Amendment.
He ended by saying, of Inner City Press, I see my favorite reporter is here, he'll have to determine is my jokes are bad jokes or sick jokes (it sounded like). Definitely not the later, and only sometimes (intentionally) corny.
The case is Girard Street Investment Holdings LLC v. Petroleos de Venezuela, S.A. et al., 23-cv-10772 (Rakoff)
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In SDNY Trial of Illiterate Manaf For Drug Money to Haqqanis Expert Praises Talib Courts
By Matthew Russell Lee
SDNY COURTHOUSE, July 25 – Accusing of trafficking heroin to support the Haqqani network in Afghanistan, the US Attorney's Office on April 4, 2019 asked that defendant Haji Abdul Satar Abdul Manaf be admonished to tell his family members in Afghanistan not to threaten witnesses. U.S. District Court for the Southern District of New York Judge Paul Crotty was happy to do so, and set a control date 30 days out about discovery.
But an incongruity arose. It was said that Manaf can neither read nor write, yet the prosecutor referred to hundreds of text messages as being part of the discovery. Afterward, Inner City Press the only media present for the proceeding asked her to explain. She politely declined. Judge Crotty meanwhile asked Manaf's lawyer in what language she speaks with him - Urdu - then asked, You don't speak Pashtun?
Jump cut to July 25, 2024, when with Manaf on trial accompanied by five lawyers, one of them cross examined the prosecutors' Taliban expert Professor Tricia Bacon of American University. From Inner City Press thread:
Assistant US Attorney: How did the Taliban deal with those who worked with the US? Bacon: Heavy handed. They would kill and display the bodies. Cross-examination. Manaf's lawyee: The Taliban are terrorists, right? Bacon: Now they are the government.
Manaf's lawyer: But in 2018, did they provide any service beyond Islamic courts?
Bacon: No. The Taliban had mobile courts. They were not perceived as corrupt, or not as corrupt as the government's. [LOC map of Afghanistan shown to jury]
Manaf's lawyer: Did the Haqqanis control a border? Prof Bacon: Durand line Manaf's lawyer: What crops did Taliban tax? Bacon: Poppy. And some wheat. Manaf's defense lawyer: Let me show you a UN report...
The case is US v. Manaf, 18-cr-762 (Rakoff)
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SDNY Press Room
Charged With Helping Deripaska Sanctions Bust Bardakova Disentitled to Motion to Dismiss
By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, July 25 – Oleg Deripaska and three others were indicted on September 28, 2022, for violating the US OFAC sanctions imposed on him April 6, 2018 with regard to Russia's actions in Ukraine.
On September 29, co-defendant Olga Shriki, charged with selling a music studio and other sanctions-busting for Deripaska, was arrested.
On November 15, 2022, U.S. District Court for the Southern District of New York Judge P. Kevin Castel held an in-person arraignment. Inner City Press went and covered it, with only three other people in the courtroom gallery.
A year later in November 2023, with co-defendant Natalia Bardakova in Russia, she moved to dismiss on venue and other grounds.
On December 27, the US Attorney's Office opposed the motions, saying as a fugitive she is "disentitled" to move to dismiss, and distinguishing the 2d Circuit's decision in Bescond who, they say, was "never here" in the US, unlike Bardakova. 41-page filing on Patreon here
On July 25, 2024, Judge Castel denied Bardakova's motion to dismiss based on the doctrine of disentitlement: "
Bardakova’s fugitive status means that it is unlikely that any decision rendered against her will be enforced; the “gravamen of [her] petition is the posture of heads I win, tails you’ll never find me.” Gao v. Gonzales, 481 F.3d 173, 177 (2d Cir. 2007) (internal quotation omitted). She resides in Russia, has not submitted to the Court’s jurisdiction, and an adverse ruling would not affect her. Second, she has flouted the judicial process and exhibited disrespect for the laws of the United States. She allegedly entered the United States to assist Deripaska in evading lawfully imposed sanctions, did in fact assist Deripaska in doing so, lied to FBI Special Agents, and promptly returned to Russia once she became aware that her conduct attracted the attention of law enforcement."
The case is US v. Deripaska, et al., 22-cr-518 (Castel)
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On Capital One Discover OCC Doubles Down on FOIA Withholding After Predatory Pledge
SOUTH BRONX, July 24 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. After they applied late March 20, Inner City Press submitted a second Freedom of Information Act request to the Office of the Comptroller of the Currency (and to the Federal Reserve).
On May 14 - still without providing FOIA documents - the OCC and Fed set a July 19 virtual public meeting.
On the eve of it, Capital One announced a vague and less than credible plan - they previously violated their ING Direct pledge - including this time $75 billion in largely subprime auto loans. Fair Finance Watch testified for three minutes.
On June 25 the OCC belatedly responded to Inner City Press' FOIA request - by withholding in full 185 pages. OCC FOIA production on DocumentCloud here. Inner City Press appealed.
On July 24, the very day on which the OCC and Fed said they were closing the written comment period, the OCC upheld in full its FOIA denials, determination letter on Inner City Press' Document Cloud here. Inner City Press has requested an extension of the comment periods - the Fed hasn't even responded.
Meanwhile Capitol One lobbying continues, for example with a Pennsylvania state legislator extolling Capital One's subprime, here.
As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. It grew worse in the just-out 2023 data.
Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be denied. But will it be? Watch this site.
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