Monday, September 30, 2024
Sunday, September 29, 2024
Saturday, September 28, 2024
Eric Adams Pleads Not Guilty and Says Will Move to Dismiss on Oct 2 as Keeps Passport
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 27 – The five-count indictment of NYC Mayor Eric Adams was unsealed in the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was the first one in and live tweeted it - as it will his presentment, now set for Friday, September 27 at noon.
The unsealing thread
On September 17 at noon he was arraigned and pleaded not guilty. He was released on his own signature, not to speak to witnesses (about the case), and allowed to keep his passport, which is rare. His lawyer Alex Spiro said that on October 2 he will move to dismiss. Thread.
More/extra on Substack here & X for Subscribers here
The case is USA v. Adams, 1:24-cr-556 (Ho).
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Delay in Bid to Collect from Giuliani Must End SDNY Judge Says Citing Reggie Jackson Ring
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 27 – In Ruby Freeman's and Wandrea' Moss' ongoing attempt to collect from Rudy Giuliani, a proceeding was held on September 27 before U.S. District Court for the Southern District of New York Judge Lewis J. Liman. Inner City Press was there; thread:
Judge: Mr. Caruso, I have a beef with your Sept 26 letter...You were seeking relief the deadline in my order, but didn't disclose that
Giuliani's lawyer Caruso: I didn't see it that way Judge: Please do, see it that way
Plaintiffs' lawyer: We are asking for shares to his co-op in 7 days, and his intangible right to legal fees he said are due him from one of the Presidential campaigns in 2020
Plaintiffs' lawyer: There also an account in Parkside Bank & Trust for Giuliani Communications LLC... The deadline is October 1
Plaintiffs' lawyer: Mr Giuliani's disclosure of his properties in the bankruptcy proceedings... In July he declared he is a resident of Florida. But he broadcasts his location on a daily basis and he's anywhere but there
Plaintiffs' lawyer: A person should know where they were during the previous 90 days, we don't think discovery is needed on that... We are not willing to slow down
Plaintiffs' lawyer: His apartments come with hefty monthly maintenance charges, many of them overdue. Then there's the Homestead Act issues...
Judge: I'll hold off on consolidation. Is Mr Giuliani going to turn over, for example, the TV? Caruso: Not today. Judge: What about the Reggie Jackson picture? Can Mr Giuliani live without his World Series ring?
Caruso: I'm sure he can. But we're going to appeal, Florida Homestead law
Caruso: Military members don't use their domicile when they deploy... Domicile is a state of mind - a question of fact. There must be discovery Judge: Respond to the motions to quash, and to enforce. Giuliani's lawyer
Caruso: Can I have 3 more days?
Judge: No. Judge: Your client owes money. This should move quickly. Adjourned
More on X for Subscribers here, Substack here
One of these cases is Freeman, et al. v. Giuliani, 1:24-mc-353 (Liman)
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First Busey $1B Bid For CrossFirst Hit by CRA Challenge by Fair Finance Watch on Disparities
by Matthew R. Lee, Patreon Substack
FEDERAL COURT, Sept 27 – In the Midwest, Busey Bank is trying to move into the Kansas City area via merger, with a disparate lending record. Fair Finance Watch with Inner City Press on the FOIA has filed a timely first comment on, the Applications
Van Dukeman, First Busey's CEO called it a "great fit from a cultural perspective." But consider Busey Bank's culture, its disparate lending record:
First Busey's Busey Bank in Illinois in 2023 - data not yet included in any CRA exam - made 1163 mortgage loans to whites, and only 772 loans to African Americans. Meanwhile it denied only 216 applications from whites, and fully 24 from African Americans. Busey Bank should be referred to DOJ.
Busey Bank in Missouri in 2023 - data not yet included in any CRA exam - made 49 mortgage loans to whites, and onlyseven loans to African Americans. Meanwhile it denied only 21 applications from whites, and fully eight from African Americans
Busey Bank in Indiana in 2023 - data not yet included in any CRA exam - made 22 mortgage loans to whites, and only two loans to African Americans.
Busey Bank in Florida in 2023 - data not yet included in any CRA exam - made 80 mortgage loans to whites, and only ONE loan to an African American.
There is litigation, for example under the FCRA, here - dropped without explanation, presumable settled, the FRB should ask First Busey about all outstanding consumer litigation.
And there was the First Busey board member, Elisabeth Kimmel, caught in the college admissions scandal, here.
Why would regulators even consider approving this merger? Watch this site.
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In Jane Doe v Sean Combs NYS Senator Filing in Leon Block Case Cited to Oppose Dismissal
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 26 – In May 2024 Crystal McKinney sued Sean Combs for sexual assault under the NYC Gender Motivated Violence in the U.S. District Court for the Southern District of New York.
The suit recounts Combs inviting McKinney to Cipriani Downtown - in 2003 - then to his studio on West 44th Street where he drugged and assaulted her, according to the complaint.
On September 24, 2024, after Combs' arrest and detention in the MDC, Thalia Graves sued Combs and others alleging a 2001 rape, complaint on Patreon here.
On September 26 in Jane Doe v. Combs, plaintiff's counsel filed an affidavit by NYS Senator Brad Hoylman-Sigal initially filed in a case against Leon Black, for the proposition that the state statute he sponsored, NYS CVA, was not intended to preempt the NYC law Doe is suing under.
Inner City Press will be covering the Combs cases. These include McKinney v. Combs, et al., 1:24-cv-3931 (Buchwald) and this one, Doe v. Combs, 23-cv-10628 (Clarke)
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Silver Lease Fraud Duo Pushed Trial to March 2024 Then Pled So Johnson 6 Years Baldwin 5K
By Matthew Russell Lee, Patreon
SDNY COURTHOUSE, Sept 26 – Robert Jeffrey Johnson and Kathleen Hook were charged with wire fraud conspiracy in connection with a precious metals leasing program known as the "Silver Lease Company." They are represented by the same law firm.
On February 24, 2022 U.S. District Court for the Southern District of New York Judge Edgardo Ramos held a Curcio hearing. Inner City Press covered it.
Johnson but not Hook wa charged with defrauding insurance companies
. The US Attorney's Office submitted a list of proposed questions for each defendant.
In mid October, the trial was pushed back again: "Minute Entry for proceedings held before Judge Edgardo Ramos:Pretrial Conference as to Robert Jeffrey Johnson, Kathleen Hook held on 10/12/2023. The jury trial is adjourned to March 4, 2024 at 9:30 a.m. The final pretrial conference is adjourned to February 29, 2024 at 2:30 p.m"
On February 21, both pled guilty: "Change of Plea Hearing as to Robert Jeffrey Johnson, Kathleen Hook held on 2/21/2024. Defendant Robert Jeffrey Johnson present w/ counsel Alyssa Silvaggi, Esq., on behalf of Howard Srebnick, Esq. Defendant Kathleen Hook present with counsel Alyssa Silvaggi, Esq. AUSAs Margaret Lynaugh and Alex Rossmiller present. Defendant Kathleen Hook waives indictment and was arraigned on the S1 Information. Ms. Hook entered a plea of not guilty. Ms. Hook withdrew previously entered not guilty plea and enters guilty plea to one count (S1) Information. Mr. Johnson withdrew his previously entered not guilty plea and enters guilty plea to count 3 of the Indictment. PSI Ordered. Counsel may be present at the interview. Sentencing" was delayed.
On August 30, counsel to Johnson wrote in asking for 30 months at the sentencing scheduled for September 12 at 2:30 pm.
On September 6 the US Attorney's Office wrote in calling 30 months "grossly inadequate" and asking for 121 months.
On September 12, Johnson was sentenced to 72 months - six years. On September 18, Kathleen Hook was sentenced to three months of home confinement.
On September 26, counsel to co-defendant Ross Baldwin wrote in citing Section 5K1.1 of the Sentencing Guidelines, arguing that "Johnson sold millions as Mr. Baldwin watched from the sidelines." Sentencing is set for October 11.
The case is US v. Johnson, et al., 21-cr-428 (Ramos)
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Eric Adams Set to Be Presented Friday in SDNY on Five Count Indictment Then Lawyer Says No
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 26 – The five-count indictment of NYC Mayor Eric Adams was unsealed in the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was the first one in and live tweeted it - as it will his presentment, now set for Friday, September 27 at noon.
The unsealing thread:
Magistrate Judge Katharine H. Parker's courtroom deputy is ready, behing large ViewSonic computer monitor. Just waiting for Judge Parker - and whatever AUSA brings the sealed indictment in... Judge Parker's 3 law clerks have come in. Drum roll...
All rise! Judge: Please be seated... [She spins wheel.] Judge: US v Eric Adams, assigned to Judge Garnett...But she is recused... [Spins again] Judge Ho. [Dale E. Ho]
In the afternoon, Alex Spiro filed a notice of appearance and request to be present for his arraignment on Friday or Monday.
It was announced the presentment will be on Friday at noon.
Then Alex Spiro wrote it asking to change it, based on his schedule. Will they?
More/extra on Substack here & X for Subscribers here
The case is USA v. Adams, 1:24-cr-556 (Ho).
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Eric Adams Will Be Presented Friday in SDNY on Five Count Indictment for Turkey UN Bribes
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 26 – The five-count indictment of NYC Mayor Eric Adams was unsealed in the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was the first one in and live tweeted it - as it will his presentment, now set for Friday, September 27 at noon.
The unsealing thread:
Magistrate Judge Katharine H. Parker's courtroom deputy is ready, behing large ViewSonic computer monitor. Just waiting for Judge Parker - and whatever AUSA brings the sealed indictment in... Judge Parker's 3 law clerks have come in. Drum roll...
All rise! Judge: Please be seated... [She spins wheel.] Judge: US v Eric Adams, assigned to Judge Garnett...But she is recused... [Spins again] Judge Ho. [Dale E. Ho]
In the afternoon, Alex Spiro filed a notice of appearance and request to be present for his arraignment on Friday or Monday.
It was announced the presentment will be on Friday at noon
More/extra on Substack here & X for Subscribers here
The case is USA v. Adams, 1:24-cr-556 (Ho).
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Tornado Cash Roman Storm Motions Denied So Trial Set for Dec 2 in SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Sept 26 – Roman Storm is charged using his cryptocurrency mixed Tornado Cash to help launder money for North Korea's hackers in the Lazarus Group.
On September 6, 2023 he was arraigned before U.S. District Court for the Southern District of New York Judge Katherine Polk Failla. Inner City Press was there - thread:
Cash helped North Korea's hackers Lazarus Group...There will be discovery from GitHub
On December 5, Judge Failla docketed the trial schedule: "SCHEDULING ORDER as to Roman Storm, Roman Semenov. It is hereby ORDERED that the following trial schedule will be in effect: Trial will be set to begin on September 23, 2024, at 9:00 a.m." Full scheduling order on Patreon here
On March 29, 2024, Storm through counsel submitted motions to suppress and to compel discovery, including into MLATs with The Netherlands, and FinCEN and OFAC communications. Memo/motion on Patreon here
On July 5, a court holiday, Storm's lawyer filed an opposed request for a delay into 2025 of the trial: "We write on behalf of our client Roman Storm to respectfully request that the Court grant a continuance of the trial date from September 23, 2024 to late January or February 2025." Letter on Patreon here.
The US on July 9 filed opposition - just as in the Samouri Wallet case a letter from Senator Lummis and Wyden that cites theTornado Cash case, letter now on Patreon, with Samouri story, here.
On July 12, Judge Failla did delay the trial, but not as far as Storm requested: "trial in this matter is scheduled to begin on 12/2/2024 at 9:00 a.m."
On September 26, Judge Failla denied Storm's motions, from the thread:
SDNY Judge Failla is about to start reading out (long) decision on motions to compel and dismiss. Spoiler alert: she is denying both. Judge: The pre-trial discovery is government by Rule 16...
Brady did not create a Constitutional right to discovery. Mr. Storm's request are too speculative, saying "may," "may" and "may." He does not connect the dots.
Judge Failla continues: I reject the void for vagueness argument... Courts should be cautious when assessing vagueness arguments. Consider US v. Howtar (sp)
Judge Failla: Mr. Storm was arguing that that statutory definition of financial transaction is vague. I reject that. The court finds that the statute gave Mr. Storm adequate notice. He marketed Tornado Cash as a way to conceal, he had notice is was illegal
Judge Failla: So, the motions are denied. I think that is all I need to do today. We have a trial date
The case is US v. Storm, et al., 23-cr-430 (Failla)
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Three Guilty Verdicts In Hugh Austin Trial for Crypto Fraud in SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY Exclusive, Sept 24 – A man charged with financial and cryptocurrency fraud, whose son as already pleaded guilty, was arrested and presented on July 5 before U.S. District Court for the Southern District of New York Magistrate Judge Jennifer E. Willis. Inner City Press was there, the only media in the courtroom. Thread.
AUSA: He and his son victimized 20 people for over $10 million, offering crypto through other family members' bank accounts. He has a history of mental health issues and oxy use, living a nomadic lifestyle
AUSA: He serially opened free 1 month gym memberships in variations of his name.
Defense: He has A.D.D. and used fentanyl only once, by mistake, in 2021. He is not affluent - look, he is here in short and a T-shirt.
Judge Willis has returned to the bench and notes that defendant didn't flee after son's plea. He is being released tonight, with no GPS yet, with 2 days to come up with a co-signer.
Jump cut to August 7 - the conditions still no yet, Austin reappeared in Mag Court. Inner City Press went, thread:
OK - now Eugene Austin is in Mag court, in a track suit. Conditions of bail not met.
Judge Gorenstein: why didn't you seek an exrension? Defense counsel (by phone) US wanted this hearing. Because of publicity, no one will sign.
Judge: He could be remanded right now. Did you see my email? When can you come in person?
Defense: Tomorrow afternoon?
Austin is sitting at defense table in his track suit.
Judge comes down off bench to look at big View Sonic computer monitor, says Maybe the email wasn't sent. Or, it was in my order.
Defense lawyer: I couldn't open my email. Judge: It's an order on ECF. Defense: I want a modification, not an extension.
Judge: Lot of mysteries here. I'm on the brink of remanding him, but I'd like you to be present if I do. Do you hear me? Defense: No, there is an echo.
Now judge speaking softly directly into phone.
Defense: I'm leaving the country Thursday at 10 am.
Judge: Wednesday at noon. Have the Marshals present.
Afterward Austin said he left his phone at home because he thought he'd be remanded today. So the non-appearance (in person) and non-filing may have won him two days - or more.
On August 8, the US opposed Austin's motions for more time, acknowledging that a potential co-signer had been served with a grand jury subpoena but adding that "the defendant does not allege that the Government threatened this co-signer." His sister Margaret Cherpak "apparently has been unwilling to post her home to securte the defendant's appearance in court."
On August 9 Austin and his lawyer were in the Mag court in person, as was Inner City Press. Thread:
OK - Accused crypto fraudster Hugh Austin, last here Monday in a tracksuit, is back in SDNY Mag court in a blue Oxford cloth shirt, untucked.
Defense: His sister has no equity in her Port Jefferson house. Austin: She's working with lawyers.
Judge: The money is not important. You need two more co-signers. Defense: Give him two weeks. AUSA: He can seek them from a phone in jail.
AUSA: He's reaching out to victims. Judge: I'll give him, to find 3 co-signers, until August 23, 11 am. No co-signers, expect remand.
Question: But can the Magistrate Judge on duty on August 23 be bound by this?
Apparently not. When Austin showed up at 11 am on August 23, Inner City Press was there. Austin's lawyer said Austin's ex-wife had been about to sign until her new husband got involved. He was given until August 25 at 10 am. Thread:
Austin has not found the co-signer. His ex-wife was going to, defense says, until her new husband got involved. Judge: He's been given time....
Judge: If he finds one, he could be released. Defense: Just a few more days. Judge: What will change?
Defense: One day we'll be before a judge who won't take any more. Judge: This may be the day. I may be the judge.
AUSA: We may interview a prospect on Friday. Defense: How about his former mother in law, now that Ms Walker backed out.
Judge: I'll give you to Friday 10 am - satisfy the bond or remand, no hearing needed.
Next, after a continuance in the interest of justice, Austin was indicted on October 4, and the case assigned to Judge Jennifer H. Rearden.
On October 11 it was reassigned to Judge P. Kevin Castel, to whom Austin's counsel wrote on November asked for Hugh Austin to meet without counsel present with his son Brandon who has pleaded guilty and is set to be sentenced on February 22, 2024 - by Judge Castel.
On December 7, Judge Castel approved two in-person meetings a month, outside the presence of counsel.
On July 24 Brandon Austin's Federal Defender asked to delay his surrender from July 30 to August 8 so Brandon can responded to the government's subpoenas "in connection with Hugh Austin's upcoming trial."
The son's case is US v. Brandon Austin, 23-cr-199 (Castel)
On July 29 the US Attorney's Office filed its motions in limine, including arguing that "evidence of the defendant's failure to file tax returns or report income from the charged crimes is admissible as direct evidence or pursuant to Rule 404(b)." There is be testifying victims 1, 2, 3, 4, 10 and 16.
On September 11, Judge Castel addressed motions in limine, Inner City Press was there, from the thread:
AUSA: He didn't file tax returns for years, in one year he filed he made $1. Defense: They had a problem with their accountant. He didn't show tax returns to clients [Note is passed at defense table]
Judge: Not filing fraudulent income with the IRS can show consciousness of guilt - I find that the evidence is admissible
Judge Castel then brought up US v. Saint Clair, another of his cases which Inner City Press covered....
On September 18, from thread:
Defense lawyer: Wasn't it Brandon Austin who sent you the fake wire transfer documents? Witness: Yes. Defense: And my client Hugh Austin reached out to you saying he'd try to pay you back? Witness: No, I reached out to him first
Next witness is in from California, from a failed "social music streaming" service. She identifies the defendant, says she met him in the Napa Valley in 2019 and he claimed to have a network of "super high net worth individuals" including athletes to invest
On September 19, document after document went into evidence, with stipulations about whose cell phone and email address was whose.
On September 20, a cooperator was on the witness stand. Thread
On September 23, a show of texts from victims, cross about who really sent the replies, and then they rested. Thread
back in US v Austin crypto fraud trial, prosecutor questioning Special Agent about blockchain data, transfers of Bitcoin to Coinbase account. AUSA: What is this? Special Agent: It's a chart of data from the ethereum blockchain, in Tether, tracking the US dollar. Judge: We'll take a break.
We're back. Shown to jury, an email from the defendant claiming that the current witness was the receiver on a Bitcoin transaction. AUSA: Were you? Witness: No.
5:13 PM update - both sides have just rested in US v Austin
On September 24 the jury returned guilty verdicts on all three counts; sentencing was set for February 20, 2025 at 11 am.
The case is US v. Austin, 23-cr-508 (Castel)
More including on son's case on Substack here
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