Monday, February 3, 2025
Sunday, February 2, 2025
Saturday, February 1, 2025
Friday, January 31, 2025
Will Rubio LatAm Trip Touch on Bukele Crypto Plan and US Power in IMF and through USUN?
by Matthew Russell Lee, Patreon Book Substack
SDNY / UN GATE, Jan 31 – As US Secretary of State Marco Rubio heads south including to El Salvador, the issue arises whether the new US Administration will use its leverage in the International Monetary Fund to allow President Bukele to resume his pro- cryptocurrency policies.
On January 31 US Special Envoy Mauricio Claver-Carone, previously the head of the Inter-American Development Bank, took three media questions about the trip.
The Miami Herald asked about Venezuela, and Richard Grenell's upcoming trip there. PBS asked about Panama (the answer touched on China's incursions) and the Washington Reporter asked about Colombia. Transcript will go here
Afterward Inner City Press asked in writing, "will the US take any action on the IMF's restrictions on President Bukele's well-publicized desire for El Salvador to be (even) more involved in Bitcoin, given the Administration's position on digital assets? Also, any comment on Honduras president Castro canceling her CELAC meeting, and which countries the US thinks may have opposed it. And anything State / the new USUN under Elise Stefanik will do on these topics at the UN, which I cover closely from outside."
We aim to have more on this, and about this and forthcoming trips. Watch this site.
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After NYCHA Extortion Take Down Mercado Pled to Felony Now Gets 4 Years Amid Contrast
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 31 – 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.
On May 6 another felony plea, to a higher bribe amount: Juan Mercado, for bribes of $329,300. He was be sentenced on October 1 at 2:30 pm by Judge Valerie E. Caproni.
On September 17, Mercado's counsel wrote in asking for a year of home detention.
There was a Fatico hearing; the sentencing was held on January 31. Inner City Press was there, thread.
Mercado got 48 months, the highest yet in the 70 cases, 40 sentenced. Judge Caproni said one sentence of a year's probation, for bribes over $50,000 and obstruction, was an outlier....
This case is USA v. Mercado, 1:24-cr-279 (Caproni)
Watch this site - and these feeds: X and X for subscribers.
And Substack here
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Alexander Brothers Indicted for Sex Trafficking Now Pushed to February 7 As Alon Appeals
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 31 – Amid the news of the arrest of the Alexander brothers in Miami on SDNY sex trafficking charges, in the SDNY Magistrate Court on the morning of December 11 the superseding indictment was "wheeled out" to District Judge Valerie E. Caproni. Inner City Press was there, and tweeted / X-ed it out.
At a press conference probably his last as SDNY US Attorney Damian Williams was asked the underlying first indictment - it is still not public - and about if the brothers will be brought to SDNY. Yes, he said, adding that the mechanics are "not worth getting into."
On December 24 Tal Alexander filed opposing transfer to SDNY - and saying that "the government takes no position on Tal Alexander's motion to stay removal." Notice of motion on Patreon here.
On December 31 Tal Alexander's lawyer wrote to Judge Caproni asking for bail, offering $115 million in security, citing US v. Ng Lap Seng that "conditions were adhered to by the security service provider." Really? Massages behind closed doors? 12 page filing on Patreon here
On January 7, Judge Caproni ruled that Tal Alexander can be removed to SDNY and set a hearing: "All parties must appear for a consolidated bail hearing on Wednesday, January 15, 2025, at 1:30 P.M. to decide the bail appeals.
Inner City Press live tweeted it here; bail was denied and the next conference set for January 29.
On January 27 they wrote in asking to move that to February 12, to seek local / New York counsel and retrieve their legal papers, full letter on Patreon here
On January 28, Judge Caproni ruled and set it for February 5: "GRANTED IN PART. The status conference scheduled for Wednesday, January 29, 2025, at 2:30 P.M. is ADJOURNED to Wednesday, February 5, 2025, at 2:30 P.M."
On January 29, "NOTICE OF APPEAL (Interlocutory) by Alon Alexander from [35] Order. Filing fee $605.00, receipt number 36672
On January 31, Judge Caproni moved the conference two more days out, critiquing counsel: "Application GRANTED. The Court previously adjourned the status conference to February 5, 2025, to allow Defendants, who have had well over a month to find New York-based counsel, additional time to find trial counsel of their choice. Florida-based counsel's scheduling conflicts should no longer bear on whether to further adjourn that conference; the entire point of the adjournment was to give Defendants time to find new counsel. And Ms. Paul -- who represents Tal, not Oren, Alexander -- is part of a team of three attorneys who the Court is confident can ably represent Tal Alexander for the routine tasks of an initial appearance, arraignment, setting a trial schedule, and discussing entry of a protective order. Nevertheless, because Mr. Srebnick is the only attorney who has noticed an appearance for Alon Alexander, the Court will accommodate his schedule. The status conference scheduled for Wednesday, February 5, 2025, at 2:30 P.M. is ADJOURNED to Friday, February 7, 2025, at 10:45 A.M. for all Defendants. If Defendants continue to seek new counsel, the Court expects them to do so with alacrity and not unnecessarily delay the progress of this case."
More / extra on X for Subscribers here and on Substack here
This case is USA v. Alexander, et al., 1:24-cr-676 (Caproni)
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Bob Menendez Forfeiture Order Lists Gold Bars Cash Nadine Mercedes and Elliptical Machine
SDNY COURTHOUSE, Jan 31 – Amid reports of investigation against Sen. Robert Menendez for taking gold bars, Inner City Press' sources on September 21 it to expect on Friday, September 22 an appearance in Federal court in Manhattan by Menendez and his wife Nadine Arslanian. This scoop was true.
Later a superseder was unveiled, including charges of bribes to act for Qatar.
On January 10 Menendez filed a motion to dismiss, on Patreon here
On February 1, Judge Stein granted some unsealing - including of some of the material in the vault which Inner City Press requested. Order here.
Jump cut: Menendez et al were convicted; Inner City Press published a book, here.
On the eve of sentencing, Bob Menendez' lawyer wrote in asking for bail pending appeal, memo on Patreon here.
Inner City Press live tweeted on January 29 as Daibes got eight years, Hana 97 months - and Bob Menendez 11 years, after which he told the press that "Trump was right" about political witch hunt. His surrender date is June 6 - but he's moving for bail pending appeal.
On January 31 Judge Stein docketed his preliminary order of forfeiture listing Nadine's Mercedes and elliptical machine, their home, gold bars and cash, full 10 page order on Patreon here.
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After Flagstar NYCB Rubber Stamped Despite CRA Now Bank to Close 60 Branches
By Matthew Russell Lee, Patreon
SOUTH BRONX / SDNY, Jan 31 Back in April 2021, Fair Finance Watch and Inner City Press predicted that the proposed merger of New York Community Bank and Flagstar would flounder, on disparate lending and regulatory evasions.
Fair Finance Watch found that in 2019 Flagstar made 60,982 mortgage loans to whites, with 13,963 denial to whites - while making only 3799 loans to African Americans with fully 1777 denials to African American. This was significantly worse than other lenders.
New York Community Bank's record as an enabler of and profiteer off slumlords led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.
A year a half later, the proposed merger was still not done and the extended deadline was approaching, amid talk of, as we predicted, fair lending action.
Then at 8 am on November 7, the banks bragged they had Fed approval. But a visit to the Fed's website at 8:40 am did not find any press release of approval. The Fed is getting more and more lax. We'll have more on this.
Inner City Press has gone back to find Flagstar's comments on the proposed and still pending Community Reinvestment Act regulations - tellingly, full of resistance: "Because Flagstar supports the goals of the CRA, the Bank submits this comment letter to highlight concerns about the Agencies' proposed reforms to the CRA framework. This Proposal would undermine the objectives of the CRA and run contrary to the Agencies' stated effmts to ensure that the law continues to be an effective force for strengthening banks and the communities they serve, which j: intludes (i) low- and moderate-income ("LMI") individuals, families, and neighborhoods; (ii) small businesses and farms; and (iii) communities in need of financial services and economic development. Flagstar is particularly concerned about the proposed retail lending assessment area requirements, which would impose significant regulatory, operational, and staffing burdens on banks (especially when coupled with the proposed data collection requirements); force banks to spread limited CRA resources thin and undermine the effectiveness of their CRA programs; and place banks at a competitive disadvantage to nonbanks and other lenders not subject to the CRA. In our view, these challenges will discourage banks from engaging in retail lending and other CRA activities that could otherwise benefit local communities, contrary to the spirit of the law. Moreover, as applied to Flagstar, the proposed retail lending assessment requirements would be so overly burdensome and unworkable that they would likely cause us to question and rethink our business model. 1. There is insufficient data to justify abandoning longstanding interpretations of the CRA to require the delineation of lending-based assessment areas; Requiring the delineation of a lending-based assessment area would go beyond the text and purpose of the CRA." Yeah.
In late January 2025, Flagstar CFO Lee Smith said Flagstar is closing about 60 retail branches, most of which it leases; about 20 private-client retail locations; and a couple of operating centers that are owned by the bank.
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CRA Problems with ConnectOne Merger With First of Long Island Lead to Delay Analyst Miss
by Matthew Russell Lee, Patreon Book Substack
SOUTH BRONX, Jan 31 –As ConnectOne Bank and First National Bank of Long Island congratulate themselves on a merger proposal, the preliminary review by Fair Finance Watch finds problems.
ConnectOne, taking deposits in New York, New Jersey and Florida, in 2023 made only one mortgage loan to an African American applicant.
Meanwhile First National Bank of Long Island, after a weak and disparate lending performance in 2023, now lists on its website that mortgages are only offered through Rocket Mortgage. How do and would these two banks - which should be kept separate and not be allowed the merge, under the Community Reinvestment Act, serve communities. It appears that they don't.
Inner City Press has now FOIA-ed and challenged the required applications for regulatory approval, on November 18 to the FDIC.
On November 25 the FDIC wrote to ConnectOne Bank Frank S. Sorrentino, III – Chairman and CEO that Fair Finance Watch "raises issues regarding both bank’s records of lending to African American persons in New York and nationwide, respectively. The anticipated time and review required to investigate these issues has necessitated the removal of the application from expedited processing." FDIC letter on Inner City Press' DocumentCloud here
A sign of the laxity of analysts, when ConnectOne's Sorrentino, Bill Burns and Sia Vancia took (only) three questioners, KBW, Stephens and and Raymond James - and none of them asking about this aspect of the merger, much less CRA. Blind spot around ConnectOne, disconnected...
Watch this site
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Honduras Ex-Prez JOH Got 45 Years Now Martinez Turcios Says He Has More Witnesses
by Matthew Russell Lee, Substack
SDNY COURTHOUSE, Jan 30 – In the closing arguments on March 6, AUSA Tarlow said that narco trafficking had grown under JOH. On March 7, out of the hearing of the jury and for then the Press, JOH's lawyer Stabile said he'd heard different overnight.
From who?
The defendant's wife he said.
Was this just a play for a mistrial?
Later on March 8, the verdict, here- then the book Narco Drama in English then Spanish.
On August 9, 2024, this Honduras Congressman's guilty plea: "Plea entered by Midence Oqueli Martinez Turcios (1) Guilty as to Count 1."
Narco Drama book / audiobook in Spanish here
On December 16 a "Fatico" hearing continued, thread here
More analysis on X for Subscribers here and with translation into Spanish here on Substack here
On January 30 his lawyer wrote in asking to re-open the hearing to put on more witness, who read about the December 12 and December 16 hearings, seemingly from Inner City Press, via OnceNoticias, "Midence Oquelí Martínez Turcios has a hearing in which cooperator Devis Leonel Rivera implicated him in murder," reported American journalist Matthew Russell Lee"
The case is US v. Martinez Turcios,
18-cr-499 (Kaplan)
More on X for Subscribers here and Substack here
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Sean Combs Hit With Superseding Indictment on Methods of Sex Trafficking in SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 30 – At 4:30 pm on September 16 Inner City Press was told by its SDNY source to expect "the big one" - Sean Combs - the next day in the courtroom here.
At US Attorney Damian Williams' press conference Inner City Press asked if his office would be seeking detention - Yes, he said. Detention memo on Patreon here.
[Inner City Press published book / audio book Diddy Do It? on Sept 20 on Amazon here]
On December 16, in the run-up to the December 18 conference, letter on Patreon here.
Inner City Press live tweeted the December 18 conference, thread here.
On December 30 Combs' lawyers reiterated their request for a Kastigar hearing, arguing that not only the fruits of the search by their derivatives too much be excluded.
On January 3 Judge Subramanian asked for more information by January 17.
On January 14 Combs' lawyers filed a motion about the protective order, arguing that "attorney eyes only" videos in the case they say prove the prosecution is "sexist and puritanical" and that it is consensual - 7 page letter on Patreon here
On January 27, the US sur-replied it "will not seek to offer the defendant’s notes photographed by Investigator-1 or any “fruits” of those notes in its prosecution of the defendant" - letter on Patreon here
On January 30, the US filed a superseding indictment and said it includes "additional allegations related to the means and methods of the racketeering enterprise related to sex trafficking, including the trafficking of three specified female victims" - full 15 page superseding indictment on Patreon here
Extra/analysis on X for Subscribers here & Substack here
The case is USA v. Combs, 1:24-cr-542 (Subramanian)
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Binance Seeks to Dismiss October 7 Victims Lawsuit in SDNY Quoting CZ Guilty Plea
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 30 – After the October 7, 2023 attacks by Hamas from Gaza, and CZ's and Binance's guilty pleas, the latter two along with Iran and Syria were sued. Argument on Binance's motion to dismiss was heard on January 30 by U.S. District Court for the Southern District of New York Judge John G. Koeltl. Inner City Press was there, thread:
OK- now at case against crypto firm Binance, CZ, Syria and Iran by victims of Oct 7 attack.
Binance lawyer [from Cahill Gordon] We are accused of non-feasance, failures to prevent money laundering and to file SARS. Such cases are routinely dismissed-
Judge: Not recently. Judge: Secondary liability for aiding and abetting is hard to dismiss.
Binance lawyer: Crypto is used by 100 million people. It is not inherently dangerous. Binance lawyer: There was no special relationship between Hamas and Binance.
Binance lawyer: They claim that Zhao [CZ] admitted to assisting terrorism - but that's only in the plea agreement. Helping users conceal their location was only to try to keep US users on the platform
Judge: It is breathtaking to take the position, We accept terrorist accounts, we treat terrorists like anyone else.
Binance lawyer: We don't advertise that. It was just gallows humor. The company paid $4 billion for it, and Mr. Zhou [CZ] went to jail for it
Binance lawyer: OK, we allowed a Hamas VIP to be quietly off-boarded. But that was in July 2020, long before the attacks.
Judge: Binance argues that 18 of the 40 plaintiffs have no standing.
Binance lawyer: There are Article III requirements. We are trying to transfer a case here from Alabama. Plaintiffs' lawyer: They are minimizing their misconduct. Zhou went to prison.
Plaintiffs' lawyer: Binance was told, Hamas is on your platform. They didn't seize thr funds, they helped them leave and told them they were flagged, facilitating.
Judge Koeltl: I will rule at a later date
More on X for Subscribers here and on Substack here
The case is Raanan, et al. v. Binance Holdings Limited, et al., 1:24-cv-697 (Koeltl)
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Mixed Verdict After Chinese Consulate Sought to Visit Fentanyl Duo in Hubei Biotech Case
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 30 – The day after fentanyl and China were denounced by all eight GOP candidates in their debate in Milwaukee, two defendants were brought shackled into a federal courtroom in New York, charged with conspiracy to important at least 200 kilograms of fentanyl precursors. Inner City Press was there.
Qingzhou Wang had recently changed lawyers, from a free Federal Defender to retained counsel Daniel Arshack.
Citing the change of counsel, U.S. District Court for the Southern District of New York Judge Paul G. Gardephe set another court date in the future, October 24 at 10 am.
The Assistant US Attorney described trying to brute-force crack the defendants' cell phones, two each.
Also charged in the case is the company Hubei Amarvel Biotech Co. LTD, which is unrepresented in the docket like a Last Name Unknown co-defendant also known as Er Yang or Anita.
Back on June 28 , counsel to co-defendant Yiyi Chen asked Judge Gardephe, "I've spoken to representatives of the Chinese Consulate. They're here in court today. They'd like to know if they can have a brief non-contact visit with Ms. Chen and the co-defendant if it's okay with the Court and the marshals."
On September 5, now Yiyi Cheng brought in as retained counsel Shaoming Cheng (whose only SDNY case this is).
On October 12, counsel to Qingzhou Wang wrote to Judge Gardephe complaining about the government's delay in providing funds for translations to Mandarin (initially justified by the possible government shutdown). Counsel remains "available" on October 24, though.
On October 24, Inner City Press was on the 7th floor of 40 Foley Square when the two defendants would brought up by elevator, in MDC tan, by Marshals. Afterward, "Status Conference as to Qingzhou Wang held .
On July 25, Judge Gardephe held a status conference and Inner City Press went, thread
On November 18, Judge Gardephe denied severance and heard of discovery and health issues. Inner City Press was there, from the thread
Judge: I deny Wang's motion to sever. Trial is set for Jan 13.
On January 14 Inner City Press went; jury selection continued, with the legal question eliciting "yes" answers from a Westchester defense attorney and former prosecutor. Wang had written in to the judge in Chinese (docketed); the US put in the docket exhibits from Google Ads, rejecting an ad for fentanyl.
On January 15, Yiyi Chen requested, and Judge Gardephe granted, the right for the defendant to have her discovery laptop in Courtroom 105 during trial.
On January 17, Inner City Press was there amid testimony about a meeting on meth and fentanyl, thread:
AUSA: What were you buying from them? Witness: Fentanyl. Also chemicals for meth. AUSA: Please play the video 502 [mostly audio, of witness talk drug shop with the defendants]
After a break, more audio played for jury. Chen: We can ship it to Mexico, but it has to go through America Rodriguez: Mr Wang is the boss, right? Chen: There is another boss in Japan
AUSA: Did you end up meeting this other boss, during the meeting in Bangkok? Rodriguez: Yes, by Facetime.
Jump cut to January 29, when the US proposed to Judge Gardephe to add more to his answer to the jury question, Does supplying chemical constitute manufacturing?" Judge Gardephe denied the US motion to supplement his answer.
On January 30, a mixed verdict: "JURY VERDICT as to Qingzhou Wang (2) Guilty on Count 2s and Yiyi Chen (3) Guilty on Count 2s. Qingzhou Wang (2) Not Guilty on Count 1s and Yiyi Chen (3) Not Guilty on Count 1s." They will be sentenced in May and June - and they remain in detention...
The case is USA v. Hubei Amarvel Biotech Co. LTD, et al., 1:23-cr-302 (Gardephe)
More details on Substack here
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