Man Convicted of Defrauding Emigrant Bank Has Sentencing Delay to May 26 US Asks 6 Yrs

Man Convicted of Defrauding Emigrant Bank Has Sentencing Delay to May 26 US Asks 6 Yrs by Matthew Russell Lee, Patreon Book Substack SDNY COURTHOUSE, March 3 – The founder of a municipal tax lien investment firm charged with defrauding Emigrant Bank of $20 million faces trial on July 21 before U.S. District Court for the Southern District of New York Judge Lorna G. Schofield - and a jury.    On July 7 he has his final pre-trial conference. Inner City Press covered it.    Judge Schofield explained that she aims for five hours of testimony per trial day.  The prosecutors have filed their exhibit list, including documents from Emigrant Business Credit Corporation v. Ebury Street Capital as well has signature cards and wire transfer information.  On July 10 Hanratty filed his exhibit list including DX 568 "FW: [SPAM] Thank you Notes" which he says are not offered for the truth of the matter asserted, but rather for impeachment or to refresh recollection. On July 16, a pre-trial ruling: "Defendant seeks leave to discuss during opening statements and/or the Governments case in chief all of the BBCs that Ebury submitted to EBCC in order to obtain credit line advances. The application is GRANTED. The entirety of the BBCs submitted comprise the statements made by Defendant to EBCC, and are relevant to the issues of materiality and scienter. Defendant also seeks the Court's view of which BBCs are admissible. Per Dkt. 131, the Government's objection to DX 2000-2039 based on Rule 401 (relevance), is overruled (Signed by Judge Lorna G. Schofield on 7/16/2025)." On July 18 Judge Schofield approved the defense's request, over the prosecutors' opposition, to have their expert witness Jack Grady testify out of turn on July 24 "unless the parties otherwise agree to the admission of the exhibits in question." On July 22 the US Attorney's Office wrote in again opposing Grady out of turn, noting that he is on domestic vacation four hours drive from 40 Foley Square. On July 25 Hanratty's lawyer wrote in asking for permission for remote testimony by Dnnisse Mendez Baez, saying the US interviewed her but now opposes. On August 4, "JURY VERDICT as to John Arthur Hanratty (1) Guilty on Count 1s, 2s,3s and 4s" then "as to John Arthur Hanratty: Sentencing set for 1/20/2026 at 11:00 AM" On December 22, Hanratty's Wall Street-based counsel wrote in asking for a six month sentence. On January 9 the US Attorney's Office wrote in asking for a 72 months sentence. On March 3 it was pushed back: "ORDER as to John Arthur Hanratty: It is hereby ORDERED that the sentencing hearing currently scheduled for March 3, 2026, is adjourned to May 26, 2026, at 11:00 a.m. in order to resolve certain issues disputed by the parties in connection with the sentencing. It is further ORDERED that by March 20, 2026, Defendant may file a Reply Sentencing Memorandum addressing the Governments arguments regarding the loss amount for purposes of the Sentencing Guidelines calculation. (Sentencing set for 5/26/2026 at 11:00 AM before Judge Lorna G. Schofield) (Signed by Judge Lorna G. Schofield on 3/3/2026)."  The case is USA v. Hanratty, 1:24-cr-153 (Schofield)  *** Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron. Feedback: Editorial [at] innercitypress.com SDNY Press Room 500 Pearl Street, NY NY 10007 USA Mail: Box 130222, Chinatown Station, NY NY 10013 Reporter's mobile (and weekends): 718-716-3540 Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.  Copyright 2006-2026 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] innercitypress.com