Sunday, January 4, 2026
Saturday, January 3, 2026
Friday, January 2, 2026
Man in Tax Fraud Case Surrenders in SDNY and Is Freed on $250000 Bond
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 2 – In a three-defendant tax fraud case, on January 2 Israel Pellot turned himself in at 290 Broadway at 8:30 am. Just after noon he was presented and arraigned in the U.S. District Court for the Southern District of New York Magistrates Court. Inner City Press was there, the only media present, and live tweeted:
It's part of larger US v Holtz case.
Magistrate Judge Jennifer E. Willis: How do you plead?
Defense: Not guilty.
Judge: Does the US seek to detain?
AUSA: No, we propose $250,000 unsecured bond, co-signed by his mother as moral suasion.
Judge: Mr. Pellot, based upon my review of the indictment... and the agreement of the Government, I am prepared to release you.
The case is USA v. Holtz, et al., 1:25-cr-580 (Vyskosil)dny
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SDNY Press Room
Slumlord Pinnacle Bankruptcy Sale Hinges on Redliner Flagstar as NYC Says Will Intervene
By Matthew Russell Lee, Patreon
SDNY, Jan 2 - On the day of his inauguration as Mayor of NYC, Zohran Mamdani announced the "first major action of his administration; intervening in the bankruptcy proceedings of Pinnacle Realty, a landlord responsible for more than 5,000 housing violations, 14,000 complaints across 83 buildings, and money owed to the City."
The Pinnacle portfolio, in the U.S. District Court for the Southern District of New York Bankruptcy Court, is up for sale to Summit with price contingent on actions of Flagstar Bank.
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 legal compliance failures.
A lawsuit against Flagstar's CEO proved the later, regarding not only the banks and its regulators but also its law firms. "In March 2023, NYCB bought a large segment of the failed Signature Bank and the board installed DiNello as chief executive. The bank’s anti-money laundering system flagged a client for illegal “structuring” of deposits. After Marrazzo’s investigation confirmed at least three instances of the activity, he informed DiNello that the account needed to be closed. DiNello urged Marrazzo to keep the account open..
In early 2024, during a video meeting with law firm Skadden Arps, Slate, Meagher & Flom, where material nonpublic information was discussed, DiNello had “a clearly-visible junior NYCB employee sitting on his lap and rubbing his head.” Marrazzo reported the incident to the chair of the audit committee, and outside counsel from the law firm Cravath, Swaine & Moore investigated the matter. Despite the investigation, DiNello faced no disciplinary action. Nor regulator action.
Fair Finance Watch found that 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 led Inner City Press file a Community Reinvestment Act challenge to its then-proposed merger with Astoria Bank, which fell apart.
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. This Proposal would 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 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.
And Flagstar deregistered as a bank holding company to try to avoid scrunity, as happened on a recent $7B-plus merger. We'll have more on all this.
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SDNY Press Room
OceanFirst Flushing Proposal Opposed by Fair Finance Watch After Redlining Deal
by Matthew Russell Lee, Patreon Book Substack
FEDERAL COURT, Jan 2 – How automatic do bank now think merger approvals are? On December 29, OceanFirst, which settled charges of redlining earlier this decade, announced it will apply to buy Flushing Bank in New York.
Fair Finance Watch has opposed it, in comments filed January 2 with the Office of teh Comptroller of the Currency, and with the Federal Reserve Board which recently allowed a $7 billion mega-merger to proceed with no Fed review. OceanFirst's record should preclude this. and this proposed deal.
In 2024 OceanFirst made 1399 loans to whites - and only 94 to African Americans. In Connecticut, for example, it made loans only to whites, none to African Americans.
In Pennsylvania its ratio of loans to whites to loans to African Americans was 4.5 to 1. In New York, it was 7 to 1.
This proposal is being opposed along with the OCC's moves to exclude the public, and to withhold documents under FOIA from Inner City Press and others until comment periods close. Watch this site.
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After Mistrial for Crypto Bros Judge Lets In DeFi Ed Fund Amicus Book Asks Is Code Law
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Jan 2 – Anton and James Peraire-Bueno were indicted for "conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges in the Indictment arise from an alleged novel scheme by the defendants to exploit the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds."
More on X for Subscribers here and Substack here.
On the evening of November 3 the defense put in a filing, on Patreon here
On November 7 it went to 7 pm when the jury sent out a note they were suffering and making no progress. Judge Clarke declared a mistrial. In the hall Inner City Press spoke with the brothers' mother, others including from the jury - and it put out a book hours later: "Crypto Bros Mistrial: Code Is Law Live On?" - here
On December 19, the DeFi Education Fund proposed an amicus brief arguing inter alia that due process requires the government to impose new rules on novel technologies through lawmaking, not prosecutions." 19 page proposed amicus brief on Patreon here
On January 2 Judge Clarke let it in: "Application GRANTED. The Court is in receipt of the parties' motions and responses on this issue and hereby grants leave to the DeFi Education Fund to appear as amicus curiae and file its proposed brief. The Clerk of Court is respectfully directed to terminate ECF No. 228. (Signed by Judge Jessica G. L. Clarke on 1/2/2026)."
The case is USA v. Peraire-Bueno, et al., 1:24-cr-293 (Clarke)
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UN Blocks Press Qs to Somalia Ambassador Osman about Progressive Health Care Services
by Matthew Russell Lee, Patreon Book Substack
UN GATE, Jan 2 - The UN Security Council presidency for January has been taken over by Somalia's Ambassador Abukar Dahir Osman - while Inner City Press remains banned from the UN, despite its June 19, 2025 application.
On December 31 Inner City Press wrote to the Somalia mission seeking access to the January 2 "press" conference of Ambassador Osman in order to ask questions about his role in Progressive Health Care Services and about Somaliland and other UNSC agenda items, notingg
"I have also reported on UNSOS (recent, and see here) and a recent Al Shabaab sentencing (Cholo Abdi Abdullah) in SDNY court. And most recently South Sudan and UNECA, and the verdict against BNP Paribas on Sudan."
No answer - and question not asked by UN Corrrespondents Association press corpse in 40 minute "press" conference here
This while UN's Media Accreditation and Liaison Unit still has not responded to when Inner City Press six months ago on June 19 applied to the UN for access, as it gives 2500 - according to the new UN Betrayals book here, to cover the UNGA week. Inner City Press has a NYC Press Pass and writes about the UN. From Somalia and its UN Mission, nothing.
Watch this site.
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New Book UN Betrayals Profiles Guterres and His Failing Chorus in Run Up to Next SG Elex
NEW YORK, Dec 31 – As the UN moves in 2026 to pick a new Secretary General, as its last one Antonio Guterres fails on Ukraine, Gaza and basic transparency, a new book has been published.
It is "United Nations Betrayals: From Election Stolen by Guterres to Bribes and Banning of the Press," by Matthew Russell Lee (who quickly discloses that he has been ousted and banned from the UN by Guterres, for his reporting).
A noted by New York Magazine on Lee's Maximum Maxwell book, at times here he uses the character Kurt Wheelock, who first appeared in his Predatory Bender.
The book begins with Guterres beating out female candidates for the UNSG post, after a murky year being paid by Lisbon-based Gulbenkian Foundation. The book digs into the bid by the China Energy Fund Committee, convicted of UN bribery, for Gulbenkian's oil company. Readers can draw their own conclusion, including on the need for SG campaign finance disclosure in 2026.
Part of the book in italics delves into the UN Correspondents Association and its efforts to throw Lee out. They appear again in the afterword / novella, "Whacking Qaddafi," which was first mentioned in the New Yorker magazine's Talk of the Town piece about Lee. It addresses more countries: from India to Pakistan, Guinea to Guinea Bissau.
The main text addresses UN failures in Sri Lanka - including the UNCA connection - Cameroon, Western Sahara, Syria, North Korea, Sudan, Gaza and elsewhere. UN Betrayals indeed - this should be the first of a series.
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For Luigi Mangione SDNY Questions For Jan 9 Hearing As US Zeroes In on False Name
by Matthew Russell Lee, Substack Book Patreon
SDNY COURTHOUSE, Dec 31 – Luigi Mangione was presented in Federal court on December 19 on four charges, one of them death penalty eligible, for the killing of UnitedHealth CEO Brian Thompson. Inner City Press was there, covering the case toward a book.
On April 1 DOJ announced it will seek the death penalty against Mangione.
In the interim, after some push back, Inner City Press published a book Luigi Mangione Lone Wolf here, now Amazon here
On December 31 U.S District Court for the Southern District of New York Judge Margaret G. Garnett posed questions: "ORDER as to Luigi Nicholas Mangione: In advance of the conference scheduled for January 9, 2026, at 11:00 a.m., the Court requests that both parties be prepared for oral argument and to answer the Court's questions regarding the Defendant's motion to dismiss Counts Three and Four. The Court will allot 30 minutes each to the Government and the Defense for this argument. As of the date of this Order, given the extensive and excellent briefing by both sides on the other pending motions and the issues presented by those motions, the Court does not believe oral argument on the remaining motions is necessary or would be helpful to the Court. Second, the Court hereby ORDERS the Defendant to submit a letter by no later than Tuesday, January 6, 2026, indicating whether, in light of the Government's representation that it is only seeking to admit the Defendant's statement giving his name as Mark and Mark Rosario, he is still seeking to suppress those statements. Because the Defendant did not address this issue in his reply brief, the Court is unclear whether that suppression argument has been abandoned in light of the Government's representation. Third, the Court hereby ORDERS both the Government and the Defendant to submit a letter by no later than Tuesday, January 6, 2026, indicating whether they believe an evidentiary hearing is necessary to resolve the Government's inventory search or inevitable discovery arguments (or any other aspect of the Defendant's suppression motion regarding searches of his backpack), and, if so, what specific facts are either disputed or unknown but necessary to resolving the question. If the parties are in agreement, a joint letter will suffice. Finally, the Government may, if it wishes, submit a sur-reply of no more than five pages on the Defendant's argument regarding Ms. Bondi's relationship to Ballard Partners, made for the first time in reply. Any such sur-reply must be filed by no later than Wednesday, January 7, 2026. (Signed by Judge Margaret M. Garnett on 12/31/2025)."
More on X for Subscribers here and Substack here
In the NY case late on December 2 Inner City Press emailed, then on December 3 faxed and hand-delivered, a letter asking to be heard and for unsealing, here.
After handing in the letter and getting it stamped at 10 am, Inner City Press stayed in and covered Justice Carro's courtroom past 5 pm. Then:
Justice Carro said, "Mr. Lee? Come up to the rail." I did. He said, I've read your letter. I intend tomorrow to decide what part of what is being presented came be made public to the Press. And on December 4 he said it would happened. And some did.
On December 18, both sides rested and Justice Carro said briefs due January 29 and March 5 with his decision due May 18.
On unsealing bid, more / extra on X for Subscribers here and Substack here
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Melania Trump Moves to Remove Wolff Defamation Case from NYS to SDNY
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 29 – Journalist Michael Wolff filed a defamation lawsuit against Melania Trump in New York State court on October 21, 2025.
On December 29, Melania Trump through counsel filed a Notice of Removal to the U.S. District Court for the Southern District of New York, which Inner City Press closely covers and where it found it. The notice says that she is a resident of Florida and therefore diversity jurisdiction applies.
Her lawyers also wrote that "plaintiff falsely and maliciously asserted that Mrs. Trump was somehow 'involved' in the 'scandal' relating to Jeffrey Epstein [and] initiated this action in an improper effort to preempt a potential defamation lawsuit against him by Mrs. Trump."
The SDNY case is Wolff v. Trump, 1:25-cv-10752 (Unassigned)
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On SafeMoon Karony US Wants 12 Years After Found Guilty As Inner City Press Bid to Unseal
by Matthew Russell Lee, Patreon Book Substack
EDNY COURTHOUSE, Dec 29 – On November 2, 2023 SafeMoon's trio were indicted in the U.S. District Court for the Eastern District of New York. Inner City Press covered it.
Prosecutors charged Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon” Earlier today, Karony was arrested in Provo, Utah...
On November 3, Smith was arraigned, bond document on Patreon here ....
On November 13, Inner City Press live tweeted the bail appeal in which Karony was ordered detained and to be brought to EDNY, thread
On November 22, Karony's lawyers filed - Letter on Patreon here.
On November 27, the prosecutors replied that transport will take the time it takes, and there is no basis for release. Letter on Patreon here.
In February, Karony was given a new free lawyer and a $3 million bond package - but the co-signers are confidential, unlike what Inner City Press unsealed as to SBF in SDNY.
Inner City Press on February 17 filed a letter to unseal the co-signers - on February 22 Judge Komitee to his credit had it docketed. But nothing happened (?)
Jump cut to April 29, 2025 when Magistrate Judge Cho held a conference on the jury selection he will run on May 5 (same time as US v. Sean Combs in SDNY), thread.
On May 21, "a federal jury convicted
Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering. The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC."
On December 29, the US Attorney's Office wrote in asking for a 12 year sentencing on Karony, 22 page sentencing memo on Patreon here
Inner City Press is following the case(s)
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Imran Ahmed Christmas Eve Order to Show Cause on Sanctions Extended to Jan 5
by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Dec 29 – At 7 pm on Christmas Eve, lawyers for Imran Ahmed filed a lawsuit in the U.S. District Court for the Southern District of New York, which Inner City Press closely covers, even on holidays.
The lawsuit seeks to enjoin the US from expelling or sanctioning Imran Ahmed for his work at the Center for Countering Digital Hate.
As of December 26 it has yet to be assigned to a District Judge. But Judge Vernon S. Broderick, the Part 1 Judge for the week, reported signed the Temporary Restraining Order early on Christmas Day and set a hearing for sometime on Monday, December 29.
As of noon on December 26, Judge Broderick's Order was not public in PACER. Apparently, Imran Ahmed's lawyers distributed the order to some media (it is not on the law firm's website).
On December 29 Inner City Press went to the courtroom of Judge Broderick and heard him say that the day's 4:30 conference was off, though it had nothing to with him, he joked. Later it was docketed: the "conference scheduled for today at 4:30 PM is adjourned. The parties shall appear for a conference on January 5, 2026, prepared to address venue, this Court's jurisdiction to hear this case, including how long Plaintiff intends to be in New York, and what steps Defendants have taken to impose visa restrictions and initiate removal proceedings against Plaintiff and others pursuant to the same or similar State Department sanctions. The parties should also be prepared to discuss the schedule for briefing during the conference. The Temporary Restraining Order previously granted by this Court remains in effect."
The case is Ahmed v. Rubio, et al., 1:25-cv-10705 (Preska)
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