January 6 Defendant Warnagiris Faces Bench Trial in Empty DDC Courtroom unlike NY Case

by Matthew Russell Lee, Patreon Book Substack

DDC COURTHOUSE, April 4 – Within sight of the U.S. Capitol more than three years after the incursion there, defendant Christopher Warnagiris was on trial on April 4, 2024 before Judge Paul L. Friedman. Inner City Press was there. 

 Agent Steven Weatherhead was on the witness stand testifying as to CC-TV video and what another officer, Sergeant Anthony Warner, told him. 

 Warnagiris' lawyer Marina Medvin said that as the first or second witness in the defense case she would be putting on FBI Agent David Elias, who would testify to having shown these videos to Warner in 2022, before Warner said he saw them.

The AUSA previewed that she might object. It is a bench trial: no jury, and only three people other than Inner City Press in the gallery (in contrast to the jammed courtrooms in New York for the upcoming Trump criminal trial). 

  The first defense witness here, it emerged, might be an Agent Webber.   

Elsewhere in the U.S. District Court for the District of Columbia courthouse another January 6 trial was beginning, a jury trial presided over by Magistrate Judge Moxila A. Upadhyaya.  

More on X for Subscribers here and on Substack here

This case is US v. Warnagiris, 21-cr-382 (Friedman)

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SDNY Press Room 480, front cubicle

On Crypto Inner City Press at IMF Asks of El Salvador Bitcoin Risk Called Key Element Here

by Matthew Russell Lee, Patreon Substack

IMF, April 4 – On Bitcoin and El Salvador, Inner City Press at the International Monetary Fund on April 4 asked Spokesperson Julie Kozack about any linkage between an IMF program and reversing the legal tender status of Bitcoin there.

  Ms. Kozack praised some developments in El Salvador, but said that addressing the risks of Bitcoin are a "key element." Inner City Press also asked about Ethiopia, Papua New Guinea and, full circle, Sri Lanka. From the IMF transcript, on El Salvador and Bitcoin:

Matthew Russell Lee, Inner City Press: "on El Salvador, some are saying that a program there is in some way linked to possibly removing bitcoin as legal tender status.  I don't know if that's the case.  And just generally, what can you say about El Salvador's progress and possible program?"

IMF Spokesperson Kozack: "IMF staff continue to engage constructively with the Salvadorian authorities with the objective of reaching an agreement on an IMF supported program.  Discussions are focused on policies to strengthen fiscal and external sustainability and to boost productivity growth and strengthen economic governance. 

Addressing risks arising from Bitcoin is a key element of our discussions with the authorities.

With respect to very recent developments, real GDP growth strengthened in 2023, driven by tourism and construction, and this happened on the back of robust remittances and a much-improved security situation.  Inflation came down, the current account deficit narrowed, and this was supported in part by lower global commodity prices.  With respect to fiscal policy, it was somewhat accommodative last year, driven by higher pension spending and public investment, although efforts were made to contain current expenditures and to regularize spending arrears."

  Back on March 7, a year after the failure of Silicon Valley Bank and Signature Bank, the International Monetary Fund has warned of more trouble, just as NYCB teeters. Inner City Press on March 7 asked the IMF about it, video here.  

 The IMF had said, "the high concentration of CRE [commercial real estate] exposures represents a serious risk to small and large banks amid economic uncertainty and higher interest rates, potentially declining property values, and asset quality deterioration.”

Small banks retain “exceptionally high CRE concentration for which losses could compromise their safety and soundness”, it added. Nearly 33% of US banks have commercial property loan books which are so big versus their capital buffers that they exceed regulatory guidance. So where are the regulators? 

 Inner City Press asked the IMF spokesperson, noting the Mnuchin investment in NYCB (and imposition of Joseph Otting as CEO).

IMF Spokesperson Julie Kozack replied that the risk is real and is being studied, with more to come in the GSFR. Watch this site.

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In OneCoin Case Irina Dilkinska Gets 4 Years US Asked Less than 10 Citing Aamer Abdulaziz

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, April 3 -- For scam crypto currency OneCoin, Sebastian Greenwood who co-founded the company with Ruja Ignatova was sentenced to 20 years in prison by U.S. District Court for the Southern District of New York Judge Edgardo Ramos on September 12, 2023. Inner City Press was there and live tweeted, thread here

On January 25, Mark Scott was sentenced to 10 years in prison - but will be asking for bail pending appeal. Thread here.

On February 26 for Konstantin Ignatov, with a 90 year guideline, the US Attorney's Office asked for time served - with lines redacted.

On March 5, Konstantin Ignatov got just that: time served, with two years supervised release and a forfeiture of some $118,000.

On March 20, counsel for Irina Dilkinska asked for time served for her, too - though she did not cooperate. She was allowed to pled to two counts each with a five year maximum. The first letter, from Vasil Mutafchief, says "I firmly believe in Irina's innocence and the need for a thorough reevaluation of the evidence presented at her trial." But she had no trial: she pled guilty. Letter on Patreon here

On April 3, "IRINA DILKINSKA was sentenced to four years in prison by U.S. District Judge Edgardo Ramos for her role in the massive OneCoin fraud scheme."

Back on March 27, the US wrote in but not with any number, only for a sentence below the guidelines (which they put at 10 years) but with "a substantial period of imprisonment." The US also wrote that "Dilkinska told Ignatov that Aamer Abdulaziz, who was one of the main money launderers for Ruja, stole at least 100 million Euros that were proceeds from the OneCoin Fraud Scheme." Why hasn't he been prosecuted or caught?

Watch this site. More on Substack here

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Two Insider Traders on Trump Media SPAC Plead Guilty Down One Offense Level Point

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, April 3 – As the third of four insider trading prosecutions announced on June 29, 2023 by the US Attorney for the Southern District of New York, Michael Shvartsman, Gerald Shvartsman, and Bruce Garelick were charged with making more than $22 million dollars in illegal profits by trading in securities of Digital World Acquisition Corporation based on MNPI about DWAC’s planned but not yet public business combination with a media company founded by former President Donald J. Trump.  

On July 5, the case was assigned - wheeled out - to Judge Lewis J. Liman: "NOTICE OF HEARING as to Michael Shvartsman, Gerald Shvartsman, Bruce Garelick: An Arraignment and Initial Conference is scheduled for July 20, 2023 at 12:00 PM in Courtroom 15C, 500 Pearl Street, New York, NY 10007 before Judge Lewis J. Liman."

Inner City Press was there on July 20 and live tweeted, thread

On December 29 as part of omnibus pre-trial motions Shvartsman filed copies of DHS reports of investigation, including audio recordings of Shvartsman saying he would open an LLC in Belize which would buy assets... and ultimately provided funding for the 'Truth Social' media platform. It also names the agents who brought the arrested defendants to the Wilke D. Ferguson Jr. Federal Courthouse and the Marshals...

Late on March 15 Shvartsman through counsel wrote to Judge Liman alleging that the US used a Lawyer Informant to record him. Counsel identified the Zoom account used: John [at] lighthousetrust [dot] ch.  A Google search of that shows a Lighthouse Trust General Counsel named John Ivsan at Linhart Seuss Ivsan LLP

More on X for Subscribers here & Substack here

On March 29 there was a conference, thread:

Defense: We contest their attempt to call cannabis bank account a prior bad act. The bank knew, and continued to process the payments.

AUSA: The bank was misinformed.

Judge: I'm not sure it's 404(b)

Defense: DWAC has sued Mr Orlando, in Florida, alleging he spoke publucly about merger with Trump Media Group. I had assumed Orlando would be a government witness against my client. So DOJ should ask DWAC, or their counsel at Wilmer Hale,  their basis

On April 1, Judge Liman docketed that Michael Shvartsman and Gerald Shvartzman were scheduled to plead guilty on April 3.

 They did, and Inner City Press is publishing Michael Shvartsman's plea agreement here - it had an April 2 deadline to get a one offense level point reduction, see here.

 This case is US v. Shvartsman, et al., 23-cr-307 (Liman)

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For Singapore Solution Tax Fraud Dani Walchli Pled & Filed Redactions Now Gets Time Served

by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, April 2 – Rolf Schnellmann, Daniel Wälchli and Zurich, Switzerland-based Allied Finance Trust AG were indicted in 2020 for conspiracy to defraud the US.

 On September 29, 2023, Schnellmann was brought before U.S. District Court for the Southern District of New York Magistrate Judge Ona T. Wang after being extradited in from Italy.

Inner City Press was there, the only media in the SDNY Mag court. Thread

On October 12, Judge Gregory H. Woods held a conference, and set a next one for February 1: "Discovery has been produced. A status conference is scheduled for February 1, 2024, at 2:00 p.m.

But on December 21, Schnellmann appeared again before Judge Woods, this time to plead guilty to a 24 to 30 month Guideline sentence. Sentencing was set far in the future: July 19, 2024.

On March 20, co-defendant Daniel Walchli filed a heavily redacted sentencing submission - including even in the table of contents, "Dani's Acceptance of Responsibility [REDACTED.] With that, he wants no jail time.

On March 26 the US Attorney's Office wrote in asking for 18 months, arguing that the six months recommended by Probation would "fail to serve the essential sentencing goals."

But on April 2, Walchli got time served: "Minute Entry for proceedings held before Judge Gregory H. Woods: Sentencing held on 4/2/2024 for Daniel Walchli (6) Count 1. Defendant Daniel Walchli (out on bail) present with attorneys [4]. Sentencing hearing held. The defendant is sentenced to Time Served. A special assessment fee of $100.00 is due immediately. A fine in the amount of $50,000.00 is ordered."

The overall case is US v. Bechtiger, 20-cr-497 (Woods)

More on Substack here 

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Susan Sarandon Was Sued For Interference In Film "American Mirror" and Settled Under Seal

By Matthew Russell Lee, Patreon Maxwell book
BBC - Honduras - CIA Trial book - NY Mag

SDNY COURTHOUSE, April 1 – Arthur Balder, a film maker, sued Susan Sarandon for alleged tortious interference in the film "American Mirror: Intimations of Immortality."

  Now court record show that a settlement has been reached, but that it sealed and confidential: pursuant to the terms of the settlement, the transcript is confidential and shall not be shared with any non-party." A conference call, presumably also confidential, was held on April 1, 2024 "to discuss settlement execution." 

 On October 4, 2022, U.S. District Court for the Southern District of New York Magistrate Judge Sarah Netburn held a proceeding. Inner City Press covered it.  

At issue is whether Balder can serve Sarandon and co-defendants by e-mail. Counsel to Sarandon said she will waive service of the summons and that she, the counsel, may soon represent co-defendants too.  

Judge Netburn denied the request for e-mail service without prejudice and directed Sarandon's counsel to provide an update by October 11 whether she will represent all co-defendants.

The case is Balder v. Sarandon, et al., 22-cv-6401 (Rochon / Netburn)

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Amid Attack on CRA FirstSun HomeStreet Bid Hit on Disparities Now Belated Partial Response

by Matthew Russell Lee

SOUTH BRONX, April 1 – As US bank regulators talk about working to increase the fairness of the financial system, and closely scrutinizing mergers and the spread of bad practices, banks continue to assume they can combine.

  Before the Capital One - Discover proposal, and ABA lawsuit against the Community Reinvestment Act regulation, there was  FirstSun Capital Bancorp of Denver and Dallas saying it will merge with Homestreet, Inc. and Homestreet Bank of Seattle, Washington. 

  On February 23, 2024 Fair Finance Watch with Inner City Press on the FOIA filed with the Federal Reserve: "FirstSun's flagship Sunflower Bank, in Texas in 2022, made 694 mortgage loans to whites, and only 41 to African Americans. Meanwhile it denied 12 applications from African Americans, and only 34 from whites.   This is disparate, and more disparate both than the aggregate in Texas. 

    Nationwide in 2022, Sunflower Bank made 3059 mortgage loans to whites, and only 194 to African Americans. Meanwhile it denied 49 applications from African Americans, and only 259 from whites. 

   For the record, on managerial resources and otherwise, note that on September 27, 2023, FirstSun Capital Bancorp, the parent company of Sunflower Bank, Guardian Mortgage and First National 1870 (collectively, “Sunflower”), filed a notice of data breach with the Attorney General of California... an unauthorized party likely took advantage of the flaw in the MOVEit software and downloaded copies of files [containing] personally identifiable information."

   HomeStreet, meanwhile, is politely said to have had a "tough" 2023.

More than a month later, FirstSun emailed Fair Finance Watch and Inner City Press a response, referring to, but not providing copies of, letters of support it says it has procured. Nor has the Federal Reserve forwarded these along, or put them online. We'll have more on this.

     FFW and Inner City Press have been deeply concerned about the rush by the Federal Reserve to rubber-stamp mergers by redliners, money launderers and predatory lenders. This has been killing the Community Reinvestment Act and so a timely request public hearings.

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Malta Takes Over UNSC For April No Answer on Gaza or Daphne Despite Press Questions

by Matthew Russell Lee, Patreon Book Substack

UN GATE, April 1 – Malta took over the UN Security Council presidency on April 1, 2024 - while Inner City Press is still banned from the UN, despite its June 19 application.

On March 29, Inner City Press wrote to the Maltese Mission: This is a timely request that you allow Inner City Press to enter and cover, and/or provide the WebEx  pass code(s) to access Japan's UNSC Presidency press briefing by your Ambassador Vanessa Frazier on April 1, 2024.

I have questions to ask on what you will do this month about Gaza, UNRWA and the coups in Gabon and Niger, Japan, North Korea and the conflicts in Sudan, Ukraine, Ethiopia, Cameroon, Yemen and Libya, and the revelations of El Pollo now in SDNY - and on ongoing cases of sexual abuse and exploitation by UN peacekeepers on many of which Inner City Press first reported. Also, the killing of journalist Daphne Caruana Galizia

Days later, no answer from the Malta mission. Notably, in the April 1 presser Inner City Press was banned from, Frazier said Malta is committed to transparency. Right.

 Watch this site.

 Inner City Press on June 19 applied to the UN for access, as it gives 100s, to cover the UNGA week. Inner City Press has a NYC Press Pass and writes about the UN. From Malta and its UN Mission, nothing.

Watch this site. 

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Prosperity Bank Hit by CRA Challenge to Lone Star Bank now FDIC Condition Reimposed

By Matthew Russell Lee, Patreon

FEDERAL COURT / S Bronx, March 29 – Whether or not the U.S. Community Reinvestment Act will be again enforced under this Administration and its regulators including under the incoming divided Congress is an open question.

   On November 25, 2022 Fair Finance Watch with Inner City Press on the FOIA filed comments with the Federal Deposit Insurance Corporation against the applications by Prosperity Bank in Texas. In April 2023, the FDIC imposed conditions on one - and in March 2024, on the other, Lone Star.

November 25, 2022 

Federal Deposit Insurance Corporation Attn: Chairman Martin J. Gruenberg Dallas Kristie K. Elmquist, Regional Director Julie V. Banfield, Deputy Regional Director Chris Finnegan

Re: Comment on Applications by Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. 

Dear Chairman Gruenberg, Regional Director Elmquist, Ass't Regional Director Finnegan and others at the FDIC:   This is a request for all information in the possession of the FDIC about, and a timely comment on, the Applications of Prosperity Bank, El Campo, Texas to acquire Lone Star Bank of West Texas and FirstCapital Bank of Texas, N.A. which appear on the FDIC website under "Applications In Process Subject to the CRA Report" with an initial comment periods running through December 16. This comment is timely.  

   The applicant Prosperity Bank in 2021 in Texas based on its disparate marketing made 5453 mortgage loans to whites -- while making only 188 loans to African Americans. Meanwhile it denied fully 94 applications from African Americans, versus only 1186 from whites. This is far out of keeping with the demographics, and others lenders, in Texas in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.    

  The applicant Prosperity Bank in 2021 in Oklahoma based on its disparate marketing made 320 mortgage loans to whites -- while making only 38 loans to African Americans.  This is far out of keeping with the demographics, and others lenders, in Oklahoma in particularly in Prosperity Bank's CRA assessment areas - this is outrageous.   Very Truly Yours,     Matthew Lee, Esq.   Executive Director  Inner City Press/Fair Finance Watch

On April 6, 2024 sent April 10, the FDIC imposed this condition: "After a careful review of the concerns, the FDIC decided to approve the application with the following condition. This condition will help ensure the home mortgage lending needs of African American populations in Prosperity Bank’s assessment areas are met. Enhance the bank’s Fair Lending Action Plan (Plan) adopted by the Board of Directors of Prosperity Bank and submit changes to the FDIC for approval within 60 days of the application approval date. The Plan updates and revisions, as applicable, should provide strategies to improve the volume of home mortgage applications from, and originations to African American applicants within each of the designated assessment areas established in Texas. The Plan should also provide strategies to improve the volume of home mortgage applications from, and originations in majority-minority census tracts and majority-Hispanic tracts within designated assessment areas in Texas. The enhancements should be developed in the context of available demographic data, as well as safe and sound lending considerations, and provide for periodic review of the Bank's efforts, using measurable criteria, to assess actions and progress. The Bank will continue to provide quarterly updates to the FDIC's Dallas Regional Office detailing the Bank's progress under the Plan."

The condition was re-imposed in March 2024 when the FDIC approved the Lone Star Bank application. Watch this site.

Watch this site.

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