Saturday, March 23, 2024

FDIC Imposes CRA Condition After Mississippi Bank Merger Challenged by Fair Finance Watch


by Matthew Russell Lee, Patreon Book Substack

SOUTH BRONX, March 23 – While the US bank regulators purport to be cracking down on fair lending and other abuses of consumers, they continue to allow banks of all sizes to pass exams and merge when they apply, despite deep disparities.  

On December 9, Fair Finance Watch (with Inner City Press on the FOIA) commented to the FDIC: Merchants & Marine Bank to acquire Mississippi River Bank:

   The applicant Merchants & Marine Bank in 2022 in  Mississippi based on its disparate marketing made 148mortgage loans to whites -- while making only 10 loans to African Americans. This is far out of keeping with the demographics, and others lenders, in Mississippi in particularly in Merchants & Marine Bank's CRA assessment areas. 

  In Alabama it is worse. And it would get worse in Louisiana, into which the bank is apply to expand via Mississippi River Bank.

   The applicant Merchants & Marine Bank in 2022 in Alabama based on its disparate marketing made 26 mortgage loans to whites -- and NONE. to African Americans.

 This is far out of keeping with the demographics, and others lenders, in Alabama in particularly in Merchants & Marine Bank's CRA assessment areas - this is outrageous. 

  There are other issues.... Fair Finance Watch is requesting an extension of the public comment period, evidentiary hearings and that, on the current record, the applications not be approved.

On March 19, 2024, the FDIC recounted Fair Finance Watch / Inner City Press' CRA protest and imposed a condition, to develop a plan to serve African American borrowers, we've uploaded it on DocumentCloud here.

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JOH Asks For New Trial After Guilty Verdicts Based on DEA Data and Florida Stop Off


by Matthew Russell Lee, Substack

SDNY COURTHOUSE, March 22 – 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?

Judge Castel concluded it was, and denied Stabile's motion, Order on Patreon here.

Later on March 8, the verdict, here- then the book Narco Drama in English then Spanish.

Now on March 22 Stabile has requested a new trial, on two grounds: the testimony of drug trafficking going up instead of down, and JOH's stop over in Fort Lauderdale, where Stabile says the trial should have been held. Filing on Inner City Press' free DocumentCloud here

More on X for Subscribers here  and Substack here

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Capital One Should Discover Merger Dead amid Stealth Application Inner City Press FOIAs Fed


by Matthew R. Lee

SOUTH BRONX, March 22 – Capital One has applied to buy Discover, in an anticompetitive deal that should be rejected by regulators if they mean what they have been saying. While they applied late March 20, as of 1 pm on March 22 there was no notice of the Federal Reserve's or OCC's websites. Inner City Press submitted second FOIA requests to each agency. Public hearings should be held, not only on antitrust but also lending disparities at both companies. 

  On February 20 Capital One CEO Rich Fairbanks bragged about communications he's had with the regulators, then referred to "customary regulatory approvals." Inner City Press immediately submitted Freedom of Information Act requests to the Federal Reserve and OCC for all such communications. Both agencies confirmed receipt.

 But still no records as of March 22, so this:

This is a FOIA request for the entirety of Capital One's applications for regulatory approval of its Discover proposal, including all portions for which Capital One has requested confidential treatment, and all communications by your agency with the banks since February 19. As of March 22 at 1 am, the Fed's most recent H2A is from March 15

 As documented by Fair Finance Watch, Discover Bank in 2022 denied mortgage loans application from African Americans more than twice as frequently as those of whites. 

  Previously, Inner City Press and NCRC challenged Capital One's acquisition of ING Direct, see here.This time, given the antitrust enforcement claims being made in DC, this proposal should be dead in the water. Watch this site. 

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UK Billionaire Joe Lewis Got No Jail No Appeal Deal Now Asks For It With Redaction


by Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Feb 26 –   British billionaire Joseph Lewis, owner of the Tottenham Football Club, Tavistock, jets and yacht, was indicted and released on bail on securities fraud charges on July 26, 2023. Inner City Press was there and live tweeted, thread here.

On August 28, the assigned District Judge issued this: "counsel for Defendants Patrick OConnor and Bryan Marty Waugh alerted the Court to benefactor payments that could give rise to potential conflicts of interest.  To that end, by September 6, 2023, counsel for Defendants OConnor and Waugh shall submit a joint letter further describing the payment arrangements at issue here  (Signed by Judge Jessica G. L. Clarke on 8/28/2023)."

On September 6 counsel to Marty Waugh wrote in to say that yes, Lewis' Tavistock is paying them - but they promise to exercise independent professional judgment...

On January 24, 2024 Lewis pled guilty - with a deal that he will only not appeal if he gets no jail time. While the calculated guidelines in the plea agreement say 18 to 24 months, Lewis can appeal even a day of jail. We hope to have more on this. Afterward he left the SDNY courthouse covering his face, with a guard blocking photos. Thread

 Judge: Sentencing [no jail time in plea deal] set for March 28 at 3 pm, expedited at defendant's request

Then on January 30: "Sentencing set for April 4, 2024 at 3:00 p.m. Defendant's sentencing submission due two weeks prior to sentencing. Government's sentencing submission due one week prior to sentencing. Defendant continued released on bail."

On February 26, co-defendant pled guilty: "Change of Plea Hearing as to Patrick O'Connor held on 2/26/2024. Plea entered by Patrick O'Connor (2) Guilty as to Count 1,8. Plea accepted. PSR ordered. Sentencing set for May 29, 2024 at 11:00 a.m."

But the other co-defendant goes forward: "Defendant Bryan Marty Waugh (3) present. For reasons stated on the record, speedy trial time is excluded in the interest of justice between 2/26/2024 and 6/24/2024. Defendant continued released on bail."

On March 21 Lewis' lawyers put in his sentencing submissions, with redactions. For example: "the standard waiver of appellate rights will not apply to a sentence of imprisonment [REDACTION]." Will the US Attorney's Office oppose this redaction?

The case is US v. Lewis, et al., 23-cr-370 (Clarke)


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In NYU Anti Semitism Case No Intervention for Prof Andrew Ross But Lawyer Cites 2d Client


by Matthew Russell Lee, Patreon Book Substack

SDNY COURTHOUSE, March 21 – A New York University professor's motion to intervene in the lawsuit in which three students assert and try to prevent anti-Semitism at NYU was heard on March 21 - and denied, by U.S. District Court for the Southern District of New York Judge Loretta A. Preska. Inner City Press was there and live tweeted, here:

Prof. Andrew Ross' opposed motion to intervene is being argued and, it seems, ruled on. 

Judge: Prof Ross' interest is too remote for automatic intervention. Plaintiffs seek to enjoin discrimination. They assert NYU has been deliberately indifferent over the past 5 months. They allege two dozen instances - they do not seek a speech code

 Judge: Mandatory intervention is not warranted. There is no showing NYU is not representing Prof Ross' interest. 

Ross' lawyer: I have another client, suspended under the IHRA definition.

 Judge: There is no information about this new client.

  But it seems Ross' lawyer will be submitting another motion, with this other client.

 Inner City Press will remain on the case.

 It is Ingber, et al., v. New York University, 23-cv-10023 (Preska)

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As Delgado Sues Trump Over West Wing Job Withheld She Questions Habba at Eric Trump Deposition


By Matthew Russell Lee, Patreon Substack

SDNY COURTHOUSE, March 21 – Arlene "A.J." Delgado sued the Trump campaign after she did not receive the West Wing job she said she was promised (but Jason Miller got).  

      On August 16, 2022 U.S. District Court for the Southern District of New York Magistrate Judge Katharine H. Parker held an in-person proceeding. Inner City Press went and covered it. 

Jump cut to January 30, 2024: Delgado is now pro se and moving to depose Reince Priebus and Eric Trump. Inner City Press live tweeted, thread

On February 5, 2024, Magistrate Judge Parker denied Delgado's motion that she recuse herself for having practiced employment defense law prior to becoming a Magistrate Judge, and other reasons. Order on Patreon here.

On February 28, after Delgado's submission of a 15 page letter here, there was a discovery conference. Inner City Press live tweeted it here (and, for those who prefer, on Threads here)

On March 6, Arlene Delgado docketed her subpoena to Jared Kushner, including the records he should bring - subpoena on Patreon here

On March 21, Delgado filed a discovery letter with Judge Parker, including that "During the deposition of third-party witness Eric Trump, on March 13, 2024, Mr. Trump (who was represented by Alina Habba, Esq.) stated that, in preparation for this deposition, he had met with his attorney (Ms. Habba) and also with Defendants counsel, the day prior to his deposition. Ms. Habba then claimed that “common interest privilege” applies to shield the communications between her client, Eric Trump, and Defendants’ counsel. Plaintiff requests" - letter on Patreon here.

More on X for Subscriber here,  Substack here

  Inner City Press will continue to follow the case.

It is Delgado v. Donald J. Trump For President, Inc. et al., 19-cv-11764 (Torres / Parker) 

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@SDNYLIVE courthouse #CourtCastCast
                              200 Worth Street
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In Sen Menendez Case Nadine Waives Lawyer Conflict Assumes Stipulation May 6 Trial Holds


by Matthew Russell Lee

SDNY COURTHOUSE, March 21 – 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, arguing "the government shockingly fails to disclose the exculpatory fact that [REDACTED]." Full filing on Patreon here

Late on January 10, docketed on January 11, Inner City Press filed to unseal Menendez' redactions - and documents "in the vault."

On January 17, after the NYT also requested (and cited Inner City Press), Judge Stein ordered the parties - including DOJ - to respond by January 22.

On February 1, Judge Stein granted some unsealing - including of some of the material in the vault which Inner City Press requested. Order here.

On March 6, after a guilty plea and then a superseding indictment was filed, counsel for Wael Hana wrote in. Letter on Patreon here.

On March 11, Inner City Press live tweeted the arraignment, and Judge Stein's ruling that the May 6 trial data holds, unless the 2d Circuit stays it on an interlocutory appeal. Thread here

On March 21, Nadine Menendez was before Judge Stein for a Curcio hearing, thread

OK - now at Nadine Menendez "Curcio" hearing, US says her lawyers might be witness at [for now May 6] trial,Nadine Menendez is seated at defense table, now with three lawyers.

 All rise!

Judge: The defense is correct here, the government should fish or cut bait if they will call counsel as a witness

 Judge: The trial is in 6 1/2 weeks, unless there's an appeal to and stay from the 2d Circuit. Decide on a stipulation, if you can, in 2 weeks: an anonymized affidavit. [Nadine Menendez and her lawyers have stepped out of the courtroom to confer how to proceed. Beyond the 3 prosecutors in front, there are more here in the gallery]

[Nadine Menendez and lawyers come back up] Defense: If there is a disqualification, a May 6 trial would be impossible.  Judge: Let's assume you work it [the stipulation] out. This Curcio hearing will be on the more limited issues I call Bucket 2

 Judge: Normally this can be solved by not letting the jury know that defense counsel is the source. But if agreement is not reached, your lawyer could be disqualified... what's your native language? Nadine Menendez: French...I am 57 and have a Masters from NYU

 Judge: Your lawyers may have been present at a meeting that will come up at trial, about payments on a Mercedes by Mr. Uribe [who quietly pled guilty] and on your mortgage by Mr Hana. That could present a conflict.

Judge: They're going to be restricted in the arguments they can make.

Nadine Menendez: By the stipulation? Judge: Because they have knowledge of the underlying facts. Do you want them to continue? NM: Yes.

 Judge: I accept the waiver... I understand Mr Menendez' counsel has an issue? Counsel: We've asked for 404(b) material before March 29. My client has a prior case, you may be aware.  [Nadine Menendez leaves]

Judge: Are you appealing? Sen Menendez lawyer: It's up in the air Judge: And you're being transparent [sarcasm] Counsel: It's complex AUSA: We don't plan a lot of 404(b).  Judge: March 29 remains the 404(b) deadline. We are adjourned.

More details on X for Subscribers here and Substack here

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In OneCoin Case Irina Dilkinska Wants Time Served As US Asked OK with Karl Redactions


By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, March 20 -- 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

Watch this site. More on Substack here

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Daniel Sikkema Is Bailed While Wanted for Murder of Noted Art Dealer


by Matthew Russell Lee, Patreon Book Substack

SDNY EXCLUSIVE, March 20 – Daniel Sikkema is subject to an Interpol warrant for the murder of his estanged husband, art gallery owner Brent Sikkema, in Brazil. On March 20 Daniel Sikkema was brought by US Marshals into the U.S. District Court for the Southern District of New York Magistrates Court, with detention sought for passport fraud. Inner City Press was the only media there and live tweeted, thread:

Daniel Sikkema is here, suspect in killing his husband in Brazil - but charged with passport fraud. US says if he is released on bail he'll flee.

AUSA: He could flee to Cuba, where he's a national and owns several properties there. The defendant sent an email showing he knew the passports were not lost. We searched his residence and found evidence. We want detention

Judge: If he's convicted, what sentencing guideline would he get? Defense counsel: Our view is different. He was born as Daniel Carrera - when he married his husband he changed his name. He was working for many years with his husband, art gallery in NY

 Sikkema's counsel: He was taking care of his son, whose now 13 years old. Judge: He's 53 and he's on Social Security? Sikkema's counsel: As a surviving spouse

Judge: Who owns the Fire Island property? Defense: It's in a trust, the executor of the estate of his deceased husband would have to agree - it is not available. The elephant in the room is the Interpol warrant. The Gov't has given you hearsay from Brazil

Defense: The Government tells you the finger is being pointed at him for murder. There is a pending motion to dismiss those charges. Brazil could seek extradition - the treaty does not require extradition of an American citizen, there would be a defense

Defense: The Government brings up the murder charges, the Interpol warrant we've been aware of for a month - he's not going anywhere. Judge: The passport fraud offense manifested a plan, the Government might say. Defense: We're not trying the case.

 Defense: He wanted his 13 year old son to be able to go to Italy with his soccer team. We have abundant evidence. He was not going to go on that trip. And now he doesn't have the passports. He has no criminal record whatsoever. He's know about the charges

 Defense: He has his passport from Cuba... He had his passport from Spain... He could have gone at any time. Judge: Didn't they find, this morning, a bag with his Spanish passport and cash Defense: Where else do you put a passport but a bag? If he wanted to flee

 Defense: If he was willing to flee without his son he could have weeks ago, it would have been a lot easier. All the other reasons evaporate upon the slightest inspection

Defense: The mother owns a home in Queens with equity of $800,000... She is willing to put it up. Judge: Does Mr. Sikkema have any of his own property? Defense: No, it's all in the trust. We propose a bond, Lucelis Gomez as signer and owner of the home

 Defense: He's the sole caretaker for his 13 year old son. Judge: The son was born here? Defense: Yes. He goes to school here. In New York. Judge: Does he have travel documents? Defense: There was a Spanish passportJudge: Would he be eligible for a non custodial sentence? [Apparently, for passport fraud]

Defense: I could do research. AUSA: I don't have a lot of experience with this charge. Judge: If there were a pending extradition request from Brazil, could he be detained?

 AUSA: I'm not sure. Defense: Upon a request, there's a presumption he would be detained, but he could be bailed. [Echoes of SBF extradition and deal] Defense: I just looked up 2L2.2, fraudulent application, offense level 8, genocide adjustment does not apply

 AUSA: There's no need to do guess work he intended to flee - the lengths he went to get a passport. His apartment was ready for him to leave at any point. The two suretors, the Government has concerns. One was his long term employee, he holds sway

 AUSA: When we thought he might be bailed, we asked. Defense said he knows no one else in the community. He's been here 15 years. His ties are elsewhere. When the agents went to his apartment, there were many family members there - about three

 Defense: He hired counsel in Brazil - Judge: I don't want you to address something new. What about family members in the apartment - are they residents or citizens of the US? Defense: One is his cousin Myra. She's not a citizen.  Judge: She has a green card? No  

Defense: The others in the apartment came here with what's called humanitarian parole.  AUSA: I'm done. Judge: This is a passport fraud case. It's likely to be a non custodial sentence. If detained he could serve time pretrial more than he'd get if convicted

 Judge: He is a citizen of USA,  his son was born here. He has some other family ties here. I can't find that his ties abroad outweigh his ties here.  [Question: Will the US Attorney's Office be asking for a stay to appeal to the Part I judge? a supervisor was here

 Judge: So I am releasing Mr. Sikeema on a $1 million personal recognizance bond, secured by the property in Queens subject to review by the government of the equity, if it is in the high 100s of 1000s of dollars. Owned by Maria L. Gomez

Judge: I direct Mr. Sikkema be on home detention and surrender all passports that remain in his possession and those of his son. I direct a mental health evaluation. He's unemployed but I direct him to seek employment. No guns or weapons.

Judge: He can be released today on his own signature

Pre Trial: We can't put on the GPS bracelet.

Judge: So he will be held overnight, produced tomorrow

More details on X for Subscribers here and Substack here

 The case 24-mj-1146 (Stein)

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