Memo #4 - Goldman Sachs Deferred Prosecution Agreement

Fri Aug 4 00:29:10 PDT 2023

>
>>> https://docs.google.com/document/d/1ajVVx6NGB9wd2GDXfLRftf0RVFpqjl8WWITvdNVXf1M/edit?usp=drivesdk
>>>
>>> March 10, 2022
>>>
>>> BY ELECTRONIC MAIL
>>>
>>> Mr. John Marzulli
>>> United States Department of Justice
>>> Eastern District of New York
>>> 271 Cadman Plaza East
>>> Brooklyn New York, 11201
>>> John.Marzulli at usdoj.gov
>>>
>>> Re: Memo #4 - Goldman Sachs Deferred Prosecution Agreement
>>>
>>> Dear Mr. Marzulli:
>>>
>>> The Department of Justice has yet to respond to Memo #1, Memo #2 and
>>> Memo #3 with our recent inquiry to the 1Malaysia Development Berhad
>>> Deferred Agreement. Goldman Sachs' Deferred Prosecution Agreement
>>> <https://www.justice.gov/usao-edny/pr/goldman-sachs-resolves-foreign-bribery-case-and-agrees-pay-over-29-billion>
>>> with the United States of America is in potential breach, with ethical
>>> enforcement being concerned.
>>> Memo #4 aims to associate the malfeasance in Malaysia with war crimes of
>>> aggression (in the planning, initiation, or execution of a large-scale
>>> and serious act of aggression), leveraging the world’s only military
>>> divided capital city Nicosia, Cyprus.
>>>
>>>    1.
>>>
>>>    Additionally, Memo #4 aims to earn the DOJ’s assessment of New York
>>>    State’s regulatory marketplace manipulation deriving the war crime against
>>>    peace, related to the planning, preparation, initiation, waging or
>>>    participation in a common plan or conspiracy related to a war of
>>>    aggression, which can only apply in relation to international armed
>>>    conflict.
>>>    2.
>>>
>>>    In this case, the first challenge is to observe and consider the
>>>    simple idea that the DOJ’s Deferred Prosecution Agreement with Goldman
>>>    Sachs alone, through means of regulatory arbitrage naively fails to
>>>    recognize the ‘cause and effect’ relationship at play at the inception of
>>>    Memo #4’s assertion of war crimes.
>>>    3.
>>>
>>>    Even with the best of intentions, perhaps unknowingly the DOJ may be
>>>    amplifying the effect of potential war crimes by indirectly supplementing
>>>    the root cause of the problem and financial model of the Deferred Agreement
>>>    being self-policing.
>>>
>>> Mr. Marzulli, there has been an active United Nations peacekeeping
>>> mission in Cyprus since the 1964 Turkish military invasion and occupation
>>> of the northern third of Cyprus. Only Turkey recognises the Turkish
>>> Republic of Northern Cyprus, while there is broad recognition that the
>>> ongoing military presence constitutes occupation of territories that are
>>> under Turkish military control.
>>>
>>>
>>>    -
>>>
>>>    The graduate education behind Memo #4 is a product of the University
>>>    of Nicosia’s (UNIC) main campus, located adjacent to the United Nations
>>>    Buffer Zone that separates the invaded Turkish Republic of North Cyprus and
>>>    the Republic of Cyprus, which joined the European Union in 2004.
>>>    -
>>>
>>>    Memo #4 is also a product of United Nations consultancy, based at
>>>    its Manhattan headquarters, where (today, what is now xNY.io - Bank.org)
>>>    was credited with increasing the breadth and accessibility of reference
>>>    content from the world’s most important multinational organization.
>>>    -
>>>
>>>    Memo #4’s subject of war crimes has preeminent association with such
>>>    projects as the Audio Visual Library of International Law.
>>>
>>> Over the following sections, Memo #4 will provide a detailed timeline
>>> that would constitute real concern of the war crime of aggression yielding
>>> the war crime against peace in active war conflict in the world’s only
>>> military divided capital, funded from Manhattan Island.
>>>
>>> The Bank of Cyprus and Illegal Short Selling Irregularities of Turkey’s
>>> Markets
>>>
>>> Mr. Marzulli, turn this matter as we will, and look at it from any side
>>> whatsoever, and it presents the appearance of a cross-border act of
>>> aggression. Goldman Sachs’ potential disrespect to the Deferred Agreement’s
>>> core values has cultivated new crimes that aim to manipulate cross-border
>>> war crime regulatory frameworks.
>>>
>>>    -
>>>
>>>    On April 02, 2021 the Financial Times reported that Turkey fined
>>>    Goldman Sachs over alleged irregularities in short selling, just a week
>>>    after foreign investors pulled $1.9B from the country’s stock and bond
>>>    markets. Turkey’s Capital Markets Board said that Goldman Sachs was among
>>>    10 securities firms that had placed orders for short selling without proper
>>>    notification, violating rules enacted previously that temporarily
>>>    prohibited such transactions.
>>>    -
>>>
>>>    On April 20, 2021 the CyprusMail (Cyprus’ only English Language
>>>    daily newspaper) reported Goldman Sachs International acted as
>>>    Global Coordinators and Dealer Managers in a $330M bond issuance for the
>>>    Bank of Cyprus.
>>>
>>>
>>> Given the active military conflict in Cyprus, Memo #4 notes that there
>>> is one place on the planet you are not supposed to do this sort of thing.
>>> Furthermore, the DOJ’s Deferred Agreement with Goldman Sachs may have been
>>> tainted with the potential war crime of aggression, risking international
>>> peace and the lives of United Nations peacekeepers, while jeopardizing the
>>> United States of America’s financial security.
>>>
>>> Concern of New York Prime Bank Instrument Fraud and Marketplace
>>> Manipulation
>>>
>>> The United States Department of the Treasury warns that Prime Bank
>>> Instrument Fraud schemes have attracted significant international
>>> attention, since individuals and organizations have lost billions of
>>> dollars worldwide. "Prime Bank Instrument Fraud" is the general term given
>>> to prime bank fraud schemes that go by many different names.
>>>
>>> During April 2021, Goldman Sachs could not in good faith (and, plausible
>>> deniability) make any reasonable claim of holding a pristine relationship
>>> with Turkey’s Central Bank or with Cyprus’ largest financial institutions,
>>> given the 1Malaysia Development Berhad scandal and then pending Deferred
>>> Prosecution Agreement with the United States of America.
>>>
>>>    -
>>>
>>>    Memo #4 suggests that Goldman Sachs developed a Prime Bank
>>>    Instrument Fraud program to level out yo-yo market dynamics caused by
>>>    failed marketplace manipulation exercises in Turkey and Cyprus.
>>>    -
>>>
>>>    Systematic bank fraud and/or marketplace manipulation of any kind
>>>    between Turkey and Cyprus could constitute the war crime of aggression.
>>>    -
>>>
>>>    Furthermore, Memo #4 argues that Goldman Sachs may have tried to
>>>    bambooze governments in New York, Cyprus and Turkey through regulatory
>>>    arbitrage loopholes, while Goldman seemingly may have not considered the
>>>    totality of such actions as war crimes.
>>>
>>>
>>> Turkey has the highest inflation in Europe. It has the second-highest
>>> rate of inflation among emerging markets, just behind Argentina. It has the
>>> 13th highest inflation rate in the world, ranking it between South Sudan
>>> and Nigeria. After Goldman Sachs was fined for illegal stock and bond
>>> market short selling by the Turkish government, logic would argue further
>>> malfeasance potentially could have been avoided by the DOJ’s 1Malaysia
>>> Development Berhad investigation.
>>>
>>>
>>>    -
>>>
>>>    On April 15, 2021 CNBC reported that Goldman Sachs (note, the
>>>    previous section’s milestones of April 02, 2021 and April 20, 2021)
>>>    crucially removed its bias toward Turkey tightening interest rates. Goldman
>>>    issued guidance highlighting the fact that the bank thought that, “…the
>>>    removal of the tightening bias against rising inflation expectations
>>>    suggests that the TCMB (Turkish Central Bank) now has a more dovish
>>>    reaction function.”
>>>    -
>>>
>>>    On August 14, 2021 the CyprusMail reported serious concern among
>>>    economists about data reporting from the Turkish Statistical Institute.
>>>    Ahmet Takan, a former official with the office of the Turkish prime
>>>    minister, acted as a whistle blower, warning that Turkey potentially was
>>>    manipulating inflation data.
>>>    -
>>>
>>>    On September 1, 2021 Reuters reported that Goldman Sachs hiked
>>>    Turkish growth forecasts. Goldman economists issued guidance stating,
>>>    "Overall, the Turkish economy has been able to grow faster than we thought
>>>    without a deterioration in its external balances, as the pickup in foreign
>>>    demand has been very supportive."
>>>    -
>>>
>>>    On November 30, 2021 Reuters reported that Goldman Sachs trimed
>>>    Turkey’s 2022 growth forecast. Goldman Sachs' Murat Unur stated, "We think
>>>    that the GDP figures released today tell us little about the pace of
>>>    economic activity going forward as the recent sell-off in the Lira is
>>>    likely to impact economic activity significantly"
>>>
>>>
>>> Mr. Marzulli, the DOJ’s Deferred Prosecution Agreement with Goldman
>>> Sachs was signed on October 21, 2021. The timeline of events above do
>>> not coincide with terms and conditions of the Deferred Agreement mandated
>>> by the United States of America.
>>>
>>> Furthermore, as an international graduate scholars of the world’s only
>>> military divided capital on the planet, xNY.io - Bank.org should be
>>> protected from any association of crimes against peace, related to the
>>> planning, preparation, initiation, waging or participation in a common plan
>>> or conspiracy related to a war of aggression, which can only apply in
>>> relation to international armed conflict.
>>>
>>>
>>> War Crimes Against Humanity
>>>
>>> Mr. Marzulli, xNY.io - Bank.org is concerned that potential breaches to
>>> the Deferred Agreement are impacting our global enterprise. Crimes against
>>> humanity can be committed in peacetime as well as during an armed conflict.
>>> Even a single act could fall under this exclusion ground provided it forms
>>> part of a widespread or systematic attack against a civilian population and
>>> the act is committed by any person (including a civilian) who had knowledge
>>> of the attack and the link of the act to the attack.
>>>
>>>
>>>    1.
>>>
>>>    We are looking to learn more about the DOJ’s approach to assessing
>>>    any potential breaches to the Deferred Agreement’s mandates as we determine
>>>    New York State’s role in cross-border bank regulation and corresponding
>>>    innovation beyond war crimes against humanity.
>>>    2.
>>>
>>>    In order to establish whether a war crime or a crime against
>>>    humanity has been committed, the case officer should consult the relevant
>>>    international instruments and case law.
>>>    3.
>>>
>>>    Crimes against humanity are fundamentally inhumane acts, committed
>>>    as part of a systematic or widespread attack. Inhumane acts, which could
>>>    reach this threshold when committed pursuant to or in furtherance of a
>>>    State or organizational policy (potentially, New York State bank
>>>    regulation).
>>>    4.
>>>
>>>    Persecution against any identifiable group or collectivity on
>>>    political, racial, national, ethnic, cultural, religious, gender, or other
>>>    grounds that are universally recognised as impermissible under
>>>    international law.
>>>    5.
>>>
>>>    Furthermore, we have made 28 highlights to the Deferred Agreement
>>>    providing supporting reference to Memo #4’s overarching premise.
>>>
>>>
>>> xNY.io - Bank.org submits Memo #4 for DOJ consideration of other
>>> inhumane acts of a similar character intentionally causing great suffering,
>>> or serious injury to body or to mental or physical health. Some crimes
>>> against humanity would require an additional specific intent, such as
>>> Goldman Sachs willfully disrespecting New York State and/or overall peace
>>> and security of the United States of America.
>>>
>>> Memo #1, Memo #2, Memo #3 and Memo #4 outline instances that correspond
>>> with the associated definitions of the potential war crimes abroad and
>>> jeopardize the future of bank innovation from New York, at great sacrifice
>>> to the Homeland.
>>>
>>> We hope to learn the DOJ’s approach to comment on Memo #4’s subject
>>> matter or, without delay refer these concerns to the International Criminal
>>> Court and/or International Court of Justice for comment.
>>>
>>> Respectfully yours with anticipation,
>>>
>>> Gunnar Larson - xNY.io <http://www.xny.io> | Bank.org
>>>
>>> <http://bank.org>MSc
>>> <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
>>> - Digital Currency
>>> MBA
>>> <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
>>> - Entrepreneurship and Innovation (ip)
>>> G at xNY.io  +1-646-454-9107
>>>
>>
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