Memo #3 - Goldman Sachs Deferred Prosecution Agreement
Gunnar Larson
g at xny.io
Thu Jul 20 19:05:44 PDT 2023
>
>> https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=drivesdk
>>
>>
>> February 21, 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 #3 - Goldman Sachs Deferred Prosecution Agreement
>> <https://www.justice.gov/criminal-fraud/file/1329926/download>
>>
>> Dear Mr. Marzulli:
>>
>> The Department of Justice has yet to respond to Memo #1
>> <https://docs.google.com/document/d/1OsxfjN3TUepftKklopkQDSMwFWstWozuku4IPPuV1ho/edit>
>> and Memo #2
>> <https://docs.google.com/document/d/10BYgCtCf9F7A4YnhN792cTBU6P-pfdaOg0UTRbt5BFg/edit?usp=sharing>
>> 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 #3
>> <https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=sharing>
>> aims to associate malfeasance with Marketplace Manipulation.
>>
>> The 2021 Apple Card Investigation
>>
>> What would Steve Jobs say?
>>
>> xNY.io - Bank.org feels this is one part of a broader discussion we must
>> have about equal credit access. Corruption occurs when the private
>> search for economic advantage and personal advancement clashes with laws
>> and norms that condemn such behavior. Further complicating the picture,
>> some illegal corrupt transactions drain public resources away from
>> education, health care, and effective infrastructure—the kinds of
>> investments that can improve economic performance and raise living
>> standards for all.
>>
>> The cost of corruption is greater than the sum of lost money. Distortions
>> in spending priorities undermine the ability of the state to promote
>> sustainable and inclusive growth. This is possible in a framework already
>> characterized by weak law that creates both a certain alteration of the
>> rules of the market and perverse dynamics distorting the economy and
>> inhibiting free competition.
>>
>> -
>>
>> Goldman Sachs has a history of poor ethical stewardship, at the
>> global level. Similarly, New York's former Governor Andrew Cuomo and NY-DFS
>> Superintendent Linda Lacewell are now world famous for women's rights.
>> -
>>
>> On March 23, 2021, Lacewell published NY-DFS' Findings on Apple Card
>> and its Underwriter Goldman Sachs Bank. Former Superintendent of NY-DFS,
>> Ms. Linda Lacewell's stone faced propaganda assured that Apple Card did not
>> discriminate against women, while under Goldman Sachs management.
>> -
>>
>> The red flags started to appear when an authorized user drew
>> attention to the following: A person who relies on a spouse's access to
>> credit, and only accesses those accounts as an authorized user, may
>> incorrectly believe they have the same credit profile as the spouse.
>> -
>>
>> xNY.io - Bank.org recently collated 61 highlights
>> <https://drive.google.com/file/d/1xH16OKyuXzB-MVqIznMWDE9w8RRdmZCw/view>
>> to the Report on Apple Card Investigation from March 2021.
>>
>> Mr. Marzulli, the Apple Card investigation was to assess women's access
>> to equitable finance. March 2021 also saw New York State Attorney General
>> Letitia James' formal green light to launch an independent investigation
>> <https://nypost.com/2021/02/27/second-woman-accuses-gov-andrew-cuomo-of-sexual-harassment-report>
>> into sexual harassment allegations Lodged against Gov. Andrew Cuomo.
>> Lacewell's legacy is authoring reports disparaging women.
>>
>> The integrity of the Apple Card investigation must be rationally
>> considered as flawed. Likewise, Goldman Sach has a history of unethical
>> posturing on matters specific to women and girls (via global regulatory
>> arbitrage structures).
>>
>> 1.
>>
>> Mr. Marzulli, Peter Oppenheimer is Apple's former CFO and in 2014
>> joined Goldman Sachs' board of directors and serves on key committees such
>> as Audit (Chair), Governance, Risk.
>> 2.
>>
>> There is no logical reason for Apple to trust the Apple Card Report
>> and Apple’s former CFO is well aware of the legacy of Goldman's unethical
>> antics and regulatory arbitrage frameworks that take advantage of the
>> world's most vulnerable populations.
>> 3.
>>
>> Mr Marzulli, at the very least, it is now clear that New York’s
>> former Superintendent is famous for publishing reports that disperage
>> women.
>>
>> Given the obvious logical factors at play, it may appear that elements of
>> the Deferred Agreement may have been ignored in the facts, figures and
>> assessment of impact on women and girls concerning the Apple Card Report
>> under the former Superintendent.
>>
>> We seek DOJ guidance on the Apple Card Report as a marketplace
>> manipulation instrument. Next, Memo #3, will explore our organization’s
>> management analysis of marketplace manipulation partnering with MoneyGram
>> and Ripple.
>>
>> United States and Africa Marketplace Manipulation Instruments
>>
>> xNY.io - Bank.org feels this is one part of a broader discussion of
>> marketplace manipulation architectures operating from lower Manhattan that
>> potentially function as a cross-border regulatory arbitrage banking
>> operation in the United States and Africa.
>>
>> -
>>
>> MoneyGram, which has about 227,000 global money transfer agent
>> locations in 191 countries and territories, was recapitalized in 2008 (same
>> year as Bitcoin's whitepaper
>> <https://www.ussc.gov/sites/default/files/pdf/training/annual-national-training-seminar/2018/Emerging_Tech_Bitcoin_Crypto.pdf>
>> ).
>> -
>>
>> Walmart is the only MoneyGram agent, for both the Global Funds
>> Transfer and Financial Paper Products segments, that accounts for more than
>> 10% of revenue. In 2020, Walmart accounted for 13% of total MoneyGram’s
>> revenue and 16% in 2019 and 2018.
>> -
>>
>> Goldman Sachs acquired an equity interest of 63 percent in MoneyGram
>> for about $710 million. Per the 2008 agreement, MoneyGram also received
>> $500 million in debt financing from Goldman Sachs (Cordeiro 2011)
>> <https://sciwheel.com/work/citation?ids=10952410&pre=&suf=&sa=0>.
>> -
>>
>> Goldman Sachs as a MoneyGram investor has a Participation Agreement
>> with Walmart Inc. under which the Investor is obligated to pay Walmart
>> certain percentages of any accumulated cash payments received by the
>> Investor in excess of the Investor's original investment in the Company
>> (MONEYGRAM INTERNATIONAL INC 2021)
>> <https://sciwheel.com/work/citation?ids=10952491&pre=&suf=&sa=0>.
>> -
>>
>> In 2016, Ripple received New York’s First NY-DFS BitLicense for an
>> Institutional Use Case of Digital Assets (Larsen 2016)
>> <https://sciwheel.com/work/citation?ids=10953308&pre=&suf=&sa=0>.
>>
>> Shortly after being NY-DFS accredited, Ripple announced it was teaming up
>> with MoneyGram to test payments using Ripple’s xRP virtual currency. During
>> this time, Ripple was making headlines as the xRP digital currency had
>> surged — and fallen — dramatically (Browne 2018)
>> <https://sciwheel.com/work/citation?ids=10953324&pre=&suf=&sa=0>. Soon
>> after, Ripple announced a $50 million investment in MoneyGram snagging a
>> 10% equity stake in the firm. Brad Garlinghouse, Ripple’s CEO, added that
>> his firm would support MoneyGram’s “further expansion” into the European
>> and Australian payment corridors (De 2019)
>> <https://sciwheel.com/work/citation?ids=10953333&pre=&suf=&sa=0>.
>>
>> Connecting the dots, MoneyGram is now one of the most expensive transfer
>> providers (Tierney 2019)
>> <https://sciwheel.com/work/citation?ids=10953437&pre=&suf=&sa=0> on
>> planet Earth. Customers incur fees for postal mail, telephone calls,
>> electronic mail, and other computerized messaging services.
>>
>> -
>>
>> Computer crimes as a threat is no less a threat because it is
>> contingent, because the speaker does not intend or is unable to carry it
>> out when the threat was not directly communicated to the MoneyGram customer
>> as a target, or because the language used might be considered cryptic or
>> ambiguously not part of the current New York BitLicense mandate.
>> -
>>
>> Ripple simply made MoneyGram’s business more efficient, thus accruing
>> more profits for Goldman Sachs directed out of Manhattan.
>> -
>>
>> From 2019 - 2020, MoneyGram received more than $40 million in market
>> development fees from Ripple Labs in return for providing liquidity to its
>> On-Demand Liquidity (ODL) network. It can be calculated that 10%-15% of the
>> proceeds came from Walmart customers, who are some of the most
>> disenfranchised Americans financially.
>>
>> Over the last five years, through conscious organizational HR management,
>> Goldman Sachs created layer upon layer of New York BitLicense-related
>> disguises and cross-border systems under potential conspiracy and plausible
>> deniability to computer crimes and marketplace manipulation. Goldman Sachs'
>> various direct and/or indirect BitLicensee connections profit daily from
>> virtual currency market manipulation computer crimes with cross-border
>> reach, operating as a large syndicate group from lower Manhattan.
>>
>> New York banks have a long and profitable history of exploiting
>> regulatory arbitrage. Similar to the MoneyGram instance, some evidence
>> shows that Goldman Sachs also seems to have entered Africa.
>>
>> -
>>
>> What is astonishing is that Ripple is powering some of
>> www.JUMO.World’s <http://www.jumo.world> bank customers (Ripple 2020)
>> <https://sciwheel.com/work/citation?ids=10959408&pre=&suf=&sa=0>, in
>> a troublesome manner similar to MoneyGram.
>> -
>>
>> Given that several enforcement actions and lawsuits in the United
>> States specifically targeted banks’ treatment of minority borrowers (Taibbi
>> 2014) <https://sciwheel.com/work/citation?ids=10961062&pre=&suf=&sa=0>,
>> it may not be surprising to learn of www.Jumo.World or “JUMO” (Buchak
>> et al. 2017)
>> <https://sciwheel.com/work/citation?ids=10956108&pre=&suf=&sa=0>
>> -
>>
>> A domain extension, in this case “.World” domain, is the targeted
>> subject area of a computer program. It is a term used in software
>> engineering (Wikipedia 2021)
>> <https://sciwheel.com/work/citation?ids=10968017&pre=&suf=&sa=0>:
>>
>> During the fourth quarter of 2018, JUMO successfully finalized a $65
>> million capital raise that was led by Goldman Sachs in New York. JUMO is a
>> full technology software stack for building and running financial services,
>> targeted at the world’s most disadvantaged populations.
>>
>> Today, JUMO operates across numerous African markets including Tanzania,
>> Ghana, Zambia, Kenya, Uganda, and most recently in Pakistan, with plans to
>> expand further across the sub-continent.
>>
>> 1.
>>
>> Since its launch in 2014, more than 15 million people have saved or
>> borrowed on the JUMO platform, with over $1.6 billion in funds disbursed to
>> customers. Nearly 70% of JUMO’s customers are micro and small business
>> owners.
>> 2.
>>
>> JUMO targets the unbanked population across several emerging and
>> developing markets. A variety of JUMO’s partnerships with leading banks and
>> mobile network operators creates a marketplace where consumers can access
>> financial services and banks can access a new pool of mobile money
>> customers (Vostok Emerging Finance Ltd 2020)
>> <https://sciwheel.com/work/citation?ids=10955874&pre=&suf=&sa=0>.
>> 3.
>>
>> Given the regulatory environment in Africa, it could be suggested
>> that from New York, Goldman Sachs and Ripple’s organizational HR management
>> structures once again aim to profit from some of the most vulnerable of the
>> human population.
>>
>> Memo #1
>> <https://docs.google.com/document/d/1OsxfjN3TUepftKklopkQDSMwFWstWozuku4IPPuV1ho/edit?usp=sharing>,
>> Memo #2
>> <https://docs.google.com/document/d/10BYgCtCf9F7A4YnhN792cTBU6P-pfdaOg0UTRbt5BFg/edit?usp=sharing>
>> and Memo #3
>> <https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=sharing>
>> profile instances that correspond with potential breaches to the Deferred
>> Agreement that are impacting our global enterprise. Finally, we have made 28
>> highlights to Deferred Agreement
>> <https://drive.google.com/file/d/1Yx88RMoeLyyfbNK0RtPl4r-m8N21_1Sp/view?usp=sharing>
>> as a reference resource tool.
>>
>> We are looking forward to learning more about the DOJ’s approach to
>> assessing any potential breaches to the Deferred Agreement’s mandates.
>>
>> 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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