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Memo #4 - Goldman Sachs Deferred Prosecution Agreement
by Gunnar Larson 07 Apr '24

07 Apr '24

https://docs.google.com/document/d/1ajVVx6NGB9wd2GDXfLRftf0RVFpqjl8WWITvdNV… 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(a)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…> 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&u…> - Digital Currency MBA <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovat…> - Entrepreneurship and Innovation (ip) G(a)xNY.io +1-646-454-9107

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Hedge Fund Titan John Paulson Made $1 Billion in an Illegal Goldman Sachs Deal; Trump Is Now Floating Him for Treasury Secretary
by Gunnar Larson 07 Apr '24

07 Apr '24

https://wallstreetonparade.com/2024/03/hedge-fund-titan-john-paulson-made-1… By Pam Martens and Russ Martens: March 14, 2024 ~ Hedge Fund Titan, John Paulson According to headlines at Bloomberg News and Reuters this morning, Donald Trump is floating the notorious hedge fund billionaire, John Paulson, to be his next Treasury Secretary. Paulson has, apparently, earned consideration for the post the same way Steve Mnuchin, Trump’s former Treasury Secretary, got the job: by raising a lot of money for the Trump political campaign. Paulson has hosted multiple fundraising events for Trump in the current election cycle and in Trump’s failed run for reelection in 2020. Paulson is the founder and President of the hedge fund Paulson & Co. On April 16, 2010, the Securities and Exchange Commission had this to say about Paulson’s business morals when it announced formal charges against Goldman Sachs pertaining to the infamous 2007 ABACUS deal: “The SEC alleges that one of the world’s largest hedge funds, Paulson & Co., paid Goldman Sachs to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events.” Translation, Paulson helped Goldman select dogs that would default or receive credit downgrades and then made easy bets that they would. The SEC complaint goes on: “…after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS [Residential Mortgage Backed Securities] portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Given that financial short interest, Paulson & Co. had an economic incentive to select RMBS that it expected to experience credit events in the near future. Goldman Sachs did not disclose Paulson & Co.’s short position or its role in the collateral selection process in the term sheet, flip book, offering memorandum, or other marketing materials provided to investors.” According to the SEC’s complaint, Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By October 2007, 83 percent of the bonds in the portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded. The SEC estimated that investors lost more than $1 billion in the ABACUS deal while Paulson profited by approximately the same amount. On July 15, 2010, the SEC announced that Goldman Sachs would pay $550 million to settle its ABACUS charges. Fabrice Tourre, a young Goldman investment banker involved in the deal, was the only person to face a civil trial. No one was criminally prosecuted. Paulson walked free – ostensibly because he didn’t actually sell the product or misrepresent it to investors – he just stacked the deck against investors and, apparently, that’s not a big deal in the eyes of the SEC. While Paulson’s involvement in the ABACUS deal was the subject of news reporting, NYU’s Stern School of Business announced that it had received a $20 million donation from Paulson and would name “the first floor lobby of Tisch Hall and the School’s auditorium in his honor,” noting further that those areas “are prominent locations for hosting business and policy conferences as well as serve as central community hubs for students and returning alumni.” If, as Senator Bernie Sanders has correctly surmised, the business model of Wall Street is fraud, and that is now an open secret in America, then it makes eminently good sense to let students aspiring for jobs on Wall Street come and go in a university hub honoring John Paulson. It also meshes with Donald Trump’s view of American capitalism, where the skill and cunning to commit crimes and avoid prosecution renders you fit for the highest political offices. (What should deeply concern every American, however, is why the national security agencies in the U.S. are tolerating this view.) Trump’s first Treasury Secretary, Steve Mnuchin, had such a challenged history as a foreclosure kingpin that in January 2017 every Democratic Senator on the Senate Finance Committee boycotted the vote on Mnuchin for Treasury Secretary. Democrats were repulsed by the prospect of Mnuchin as U.S. Treasury Secretary. In a press release, Democratic Senator Jeff Merkley said: “Donald Trump’s choice of Mnuchin is not only a fundamental betrayal of his promise to stand up to Wall Street — it is a punch in the gut to the thousands of American families who were thrown out of their homes by Mnuchin’s bank. The voices of these Americans should be heard loud and clear as the Senate examines his record and considers his nomination.” Senator Bernie Sanders weighed in with this: “During the campaign, President-elect Donald Trump told the American people that he was going to change Washington by taking on Wall Street. But now that the election is over, Donald Trump’s choice for Treasury Secretary is the same old, same old Wall Street insider who made a fortune during the financial crisis as millions lost their homes. If confirmed, Steve Mnuchin would be the third Treasury Secretary to come from Goldman Sachs in the last 17 years. That is not the type of change that Donald Trump promised to bring to Washington — that is hypocrisy at its worst. The last thing we need is another Treasury Secretary from Goldman Sachs and another broken promise from Donald Trump.” It emerged during Mnuchin’s confirmation hearing that the bank he headed, OneWest, had illegally foreclosed on activie duty military and engaged in other illegal foreclosure practices. Mnuchin was confirmed by a slim margin of votes in the Senate, 53-47, along party lines, with all Republicans voting for him and all Democrats voting against him, except for Senator Joe Manchin of West Virginia, who voted yes. The power and influence of the U.S. Treasury Secretary is sweeping. Its bureaus include the IRS; the Office of the Comptroller of the Currency which oversees national banks; the Bureau of Engraving and Printing and the U.S. Mint that issues the currency and coin of the U.S.; the Financial Crimes Enforcement Network (FinCEN) which is supposed to combat money laundering; and numerous other units. The Treasury Secretary not only sits at the helm of the U.S. Treasury but as a result of the 2010 Dodd-Frank financial “reform” legislation, the Treasury Secretary now chairs the Financial Stability Oversight Council (F-SOC), which is responsible for preventing another financial implosion like that of 2008 – where hedge fund guys and Wall Street bankers got bailed out while millions of innocent Americans lost their jobs and their homes to foreclosure.

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The $40 Billion Fund That’s Gambling With Europe’s Climate Goal
by Gunnar Larson 06 Apr '24

06 Apr '24

The $40 Billion Fund That’s Gambling With Europe’s Climate Goal https://www.bloomberg.com/news/articles/2024-04-02/eu-s-40-billion-clean-te… A solar panel manufacturer that’s laying off workers. A battery maker that spurned Europe for American subsidies. A green hydrogen project stalled for lack of electricity.

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Ex-BigLaw Atty's Defamation Injunction Bid Meets Skepticism
by Gunnar Larson 06 Apr '24

06 Apr '24

Ex-BigLaw Atty's Defamation Injunction Bid Meets Skepticism <https://www.law360.com/competition/articles/1821233?nl_pk=6416fd97-1dc4-4e0…> By Jake Maher The Florida federal judge overseeing a $150 million defamation case between an ex-Greenberg Traurig LLP partner and a social media personality accused of mounting a harassment campaign against him declined, for now, to issue an injunction against alleged cyberstalking and indicated the petition may be better suited for state court. Order attached | Read full article » <https://www.law360.com/competition/articles/1821233?nl_pk=6416fd97-1dc4-4e0…> | Save to favorites » <https://www.law360.com/competition/articles/1821233?nl_pk=6416fd97-1dc4-4e0…>

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OCC's Hsu Floats Splitting Refund Costs For AI-Enabled Fraud
by Gunnar Larson 06 Apr '24

06 Apr '24

OCC's Hsu Floats Splitting Refund Costs For AI-Enabled Fraud <https://www.law360.com/fintech/articles/1821211?nl_pk=d2b3e7ef-ab62-4a62-80…> By Jon Hill Requiring banks and artificial intelligence platforms to share financial responsibility for reimbursing victims of AI-enabled payment fraud could help incentivize better anti-fraud controls, the Office of the Comptroller of the Currency's acting chief said Thursday. 1 document attached | Read full article » <https://www.law360.com/fintech/articles/1821211?nl_pk=d2b3e7ef-ab62-4a62-80…> | Save to favorites » <https://www.law360.com/fintech/articles/1821211?nl_pk=d2b3e7ef-ab62-4a62-80…>

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CFPB Says Online Games May Pose Financial Risks To Users
by Gunnar Larson 06 Apr '24

06 Apr '24

CFPB Says Online Games May Pose Financial Risks To Users <https://www.law360.com/fintech/articles/1821139?nl_pk=d2b3e7ef-ab62-4a62-80…> By Jon Hill The Consumer Financial Protection Bureau said Thursday that it sees significant financial and privacy risks facing consumers in the multibillion-dollar digital gaming market and will be keeping a close eye on online game and "virtual world" business practices as these platforms become increasingly financialized. Report attached | Read full article » <https://www.law360.com/fintech/articles/1821139?nl_pk=d2b3e7ef-ab62-4a62-80…> | Save to favorites » <https://www.law360.com/fintech/articles/1821139?nl_pk=d2b3e7ef-ab62-4a62-80…>

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Context Is Everything In Justices' Sentencing Relief Decision
by Gunnar Larson 06 Apr '24

06 Apr '24

Context Is Everything In Justices' Sentencing Relief Decision <https://www.law360.com/access-to-justice/articles/1819583?nl_pk=6416fd97-1d…> In the U.S. Supreme Court’s recent Pulsifer v. U.S. decision, limiting the number of drug offenders eligible for sentencing relief, the majority and dissent adopted very different contextual frames for interpreting the meaning of “and” — with the practical impact being that thousands more defendants will be subject to severe mandatory minimums, says Douglas Berman at Moritz College of Law. Opinion attached | Read full article » <https://www.law360.com/access-to-justice/articles/1819583?nl_pk=6416fd97-1d…> | Save to favorites » <https://www.law360.com/access-to-justice/articles/1819583?nl_pk=6416fd97-1d…>

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Study Shines Light On Excessive NY Prison Sentences
by Gunnar Larson 06 Apr '24

06 Apr '24

Study Shines Light On Excessive NY Prison Sentences <https://www.law360.com/access-to-justice/articles/1819323?nl_pk=6416fd97-1d…> By Marco Poggio A recent report shining a light on excessive felony prison sentences handed down by more than 140 trial judges in New York over a 16-year period has experts and advocacy groups calling for increased transparency to help ensure that courts are imposing fair penalties on criminal defendants in the Empire State. Read full article » <https://www.law360.com/access-to-justice/articles/1819323?nl_pk=6416fd97-1d…> | Save to favorites » <https://www.law360.com/access-to-justice/articles/1819323?nl_pk=6416fd97-1d…>

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Launder your filthy dollars in Second Life
by pro2rat＠yahoo.com.au 06 Apr '24

06 Apr '24

Lindo bingo zum wohl! U.S. CFPB flags risks in virtual worlds’ crypto economy Cointelegraph (about 1 hour ago) The agency noted that crypto assets in virtual environments like Decentraland and The Sandbox can be exchanged for fiat currency on other cryptocurrency platforms Hey, thats not a BUG! That's a cryptoanarchist FEATURE! USG tools go fuck yourselves

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Wells Fargo Hit With Del. Suit Targeting Account Abuses
by Gunnar Larson 06 Apr '24

06 Apr '24

Wells Fargo Hit With Del. Suit Targeting Account Abuses <https://www.law360.com/delaware/articles/1821062?nl_pk=8f2e5a76-bb66-462b-a…> By Jeff Montgomery Citing billions of dollars in regulatory agency sanctions, fines and judgments and allegedly chronic disregard of "red flag" reports and fake account investigations, a Wells Fargo & Co. stockholder has sued 23 current and former bank directors and officers in Delaware's Court of Chancery, seeking derivative recoveries for the losses. Read full article » <https://www.law360.com/delaware/articles/1821062?nl_pk=8f2e5a76-bb66-462b-a…> | Save to favorites » <https://www.law360.com/delaware/articles/1821062?nl_pk=8f2e5a76-bb66-462b-a…>

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