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Feds Say Ex-OneCoin Atty Should Serve 'Substantial' Time
by Gunnar Larson 02 Apr '24

02 Apr '24

Feds Say Ex-OneCoin Atty Should Serve 'Substantial' Time <https://www.law360.co.uk/financial-services-uk/articles/1818630?nl_pk=a94fc…> By Sydney Price Manhattan federal prosecutors have requested a "substantial" amount of prison time for a Bulgarian woman who worked on the legal team at the fraudulent OneCoin cryptocurrency exchange, but said the sentence should fall below the guidelines range of 10 years. Memorandum attached | Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1818630?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1818630?nl_pk=a94fc…>

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Struggling Lender Amigo Raises Cash, Eyes Reverse Takeover
by Gunnar Larson 02 Apr '24

02 Apr '24

Struggling Lender Amigo Raises Cash, Eyes Reverse Takeover <https://www.law360.co.uk/financial-services-uk/articles/1818557?nl_pk=a94fc…> By Najiyya Budaly Amigo Holdings PLC said on Thursday that it has raised cash and is looking for a reverse takeover target so that it can continue operating as a listed company, amid the planned liquidation of its troubled subprime lending arm. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1818557?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1818557?nl_pk=a94fc…>

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Investors Told To Show Standing For £1.4B StanChart Claim
by Gunnar Larson 02 Apr '24

02 Apr '24

Investors Told To Show Standing For £1.4B StanChart Claim <https://www.law360.co.uk/financial-services-uk/articles/1818577?nl_pk=a94fc…> By Ronan Barnard A London judge on Thursday ordered part of a group of investors suing Standard Chartered PLC for £1.4 billion ($1.7 billion) — for allegedly downplaying how much it had breached U.S. sanctions — to prove they are entitled to bring the claim. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1818577?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1818577?nl_pk=a94fc…>

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Traders' Loss Raises High Bar For Bankers To Clear Names
by Gunnar Larson 02 Apr '24

02 Apr '24

Traders' Loss Raises High Bar For Bankers To Clear Names <https://www.law360.co.uk/financial-services-uk/articles/1818894?nl_pk=a94fc…> By Christopher Crosby The failure of two former traders to overturn their rate-rigging convictions could mark the end of the road for others convicted in connection with the scandal because of the reluctance of the English courts to topple precedent, lawyers say. Read full article » <https://www.law360.co.uk/financial-services-uk/articles/1818894?nl_pk=a94fc…> | Save to favorites » <https://www.law360.co.uk/financial-services-uk/articles/1818894?nl_pk=a94fc…>

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FTX founder Sam Bankman-Fried speaks out after sentencing: 'I'm haunted, every day, by what was lost' - ABC News
by Gunnar Larson 01 Apr '24

01 Apr '24

https://abcnews.go.com/US/ftx-founder-sam-bankman-fried-speaks-after-senten… Former crypto entrepreneur Sam Bankman-Fried told ABC News in an exclusive interview that he is remorseful for his actions that last week resulted in a 25-year prison sentence for fraud. "It's most of what I think about each day," he said. Bankman-Fried's sentence capped off a 17-month saga that began in November 2022 when FTX, a global cryptocurrency exchange he co-founded and served as CEO, imploded, resulting in a $8 billion loss for its customers. Bankman-Fried resigned amid the company's fall and the new ownership filed for bankruptcy. Prosecutors said he stole from FTX customers and used the money for political contributions, investments and personal gain. Last fall, he was convicted of seven counts of fraud, conspiracy and money laundering, which led to Thursday's sentencing. Speaking exclusively to ABC News via email throughout the weekend from the Metropolitan Detention Center in Brooklyn, Bankman-Fried said FTX's insolvency was the result of several "bad decisions" he made in 2022. FTX founder Sam Bankman-Fried leaves Federal court on July 26, 2023, in New York. (AP Photo/Mary Altaffer) Mary Altaffer/AP MORE: Man who crossed Key Bridge just before collapse speaks out: 'I'm really lucky' "I never thought that what I was doing was illegal. But I tried to hold myself to a high standard, and I certainly didn't meet that standard," he said. During his sentencing on Thursday, U.S. District Judge Lewis Kaplan said Bankman-Fried committed perjury in his testimony and was "often evasive." The judge also said that the defendant's remarks never conveyed "a word of remorse for the commission of terrible crimes." Bankman-Fried said Sunday that "of course" he is remorseful. "I've heard and seen the despair, frustration and sense of betrayal from thousands of customers; they deserve to be paid in full, at current price," he said. "That could and should have happened in November 2022, and it could and should happen today. It's excruciating to see them waiting, day after day," he said. MORE: Total solar eclipse April 8, 2024: Path, time and the best places to view He added that he "felt the pain" from co-workers as he "threw away what they poured their lives into" and from the charities he supported "as their funding turned into nothing but reputational damage." "I'm haunted, every day, by what was lost. I never intended to hurt anyone or take anyone's money. But I was the CEO of FTX, I was responsible for what happened to the company, and when you're responsible it doesn't matter why it goes bad. I'd give anything to be able to help repair even part of the damage. I'm doing what I can from prison, but it's deeply frustrating not to be able to do more," he said. In his statement to the court Thursday, Bankman-Fried, 32, said that had he or another FTX employee remained in place as CEO, customers would have been "paid back long ago." He blamed the company's decision to not restart the FTX exchange, which he said could have potentially led to long-term value. "There are and always have been plenty of assets to repay customers, lenders, and investors in full, at current prices or prices at the time," he said. In a court filing last year, Bankman-Fried accused Sullivan & Cromwell, the law firm representing FTX's new ownership, of working with prosecutors and said he had a right to see the FTX documents the company shared with prosecutors. For that reason, Bankman-Fried suggested on Sunday he was not given a fair trial. "At the root, SullCrom's role in the prosecution, the one-sided media frenzy they incited, and the defense's inability to get in critical evidence at trial, infected the whole process," he said. Sullivan & Cromwell did not respond to a request for comment on Sunday. Bankman-Fried also said his defense team plans to appeal later this year based on certain trial testimony that he said, "greatly misstated what actually happened" and the fact that his defense was "not allowed to introduce crucial evidence or put on important witnesses." He did not offer specifics, explaining he did not want to impact his defense team's legal strategy. Following his Thursday sentencing, Bankman-Fried said he, "lost everything I had to lose." "I'd give anything to be out there, trying to make a positive difference in the world, but I know that's not going to happen. I can't help from prison," he said in court.

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Jamie Dimon Huddles in Private with Biden Bigwigs as His Bank Faces More Crime Charges
by Gunnar Larson 01 Apr '24

01 Apr '24

https://wallstreetonparade.com/2024/04/jamie-dimon-huddles-in-private-with-… By Pam Martens and Russ Martens: April 1, 2024 ~ Jamie Dimon, Chairman and CEO of JPMorgan Chase, Shows Off Presidential Cuff Links While Testifying Before Congress in 2012 on the London Whale Trading Scandal Remember that time in 2016 when Attorney General Loretta Lynch decided she would take a private meeting with Bill Clinton on her plane as it was parked on the tarmac in Phoenix – while his wife, Hillary Clinton, was under federal investigation for using an unsafe private email server at her New York home to receive classified government emails when she was Secretary of State? What President Biden’s Vice President, Kamala Harris, and his Chief of Staff, Jeff Zients, did in mid-March was equally scandalous. Harris had a “one-on-one lunch at the White House” with Jamie Dimon, the Chairman and CEO of the most crime-riddled bank in the United States, JPMorgan Chase. Zients also separately met with Dimon. That reporting comes courtesy of reporters Joshua Franklin and James Politi of the Financial Times (paywall). It has not been disputed by the Biden administration. Dimon’s private meetings in Washington come as the bank (that has already admitted to a string of five criminal felony charges) is currently facing a serious investigation for “billions” of improperly conducted trades by its federally-insured bank. Two of its federal regulators, the Office of the Comptroller of the Currency and the Federal Reserve, settled those charges in March for a combined $348 million. Both regulators provided extremely sketchy details as to the precise nature of the trading misconduct. JPMorgan Chase revealed in an SEC filing in February that it remains under investigation in the same matter by a third regulator “but there is no assurance that such discussions will result in a resolution,” the bank wrote in the filing. It would certainly not be the first time that Dimon attempted to throw his weight around in Washington to get his bank out of trouble. During Congressional hearings in 2012, when Dimon was called to testify about his bank allowing its traders to use deposits from its federally-insured bank to gamble in derivatives in London and lose what eventually tallied up to $6.2 billion (the infamous “London Whale” scandal), Dimon had the temerity to wear presidential cuff links to show off a gift from the White House. Then there was Dimon’s meeting with Attorney General Eric Holder during the Obama administration when JPMorgan Chase was being investigated for widespread mortgage fraud. For what the bank got away with in that matter, see Matt Taibbi’s report revealing that the Justice Department sandbagged their key witness, a former lawyer/ whistleblower inside JPMorgan Chase, who called it “the biggest financial cover-up in history.” According to the recent Financial Times report, Vice President Harris did not list the luncheon on her official daily calendar, suggesting she knew it was inappropriate. The FT reporters also reveal the following: “Dimon, one of the most influential voices on Wall Street, also separately met White House chief of staff Jeff Zients while he was in Washington, as well as federal regulators and members of Congress. It could not be learnt what was discussed at the meetings. The White House and JPMorgan, the largest US bank by assets, declined to comment.” The only reason that Dimon is still called “one of the most influential voices on Wall Street” is because sycophants in mainstream media still call him that. Engaged Americans, like former Labor Secretary and Public Policy Professor Robert Reich, call Dimon an “oligarch” who has “hijacked the system.” Trial attorneys Helen Davis Chaitman and Lance Gotthoffer released a book, JPMadoff: The Unholy Alliance Between America’s Biggest Bank and America’s Biggest Crook, in which they provided this take on Dimon: “In Chapter 4, we compared JPMC [JPMorgan Chase] to the Gambino crime family to demonstrate the many areas in which these two organizations had the same goals and strategies. In fact, the most significant difference between JPMC and the Gambino Crime Family is the way the government treats them. While Congress made it a national priority to eradicate organized crime, there is an appalling lack of appetite in Washington to decriminalize Wall Street. Congress and the executive branch of the government seem determined to protect Wall Street criminals, which simply assures their proliferation… “If Jamie Dimon is running a criminal institution, he should be prosecuted for it. And law enforcement has the perfect tool for such a prosecution: the Racketeer Influenced and Corrupt Organizations ACT (RICO).” In 2014, the non-profit watchdog, Better Markets, filed a federal lawsuit against the U.S. Department of Justice and the man who sat at its helm, Attorney General Eric Holder. The lawsuit challenged what had emerged out of that cozy meeting between Holder and Dimon – a $13 billion out-of-court settlement over the bank’s sale of toxic mortgages. Better Markets wrote on its website that this was at the time “The largest settlement in U.S. history from a single entity by more than 300%” and that it “granted JP Morgan blanket civil immunity for years of alleged, but undisclosed, pervasive, egregious and knowing fraudulent and illegal conduct that contributed to the 2008 financial crash and the worst economy since the Great Depression.” Among the allegations in the Better Markets’ press release, these three stood out: “The Attorney General and other senior DOJ political appointees negotiated directly and entirely in secret with the CEO of JP Morgan Chase [Jamie Dimon], someone who was considered a possible Treasury Secretary just a few years ago. “The cellphone of DOJ’s third highest ranking official rang with the ‘familiar’ phone number of JP Morgan Chase’s CEO [Jamie Dimon], who called to offer billions of dollars to stop DOJ from holding a press conference and filing a lawsuit in just a few hours. The call worked, and the press conference and lawsuit were both called off. “DOJ gave complete civil immunity to JP Morgan Chase for defrauding thousands in exchange for $13 billion, via a contract that was negotiated and finalized in secret without any review or approval by a federal court.” Attorneys for the Justice Department asked the federal court to dismiss the Better Markets lawsuit on the basis that Better Markets lacked standing to file the lawsuit. The U.S. District Court for the District of Columbia did just that in a longwinded decision that effectively stripped Americans of their ability to fight back against the increasingly corrupt nexus between Washington and Wall Street. If you agree with Wall Street On Parade that the current banking structure in the U.S. represents a threat to national security and economic stability, please contact your U.S. Senators today via the U.S. Capitol switchboard by dialing (202) 224-3121. Tell your Senators to hold immediate hearings on the urgent need to restore the Glass-Steagall Act to separate Wall Street’s trading casinos from federally-insured commercial banks.

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S&C Advises Robinhood in $2.275 Billion Secured Revolving Credit Facility | Sullivan & Cromwell LLP
by Gunnar Larson 01 Apr '24

01 Apr '24

https://www.sullcrom.com/About/News-and-Events/Highlights/2022/April/SC-Adv… S&C Advises Robinhood in $2.275 Billion Secured Revolving Credit Facility April 18, 2022 Robinhood Securities, a clearing broker-dealer entity and a wholly owned subsidiary of Robinhood Markets, entered into an agreement in which a syndicate of banks led by JP Morgan Chase will provide Robinhood with a secured revolving credit facility of up to $2.275 billion.

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Turkish Construction Firms Tumble After Opposition Election Win
by Gunnar Larson 01 Apr '24

01 Apr '24

Turkish Construction Firms Tumble After Opposition Election Win https://www.bloomberg.com/news/articles/2024-04-01/turkish-construction-fir… Construction firms fell sharply in Istanbul on Monday after Turkey’s ruling party suffered an unprecedented defeat in municipal elections, making it less likely for government-backed mega projects to materialize.

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Re: Your Freedom of Information Law ("FOIL") Request FOIL-2023-095358-021587 - Robinhood BitLicense Records Appeal - NY-DFS
by Gunnar Larson 01 Apr '24

01 Apr '24

Dear Ms. Mazza: This is a friendly reminder xNY.io - Bank.org will not rest until we conclude the BitLicense RICO concern. Can we please receive an update on our dignified Robinhood records request appeal? Have a great day. Thank you, Gunnar -- Gunnar Larson xNY.io - Bank.org 917-580-8053 On Tue, Feb 27, 2024, 6:43 AM Gunnar Larson <g(a)xny.io> wrote: > Ms. Mazza: > > The five day deadline has passed. > > This is very important particular to xNY.io - Bank.org's concern of a > crypto RICO derrived out of the BitLicense. > > Ms. Mazza, when can xNY.io - Bank.org expect a response on the Robinhood > records? NY-DFS' records response to Coinbase was extremely helpful. > > Have a great day. > > Thank you, > > Gunnar > -- > Gunnar Larson > > xNY.io | Bank.org > > MSc - Digital Currency > MBA - Entrepreneurship and Innovation (ip) > > G(a)xNY.io > +1-917-580-8053 > New York, New York 10001 > > > On Wed, Feb 21, 2024, 2:21 PM Gunnar Larson <g(a)xny.io> wrote: > >> In accordance with Public Officers Law § 89(4), xNY.io - Bank.org elects >> to appeal this determination to withhold the Robinhood BitLicense Records. >> >> Turn this matter as we will, any side whatsoever appears to require >> obstruction of justice. >> >> We further demand NY-DFS send xNY.io - Bank.org an update on the >> aforementioned appeal within five (5) business days. >> >> Reserving all rights, xNY.io - Bank.org is seeking relevant relief in >> California on Robinhood. >> >> Warm regards, >> >> Gunnar >> >> ---- >> >> SENT VIA EMAIL >> Email: G(a)xny.io >> February 21, 2024 >> Mr. Gunnar Larson >> xNY.io – Bank.org >> 406 West 25th Street >> New York, NY 10001 >> Re: Freedom of Information Law (“FOIL”) Tracking No. 2023-095358 >> Dear Mr. Larson, >> I write in response to the FOIL request that you submitted to the New >> York State Department of Financial Services >> (“Department”), which has been assigned the above-referenced tracking >> number and reads as follows: >> Dear Madam or Sir: On August 2, 2022 the Superintendent of Financial >> Services Adrienne A. Harris >> announced that Robinhood Crypto, LLC (“RHC”) would pay a $30 million >> penalty to New York State >> for significant failures in the areas of bank secrecy act/anti-money >> laundering (“BSA/AML”) >> obligations and cybersecurity that resulted in violations of the >> Department’s Virtual Currency >> Regulation (23 NYCRR Part 200), Money Transmitter Regulation (3 NYCRR >> Part 417), Transaction >> Monitoring Regulation (23 NYCRR Part 504), and Cybersecurity Regulation >> (23 NYCRR Part 500). >> xNY.io - Bank.org would like to >> 1. receive any and all records related to NY-DFS' investigation of >> Robinhood Crypto. Including (but >> not limited to) records concerning the bespoke Supervisory Agreement >> Robinhood Crypto has with >> the Department of Financial Services mentioned here: >> https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202208021 >> . >> 2. In addition, xNY.io - Bank.org seeks any and all records concerning >> New York's approach to >> Robinhood Crypto and Goldman Sachs compliance programs mandated by the >> United States >> Department of Justice, Criminal Division, Fraud Section and Money >> Laundering and Asset >> Recovery Section mentioned here: >> https://drive.google.com/file/d/1Yx88RMoeLyyfbNK0RtPl4r- >> m8N21_1Sp/view?usp=drivesdk. >> 3. Finally, xNY.io - Bank.org seeks records concerning New York's >> regulatory approval of >> Robinhood Crypto engaging a fine of $30M to implement heightened controls >> and additional >> procedures and policies relating to electronic surveillance and >> investigation, due diligence on >> transactions or clients and the use of third-party intermediaries across >> business units; and enhancing >> anti-corruption training for all management and relevant employees. >> To the extent the request is reasonably described, the Department >> construes the request as seeking the records, >> correspondence, and work product exchanged between Robinhood and the >> Department in accordance with the Department’s >> August 1, 2022 Consent Order (“responsive records”). >> The records that you seek relate to an ongoing Department investigation. >> Accordingly, your request is denied >> pursuant to Public Officers Law § 87(2)(e)(i) (the “law enforcement >> exemption”), which excepts from disclosure records >> that are compiled for law enforcement purposes and that, if disclosed, >> would interfere with law enforcement investigations. >> The purpose behind the law enforcement exemption is to protect an >> agency’s investigative process from being compromised >> by revealing the scope and nature of an agency's investigation before an >> investigation is complete. See Matter of Pittari v. >> Pirro, 258 A.D.2d 202 (2d Dep’t 1999). It also bears noting that the law >> enforcement exemption applies to both civil and >> criminal investigatory files. See Madeiros v. Dep’t of Educ., 30 N.Y.3d >> 67 (2017). In this instance, releasing the requested >> records would interfere with the Department’s investigative process. >> Thus, the Department is not disclosing the records that >> you request pursuant to Public Officers Law § 87(2)(e)(i). >> Moreover, in addition to withholding the responsive records pursuant to >> Public Officers Law § 87(2)(e)(i), the >> Department also is withholding the responsive records pursuant to Public >> Officers Law § 87(2)(a), which specifically >> exempts from disclosure records exempted by a state or federal statute. >> The applicable statutory provision is N.Y. Banking >> Law (“Banking Law”) § 36(10), which states, in pertinent part, that >> reports of examinations and investigations and >> correspondence and memoranda concerning or arising out of such >> examinations and investigations are confidential and shall >> not be made public. The statute fosters open communication between the >> Department and its regulated institutions, a >> necessity for effective regulation of financial institutions, by ensuring >> that records transmitted to the Department in >> connection with its supervision of a financial institution are protected >> from disclosure. >> The responsive records that were transmitted between Robinhood and the >> Department in connection with the >> Department’s supervision of Robinhood as a licensed money transmitter >> pursuant to New York Banking Law, constitute >> correspondence and reports concerning and arising out of an investigation >> and are, therefore, required to be kept confidential >> and exempt from disclosure under Banking Law § 36(10). The expectation >> that records transmitted to the Department will >> remain confidential is essential to encouraging candor and open >> communications between the Department, its regulated >> entities, and the entities undergoing regulatory review that submit such >> records. Release of such sensitive records, albeit >> responsive records, may have a chilling effect on the willingness of >> regulated entities to share information and cooperate >> with supervisors to resolve issues, and thus confidentiality is critical >> to the Department’s ability to perform its regulatory >> mandate and purpose. Accordingly, the exemption set forth in Public >> Officers Law § 87(2)(a) via Banking Law § 36(10) >> covers the responsive records. >> In accordance with Public Officers Law § 89(4), you may appeal this >> determination to withhold the records within >> 30 days by sending an email to FOIL.Appeals(a)dfs.ny.gov. >> Very truly yours, >> Stephanie Mazza >> Associate Attorney >> ---------- Forwarded message --------- >> From: <Stephanie.Mazza(a)dfs.ny.gov> >> Date: Wed, Feb 21, 2024, 1:26 PM >> Subject: Your Freedom of Information Law ("FOIL") Request >> FOIL-2023-095358-021587 >> To: <G(a)xny.io> >> >> >> Dear Mr. Larson: >> >> Attached please find the Department's determination regarding the >> aforementioned FOIL request. Because your request has been answered, your >> request is now closed. >> >> Tracking Number:FOIL-2023-095358-021587 >> >

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Weed Investors' Money Shift Cost Co. Millions, Suit Says
by Gunnar Larson 01 Apr '24

01 Apr '24

Weed Investors' Money Shift Cost Co. Millions, Suit Says <https://www.law360.com/cannabis/articles/1818708?nl_pk=c844ee6a-f80e-4e60-b…> By Jonathan Capriel A Michigan entrepreneur has hit his ex-partner with a $5 million lawsuit, accusing him of wrecking plans to buy a 10-acre marijuana grow facility near Ann Arbor by poaching the lead investors so he could fund his own Colorado cultivation. Complaint attached | Read full article » <https://www.law360.com/cannabis/articles/1818708?nl_pk=c844ee6a-f80e-4e60-b…> | Save to favorites » <https://www.law360.com/cannabis/articles/1818708?nl_pk=c844ee6a-f80e-4e60-b…>

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