Memo #4 - Goldman Sachs Deferred Prosecution Agreement
g at xny.io
Tue Feb 28 07:12:05 PST 2023
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
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.
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
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.
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
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
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
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
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.
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.
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.
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).
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.
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
- Digital Currency
- Entrepreneurship and Innovation (ip)
G at xNY.io +1-646-454-9107
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