Memo #4 - Goldman Sachs Deferred Prosecution Agreement
g at xny.io
Fri Jan 6 05:16:06 PST 2023
On Sat, Jul 30, 2022, 10:49 PM Gunnar Larson <g at xny.io> wrote:
> 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
> 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
> 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
> 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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