Memo #3 - Goldman Sachs Deferred Prosecution Agreement
Gunnar Larson
g at xny.io
Thu Jul 20 16:48:04 PDT 2023
On Thu, Mar 2, 2023, 5:10 PM Gunnar Larson <g at xny.io> wrote:
>
> 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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