Memo #4 - Goldman Sachs Deferred Prosecution Agreement

Gunnar Larson g at
Thu Jul 20 17:43:22 PDT 2023

On Fri, Nov 25, 2022, 2:40 PM Gunnar Larson <g at> wrote:

> March 10, 2022
> Mr. John Marzulli
> United States Department of Justice
> Eastern District of New York
> 271 Cadman Plaza East
> Brooklyn New York, 11201
> John.Marzulli at
> 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.
>    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 -
>    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, - 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, - 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.
> - 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 - <> |
> <>MSc
> <>
> - Digital Currency
> <>
> - Entrepreneurship and Innovation (ip)
> G at  +1-646-454-9107
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