Memo #4 - Goldman Sachs Deferred Prosecution Agreement
g at xny.io
Wed Jul 26 13:40:11 PDT 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
>> 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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