Thread by @innercitypress

OK - #OneCoin trial resuming, Scott lawyer cross examination of Konstantin Ignatov, before jury in he's said he intends to confront Konstantin if Irina was present for Ruja-Scott meeting. Stories innercitypress.com/sdny18onecoini… & patreon.com/posts/31367852 and below, thread

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Jury is coming in. Just before, Judge Ramos indicated that Scott's lawyer *can* ask Konstantin Ignatov about an Irina D. email he's never seen, citing a law school example of using a pizza box to refresh a witness' recollection

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Scott's lawyer Arlo Devlin-Brown: Mr Ignatov, you've been at the MCC since March - it's a pretty terrible place, right?
Konstantin: Right.
Arlo: So between July and October when you pled guilty, you met with the government ten or so times, right?
Konstantin: Yes

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: So with a 5K letter, you could be sentenced to as little as time served, right?
Konstantin: Yes.
Arlo: But to get the letter, you have to appear as a witness at trial, right? This is the only trial?
Konstantin: Yes [upwards lilt]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: you met with US about more than Scott, right?
Konstantin: It was usually the same questions.
Arlo: You practiced, right? None of the questions were surprising, were they?
Konstantin: It wasn't a role play. A few things were unexpected.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: The prosecutors would suggest different ways to phrase things, right?
Konstantin: Only if I didn't know the English word.
Arlo: You only met Mark Scott once, right? You did your best to remember everything?
Konstantin: Yes

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: So Mark Scott's meeting with you and Ruja on July 20, 2016 - you testified about conversations about getting him water, right?
Konstantin: I remember that drinking water question.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: Then you walked Irina in, right?
Konstantin: Yes.
Arlo: And you said Ruja instructed you to tell the others to leave, so they could meet alone?
Konstantin: correct.
Arlo: are you 100% sure Irina was there?
Konstantin: Yes
[here it comes]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: It is important you testify truthfully, isn' it?
AUSA: Objection!
Judge Ramos: Overruled.
Arlo: May I approach? [Hands Konstantin Defense Exhibit, an email from Irina to Scott]. Can you read it?
Konstanin: "Hi Mark--
Arlo: Read it to yourself.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: So Irina wasn't even in Sophia... Your honor, the defense offers this as an exhibit.
Judge Ramos: The offer is denied.
[Long pause.]
Arlo, to the witness: Originally you were only charged with wire fraud, right?
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari Arlo: But your plea agreement have four counts, right?
[Inner City Press has asked US Attorney Press office @SDNYnews 3 times for this presumptively public exhibit, still don't have it - why?]
Arlo: You had to accept these 4 counts or no cooperation deal, right?

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: When you pled guilty, in a courtroom much like this one, on the bank fraud count you said-
AUSA: Objection!
Judge Ramos: Overruled.
Arlo, to Konstantin: You said -
AUSA, to Judge Ramos: May we approach?
Judge Ramos: OK
[Note: plea transcript not on PACER]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: So you made statements before a judge in court as to why you were guilty, that the banks were insured by FDIC?
[Which judge? Not Judge Ramos? Secret Mag court proceeding??]
Konstantin: I don't remember exactly. My lawyer helped me with the statement.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: A bank fraud count requires deceit of a bank insured by the FDIC. Do you any banks in the US you deceived?
Konstantin: No.
[So bank fraud count guilty plea, non-public, not necessarily true - doesn't mean OneCoin not a fraud, but might undermine Konstantin]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You testified that Ruja was not happy with Mark Scott.
Konstantin: I referred to the telephone call I overheard.
Arlo: Ruja called Mark Scott an idiot, you testified.
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: but Scott WhatsApp-ed Irina, about audits going on in BVI.
Konstantin: I don't know what a BVI is.
[British. Virgin. Islands.]
Arlo: But you know what an audit is, right?
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: Did you know the Fenero Funds were registered in the BVI and that they have a financial commission -
AUSA: Objection
Judge Ramos: Overruled.
Konstantin: I supposed every country does, have a commission.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You testified that after Mark Scott's arrest, Irina burned documents, right?
Konstantin: Yes.
Arlo: But you don't know if Irina ever told Mark Scott that OneCoin was a fraud, right?
Konstantin: I don't know.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You testified that when Irina had been drinking, she told you that there was no blockchain - but you have no idea if she told Mark Scott, right?
Konstantin: I was never part of those discussions.
Arlo: Irina is extremely dishonest, right?
Konstantin: Right.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You said Irina was stealing money, along Amer Abdulaziz, and setting up companies to steal money in Dubai with Adrian Tulari, right?
Konstantin: Right.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: Lets turn to Gilbert Armenta. You said you were speaking him a lot then-
Konstantin: About our dogs, about sports. About women.
Arlo: The prosecutors asked you what you meant, that Ruja was following Gilbert "like a black shadow."
Konstantin: Right.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: Ruja did not allow you to ask about her associates?
Konstantin: otherwise I would get fired.
Arlo: And you said Gilbert had some bank in Georgia, in Europe, and that he laundered money
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You said Ruja went to Oxford and had a doctorate in law?
Konstantin: Yes.
Arlo: You remember the cover or photo of Ruja on Forbes?
Konstantin: Yes, I put it on my Facebook.
Arlo: But it turned out to be just a paid promotion.
Konstantin: Right.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: Do you remember traveling to Mozambique and Africa?
Konstantin: I don't remember where.
Arlo: But in Africa. And you thought it was one of the poorest places you'd ever seen? Did you know you were ripping them off?
Konstantin: At the OneCoin events, yes

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: And you remember going to Africa again in October 2018?
Konstantin: Yes, to Uganda.
Arlo: And you believed you were ripping people there off.
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: Nothing further.
Judge Ramos: Re-direct examination.
AUSA Folly: Mr. Ignatov, do you recall you were asked on cross about OneCoin's blockchain and when you learned there were problems?
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA: But before that you knew it was a fraud?
Konstantin: There was many red flags. Promises of getting rich quick. I don't see that with Coca-Cola.
AUSA: Did Ruja ever tell you it was a fraud?
Konstantin: No. She said it was legitimate.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA: But you reached an understanding that it was a fraud scheme?
Konstantin: Yes.

AUSA: Let's turn to this email, it is where Scott wrote to you he would prefer not to come to Sophia too many times to have it show up on his travel list?
Konstantin: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA Folly: Who was the number one person at OneCoin?
Konstantin: Ruja Ignatova.
AUSA: And who was the number two?
Konstantin: Sebastian Greenwood.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA: Did you use a crypto phone?
Konstantin: No.
AUSA: Who did?
Scott's lawyer: Objection!
Judge Ramos: Overruled.
Konstantin: Ruja, Sebastian, Gilbert, Irina and Mark Scott.
[The implication: Scott was on the inside but didn't know?]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA Folly: What it after Ruja disappeared that you began to learn more about Mark Scott?
Konstantin: Yes....

AUSA: And you knew OneCoin was telling a lot of banks false things?
Konstantin: Yes.
AUSA Folly: Nothing further.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo Devlin-Brown: A brief re-cross. Mr. Ignatov, when you first went to Coin Rush, you knew bank accounts were being frozen?
Konstantin: I used Google.
Arlo: You never opened bank accounts for OneCoin?
Konstantin: United Bank of Dubai, I remember.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You don't know what the banks were told.
Konstantin: I heard things.
Arlo: You told the agents you just assumed... No further questions.

[Inner City Press predicts: Scott will try to say Konstantin's guilty plea to bank fraud is itself fraudulent.]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Judge Ramos calls a break. Thread will continue. For now, this from this morning on the way in: pscp.tv/w/1djGXRvpbmLx…

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Jury is back from break. US' next witness is anti money laundering expert Donald Charles Semesky, previously of the IRS.
AUSA: You worked as a special agent for 30 years? On money laundering?
Semesky: Yes.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA (after 10 minutes of witness' credentials) - Mr. Semesky, have you ever been rejected as an expert witness?
Semesky: No.
AUSA: Your honor, we offer the witness as an expert.
Judge Ramos: Any objection:
Arlo Devlin-Brown: No, we will not break his record.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA Dimase: Mr. Semesky, let's turn to the concept of papering. What is that?
Semesky: Creating paperwork to make a transaction appear legitimate, to give a comfort level to the bank.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews [Semesky's direct examination was very general, not OneCoin specific. Just setting the jury up for what is to come. Now cross-examination:]
Arlo Devlin-Brown: You are not testifying about money laundering law, are you?
Semesky: No, I am not

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Arlo: You testified that the companies which have money laundered through them are not always aware, right?
Semesky: Right.
Arlo: For example a law firm's escrow account could be used; clients can lie to their lawyers, right?
Semesky: That is correct.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Next US witness is from fund manager APEX, which worked for Mark Scott's Fenera Funds but started asking questions. Now the questions are by Special AUSA Julieta V. Lozano.
Q: Did Mark Scott tell you the money in the funds came from OneCoin?
A: No he did not.

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Judge Ramos declares a break, and not a moment too soon. To some, jurors looked bored by this very general testimony after the back and forth with Konstantin Ignatov. Thread will continue here. Morning's stories: innercitypress.com/sdny19onecoini… & patreon.com/posts/31392230

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews APEX fund manager witness just said, "If the investor is from Africa, there is always enhanced due diligence."

[Inner City Press: Hmm, isn't this disparate impact, by analogy? As seen this morning, #OneCoin was not an African fraud, it was a fraud on Africa, etc]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Now APEX fund manager is reading out, word for word, APEX's non-disclosure provision in the administration agreement which prohibited it from sharing information about Mark Scott's Fenera Funds, alleged flush with #OneCoin money

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews AUSA: Where did you open the bank accounts with Fenero Equity Investments?
APEX manager: At DMS Bank & Trust in the Cayman Islands. We gave them a so-called comfort letter that "we can confirm that we performed the KYC and AML checks."

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews APEX fund manager (6 minutes before Judge Ramos will call it a day) - this is the email in which Irina Dilkinska says it was a typo that Fenero was not listed on the document.
[Is jury taking this in? Or is this numbing presentation actually helping Mark Scott?]

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Judge Ramos: Ms. Lozano, we have hit 2:30. Jurors, we are done for the day. Travel home safety and do not discuss the case.
After they leave, AUSA Dimase asks if they can stay later tomorrow.
Judge Ramos says no, urges Lozano to edit her direct examination

@MatthewLeeICP @sdnylive @Svrakata @JamieJBartlett @ezCoinAccess @widell_ari @SDNYnews Judge Ramos tells lawyers it's over for today. He heads up to his other / day to day courtroom. He had been scheduled to have a Konstantin Ignatov "pre-trial conference" at 3:30. But with his guilty plea, assuming it's canceled. Will check patreon.com/posts/31392230