Thread by @innercitypress

OK - on #OneCoin trial we back for Week 2, Day 1. Mark Scott's lawyer is arguing that the US Attorney dumped Bank of Ireland exhibits on them at midnight. Of course, not yet made available to Press despite requests patreon.com/posts/31420677 But here we go: thread

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Judge Ramos: the defense is arguing that Mr. Scott was not in the position to know that OneCoin was a fraud. So the government's re-direct at the end of Friday was appropriate. But not all exhibits were - and the jury will be told that. [Jury due in 4 minutes]

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Q: Is the court striking both the exhibits and the portions of the re-direct examination about them?
Judge Ramos: Correct.
AUSA Dimase: Mr. Devlin-Brown has indicated he wants to object to a Locke Lord witness about $5 million put in a Locke Lord escrow account

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett AUSA: These $5 million, they came in from #OneCoin in Dubai, into a Gilbert Armenta accounts, then back out to #OneCoin in Dubai. This is direct evidence of the charged conduct.
Devlin-Brown: We are aware of $33 million from Ruja Ignatova to Locke Lord...

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Scott's lawyer mentions money moving through "JPMC."

[Hmm - Jaime Dimon sure wasn't asked about this on 60 Minutes on Sunday.]

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Judge Ramos: The jury's here.
[After a whispered sidebar]
The government's next witness is one Linda Cohen.
Special AUSA Lozano: Good morning, Ms. Cohen. Are you familiar with OneCoin?
Cohen: Yes. My older son told me about it.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Lozano: What does your older son do?
Cohen: He does massage. I'm not sure what he's going right now.
Lozano: When did he introduce you to OneCoin?
Cohen: About four year ago.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Lozano: Has you son been available in multi level marketing?
Cohen: Yes. He told me OneCoin is a crypto currency [she says, cyber currency.]
Lozano: What did your son tell you?
Cohen: That he'd bought $2000 worth of OneCoin.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Cohen: I told my son that I really disliked multi level marketing but that I could give him the money and he could do all the paperwork. I asked, how would I get my money out of it.
Lozano: Did you purchase a package?
Cohen: Initially I gave $5000.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Lozano: Did you watch videos? Can you describe them?
Cohen: They were about this woman who started OneCoin.
Lozano: What was your understanding about how the coin would increase in value?
Cohen: That there was mining and that it would be limited

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Cohen: My son set me up so I could see my back office. A lot of it I didn't understand. I asked my son to take care of it.
Lozano: How many OneCoins did you have?
Cohen: I just would ask him what the value was, and how I could get my initial investment back.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Lozano: Why did you make a 2d purchase?
Cohen: Being that OneCoin said it was increasing in value. I was told if I purchased by a certain date I would get a lot more coin. At the time I thought it would be a good idea. I wanted to retire. [She's an art teacher].

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Special AUSA Lozano: Are these the records for your HSBC bank account?
Cohen: Yes.
AUSA: Do you recognize that entry?
Cohen: Sort of.
AUSA: Do you remember how the $22,000 were sent? Were you told to add a comment what it was for?
Cohen: I don't remember.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Lozano: What do you know about Ruja Ignatova?
Cohen: She was supposed to be this brilliant woman. I watched videos.
Lozano: How has the inability to withdraw any of your money from OneCoin impacted you?
Cohen: I'm 76 years old...
Lozano: I have nothing further.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Scott's lawyer David Garvin: Mrs Cohen, you never communicated with my client Mark Scott by email, right?

[Why would she have? He's accused of laundering money wholesale for OneCoin.]

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Next witness is Senem Firuz of Morgan Stanley risk and control.
Firuz: I worked at the downtown Miami branch of Morgan Stanley... I worked with Letters of Authorization, on which call-backs were required to make sure the Authorized Individual was aware

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Special AUSA Lozano: You said Morgan Stanley is a brokerage. But is it also FDIC insured?
Firuz: Yes.

[Inner City Press note: this is true only since the 2008 financial meltdown, when the Fed whipped out FDIC insurance for Goldman & MS without any comment period]

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Special AUSA Lozano: Whose account was this?
Firuz: Gilbert Armenta.
[That's Ruja's money launderer and lover whose floor she had drilled through to see if he would leave his wife for her - and found he was cooperating with the government: patreon.com/posts/31319011

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett AUSA Lozano is walking Morgan Stanley's Senem Firuz through Gilbert Armenta's pre-cooperation accounts.
AUSA Dimase points at his watch.

Judge Ramos: It's [past] 11 am, let's take our break.
A next witness will be from Sabadell Bank.
This thread will continue

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Special AUSA Lozano still asking about these Miami emails involving Gilbert Armenta and Maya [at] OneCoin and others at RavenR.

Earlier Scott's lawyer objected saying there Gilbert Armenta is not available for cross-examination...

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Now Scott's lawyer is cross examining Senem Firuz: "Gilbert Armenta had accounts at Morgan Stanley, isn't that correct?"
Firuz: Yes.
[It's Armenta who is cooperating with the government. Some might request, including to the Fed, what type of due diligence MS did]

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Next witness is Moshe Kishore, foreseeably on the topic of banking for OneCoin money launderer Gilbert Armenta while at Sabadell which was bought by IBERIABANK, his current employer- now wanting to be acquired by First Horizon of Tennessee, subject to Fed approval

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Judge Ramos has given the jury its break; now AUSA Dimase says his Office objects to exhibits that Mark Scott's lawyers say they plan to introduce with a Locke Lord law firm witness, including emails from another Locke Lord lawyer to Ruja. The battle is postponed

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett IBERIABANK's Kishore says that for this OneCoin related wire, both the beneficiary was listed as a Deutsche Bank entity, and via "Deutsche Bank, Frankfurt, Germany."

Inner City Press: many Ruja Ignatova connections there in Frankfurt...

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Government's next witness is Locke Lord's deputy COO, being shown a series of documents by ASUSA Dimase. If he going to throw former Locke Lord partner Mark Scott under the bus? Trial day will end in 17 minutes...

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Clearly getting to day's end here: AUSA Dimase asks witness about Locke Lord rules for making legal fees for work outside of the firm.
Scott's lawyer Devlin-Brown objects, says this might be a good time for a sidebar.
Judge Ramos: Can you ask about something else?

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett So AUSA Dimase turns to $5 million in Locke Lord's escrow account. Five minutes left before Judge Ramos calls it for the day. #ClockManagement.

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Judge Ramos has let jury go for the day, telling them to watch out for the weather. Now he asks Scott's lawyer about his objection to the Locke Lord partnership agreement.
AUSA Dimase says Scott allegedly violating his partnership agreement is "highly relevant"

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Now AUSA Dimase says that while working at Locke Lord, Mark Scott took $1 million on the side from Ruja. "They are justified to the banks as legal fees."
Judge Ramos: And that's proof of violation of his partnership agreement?
AUSA Dimase: There's more...

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Now Covington law firm partner Arlo Devlin-Brown seems to be saying that Robert Courtneidge also violated the Locke Lord partnership agreement, as US says Mark Scott did. US gave Devlin-Brown the partnership agreement last night as 3500 material. Still no exhibits

@MatthewLeeICP @FinanceWatchOrg @Svrakata @ezCoinAccess @widell_ari @JamieJBartlett Day ends with AUSA Folly trying to get defense to say how many witnesses it might call - and AUSA Dimase objecting to Mark Scott's proposed crypto currency expert. It's over for the days, stories here innercitypress.com/sdny22onecoini… & patreon.com/posts/31517703