OK - now in Honduras ex-President JOH trial, opening statements - Inner City Press covered jury selection & will live tweet, thread below / declaraciones de apertura: Inner City Press cubrió la selección del jurado y publicará un tweet en vivo, hilo a continuación
Judge Castel: Jury entering!
[Then] Good morning, ladies and gentlemen. A few instructions at the outset. The defendant is charged with participating in a conspiracy to violate the narcotics laws of the US: to import cocaine, to manufacture cocaine for importation
Judge Castel: He is charged with firearms in furtherance of the narcotics conspiracy, including machine guns and destructive devices. The defendant denies the charges. He is presumed not guilty. Don't read anything on the Internet about this case
Judge Castel: Mr. Robles is going to be opening for the government
AUSA David Robles: This is a case about power. About corruption. About massive amounts of cocaine. And about the one man who stood at center of all of it. The former president of Honduras- that man
AUSA: Juan Orlando Hernandez - he sent ton after ton of cocaine here to the US. In return for bribes, he abused the power of his country - the military, the police, the justice system - to protect traffickers. Because he did these things, he's charged here
AUSA Robles: You're going to learn that Honduras, a country in Central America, sits at a crucial location for cocaine trade from Colombia. It is a trans-shipment point. Getting the cocaine in and out is lucrative and dangerous. Bribes are paid
AUSA: The defendant was a Congressmen who rose to the very top of the Honduran government. Drug lords bankrolled him - including his own brother, whose drug operation was made possible by this defendant. Traffickers who used military grade weapons
AUSA: The drug lords took over polling stations and made sure the defendant was elected. They partnered with the Sinaloa Cartel, who contributed millions to him, and MS-13, which carried out murders for them
AUSA: JOH abused his official position to give drug traffickers access to sensitive military & police information, and protection from extradition. He had to maintain an appearance of legitimacy. At times he worked with the US- but he made sure some were protected
AUSA: You're going to hear testimony from witnesses. You'll hear from an accountant who witnessed meetings between JOH and a drug trafficker, and how JOH promised protection. The defendant said, We are going to shove the drugs up the noses of the gringos
AUSA: You'll hear from a DEA witnesses, how it moves from Colombia, and the profits made. And from an expert on machine guns. You'll hear from violent traffickers - they'll take that stand and give you an inside look that no one else can give you
AUSA: You'll hear from a former mayor, his partnership with the defendant's brother, how he bought votes. You'll hear from a former member of the Sinaloa cartel. These witnesses are criminals, seeking to get lower sentences. Some have done dozens of murders
AUSA: These are the people the defendant picked as his partners. You won't approve of what these witnesses did - but they tell the truth. Listen to them, and listen to law enforcement witnesses, about the notebooks that you'll see - payments to JOH
AUSA: Recordings of meetings... Contact lists... And pictures of cocaine, of guns, and of the defendant smiling with drug traffickers. The evidence will show at the heart of the conspiracy, the defendant, JOH - he flooded the US with cocaine
AUSA: Before the trial ends, please pay close attention to the evidence. Follow the law, and use your common sense. If you do those three things, you will reach the only verdict: that the defendant is guilty.
Judge Castel: Thank you. The defendant's counsel?
[JOH opening by recently-appointed Renato Stabile, NOT Raymond Colon]
JOH's lawyer Stabile: Hell is empty. And all the devils are here. It's from William Shakespeare's The Tempest. In this case, the witnesses have killed so many people - 78 murders, 56 murders
JOH's lawyer: These are depraved people - psychopaths not worthy of your trust and belief. When the government asks you to declare this man guilty, remember it's based on the testimony of murders. With my co-counsel Raymond Colon, I represent JOH
JOH's lawyer: Who is JOH? You'll learned he was president from 2014 to 2022. He has a masters from SUNY Albany, and a JD - he's a lawyer. He's married with four children. He's one of 17 brothers and sisters from Gracias. Honduras was a dangerous place
JOH's lawyer: It had dozens of murders everyday. Honduras is a stunningly beautiful place. It should be a premier vacation location. But there's so much violence. JOH wanted to get rid of the violence - the drug dealers he tried to get rid of now accuse him today
JOH's lawyer: Under him, people were being extradited to the US. The murder rate went down by 50%. Trafficking went down by 80%. How did this lawyer from Gracias, Honduras to it? Not from bribes. He does not sit down with drug dealers, he stands up to drug dealers
JOH's lawyer: There were assassination plots against him. He passed dozens of bills. He reformed the police. He worked with the US, the DEA, the State Department, the White House, DOJ- he worked with them. This is public record. Now they come in here and say, fake
JOH's lawyer: People were arrested and extradited to the US. The US asked Honduras to extradite 24 traffickers - 21 were arrested and sent. JOH was partnering with the US. Some people fled - and ran into the arms of the US and cut deals.
JOH's lawyer: They don't have recordings of JOH with drug dealers, asking for bribes. No video, no emails, no bank records of millions of dollars going into his bank account. You're going to see Leo Rivera, 78 murders, 130 tons, he faces life plus thirty years
JOH's lawyer: Hugo Ardon Soriano, facing life plus thirty years. Victor Hugo Diaz Morales... In these recordings, JOH was the most famous person in Honduras. But the recordings were be hard to follow. They will be in Spanish, there will be hearsay. You decide
JOH's lawyer: Is it real information? Is it gossip? You'll see photos of houses and restaurants, and JOH with lots of people. Everyone he goes, people want photos with him, even drug dealers. They are from public events. They appear in photos together.
JOH's lawyer: You're going to see a brick of cocaine stamped TH - they'll say it means Tony Hernandez, but it also stands for Tommy Hilfiger... You'll see a machine gun with JOH's name and title on it. But did JOH run around with it?
JOH's lawyer: We're going to ask the witnesses about their deals. It starts with a proffer - it's like an audition. They hope it leads to a 5K letter, to take the life sentence off the table. Now they could get anything. Remember how many they've killed
JOH's lawyer: Putting murderers and drug dealers on the witness stand is not proof beyond a reasonable doubt. They are testifying for revenge. He put them out of business. You'll hear about JOH's brother Tony - it's going to be the Tony Tony Tony trial
JOH's lawyer: Tony was throwing around his brother's name. But no evidence that he gave any money. Tony is ten years younger. They didn't exactly grow up together. They could not be more different. He's not here, even though he's going to be talked about a lot
JOH's lawyer: You're going to hear that his election was rigged or stolen. But what are the details? After all the witnesses are done, I'm going to ask that you use your common sense and your New York street smarts - it's unhappy murders and dealers, not proof
JOH's lawyer: We're going to ask you to find JOH not guilty on all counts.
Judge Castel: We'll take a break
[Thread will continue]
Abogado de JOH: Le vamos a pedir que declare inocente a JOH de todos los cargos.
Juez Castel: Haremos una pausa.
[El hilo continuará]
[During break, JOH is typing on a tablet at defense table, a times talking with Colon. Two interpreters are seated in the front row behind him, with US Marshals in between. JOH está escribiendo en una tableta en la mesa de la defensa, a veces hablando con Colon.
All rise!
Judge Castel: Bring our jurors in.
Jury entering!
Judge Castel: The government may call its 1st witness.
AUSA Jacob Gutwillig: The government calls Jose Sanchez. [an accountant at Graneros Nacionales
AUSA: Do you recognize anyone from Honduras here in the courtroom?
Sanchez: Yes, over there in the glasses, on the computer. It's Mr. Juan Orlando Hernandez.
AUSA: This exhibit - who is this?
Sanchez: Geovanny Fuentes Ramirez
[Previously: innercitypress.com/sdnysentence1h…
AUSA: Where did you meet?
Sanchez: In Graneros Nacionales, with my boss... They discussed protection for trafficking drugs.
AUSA: Who would provide protection?
Sanchez: Juan Orlando Hernandez. He said, we are going to shove the drugs up the noses of the gringos
AUSA: When did you meet Geovanny Fuentes?
Sanchez: 2003 or 2004. He would come with a semi-automatic handgun.
AUSA: Did you pay Geovanny Fuentes' employees, outside of Graneros?
Sanchez: Yes. In 2010 at Cerro Negro.
AUSA: How did you get there?
Sanchez: I would pass the police outpost and take the road up to Cerro Negro.
AUSA: How long would it take?
Sanchez: 25 to 30 minutes.
AUSA: Is there a port nearby?
Sanchez: Yes, Puerto Cortez.
AUSA: What happened at Cerro Negro?
Sanchez: An armed employee of Geovanny Fuentes asked me what I was there for. He had an AK-47. There were three others with AR-15s.
AUSA: Did you learn that law enforcement raided the location?
Sanchez: Yes. March of 2011
AUSA: Did you know if Julio Cesar Barahona had a position in the Honduran government?
JOH's lawyer: Objection!
Judge Castel: Grounds?
JOH's lawyer: The basis for his answer.
Judge Castel: Mr. Gutwillig, please back up
[Loud microphone feedback in the courtroom]
Sanchez: He was president of the judiciary.
AUSA: Who names that position?
JOH's lawyer: Objection!
Judge: Overruled.
Sanchez: The president of the national congress. Juan Orlando Hernandez.
AUSA: Did you hear what was said in the office?
Sanchez: El Jefe sent me
AUSA: Who was El Jefe?
Sanchez: JOH.
AUSA: And who was the guy El Jefe helping?
Sanchez: Geovanny Fuentes - to expunge his record regarding the drug lab case. Barahona asked for 30,000 lempiras.
AUSA: From whom?
Sanchez: Geovanny Fuentes. He borrowed from Jarufe
Sanchez: I made the check to Barahona, in Lempiras, and charged it to the account of Geovanny Fuentes....
AUSA: How would JOH travel to Graneros?
Sanchez: In a blue helicopter - he received a company check.
AUSA: How do you know that?
Sanchez: I gave it to him.
AUSA: How much?
Sanchez: 250,000 lempiras, from Graneros Nacionales.
AUSA: Anyone else get checks?
Sanchez: Jose Manuel Zelaya Rosales in 2005, he was running for President with the Liberal Party. And Porfirio Lobo Sosa, Pepe - in 2005 and 2009
AUSA: In 2005, was Pepe Lobo running for office?
Sanchez: Yes, for president, with the National Party. He was not elected.
AUSA: In 2009?
Sanchez: Pepe Lobo ran for president again. He got monthly checks from Graneros. 100,000 lempiras each.
AUSA: When JOH was running for president, did you hear him speak with Jarufe?
Sanchez: Yes. He said if he was elected, he had a plan to stay in power up to 25 years - He said, we are robbing better than Rafael Leonardo Callejas Romero did
Sanchez: Polo [Leopoldo Crivelli] was running for mayor of Chaloma. JOH asked him, Are you going to snag it again, Polo?
AUSA: What did he say?
Sanchez: Polo said, things are tough now. JOH said, The Indian is a dumb ass, give him a steak and a beer, he'll vote
AUSA: Who is "El Indio"?
Sanchez: The Honduran.
AUSA: Let's focus on the first meeting. Did you learn JOH was coming to Graneros?
Sanchez: Yes. My boss told me.
AUSA: What did your boss tell you?
JOH's lawyer: Objection!
Judge: Overruled.
Sanchez: My boss said, JOH wants us to purchase some dollars from him.... I heard JOH tell Geovanny Fuentes he wanted his drug lab to work for him. Geovanny Fuentes called him Juancho.
AUSA: Did you call him Juancho?
Sanchez: No. Only those close to him did
AUSA: Did JOH speak about his brother Tony?
Sanchez: Yes. He told Geovanny Fuentes he'd give him Tony's number, to put Geovanny at his disposal.
AUSA: Where did JOH say the drugs would go?
Sanchez: Up the gringos' noses.
AUSA: Meaning?
Sanchez: The USA
Sanchez: Geovanny Fuentes opened a briefcase with bundles of twenty dollar bills - he gave it to JOH and said, Use it for your campaign. JOH said to me, Jose, change these to Lempiras for me. I counted it on the round table.
Sanchez: It took me 3 to 5 minutes. JOH was at the table, stirring his drink with his finger.
AUSA: How much was there?
Sanchez: $15,000 dollars. They asked me to make the check to myself. I said no. So it was to my boss.
AUSA: And the second meeting?
Sanchez: Again, JOH said, Jose, exchange these for me.
AUSA: Was there a meeting with Sauceda?
Sanchez: Yes. There was a box - when I opened it I saw uniforms and police license plates. And bullet proof vests
AUSA: Are these photos of Geovanny Fuentes' sons?
Sanchez: Yes. Here is JOH & the son called "Geo."
Judge: We'll take a break [thread will continue
¿Son fotos de Geovanny y sus hijos?
Sánchez: Sí...
Juez Castel: Nos tomaremos un descanso - el hilo continuará
CRYPTO BROS TRIAL DAY 15: In Trial for Taking $25 Million from Ethereum Sandwich Bots, today closing arguments all day - interim book here: AMZN paperback Code Is Law (?) after verdict; Inner City Press will live tweet, thread below play.google.com/store/books/de…
Judge Clarke: Jurors, the defendants did not testify in this case. You may not consider this against them in your deliberations... It is sufficient if the prosecution proves that one or more material misrepresentations was made as part of a scheme to defraud
Judge Clarke: The Government must prove that the defendant joined the conspiracy knowing of its unlawful purpose
[Lengthy and largely boilerplate jury instruction continues- Inner City Press will be live tweeting Sam Bankman-Fried's appeal:
CRYPTO BROS TRIAL DAY 14: In Trial for Taking $25 Million from Ethereum Sandwich Bots, now defense case with summary witness on cross - interim book AMZN paperback Code Is Law (?) after trial; Inner City Press will live tweet, thread below play.google.com/store/books/de…
AUSA: Let's continue with the defendants' message with other people
Defense summary witness: What exhibit numbers?
AUSA: DX 1206, 1058 - the defense team picked them to be helpful, fair to say?
Defense summary witness: Fair to say.
AUSA: Did you see any messages between the defendants and Israeli law enforcement?
Defense: Objection!
AUSA: I'm just asking if he might have. Do you remember seeing any communications where the defendants say they are afraid of being robbed or kidnapped?
A: No
CRYPTO BROS TRIAL DAY 13: In Trial for Taking $25 Million from Ethereum Sandwich Bots, now defense case with Alix witness on stand- interim book AMZN paperback after trial; Inner City Press will live tweet, thread below play.google.com/store/books/de…
James Peraire-Bueno's lawyer Trefz: How do the slashing fees work - if the MEV is greater than the penalty, would a rational validator try to extract maximum value?
AUSA: Objection! Daubert.
Alix's Madura: That seems rational.
Trefz: Did the Omakase program use the MEV Boost software program at all?
Madura: No.
Judge: Jurors, you may take a break.
[Jurors leave]
Judge: Let me hear the Government opposition to the body-cam video the defense wants to show
CRYPTO BROS TRIAL DAY 12: In Trial for Taking $25 Million from Ethereum Sandwich Bots, last SDNY witness on stand then defense case- new book *not* on
@Amazon due to censorship: Inner City Press will live tweet, thread below play.google.com/store/books/de…
On the stand: SDNY Special Agent DeLeassa Penland
[she was also in the US v. Sean Combs case]
AUSA: What did Anton Peraire-Bueno search for?
Penland: Computer crimes, on the DOJ website.
AUSA: What is this message to Pine Needle Inc?
Penland: Review of $20M
AUSA: Let's read the brothers' messages
"If we do like a few MM a week"
Why not do it all now?
"If might get stopped if we move it all at once"
"If there's a freeze at any point we'd rather resolve it with less in the pipeline"
"Let's do large chunks"
CRYPTO BROS TRIAL DAY 11: In Trial for Taking $25 Million from Ethereum Sandwich Bots, TRM Hoffmeister still on direct, charge conference Friday- new book *not* on @Amazon due to censorship: Inner City Press will live tweet, thread below play.google.com/store/books/de…
AUSA: Mr. Hoffmeister, does this show each transfer or is it a summary?
Hoffmeister: A summary.
AUSA: How many transactions are there?
Hoffmeister: Do I have to do the math in my head?
AUSA: Withdrawn
AUSA: What's this?
Hoffmeister: Withdrawals of USDC from the Pine Needle Coinbase account to Mercury Financial.
AUSA: Can USDC be held in a normal bank account?
Hoffmeister: Uh, no.
[Not yet - Coinbase and many others have applied to OCC for bank charters
CRYPTO BROS TRIAL DAY 10: In Trial for Taking $25 Million from Ethereum Sandwich Bots, TRM Chris Hoffmeister on direct, defense case Thursday - new book *not* on @Amazon due to censorship: Inner City Press will live tweet, thread below play.google.com/store/books/de…
All rise!
Judge: Government, call your next witness.
AUSA: The Government calls Chris Hoffmeister... Where do you work?
Hoffmeister: TRM - Token Resource Management, but usually just TRM. We have software; we do investigations. I used to work at HSI
AUSA: What degrees to you hold?
Hoffmeister: Master in English of the University of South Carolina, later Georgetown. I've had crypto security certification course from our own TRM academy
AUSA: What's that?
Hoffmeister: Our learning academy for our customers