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By Matthew Russell Lee, Patreon Periscope

SDNY COURTHOUSE, Dec 17 – Whether any US government agency engaged in wiretapping not authorized by a court in connection with the prosecution of Lev Parnas, Igor Fruman, David Correia and Andrey Kukushkin came up near the end of a conference in the case on December 2, live-tweeted by Inner City Press here. More on Patreon, here.

 On December 17 Parnas and his lawyer Joseph A. Bondy argued against the government's requested revocation of his bail, and even for more freedom in Florida where Parnas is living. After nearly two hours of argument, things remained exactly the same, with Judge Oetken denying both sides' applications. Here's some of how it went, more on Patreon here.

AUSA Donaleski: Parnas has a foreign benefactor, a Ukrainian oligarch - Judge Oetken: Is that Mr Furtash? AUSA: Yes. Parnas has no compunction about lying to the government about the true sources of his funds. GPS monitoring cannot mitigate the risk.

 AUSA: He could cut off his bracelet. Pre-Trial if they got notice would go to his house, not to the airport. [Inner City Press: why not?] AUSA: We've seen a pattern of misleading. I know your Honor has spoken with officer Samson.

 AUSA: We believe Parnas was preparing to flee. He has no issue with lying to Pre-Trial. He also misleads about his assets. He lied about income from the law firm. He submitted an affidavit. I can hand it up - Judge Oetken: yes, please

AUSA Donaleski: Parnas does not disclose the loan his wife received. Defense said Parnas still needed access to some information listened in the affidavit. People of course know who they work for. He told Pre-Trial in Virginia about the law firm. Then omitted

 Judge Oetken: The form asks, Your employer. Would you list a former employer? AUSA Donaleski: Parnas was still receiving income from the law firm. They are his employer. There is no reason he would tell pre-trial but omit from sworn affidavit to the government.  AUSA Donaleski: Let's turn to assets. The form asks, what assets do you have. Mrs Parnas lives with him. The money  she has comes from him. But all he disclosed was a Suntrust account of his wife, for $450,000, a student account, and another with $2000.

 AUSA Donaleski: So it came to $500,000. We consented to lowering the bond to $200,000.  Judge Oetken: This October 17 email correspondence, did it mention the $1 million loan from a foreign source? AUSA: It did not.

 AUSA: The next day, October 18, Mr Bondy gave slightly more information that I understand he has provided to the court for today. Judge Oetken: But he did disclose the $1 million wire transfer. AUSA: Only after we has consent to lower bail package.

AUSA: Then Parnas did not disclose the wire transfer, the law firm, or that he had bought a house. Judge Oetken: Wasn't it apparent then to the government that he was not reporting his wife's income as his own. AUSA: It wasn't yet clear to us. 
AUSA: We only recently received the records from SunTrust. [Inner City Press: Isn't this now called "Truist" - ironically - with a merger just approved by the Federal Reserve and FDIC? #AML] AUSA: There's Parnas bragging he was the highest paid translator

AUSA: Then Svetlana Parnas signed a deal for a $4.5 million house. Judge Oetken: But wasn't that disclosed? AUSA: They disclosed they were unsure they were buying a house. But it wasn't on the financial affidavit. Judge Oetken: Okay.

Judge Oetken: Do you know the status of the house purchase? AUSA Donaleski: We learned last night it was sold to another party & that the $200,000 remains in escrow. In our investigation we find Russian funds are papered over as loans - tax free, evading scrutiny

AUSA Donaleski: The fact they he specifically omitted these things is troubling -- Judge Oetken: What on the form requires disclosure of possible home purchase, or $200,000 in escrow? AUSA: He also didn't disclose his income from the law firm, and the loan.  Judge Oetken: Have you learned another else that you can share? AUSA Donaleski: Just a moment... That is was a loan to his wife is not credible.  Judge Oetken: I'll hear from Mister Bondy. Bondy: He won a lottery to come to the US and went to PS 3 in Brooklyn

 Bondy: Parnas is a proud citizen of the USA. I started this on Dec 2 asking you if Mr Parnas could have a few hours out of the house. The court properly asked me to seek the position of Pre-Trial. Mr Parnas asked Officer Samson. There was nothing deceptive

 Bondy: Parnas' trips to Ukraine were almost always with Mr. Giuliani, or with the law firm.  Parnas wants to get that information to Congress. If he were to go anywhere, it would be to Washington DC

Bondy: We have the government here, and Congress there. But I don't control the ability of someone to be called as a witness. I have to deal with is Fifth Amendment rights here. There, it's about immunity. Judge Oetken: Let's get to the good stuff.

 Bondy: Let's start with the SunTrust bank records. Ms. Donaleski asks us for two months of Svetlana's bank records. And the government had the information two days before it made its bail package. It was never hidden.

 Judge Oetken: So there was five wires of $200,000 each. And no indication as to the source of the funds. Bondy: If they'd asked, they would have been told. Ms Parnas as the signator on the house. The $200,000 is unreleaseable. It was a hard money deposit.   Bondy: There was an email chain from this gentleman to Ms. Parnas. It was a loosely papered loan. The lawyer is Swiss, not Ukrainian. He writes she is a nice lady and he will lend her money. When I tried to look into it, he contacted Ms Parnas and pulled the loan

Judge Oetken: But they haven't returned the money, right? Bondy: I only got the request last night. They now have in that account about $94,000. Judge Oetken: Isn't it suspicious they got a $1 million loan and now have only $94,000?

 Judge Oetken:  I know you are an expensive lawyer, but not that expensive. Bondy: There was the $200,000 hard money deposit. And my $100,000 fee.  Since then, Parnas can't speak with co-defendant Correia, who did much of his bookkeeping and secretarial.

 Bondy: Here is a letter in which their accounting firm fires the Parnes'... Parnas had a four month contract with the law firm.  [As he speaks, AUSAs Donaleski and Roos whisper to each other; Zolkind stares straight ahead to Judge Oetken.] Bondy: I told Pre-Trial that Parnas would stay away from boat slips, as Donaleski requested-- Judge Oetken: I think it was Mr. Zolkind, not Ms. Donaleski. Bondy: OK. Next I heard I was on my way to a professional conference and suddenly I hear from the government

 Judge Oetken: I spoke with Pre-Trial Officer Samson on December 13 and he said, as the government does, that he led him to believe that I had encourage the loosening of conditions. I'm not relying on that, might have been spin. But be careful. Bondy: I was careful Inner City Press @innercitypress · 28m Judge Oetken: I'm going to take a brief break, but I'd like to see if the government has anything. Oh, Mr. Bondy, were you done? Bondy: No. I have a few points. Judge Oetken: Go ahead and make them. Bondy: There's no mandatory minimum in this case.

 Bondy: Mr Parnas, unlike some even in the government, wants to provide information. And that would be relevant at sentencing, if there ever is a conviction.

 Bondy: The other cases they cite, I don't know if people who are cutting their GPS bracelets and going to the Dominican Republic have contacts here like Mr Parnas does [Hmm....] I renew my request the court grants Parnas the ability to be outside  

Bondy: We saw Mr. Fruman & his wife at a baseball game over Thanksgiving, risk of flight? [Baseball on Thanksgiving?] Donaleski: Even if house under name of his wife, it's his property [too?] It was omitted from his affidavit. Judge Oetken: They didn't own it yet

AUSA Donaleski: We're heard he's hired armed security to take his kids to school. Who's paying for that? He might flee if there's a superseding indictment. Bondy: There's an oligarch in Ukraine who threatens Parnas. Parnas filed a criminal complaint against him.

Judge Oetken: What's the timing of the complaint Parnas filed in Ukraine against the oligarch? Bondy: Recent. And Giuliani tweeted about it, a threat to two American citizens.

Judge Oetken: I'm going to take a brief break, but I'd like to see if the government has anything. Oh, Mr. Bondy, were you done? Bondy: No. I have a few points. Judge Oetken: Go ahead and make them. Bondy: There's no mandatory minimum in this case.

Bondy: Mr Parnas, unlike some even in the government, wants to provide information. And that would be relevant at sentencing, if there ever is a conviction.

 Bondy: The other cases they cite, I don't know if people who are cutting their GPS bracelets and going to the Dominican Republic have contacts here like Mr Parnas does [Hmm....] I renew my request the court grants Parnas the ability to be outside

Bondy: We saw Mr. Fruman & his wife at a baseball game over Thanksgiving, risk of flight? [Baseball on Thanksgiving?] Donaleski: Even if house under name of his wife, it's his property [too?] It was omitted from his affidavit. Judge Oetken: They didn't own it yet   

AUSA Donaleski: We're heard he's hired armed security to take his kids to school. Who's paying for that? He might flee if there's a superseding indictment. Bondy: There's an oligarch in Ukraine who threatens Parnas. Parnas filed a criminal complaint against him.

Judge Oetken: What's the timing of the complaint Parnas filed in Ukraine against the oligarch? Bondy: Recent. And Giuliani tweeted about it, a threat to two American citizens. Judge Oetken: OK, I'm going to take a five minute break. Thread will continue.

 Judge Oetken is back. He says, It's relevant that the government did agree to the bond in October. That is a baseline. Given that the government agreed at that time. I should be focused on what's different now than then.

Judge Oetken: What's different from October? Alleged misstatements on financial disclosures. When you focus on them, I find that they are not obvious misstatement. There are explanations. For example the law firm - it was a four month stint.

Judge Oetken: Assets of his wife? I don't know that that's a clear and intentional misstatement. And that the $1 million came from a foreign source, I'm not sure that makes the difference. It might have violated the spirit, but does not warrant revocation of bail

 Judge Oetken: He has complied with Pre-Trial Services. Requests on both sides, denied. Anything further? AUSA: Not from the government Bondy: No your honor Judge Oetken: We are adjourned. More on Patreon here.

   The next conference in the case is set for February 3 at 2 pm. Here's the December 2 blow by blow.

Back on November 1, Igor Fruman had three requests denied, to loosen bond restrictions and have his brother Steve as a bond co-signer, all denied on November 1 by Judge Oetken. Periscope here. 

Back on October 23 Lev Parnas' lawyer raised the issue of executive privilege and the need for a US Department of Justice taint team when his client, along with Igor Fruman, were arraigned and both pleaded not guilty. Inner City Press thread here.

   Judge Oetken inquired into whether Parnas worked for President Trump - his lawyer said no - then put off the issues, and the setting of a trial date, until December 2 at 2 pm. Parnas will be under home detention with GPS monitoring in the Southern District of Florida, with no contact with co-defendants outside the presence of counsel. That's a condition co-defendent David Correia's lawyer said he intended to revisit, telling Inner City Press it was because of business relationships, see below.

 Here's some of how it went on October 23:

Judge Oetken's deputy tells the lawyers, The room is cavernous, please speak up. Now Judge Oekten says, we're hear for arraignment on a four count indictment. Asks for time of arrest and about presentment

 AUSA: Parnas will be released on a $1 million bond. Pre-trial supervision out of Southern District of Florida. Home detention with GPS monitoring; DC for legal visits. Surrender passport, no contact with co-defendants outside presence of counsel (Correia disputes)

 AUSA: Igor Fruman putting up a condo. Judge Oetken approves the bail conditions; now proceeding to the arraignment, Parnas first. He waives public reading of the indictment. Pleads Not Guilty. 

 Now Fruman pleads not guilt. Judge Oetken asks AUSA to describe the discover in the case.  AUSA: multiple search warrants, 50 bank accounts, "the investigation is ongoing."

AUSA: By the Dec 2, 2 pm  pre-trial conference US will know more. Judge Oetken: Given the volume of discovery, not setting a trial date yet. Might set it on Dec 2. Parnas' lawyer will be out of the country on that day, he says.

 Parnas' lawyer says there should be  DOJ taint team, says that there are excutive privilege issues... "hese are issues we need to be very sensitive" with, he says. 

Judge Oetken: When you say executive privilege, you're not suggesting your client worked for the President, are you? Parnas' lawyer: No, my client worked with Mr. Giuliani.

Parnas' lawyer: If information gets out then we determine it is all privileged, we've got a problem. AUSA: This is the first that we've heard of this... With respect with executive privilege, we're happy to have a conversation.

 Judge Oetken to Parnas' lawyer: if there's a particular application that you want to make, I'm all ears. Are you going to reach a protective order? AUSA: We are working on it. Judge Oetken: Anything else? Only exclusion of time under the Speed Trial Act. To Dec 2

 Judge Oetken: Okay, I'll see you all on December 2 at 2 pm. Inner City Press said it would be there- and it was. The case is US v. Parnas, et al., 19-cr-00725 (Oetken).

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