After Loss in Eaze
Bank Fraud Trial Akhavan Hit
With $17M Forfeiture After 2d
Cir Ruling
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Jan 29 – Hamid Akhavan was
sentenced to 30 months for his
role in the Eazy marijuana
delivery service bank fraud,
in a trial Inner City Press
covered and won unsealing of
documents in.
On January
22 Akhavan appeared before
U.S. District Court for the
Southern District of New York
Judge Jed S. Rakoff. Inner
City Press went to cover it. Thread:
OK - now at US v
Hamid Akhavan, Inner City
Press reported on and unsealed
the trial, which beyond
marijuana delivery service
Eaze touched on OneCoin and
Hargreaves
Judge Rakoff:
This case is here on remand
from the Seconf Circuit for
resentencing. They said the
banks had been exposed to
liability, and that Mr Akhavan
controlled $17 million... If I
do impose the $17 million,
what would the payment plan
be?
AUSA: We could
explore alternate assets.
Judge Rakoff: What if I order
5% of his gross monthly
income?
Defense (Quinn
Emanuel) We think $17 million
is disproportionate. Judge
Rakoff: 5% of zero is zero.
AUSA: $17 million
is not unconstituonal here.
And it's the defense that
bears the burden. Akhavan was
the leader of this fraud
Judge Rakoff: If
there were victims here, I
would be more sympathetic to
the Government's position. He
served 30 months in prison.
AUSA: Financial penalties are
important in these white
collar cases. He pocketed $8.5
million [Akhavan
is whispering animatedly in
the ear of 1 of his 2 lawyers]
AUSA: Congess has
spoken in the bank fraud
statute. Jydge Rakoff
(smiling) Yes, banks must be
protected.AUSA: We are not
seeking to seize any business,
only to enter a money
judgment. He increased banks'
compliance costs. Defense: Mr
Akhavan never had these funds.
It was an entirely digital
world, taking marijuana into
it. All he had was the stock
options.
AUSA: The money
went to Jaw13 - who was
Akhavan, referred to as
jawbreaker 13 on Telegram. He
didn't invest 3 years and take
nothing. Defense: This was
about the merchant processing
banks. Our client never
received this money.
Judge
Rakoff: Are you claiming Mr
Akhavan did this for
ideological and not mercenary
reasons? If so he should apply
for a Mother Theresa award.
But actually he lied to banks
that the funds weren't from
marijuana. Defense: He didn't
intend to harm banks.
Defense: Mr
Akhavan is now unbanked.
Akhavan: I did this because a
dying friend couldn't buy weed
with a credit card. I didn't
need this. I did not get money
from this. The Government is
lying. Dispensaries today are
not being prosecuted, they
take cards...
Akhavan: I've
lost my business, my wife, my
kid. I've been living with my
parents for the last year and
a half. Judge Rakoff: The jury
found you guilty. I urge you
to look forward, and not hold
a grudge - that's just
punishing yourself.
Judge
Rakoff: I hope you don't dwell
on the past, for your own
happiness. I'm not going to
rule right now, but in
February, with the extra day
AUSA: It has to
be in person
On January 29,
Judge Rakoff docketed a ruling
that "orders that Akhavan pay
forfeiture under 18 U.S.C. §
982(a) (2) in the amount of
$17,183,114.57, to be paid at
a rate of 5% of Akhavan's
gross monthly income,
beginning in the month after
the amended judgment is
entered in this case. In
addition to the payments of 5%
of his gross monthly income,
Akhavan must cooperate with
the Government to provide any
other forfeitable assets that
will be credited toward the
$17,183,114.57 upon their
tender."
Judge Rakoff
wrote that "although the Court
previously held such a
forfeiture to be an excessive
fine prohibited by the Eighth
Amendment, the Second
Circuit's vacatur order
undercut both aspects of the
Court's reasoning that tilted
in Akhavan's favor."
Inner City
Press will continue to cover
the case.
It is US v.
Weigard, et al., 20-cr-188
(Rakoff)
***
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