| Zilberberg
Fraud Trial
Cites FDIC
Exam of Park
Avenue Bank
and TARP
Subpoena
By Matthew
Russell Lee, Patreon Maxwell
book
SDNY COURTHOUSE,
July 6 –
Mendel
Zilberberg was
indicted for
bank fraud
while he was a
board member
of Park Avenue
Bank. His
trial was to
start on
January 23,
2023 - but
actually began
on July
5, 2023.
Inner City
Press was
there.
Back on
January 11,
2023 U.S.
District Court
for the
Southern
District of
New York Judge
George B.
Daniels held
an in-person
final
pre-trial
conference.
Inner City
Press went to
cover
it.
But
even as the
next
defendant, in
a gun case,
had his family
setting up in
the gallery,
in the well of
the courtroom
Zilberberg's
lawyer Ben
Brafman was
conferring
with the
prosecutors.
When Judge
Daniels took
the bench, the
parties asked
for an
adjournment,
in light of
20,000 pages
of FDIC
documents just
produced. No
new trial date
was agreed.
Instead, a
March 28
pre-trial
conference was
scheduled.
Judge
Daniels asked
about a
related loan,
to
Zilberberg's
niece.
The
prosecutor
emphasized
that she was a
special
education
teacher, and
did not have a
business for
the business
loan. Judge
Daniels said
it might be
cumulative,
and/or
prejudicial.
Brafman
said the jury
could be
confused by
the issue of
taking
advantage of a
younger
relative.
Judge Daniels
asked for a
letter.
Brafman
wrote in the
Loan 2, the
Niece Loan,
"has little,
if any,
probative
value."
On
March 21,
Judge Daniels
had a final
pre-trial conference
and largely
agreed,
unless the door is
opened
during the
trial to this
loan. The
trial was
moved up to
July 5 for jury
selection.
On
April 10, co-defendant
Aron Fried who
pled guilty
submitted a
lengthy but
redacted
sentencing submission,
including on
medical
condition,
asking for a
below
guideline
sentence. But
how
much below?
On
April 13, the
US Attorney's
Office asked
for 30 to 37
months.
On
April 18,
Inner City
Press went to
Fried's
sentencing. There
were more than
a half dozen
supporters
in the gallery.
Judge Daniels
asked about
what Fried
knew, and
when. Fried
spoke of bone
cancer and
bad advice.
Judge
Daniels
sentencing
Fried to a
year and a
day. Lead
defense counsel
asked for home
confinement -
Judge Daniels
said no but
that he might
reconsider if
major
(presumably
negative) developments
on health
before the surrender
date. Defense
counsel asked
for a recommendation
of designation
to Otisville.
On July
5 the trial
began. Ben
Brafman told
teh jury to pay
attention to
his cross
examination of
the
cooperator,
and return
with a verdict
of not
guilty. Then
the US put on
the stand a
man who makes
prosthetic limbs and
who
sought a loan
from Park Avenue
Bank.
On July
6, the
prosecution put
on the stand
FDIC Examiner Todd
Goodman and
showed notes
and his and the
NYSBD's
meetings with
Park Avenue
Bank, about
loans in violation
of Reg O and
TARP
subpoenas. Zilberberg
was there.
Watch this
site.
This
case is US v.
Zilberberg,
19-cr-802
(Daniels)
***
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