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White Collar Criminal Linked to Black Eye Jones Got 66 Months & Denied Surrender Delay

By Matthew Russell Lee, Patreon Maxwell Book

SDNY EXCLUSIVE, March 16 -  In the U.S. District Court for the Southern District of New York on November 10, a remand or release to home confinement proceeding was held by Judge Loretta A. Preska on a white collar criminal Derek Jones after allegations and photos of domestic abuse to submitted under seal.

   Inner City Press was in the courtroom and files this exclusive.

  Derek Jones, a lawyer, was charged in 2021 with a $4.5 million fraud using BlueRidge Realty and venture capital Realize Holdings. He pled guilty - then purported to withdraw his plea. That was denied, and his sentencing set for December 13.

   While Jones asked to appear remotely from California for a November 10 hearing before Judge Preska, he was ordered to be present. Inner City Press went, as did two U.S. Marshals.

  The Assistant US Attorney had submitted two 302s, dated October 18 and October 25, under seal. But during the proceeding Judge Preska asked, What am I to do with these photos?

   Reference was made to photos of physical abuse, torn clothes, and to another former Jones girlfriend who contacted the government about threats, as well as to a letter seeming obtained by coercion.

  Jones' lawyer said this was an ambush, that his client should remain at liberty to prepare for sentencing; he even offered that Jones would see no women at all until sentencing.

  The name of the photographed victim was given, but Inner City Press is voluntarily not publishing it here. The transcript was ordered sealed. Judge Preska ordered Jones to home confinement, other than activities involving his children (whom Jones himself said are ages eight, 10, 12 and 14).

On November 11, Veterans Day, the US Attorney's Office filed this: " Re: United States v. Derek Jones, S1 21 Cr. 59 (LAP) Dear Judge Preska:  On behalf of the parties, the Government respectfully requests that the Court so-order this letter reflecting modifications to the defendant’s conditions of release. As the Court stated at yesterday’s conference, the defendant is now subject to the following additional conditions:  The defendant shall remain on home confinement at all times except as required to participate in activities with his children as permitted under his and his ex-wife’s custody arrangement, or to travel to or from Court appearances.  The defendant shall not communicate or have any contact with the two ex-girlfriends..." Full filing on Patreon here.

On January 17, the sentencing occurred. Inner City Press went to cover it. Live tweeted thread here

OK - now at sentencing of white collar criminal Derek Jones When Derek Jones walked into the courtroom, he stuck out his hand to a man in front row, but it was rejected. He turned and grandly offered greeting to Inner City Press. Apparently there will be victims speaking.

 More than an hour after the sentencing proceeding began, after a lot of arguments by Derek Jones' counsel trying to minimize the loss amount, now the ruling has begun. Judge: Mr. Jones engaged in a massive fraud. He did not own the properties he claimed.

Judge: Derek did not rent the office he claimed, or have the employees he claimed. His business was pervaded by fraud. Mr. Jones, would you like to speak? Derek Jones: Yes. I understand how I got here. I have misled investors.  I have fallen short of my standards

Derek Jones: I want to minimize my time away from my children. I would like to make amends. As my precociously wise 10 year old says, If I'm in a cage, I'm of no value to anyone. I look to the wisdom of the court to fashion a practical outcome.

Derek Jones, 2 and a half hours into his sentencing: This is not the time and place to quibble about the losses. I'd like to talk about the origins of Blue Ridge. I had worked in a law firm and was approached by a client... I ran 1200 apartments

Judge: I am aware of your position that these were legitimate deals.  Derek Jones: I'm two thirds of the way through. I live humbly, I live modestly, I feel like I've had my teeth kicked in.  I thank you for your understanding. AUSA: 7 years of brazen lies.

 It's 5:10 pm; finally the man in the front row, who refused to shake Derek Jones' hand, gets up to speak: I was introduced to him by a friend of his ex-wife. He claimed he had a $110 million real estate fund and that he already had $100 million. But it didn't add up

 Victim: I am depressed after three hours of listening to this, about amounts absconded with. But it's about the abuse of trust. Derek is smooth, he's slick, he's charismatic. I was told they had a golf course that sold by $7 million - I was told by Derek Jones

Victim: There was always a story. And today he comes & moves to shake my hand. He didn't say, I'm sorry Richard. He could have written to me. I took time off to come listen to all this prevarication. Nothing! In 12 step programs, you have to admit and apologize

Victim: He's using his kids to try to stay out of jail. If he does, there'll be another flim-flam. I'm stunned at this whole thing.

 Judge: There is a need to protect the public from this defendant. I sentence you to 66 months

And on February 27: "ORDER OF RESTITUTION as to Derek Jones. It is hereby ORDERED that Amount of Restitution. DEREK JONES, the defendant, shall pay restitution in the total amount of $5,462,733.15 to the victims of the offense charged in Count One. The names, addresses, and specific amount owed to the victims are set forth in the Schedule of Victims attached hereto as Exhibit A. Upon advice of a change of address, the Clerk of the Court is authorized to send payments to the new address without further order of this Court. Consistent with 18 U.S.C. งง 3771(a)(8) & 3664(d)(4) and Federal Rule of Criminal Procedure 49.1, to protect the privacy interests of victims, the Schedule of Victims attached hereto shall be filed under seal, except that copies may be retained and used or disclosed by the Government, the Clerk's Office, and the Probation Department, as need be to effect and enforce this Order, without further order of this Court. (Signed by Judge Loretta A. Preska on 2/24/2023)(jw)

On March 15, Jones' lawyer filed with Judge Preska a request by newly appointed appellate counsel seeking a surrender delay from March 18 to April 30. The US quickly opposed it, saying Jones should be ordered to surrender to Lompoc Satellite Camp on March 17 before 2 pm. They inform Judge Preska that the case in which Jones wants to represent himself is an eviction from a rental residence he doesn't need to retain.

On March 16, Judge Preska denied Jones' request: "ENDORSED LETTER as to Derek Jones addressed to Judge Loretta A. Preska, from Daniel S. Nooter dated 3/15/2023 re: Daniel S. Nooter writes to request adjournment of surrender date. ENDORSEMENT: Mr. Jones' request to adjourn his surrender date is denied. (Signed by Judge Loretta A. Preska on 3/16/2023)."

 Watch this site.

The case is US v. Derek Jones, 21-cr-59 (Preska)



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