Inner City Press

In Other Media-eg New Statesman, AJE, FP, Georgia, NYTAzerbaijan, CSM Click here to contact us     .

These reports are usually available through Google News and on Lexis-Nexis

Share |   

Follow on TWITTER

Home -

These reports are usually available through Google News and on Lexis-Nexis


(FP Twitterati 100, 2013)

ICP on YouTube

More: InnerCityPro
Sept 24, 2013

UN: Sri Lanka


FOIA Finds  

Google, Asked at UN About Censorship, Moved to Censor the Questioner, Sources Say, Blaming UN - Update - Editorial

Support this work by buying this book

Click on cover for secure site orders

also includes "Toxic Credit in the Global Inner City"




Bank Beat

Freedom of Information

How to Contact Us

In OneCoin Case Ignatova Communications Deemed Admissible Under Crime Fraud Exception

By Matthew Russell Lee, Patreon

SDNY COURTHOUSE, Oct 9 – After OneCoin's Konstantin Ignatov got a stay of the civil case against him, then his criminal case was kicked down the road for at least another two months. Now on October 9 from SDNY Judge Ramos, this: "ORDER as to Ruja Ignatova. It is hereby ORDERED that Any attorney-client privilege held by the Affected Parties in connection with the communications described below (collectively, the Subject Communications) is deemed waived: Communications between OneCoin Ltd., OnePayments Ltd., OneNetwork Services Ltd., OneAcademy, OneLife, and RavenR Capital Limited, and attorneys for those entities; and Communications between Ruja Ignatova, Frank Ricketts, Manon Hubenthal, Irina Dilkinska, International Marketing Services GmBH, International Marketing Services Singapore Pte, International Marketing Strategies Ltd., and B&N Consult EOOD, and attorneys for those individuals and entities, regarding OneCoin-related financial transactions and the continued operation of the OneCoin scheme. The Subject Communications fall within crime-fraud exception to the attorney-client privilege, and are therefore non-privileged not withstanding the waiver described above. (Signed by Judge Edgardo Ramos on 10/9/2019)." Inner City Press will continue to cover this case.

  On September 6 Inner City Press was rushing to the SDNY courthouse for a 10 am conference in the case when the subway simply stopped for 15 minute: "unruly passenger," they called it. Once in Foley Square Inner City Press ran into Ignatov's lawyer who politely answered that the short conference was already over, with the case delayed two months due to discovery and the civil case.

  Here's how it was entered into the docket some hours later: "Minute Entry for proceedings held before Judge Edgardo Ramos: Status Conference as to Konstantin Ignatov held on 9/6/2019... A pretrial conference is scheduled for November 7, 2019, at 3:30 p.m. Speedy trial time is excluded from today, September 6, 2019, until November 7, 2019, in the interest of justice. (Pretrial Conference set for 11/7/2019 at 03:30 PM before Judge Edgardo Ramos) (lnl)."

  Meanwhile OneCoin lawyer Mark S. Scott is opposing the government's request to postpone his criminal trial set to begin on October 7. It's a showdown on Speedy Trial Act and taint-team grounds that Inner City Press will be following, including with the inside view, more on Patreon here.

  But Scott's trial has in fact been delayed: "Status Conference as to Mark S. Scott held on 8/30/2019. Defendant's appearance waived. Counsel for Defendant: David Garvin, Esq and Arlo Devlin-Brown, Esq. For the government: AUSAs Chris Demase, Nicholas Folly, and SAUSA Julieta Lozano. The October 7, 2019 jury trial is adjourned to Monday, November 4, 2019 at 9:00 a.m. A final pretrial conference will be held on October 28, 2019, at 2:30 p.m. Speedy trial time is excluded from October 7, 2019, until November 4, 2019, in the interest of justice. (Jury Trial set for 11/4/2019 at 09:00 AM before Judge Edgardo Ramos. Pretrial Conference set for 10/28/2019 at 02:30 PM before Judge Edgardo Ramos)."

  From Scott's lawyer's letter: "On August 23rd the taint team advised the defense via email that the taint team “expect[s] to produce to you by the end of next week [i.e., August 30th] approximately 67,000 documents constituting additional materials from the Mark Scott ESI that has been determined to be non-privileged,” asking that the Mark Scott review and assert privilege over any of these documents within a week of receipt. Concerned with the volume of documents that the taint team had still not completed review of, counsel for Mr. Scott started discussing the issue with the Government. After considering options, we informed the Government yesterday that the taint team could turn the set of documents – now estimated to be 70,0000 – over to the prosecution team at the same time they were provided to defense, giving up entirely our right under the agreement struck with the Government to review the documents in advance. We agreed that the taint team could do the same for any other documents on a going forward basis. Given that the taint team review process had become more accurate over time, this was a concession to the Government that seemed very much worth making. The Government, it seems, cannot take yes for an answer. Inexplicably, it seeks to use Mr. Scott’s willingness to expedite the Government’s access to these documents as reason to delay trial. The Government argues that it is “entitled to a reasonable amount of time to review the more than 70,000 additional documents that it was granted access to for the first time only yesterday afternoon.” 2  What the Government is less clear about is that the holdup is its own taint team, not Mr. Scott. The taint team is “still in the process of releasing these documents,” as the Government concedes in a footnote, Id. at n.2, and the documents were only released to the prosecution team and Mr. Scott this afternoon, after the Government filed its application.

Mr. Scott has not delayed the prosecution team’s access to this set of 70,000 documents by even one minute. Privilege reviews are difficult, and the process can be frustrating to all. But far from “obstructing the prosecution team’s ability to review lawfully-obtained material,” as the Government claims, Mr. Scott has followed the process the parties agreed to as reported to the Court on July 30th, and is now willing to remove himself from the process entirely so both parties – prosecution team and defense – can focus on preparing for the October 7th trial. The taint team’s own apparent challenges in clearing this latest batch of 70,000 documents are no fault of Mr. Scott’s, and no reason to delay his right to a speedy trial. The Government charged Mr. Scott with a serious crime over a year ago, throwing his life into turmoil, based on evidence it presumably believed would support a conviction. The time has come for a trial."

 With OneCoin the subject of criminal prosecution a civil case against it was ordered stayed on August 23 by U.S. District Court for the Southern District of New York Judge Valerie Caproni.

  While Konstantin Ignatov's lawyer Jeffrey Einhorn's basis for the stay was "corresponding criminal prosecution," Judge Caproni also chided plaintiffs' lawyers at Levi & Kosinsky for failing to serve or show service on some of the defendants.

  Later in the day the firm wrote that "OneCoin Ltd. and Ruja Ignatova are domiciled in Bulgaria and are believed to be evading service. Sebastian Greenwood, similarly, is domiciled in Sweden, and is believed to be evading service." They are proposing service by Facebook, citing FTC v. Pecon Software Ltd, 2013 WL 4016272, at *5 (SDNY Aug. 7, 2013). Whether Judge Caproni will accept this is not yet clear. More on Patreon here. Inner City Press will continue to follow these cases.

Back on June 28 detention was continued for OneCoin defendant Konstantin Ignatov, after he offered to pay armed guards to keep him in an apartment he would rent in Manhattan. U.S. District Court for the Southern District of New York Judge Edgardo Ramos questioned the source of the bail money that Ignatov was offering to put up, as well as issued raised about the propriety of "private prisons" of  the type now incarcerated UN briber Ng Lap Seng, whose appeal was just denied, was allowed to live in during the pendency of his case.

  Ignatov's lawyer Jeffrey Lichtman noted that Bernie Madoff got bail, and that the government could not show any contact between Ignavov and his sister Ruja, indisputedly higher up in the OneCoin scheme. But Judge Ramos, after more than an hour of argument, was not convinced. The case is US v. Ignatov, 17-cr-630 (Ramos).

 Now on August 12, this: "ENDORSED LETTER as to (S7-17-Cr-630-03) Konstantin Ignatov addressed to Judge Edgardo Ramos from Attorney Jeffrey Lichtman dated August 9, 2019 re: submitted to respectfully request an adjournment of the August 16, 2019 status conference in this case until September 6, or a date thereafter that is convenient for the Court. ENDORSEMENT: The status conference is adjourned to September 6, 2019 at 10:15 a.m. SO ORDERED. (Signed by Judge Edgardo Ramos on 8/12/2019)." More on Patreon, here.

  In other SDNY corporate crime news, the US  quietly filed a criminal antitrust case against Banca IMI trader Larry D. Meyers - who quietly pled guilty and agreed to cooperate on June 27 before Judge Paul A. Engelmayer of the U.S. District Court for the Southern District of New York, Inner City Press can report.

  The case involves violations with the Sherman Act with respect to American Depository Receipts. It is a quiet part of a larger case. On June 27 the representative of DOJ's Antitrust Division said Meyers will get a 5K1.1 letter if he fully cooperates. She then said the sentencing could be set for October 7 at 2:30 pm.  So will all of the cooperation be by then?

  Judge Engelmayer asked Meyers to explain what he did. Meyers, going beyond the script prepared for him by his new lawyer Mr. Alvarez, said that only a few had access to the pre-release ADRs and had become a "cozy community." He said, "We became too friendly." Not anymore...

  The plea almost got delayed again because Meyers old lawyer had not yet formally withdrawn; Judge Engelmayer said a Curcio hearing might be needed then decided not. He asked Ms. Brown of DOJ if anything was needed with regard to the transcript, presumably to seal it.

  We don't think that's necessary, Ms. Brown told Judge Engelmayer. So the cooperation is entirely public now, in this cozy community. Inner City Press will continue to follow these cases and others in the SDNY...

                        Pearl, not 40 Foley, photo by Inner City Press

Earlier, before issuing his ruling Judge Edgardo Ramos had asked the lawyers for the two banks that got the subpoenas, Deutsche Bank and Capital One, if they wanted to speak. They did not. This even as House counsel Strawbridge detailed Deutsche Bank's long history with money laundering (and theft during the Holocaust, which didn't come up). Capital One is a rough, too, on predatory auto lending and the Community Reinvestment Act. But the banks lay low.

  Now under Judge Ramos' 25-page ruling, the banks become required to respond to the subpoenas in seven days, on May 29. That's the time during which the House has agreed not to enforce the subpoena, and the time during which Trump's lawyers seem certain to file an appeal and ask again for a stay from the Second Circuit Count of Appeals higher up, in both senses, in 40 Foley Square.

Earlier still in the May in the SDNY, Congressman Christopher Collins (R-NY) waived his right to be present for a May 3 hearing in the criminal insider trading case against him held past 5 pm in the SDNY courtroom of Judge Broderick. On May 10, Judge Broderick started on l'affaire Collins at 2 pm, after a case against BuzzFeed (Inner City Press coverage here). Early in the proceeding, before two shackled inmates were led in leading to a brief suspension of the white shoe SEC Congressman matter, Broderick made a joke about Donald Trump and evasive legal moves. I'm not going there, said one of the participants in Collins, who was an early endorser of Trump. Broderick said, "I should have either - but it is what it is."

   Three hours later, during which Inner City Press in full disclosure went one story down in the courthouse to cover a Fatico hearing about threats in the MCC, Judge Broderick was setting the time for Collins' lawyers to make motions. He arrived on four weeks after he rules on discovery, with the SEC to provide whatever he directs to the defense one week after the ruling. I'm not saying you're going to get anything, Judge Broderick said. Collins' lead lawyer said he is a optimist. More on Patreon; watch this site. 

  Collins' team of lawyers have made a slew of suggestions to Judge Broderick on what discovery to seek from the U.S. Attorney's office, from communications with the SEC to information about real estate, Cameron Collins and Lauren Zarsky and their sales of Immunotherapeutics stock after MIS416, aimed at secondary multiple sclerosis, failed the Drug Trial and Rep Collins made his calls from the White House Congressional picnic.

   On May 3 Judge Broderick was urging wide disclosure by the government, whether characterized as 3500 material or under Brady or Giglio. The notes to be produced, he said, didn't have to been entirely contemporaneous. He had a series of questions for the U.S. Attorney which he did not get through as it approached 6 p.m. and his courtroom deputy had gone for the day.

  Collins' lead lawyer from BakerHostetler, Jonathan R. Barr, directed Broderick to a decision by SDNY Judge Jed Rakoff during the Gumpta case, and Broderick said that he would read it. He confessed he had himself looked up applicable cases on Westlaw, adding that he might have missed some cases.  This case is  USA v. Collins, et al., 18-cr-00567 (VSB). More on Patreon, here.

  Judge Broderick told Collins' lawyers to expect to come back in a week's time on Friday, May 10. One of them said he would only be returning to the United States that morning; another said that he then would be leaving for the same place his colleague had been: Argentina.

 Thus is big money, and big politics, law done in the SDNY.


Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron.

Feedback: Editorial [at]

Box 20047, Dag Hammarskjold Station NY NY 10017

Reporter's mobile (and weekends): 718-716-3540

Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.

 Copyright 2006-2019 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] for