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Tag: Collusion

  • Hunter Biden pleads guilty in tax case, hours after jury selection for trial was to begin

    Hunter Biden pleads guilty in tax case, hours after jury selection for trial was to begin

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    Hunter Biden, son of U.S. President Joe Biden, arrives at court for his trial on tax evasion in Los Angeles on Sept. 5, 2024.

    Ringo Chiu | AFP | Getty Images

    Hunter Biden pleaded guilty to all nine counts in his criminal tax case in Los Angeles federal court on Thursday afternoon, hours after jury selection was due to begin for a trial of the son of President Joe Biden.

    Biden’s sentencing was scheduled for Dec. 16.

    The plea came after prosecutors strongly opposed Biden’s surprise offer earlier in the day to enter a special plea — known as an Alford plea — that would allow him to maintain that he believed he was innocent but concede that prosecutors had enough evidence to convict him at trial.

    If the Alford plea had been accepted by U.S. District Judge Mark Scarsi, Biden would have been convicted of the charges.

    The plea that Biden ended up making to Scarsi is an “open plea,” or one done without a plea deal with prosecutors, which might have included a reduction in the number of criminal counts he faced and an agreement on the likely terms of his sentencing.

    Biden, 54, was charged in the case with three felony counts and six misdemeanors related to failing to pay at least $1.4 million in federal taxes between 2016 and 2019.

    He was accused of deducting money that he paid to sex workers on his taxes as a business expense and of spending “millions of dollars on an extravagant lifestyle rather than paying his tax bills,” according to an indictment.

    “Mr. Biden will agree that the elements of each offense have been satisfied,” Biden’s lawyer Abbe Lowell told Scarsi after returning from a recess following arguments over the proposed Alford plea.

    When Scarsi asked special counsel Leo Wise, the prosecutor, if that was sufficient, Wise said he would prefer that Biden admit his actions as alleged in an indictment.

    “Will Mr. Biden agree that that is the truth? Because the truth matters,” Wise said. “He should have to say that the facts are true!”

    Lowell then argued that was not required under the law.

    “He just has to agree to the elements,” Lowell said. “I know Mr. Wise would like Mr. Biden to say, ‘and in addition, I was a really bad person when I did this,’ but that’s not what the law requires.”

    Scarsi said, “So we’re going to take an open plea from Mr. Biden. And I will ask if you committed conduct that satisfies element in the indictment.”

    Wise then began reading the 56-page indictment out loud in court. That reading took almost 90 minutes to complete.

     In June, Biden was found guilty after trial in another case where he was accused of crimes related to his purchase of a handgun in 2018 while being a user and addict of crack cocaine.

    He is awaiting sentencing in that case, which was tried in U.S. District Court in Delaware.

    Read more CNBC politics coverage

    On Thursday morning in Los Angeles federal court, more than 100 potential jurors assembled for jury selection in Biden’s tax case.

    But Biden’s lawyer Lowell surprised prosecutors and others in the court when he told Scarsi, “There is no reason to proceed with jury selection as Mr. Biden intends to change his plea.”

    Lowell told Scarsi there was “no agreement” with prosecutors about Biden’s planned Alford plea. But the lawyer said there is no requirement for such an agreement.

    “The law is very clear. If the defendant satisfies rule 11b, the court is required to accept the plea,” Lowell said.”

    Lowell also said, “I don’t think we would agree under conventional plea circumstances.”

    Wise, the special counsel, told Scarsi, “This is the first we’ve heard of this.” Wise asked for time to discuss the proposed change of plea privately.

    “I think this can be resolved today,” Lowell said. “It doesn’t need days.”

    After a recess, Wise told the judge, “I want to make it crystal clear: The U.S. opposes an Alford plea.”

    “We will not under any circumstances accept an Alford plea,” said Wise. “It’s not in the public interest, it’s contrary to the rule of law and we think it’s an injustice.”

    Hunter Biden is not innocent. Hunter Biden is guilty,” said Wise.

    “We were as shocked as anyone else,” the prosecutor said about the proposed Alford plea.

    He said the prosecution is not in a position to evaluate that plea offer Thursday.

    “There’s no way to rush this at this point. And it shouldn’t be rushed,” Wise said. 

    Under Department of Justice guidelines, federal prosecutors “may not consent” to an Alford plea “except in the most unusual circumstances and only after the Assistant Attorney General, Tax Division, or a higher Departmental official, has approved a written request.”

    Lowell told Scarsi that Biden is not asking for special treatment, noting that “people all over the U.S.” take Alford pleas.

    “He is asking for the same rights as others,” Lowell said. “He is willing to say that the government has put forth sufficient evidence to prove the case beyond a reasonable doubt. … I don’t know why the government wants to punt.”

    Scarsi called another recess after hearing the arguments and telling attorneys, “I haven’t seen a case that tells me I have to accept an Alford plea.”

    But the judge also said, “Assuming I have the opportunity to reject an Alford plea, why shouldn’t I?”

    “I need a reason why I accept or reject a plea,” Scarsi said. 

    After that recess, Biden returned to the courtroom, where Lowell said he would enter his open guilty plea, dropping the suggestion of an Alford plea.

    President Biden, as he left the White House earlier Thursday to travel to Wisconsin, ignored shouted questions from reporters about his son’s plan to change his original not-guilty plea in the case.

    This is breaking news. Please refresh for updates.

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  • Alec Baldwin ‘Rust’ manslaughter case dismissed by judge

    Alec Baldwin ‘Rust’ manslaughter case dismissed by judge

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    US actor Alec Baldwin participates in a pretrial hearing in Santa Fe, New Mexico, on July 8, 2024. 

    Ross D. Franklin | AFP | Getty Images

    A New Mexico judge on Friday dismissed the criminal involuntary manslaughter case against Alec Baldwin on the third day of the actor’s trial, after ruling that prosecutors improperly kept evidence about live ammunition potentially related to the case secret from defense lawyers.

    Judge Mary Marlowe Sommer tossed the case against Baldwin, which related to the October 2021 accidental shooting death of cinematographer Halyna Hutchins on the set of his movie “Rust,” with prejudice. That means prosecutors cannot retry the “30 Rock” actor.

    Baldwin wept as the decision was announced, on what was the third day of trial in the case in state court in Santa Fe. He soon after embraced his wife Hilaria.

    “There is no way for the court to right this wrong,” Sommers said, referring to the prosecution’s actions. “The sanction of dismissal is the only warranted remedy.”

    Under U.S. criminal law, prosecutors must turn over evidence to defense lawyers if that evidence is potentially helpful to a defendant.

    A defense lawyer for Hannah Gutierrez-Reed, who served as the armorer on the “Rust” production, in a statement said he will seek her immediate release from prison, where she is currently serving an 18-month prison sentence after being convicted in March of involuntary manslaughter in Hutchins’ death.

    Guitierrez-Reed’s lawyer, Jason Bowels, said the prosecution in Baldwin’s and his client’s case had engaged in an “absolutely shocking” pattern of misconduct.

    Baldwin in an Instagram post on Saturday morning wrote, “There are too many people who have supported me to thank just now.”

    “To all of you, you will never know how much I appreciate your kindness toward my family,” Baldwin wrote.

    Brian Parrish, a lawyer for Hutchins’ widower Matthew Hutchins, in a statement, said, “We respect the court’s decision,” but vowed to pursue civil claims against Baldwin.

    US actor Alec Baldwin and his wife Hilaria Baldwin embrace during his trial on involuntary manslaughter at Santa Fe County District Court in Santa Fe, New Mexico, on July 12, 2024. 

    Ramsay De Give | AFP | Getty Images

    Hours before she dismissed the case on Friday, Sommer sent jurors home for the weekend after receiving a motion from Baldwin’s attorneys asking her to toss the charges.

    The judge then conducted a hearing on the defense’s claims, which cited the ammunition in the possession of prosecutors, which had not been previously disclosed to Baldwin’s team by prosecutors.

    “We don’t know if it’s a live ammunition match or not,” Baldwin’s attorney Luke Nikas told Sommer, according to the Associated Press. “But we do know that the state had it, and it’s disclosable.”Prosecutors in turn claimed that the ammo was not related to the case.

    On Friday night, Erlinda Johnson Ocampo, who had been a special prosecutor on the team in Baldwin’s case, said she quit the team midday Friday after learning a day earlier that ammunition had been given to law enforcement on the heels of the shooting which had not been disclosed to defense lawyers.

    “We have an obligation as prosecutors, we have an obligation not only to the people, but to the defendant and our obligation is to make sure that all the evidence is turned over,” Ocampo told Chris Cuomon on NewsNation. “We don’t get to decide what the defense is going to be. Our job is to ensure transparency, and to ensure that the defendant has everything that the prosecution has gathered.”

    The dismissal comes 16 months after the charges against Baldwin were first tossed out by prosecutors after they said “new facts” had emerged that required further investigation.

    The case was refiled against him earlier this year.

    Judge Mary Marlowe Sommer speaks during a pretrial hearing in Santa Fe, New Mexico, on July 8, 2024. US actor Alec Baldwin is facing a single charge of involuntary manslaughter in the death of a cinematographer.

    Ross D. Franklin | ADP | Getty Images

    Baldwin was rehearsing a scene when a revolver he was handling fired, killing the 42-year-old Hutchins.

    Since the shooting, Baldwin has denied that he pulled the trigger of the weapon and said that he had been told the gun was unable to be fired when it was handed to him.

    He had faced the possibility of being sentenced to 18 months in prison if convicted in the case.

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  • DOJ charges Chinese national with operating ‘world’s largest botnet’ that stole $5.9 billion in Covid relief funds

    DOJ charges Chinese national with operating ‘world’s largest botnet’ that stole $5.9 billion in Covid relief funds

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    The seal of the US Department of Justice in Washington, DC on March 21, 2024. 

    Mandel Ngan | Afp | Getty Images

    A global malware network responsible for the theft of $5.9 billion in Covid relief funds and tied to other crimes like child exploitation and bomb threats has been shut down, Department of Justice officials announced Wednesday.

    The DOJ arrested 35-year-old YunHe Wang, a Chinese national who was charged with creating the “botnet,” a kind of malware that connects a network of hacked devices, which criminals can then use remotely to launch cyberattacks.

    Federal Bureau of Investigation Director Christopher Wray said it is “likely the world’s largest botnet ever.”

    From 2014 to 2022, Wang launched and operated the botnet, called “911 S5,” from roughly 150 servers worldwide, including some in the U.S., according to the indictment. 911 S5 hacked into over 19 million IP addresses in nearly 200 countries, about 614,000 of which were in the U.S., according to the DOJ.

    The FBI released a how-to guide for users to identify if their devices had been targets of a 911 S5 attack and if so, how to remove the malware.

    Wang allegedly sold access to the compromised IP addresses to cybercriminals and amassed at least $99 million, which he used to buy luxury cars, watches and property around the world.

    911 S5 was also used for fraud, stalking, harassment, illegal exportation of goods and other crimes, the DOJ said. In particular, the botnet targeted Covid relief programs and filed an estimated 560,000 false unemployment insurance claims, stealing $5.9 billion.

    “The conduct alleged here reads like it’s ripped from a screenplay,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the U.S. Department of Commerce’s Bureau of Industry and Security.

    “What they don’t show in the movies though is the painstaking work it takes by domestic and international law enforcement, working closely with industry partners, to take down such a brazen scheme and make an arrest like this happen,” Axelrod added in his statement.

    The DOJ partnered with the FBI and other law enforcement agencies internationally to dismantle the botnet and arrest Wang.

    The arrest comes a day after Treasury Department sanctioned Wang and two others for their alleged involvement with 911 S5. Treasury also imposed sanctions on three companies that Wang owned or controlled: Spicy Code Company Limited, Tulip Biz Pattaya Group Company Limited, and Lily Suites Company Limited.

    Wang is facing a maximum 65-year prison sentence with four criminal counts: conspiracy to commit computer fraud, substantive computer fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering. 

    The charges come as U.S. law enforcement agencies try to update protocols to keep up with more sophisticated cybersecurity threats.

    In recent years, the U.S. has expressed particular concern for China-backed hackers looking to subvert American infrastructure.

    In January, the FBI announced that it had dismantled the Chinese “Volt Typhoon” hacking group, which had been targeting U.S. water plants, electric grids and more.

    “Today, and literally every day, they’re actively attacking our economic security, engaging in wholesale theft of our innovation, and our personal and corporate data,” Wray said at a January hearing.

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  • Trump trial set for opening statements and first witness testimony: Live updates

    Trump trial set for opening statements and first witness testimony: Live updates

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    Former U.S. President Donald Trump exits the courtroom for the day at Manhattan Criminal Court during his trial for allegedly covering up hush money payments on April 19, 2024 in New York City. 

    Spencer Platt | Via Reuters

    This is developing news. Check back for updates.

    Prosecutors and defense lawyers in the New York hush money trial of Donald Trump are set Monday to deliver opening statements and start calling witnesses to testify.

    The prosecution is expected to call David Pecker, the former CEO of National Enquirer publisher American Media, as its first witness, a source with direct knowledge told NBC News.

    Pecker was deeply involved in alleged efforts ahead of the 2016 presidential election to “catch and kill” negative information about Trump, the Republican nominee in that contest.

    Pecker allegedly warned Trump’s then-attorney Michael Cohen in late 2016 about porn star Stormy Daniels’ claim that she had sex with Trump years earlier while he was married. Cohen paid $130,000 to Daniels less than two weeks before the election, which Trump went on to win.

    American Media earlier in 2016 also allegedly paid $150,000 to former Playboy model Karen McDougal, who also says she had an extramarital affair with Trump.

    Trump faces 34 counts of falsifying business records in order to conceal his reimbursement to Cohen for paying off Daniels. Manhattan District Attorney Alvin Bragg accuses Trump of doing so to influence the 2016 election.

    Trump in a post Monday morning on Truth Social defended those payments to Cohen as he railed against the DA.

    Bragg “says that the payment of money to a lawyer, for legal services rendered, should not be referred to in a Ledger as LEGAL EXPENSE,” Trump wrote. “What other term would be more appropriate???”

    Read more about Trump’s hush money trial

    Trump in that post also complained that he is unable to campaign for president this week because he is required to attend his trial, which is expected to last around six weeks.

    “It is also the perfect Crooked Joe Biden NARRATIVE – To be STUCK in a courtroom, and not be allowed to campaign for President of the United States!” he posted.

    The opening statements and witness testimony will be delivered to a jury of 12 members and six alternates, who were seated last week for the historic trial in Manhattan Supreme Court.

    Dozens of potential jurors quickly disqualified themselves from the process by declaring they could not be fair and impartial in deciding on the charges against the former president and current presumptive Republican presidential nominee. Others were excused from service after lawyers found past social media posts criticizing Trump.

    The former president’s attorneys made about a dozen separate attempts to delay or dismiss the trial in the weeks leading up to it.

    This included a request Friday afternoon that a Manhattan appeals court pause the case, in which they argued that Trump cannot receive a fair jury in New York City, where polls show he is deeply unpopular.

    Judge Juan Merchan had seated a full jury that same day, and the appeals court swiftly rejected the last-minute effort.

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  • Trump berates judge for ‘rushed’ hush money trial, days before opening statements

    Trump berates judge for ‘rushed’ hush money trial, days before opening statements

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    Former US President Donald Trump sits in the courtroom at Manhattan criminal court in New York, US, on Thursday, April 18, 2024. 

    Jeenah Moon | Reuters

    Donald Trump on Saturday took to social media to deliver another tirade against the judge and the circumstances of his New York hush money trial, which wrapped up jury selection on Friday and is expected to begin opening arguments on Monday.

    “THIS SCAM ‘RUSHED’ TRIAL TAKING PLACE IN A 95% DEMOCRAT AREA IS A PLANNED AND COORDINATED WITCH HUNT,” the 2024 presumptive Republican presidential nominee wrote in one of several Truth Social posts on Saturday morning. “IT IS BEING PRESIDED OVER BY POSSIBLY THE MOST CONFLICTED JUDGE IN JUDICIAL HISTORY, WHO MUST BE REMOVED FROM THIS HOAX IMMEDIATELY.”

    The rant comes a day after Trump’s attorneys requested to delay the trial to find a new location, claiming that New York City residents were too biased to find a fair jury.

    A Manhattan appeals court quickly rejected Trump’s request, the latest of roughly a dozen attempts to delay the trial, which was initially scheduled to kick off March 25.

    Despite Trump’s efforts to postpone, Manhattan Supreme Court Judge Juan Merchan, who presides over Trump’s case, said that opening arguments for the first-ever criminal trial of a former U.S. president would start Monday morning.

    Trump is facing 34 counts of falsifying business records in relation to an alleged cover-up of a $130,000 hush money payment to porn star Stormy Daniels.

    Trump’s social media rants targeting Merchan and others involved in the trial have become a regular pattern for the former president, despite a gag order imposed in March.

    Trump has publicly gone after the judge’s daughter, who has worked for a progressive political consulting firm, and has repeatedly called for the judge to recuse himself.

    Prosecutors on Monday asked Merchan to penalize Trump for his apparent gag order violations, specifically citing three of his social media posts, which targeted several witnesses, including Stormy Daniels and his former lawyer Michael Cohen.

    The prosecutors requested a $1,000 sanction for each of the three posts and asked the judge to warn Trump that future violations could result in jail time.

    Merchan said he would schedule a hearing on the prosecutors’ request for Wednesday.

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  • Creditors demand Rudy Giuliani sell his $3.5 million Florida condo to pay debts

    Creditors demand Rudy Giuliani sell his $3.5 million Florida condo to pay debts

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    Rudy Giuliani, the former personal lawyer for former U.S. President Donald Trump, arrives at the E. Barrett Prettyman U.S. District Courthouse in Washington, D.C., on Dec. 15, 2023.

    Anna Moneymaker | Getty Images

    Creditors want to force Rudy Giuliani to sell his $3.5 million Florida condo to help pay his significant debts, according to a court document filed on Friday.

    The former New York City mayor filed for bankruptcy protection in December, citing myriad unpaid debts including a $148 million payment to two Georgia election poll workers who he falsely claimed had tampered with the 2020 election ballots while he was serving as a lawyer for former President Donald Trump.

    In response to Friday’s filing, Giuliani’s counsel said the request to sell the Florida condo is “extremely premature.”

    “The case is still in its infancy,” said Heath Berger, partner at Berger, Fischoff, Shumer, Wexler & Goodman, LLP, who is representing Giuliani in his bankruptcy litigation.

    Giuliani has argued that he does not have the funds to pay his debts, the Friday court filing said: “According to the Debtor’s counsel, ‘there’s no pot of gold at the end of the rainbow.’”

    Giuliani’s primary income comes from Social Security payments and money from his Individual Retirement Account, Berger told CNBC.

    But the court document cited various expenses Giuliani pays now to maintain his lifestyle.

    For example, Giuliani spends tens of thousands of dollars a month to maintain his Florida condo. In January, according to the document, he also racked up more than $26,200 in credit card payments on 60 Amazon transactions, with charges for Netflix, Prime Video, Kindle, Audible, Paramount+, Uber rides and more.

    “Unfortunately, like everybody else, that’s like a debit card for him,” Berger said. “We don’t believe that there’s anything out of the ordinary, outside of normal living expenses.”

    Creditors see his real estate assets as fair game to recoup what is owed. They said his “pre-war co-op” apartment on New York City’s Upper East Side is exempt since it is his primary residence.

    However, the document said, Giuliani spends “approximately 20-30% of his time in Florida” and therefore creditors claimed the $3.5 million condo must be sold.

    “It is merely a matter of when, not if, the Debtor will have to sell the Florida Condo in order to distribute the proceeds thereof to creditors,” the filing said.

    But Giuliani is in the process of selling the Manhattan apartment and is looking to relocate to his Florida residence full-time, Berger said.

    “The Manhattan property is more expensive to maintain. It’s worth more so there’ll be a greater distribution to creditors from the sale of that property,” Berger told CNBC.

    Berger added that payments related to his divorce “will be coming to a conclusion … within the next year or so.”

    Creditors also demanded that Giuliani secure homeowners insurance for his Florida and New York City residences since they are his two most valuable assets and “if anything were to happen to either of them, such loss would be a significant impediment to creditor recoveries.”

    Giuliani has claimed he cannot afford the insurance, the court document said.

    The former Trump adviser has faced a slew of legal woes for his role in trying to overturn the 2020 election results, all of which have helped land him in bankruptcy court. His bankruptcy filing from December estimated that he has between $1 million and $10 million worth of assets and nearly $152 million to pay off, including what is owed to the IRS and law firms.

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  • Trump ordered to pay $454 million in fines and interest in NY business fraud case

    Trump ordered to pay $454 million in fines and interest in NY business fraud case

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    Former U.S. President Donald Trump walks outside the courtroom on the day of a court hearing on charges of falsifying business records to cover up a hush money payment to a porn star before the 2016 election, in New York State Supreme Court in the Manhattan borough of New York City, U.S., February 15, 2024.

    Andrew Kelly | Reuters

    A New York judge on Friday ordered Donald Trump to pay about $454 million in total penalties as part of his ruling in the former president’s civil business fraud trial.

    The staggering figure includes about $355 million in disgorgement, a term for returning ill-gotten gains, plus more than $98 million in prejudgment interest that will accrue every day until it is paid, according to a spokesperson for the attorney general’s office.

    Manhattan Supreme Court Judge Arthur Engoron also barred Trump from running a business in New York for three years.

    The former president also faces a three-year ban on applying for loans from financial institutions registered with the state.

    “New York means business in combating business fraud,” Engoron wrote in the 92-page ruling.

    The judge delivered the final decision from the trial, which was held without a jury.

    “We’ve employed tens of thousands of people in New York, and we pay taxes like few other people have ever paid in New York,” Trump said in remarks at his Mar-a-Lago resort after the ruling. “They don’t care about that. It’s a state that’s going bust because everybody’s leaving.”

    His attorney Chris Kise said in a statement earlier Friday that Trump “will of course appeal.”

    The former president “remains confident the Appellate Division will ultimately correct the innumerable and catastrophic errors made by a trial court untethered to the law or to reality,” Kise said.

    The appeals process could take several years to resolve.

    The explosive trial stemmed from New York Attorney General Letitia James’ lawsuit accusing Trump, his two adult sons, his company and top executives of fraudulently inflating Trump’s assets to boost his stated net worth and obtain various financial perks.

    New York Attorney General Letitia James speaks during a press conference following a ruling against former U.S. President Donald Trump ordering him to pay $354.9 million and barring him from doing business in New York State for three years, in the Manhattan borough of New York City, U.S., February 16, 2024. 

    David Dee Delgado | Reuters

    “There simply cannot be different rules for different people,” James said in a statement celebrating the ruling Friday afternoon.

    “Everyday Americans cannot lie to a bank to get a mortgage to buy a home, and if they did, our government would throw the book at them,” James said.

    James had asked Engoron to ban Trump for life from New York’s real estate industry, and for $370 million in disgorgement.

    Instead, Engoron fined Trump $354,868,768 in disgorgement. He also ordered Trump to pay a total of $98.6 million in prejudgment interest, which will accrue at an annual rate of 9%.

    The grand total, including disgorgement and interest, for all defendants in the case: just under $464 million.

    Of that sum, Eric Trump and Donald Trump Jr., who took over the Trump Organization after their father became president in 2017, have been ordered to pay more than $4 million each.

    Eric and Donald Jr. also face two-year bans from serving as officers or directors of any New York corporation or legal entity.

    Donald Trump Jr. and his brother Eric Trump arrive at New York Supreme Court for former President Donald Trump’s civil fraud trial on November 02, 2023 in New York City. 

    David Dee Delgado | Getty Images

    Co-defendants Allen Weisselberg, the Trump Organization’s former chief financial officer, and the company’s comptroller, Jeffrey McConney, are permanently banned from controlling the finances of a New York business, Engoron ruled.

    But the judge vacated his own prior directive to cancel the defendants’ business certificates, meaning he is no longer pursuing what some legal experts described as a “corporate death penalty” for the Trump Organization.

    The decision is only the latest court-ordered punishment imposed on Trump, who is running for president while dealing with numerous criminal and civil lawsuits. Last month, a jury in a separate civil case in New York federal court ordered Trump to pay $83.3 million for defaming writer E. Jean Carroll when he responded to her claim that he had raped her in the mid-1990s.

    Trump is the clear front-runner for the Republican presidential nomination, setting up a likely rematch with President Joe Biden, who beat him in 2020.

    Lawyers for Trump and the other defendants quickly blasted Friday’s ruling, accusing the judge and the prosecutor of political bias and warning that the outcome will drive business away from New York.

    “Countless hours of testimony proved that there was no wrongdoing, no crime, and no victim,” Trump attorney Alina Habba said in a statement.

    But Engoron wrote in his ruling that the statute used in the case does not require that a victim lose money.

    “It is undisputed that defendants have made all required payments on time; the next group of lenders to receive bogus statements might not be so lucky,” he wrote.

    “Defendants submitted blatantly false financial data” as they sought to borrow more money at better loan rates, “resulting in fraudulent financial statements,” Engoron wrote.

    He also pointed to the Trump team’s legal defenses, saying they proved the company and its officers would keep operating the same way they always had unless he forced them to change.

    “When confronted at trial with the statements, defendants’ fact and expert witnesses simply denied reality,” the judge wrote.

    Their “refusal to admit error” led the judge to conclude “that they will engage in it going forward unless judicially restrained.”

    “Indeed, Donald Trump testified that, even today, he does not believe the Trump Organization needed to make any changes based on the facts that came out during this trial,” Engoron wrote.

    “Their complete lack of contrition and remorse borders on pathological.”

    Read more on this Trump fraud trial

    Trump has frequently raged against his many legal battles as “witch hunts,” claiming they are part of a Biden administration-backed conspiracy to tank his political ambitions.

    He vociferously denied all wrongdoing in the New York fraud case, blaring his claims of total innocence on social media, at the courthouse and even on the witness stand.

    Trump claimed to be worth far more than what was reported on his financial statements, while asserting that a disclaimer on the records protected him from liability for any inaccuracies.

    But Trump and the other defendants were found liable for fraud by Engoron before the trial even began.

    In a bombshell pretrial ruling, Engoron granted summary judgment on James’ main cause of action — that the defendants committed fraud in violation of New York law.

    Justice Arthur Engoron speaks during the trial of former U.S. President Donald Trump, his adult sons, the Trump Organization and others in a civil fraud case brought by state Attorney General Letitia James, at a Manhattan courthouse, in New York City, U.S., October 3, 2023. 

    Shannon Stapleton | Reuters

    Engoron found that Trump’s statements of financial condition between 2014 and 2021 overvalued his assets between $812 million and $2.2 billion.

    The ruling razed Trump’s defense claims, accusing him and his co-defendants of trying to convince the court to “not believe its own eyes.”

    The trial was conducted to determine the amount to be paid in penalties and resolve other claims of wrongdoing from James’ lawsuit.

    The trial also doubled as a soapbox for Trump to air his grievances about his perceived political foes, including those sitting feet away from him in court.

    On the witness stand, Trump railed against Engoron and James while defending the values that were reported on his statements of financial condition. Trump also tore into another key witness, his former fixer and personal lawyer Michael Cohen, who testified that Trump had directed him to falsely manipulate his net worth.

    Trump’s venting brought consequences. On the second day of the trial, Engoron imposed a narrow gag order after Trump repeatedly targeted the judge’s principal law clerk, Allison Greenfield, who sat in court.

    Trump violated the gag order twice within four weeks, catching fines totaling $15,000.

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  • Criminal sentencing of Binance founder CZ postponed to late April

    Criminal sentencing of Binance founder CZ postponed to late April

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    Changpeng Zhao, founder and CEO of Binance, attends the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 16, 2022.

    Benoit Tessier | Reuters

    The criminal sentencing of Binance founder Changpeng Zhao on a money laundering rule charge has been postponed until April 30, according to a notice Monday in Seattle federal court.

    That docket entry did not explain what would be a two-month delay in sentencing Zhao, a Canadian national widely known as “CZ” who is free on a $175 million release bond in the United States.

    Zhao’s lawyer, William Burck, declined to comment when asked about the postponement. CNBC has asked the Department of Justice about the delay.

    Federal sentencing guidelines suggest a maximum sentence of 18 months in prison for Zhao, but prosecutors reportedly have considered asking for a harsher sentence.

    Zhao pleaded guilty on Nov. 21 to a charge of failure to maintain an effective anti-money laundering program at Binance, the world’s largest cryptocurrency exchange. As part of that plea, he agreed to step down as Binance’s chief executive officer and to pay a $50 million fine.

    Binance at the same time agreed to pay $4.3 billion in fines and restitution as part of its guilty plea to conspiracy to conduct an unlicensed money-transmitting business, conducting such a business and violating the International Emergency Economic Powers Act.

    Read more CNBC politics coverage

    “Binance was allowing illicit actors to transact freely, supporting activities from child sexual abuse to illegal narcotics to terrorism,” Treasury Secretary Janet Yellen when the company and Zhao pleaded guilty.

    Zhao originally was scheduled to be sentenced on Feb. 23.

    The judge in Zhao’s case in early December rejected his request to be able to travel to his home in the United Arab Emirates before he is sentenced.

    U.S. District Judge Richard Jones cited Zhao’s “enormous wealth” and lack of ties to the United States in finding he was a flight risk.

    Jones in late December rejected another bid by Zhao to travel to the U.A.E. Zhao in his new application had said he wanted to travel home for the “hospitalization and surgery” of a person in his life.

    He had offered to post his equity in Binance as security for his return.

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  • How RealPage influences rent prices across the U.S.

    How RealPage influences rent prices across the U.S.

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    RealPage software is used to set rental prices on 4.5 million housing units in the U.S. A series of lawsuits allege that a group of landlords are sharing sensitive data with RealPage, which then artificially inflates rents. The complaints surface as housing supply in the U.S. lags demand. Some of the defendant landlords report high occupancy within their buildings, alongside strong jobs growth in their operating regions and slow home construction.

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  • New York sues Citibank for alleged failure to reimburse fraud victims

    New York sues Citibank for alleged failure to reimburse fraud victims

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    A Citibank branch in the central business district of Singapore on Feb. 12, 2018.

    Ore Huiying | Bloomberg | Getty Images

    New York Attorney General Letitia James on Tuesday sued Citibank for allegedly failing to protect and reimburse victims of electronic fraud.

    The suit claims that Citi does not have strong protections in place to prevent unauthorized account takeovers, misleads victims of fraud and illegally denies reimbursements, according to a release. The attorney general’s office said the alleged failure on Citi’s part has cost New York account holders millions of dollars, and in some cases, their entire life savings.

    “Banks are supposed to be the safest place to keep money, yet Citi’s negligence has allowed scammers to steal millions of dollars from hardworking people,” James said in a statement. “Many New Yorkers rely on online banking to pay bills or save for big milestones, and if a bank cannot secure its customers’ accounts, they are failing in their most basic duty.”

    Citigroup, the parent company of Citibank, has struggled with risk management and controls in the past. Former executives have said the bank — the product of decades of mergers that created a patchwork of technology systems — underinvested in its infrastructure. That was evident when Citigroup accidentally sent almost $900 million to Revlon’s lenders in 2020.

    Later that year, banking regulators fined Citigroup $400 million and ordered the firm to improve its risk management systems. Since taking over in 2021, CEO Jane Fraser has pushed to improve the bank’s technology and appease regulators.

    The New York lawsuit includes specific people who had thousands of dollars stolen from their accounts and said the bank did not reimburse them.

    In a statement, Citi said the bank “works extremely hard” to prevent threats and assist customers who become victims of fraud.

    “Banks are not required to make customers whole when those customers follow criminals’ instructions and banks can see no indication the customers are being deceived. However, given the industry-wide surge in wire fraud during the last several years, we’ve taken proactive steps to safeguard our clients’ accounts with leading security protocols, intuitive fraud prevention tools, clear insights about the latest scams, and driving client awareness and education,” the company said in a statement. “Our actions have reduced client wire fraud losses significantly, and we remain committed to investing in fraud prevention measures to help our clients secure their accounts against emerging threats.”

    James alleged in the lawsuit that Citi must reimburse victims of fraud under the Electronic Fund Transfer Act.

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  • Former Trump lawyer Rudy Giuliani raises less than $1 million from 13 donors in legal defense fund

    Former Trump lawyer Rudy Giuliani raises less than $1 million from 13 donors in legal defense fund

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    Rudy Giuliani was able to raise less than $1 million from just 13 donors, among them his friends and a group of former President Donald Trump‘s allies, to help pay off his legal fees as he faces a $146 million defamation judgment and a criminal prosecution, a new Federal Election Commission filing reviewed by CNBC shows.

    Giuliani’s political action committee raised just over $727,000 from August through December, according to the FEC filing Thursday. His son Andrew Giuliani, who is helping run the PAC, did not return a request for comment on the haul.

    The single biggest donation came from a Corona del Mar, California, woman named Caryn Borland, who donated $300,000, more than 40% of the total donations to Giuliani, the filing shows.

    Borland, who also is known as Caryn Hildenbrand, did not immediately respond to a request for comment.

    Last year, the Caryn L Hildenbrand Living Trust donated $1 million to a legal defense fund for Trump, which also was the single largest donation to that fund, which had raised $1.6 million, according to a disclosure filed to the Internal Revenue Service.

    Hildenbrand and her husband Michael, who donated more than $1 million in campaign-related contributions to Trump’ 2020 reelection bid, have shared memes and social media posts about the QAnon conspiracy theory according to The New York Times. The newspaper last month also reported that Trump’s vice president, Mike Pence, had once canceled a fundraiser with the couple because of their QAnon posts.

    Though the Giuliani PAC misspells Caryn Borland’s first name on their filing as “Garyn,” the address matches that of the mailing address listed on the IRS filing for the donation made to Trump’s defense fund.

    His PAC has spent over $500,000 on his legal fees so far and had $180,000 on hand entering 2024.

    The attorney is facing a litany of legal and financial struggles as a result of his work for Trump trying to reverse Trump’s loss in the 2020 election to President Joe Biden.

    In August, Giuliani, Trump and more than a dozen other defendants were criminally charged in Georgia state court with racketeering related to efforts to reverse Trump’s 2020 election loss in the state. He also is being sued for defamation by the voting machine manufacturers Dominion Voting Systems and Smartmatic.

    In December, a federal court jury in Washington, D.C., found Giuliani liable for $146 million in damages for defaming two Georgia election workers whom he falsely accused of ballot fraud in 2020.

    A week later, Giuliani filed for Chapter 11 bankruptcy protection, citing that judgment, and money he owes various law firms and attorneys.

    A court filing shows that Giuliani owes more than $1.3 million to the law firm Davidoff Hutcher & Citron. The lawyer Robert Costello sued Giuliani in September for $1.36 million in unpaid legal fees dating to 2019.

    Giuliani had planned to raise some of his legal defense money at two of Trump’s properties, Andrew Giuliani previously said.

    Donors were asked to each give $100,000 to the PAC to get access to a September event at Trump’s golf course in Bedminster, which featured a discussion between him and Giuliani.

    But just three people are listed on the filing as giving $100,000 or more to the PAC.

    One of them was Elizabeth Ailes, the widow of former Fox News CEO Roger Ailes, according to the filing.

    “Yes, I gave Rudy $100,000 for his legal defense PAC and I was happy to do so,” Elizabeth Ailes told CNBC.

    “I am upset by the way Rudy has been persecuted and I believe it’s important to push back against a politicized judicial system,” Ailes said.

    She called Giuliani a “friend” and noted that as mayor he had officiated at her wedding to Roger Ailes.

    Roger Ailes resigned from Fox News in 2016 after being accused by current and former Fox News employees of sexual harassment. Settlements based on those accusations reportedly cost Fox’s parent company millions of dollars.

    Before he was ousted from Fox, Roger Ailes’ conservative news network tried to bolster Trump’s candidacy in 2016.

    “They were friends for a very long time, way before Fox News,” Elizabeth Ailes told Newsmax last May. The only other person closest to Roger [besides Elizabeth] is Donald Trump.”

    Other Trump backers gave less to Giuliani.

    Businessman and longtime Trump supporter, Lewis Topper, gave $25,000 to the PAC, according to the filing.

    And the real estate investment firm Probity International, which is run by Trump donor Robert Zarnegin, gave $35,000 to the Giuliani PAC.

    Arnold Gumowitz, a veteran real estate executive, gave $50,000 to the PAC. He also donated to Andrew Giuliani’s failed gubernatorial run.

    Matthew Martorano, who donated $5,000 to the Trump Save America Joint Fundraising Committee last year, gave $100,000 to the Giuliani committee.

    Martorano could not be reached for comment.

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  • Former high-ranking FDIC attorney Mark Black pleads guilty in child sex exploitation case

    Former high-ranking FDIC attorney Mark Black pleads guilty in child sex exploitation case

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    The Federal Deposit Insurance Corp. (FDIC) headquarters in Washington, DC, US, on Monday, March 13, 2023.

    Al Drago | Bloomberg | Getty Images

    A former high-ranking lawyer at the Federal Deposit Insurance Corporation pleaded guilty Tuesday in federal court to conspiring to sexually exploit multiple children and now faces a mandatory minimum prison sentence of 15 years.

    The lawyer, Mark Black, also previously served as president of the board of the Arlington Aquatic Club, a renowned Virginia swim club that includes U.S. Olympic swimmers among its alumni. Black resides in Arlington.

    Black, 50, most recently was special counsel in the general counsel’s office of the FDIC, which insures the deposits of U.S. commercial and savings banks, according to his LinkedIn page. He has worked in the legal division since April 2013, his LinkedIn page says.

    The Department of Justice said Black, who is married and has teenage sons, was a member of “two online groups dedicated to exploiting children.”

    “The goal of the two groups was to locate prepubescent girls online and convince them to livestream themselves engaging in sexually explicit conduct,” the DOJ said in a press release.

    “Black and his co-conspirators would covertly record this conduct and share the videos with each other,” the DOJ said.

    Black pleaded guilty Tuesday in U.S. District Court in Alexandria, Virginia, to one count of conspiracy to produce child pornography and one count of coercion and enticement.

    He is due to be sentenced on April 30. He faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of life behind bars.

    The FDIC told CNBC it was “deeply shocked and disturbed about the allegations” against Black, who was suspended by the agency when it learned about the investigation of him last year.

    The FDIC said Black’s criminal activity “had nothing whatsoever to do with the FDIC,” and did not involve the use of agency computers or other devices. The agency also said it had cooperated with the FBI and DOJ in the criminal probe.

    CNBC has requested comment from Black’s defense attorneys and from the Arlington Aquatic Club.

    On Jan. 5, Black was deemed indefinitely ineligible by the U.S. Center for SafeSport, a nonprofit group that has the authority to resolve abuse and misconduct reports in sports associated with U.S. Olympic programs.

    Read more CNBC politics coverage

    Court documents show that Black, who previously was an attorney at the firm Steptoe & Johnson, was arrested in mid-September after being indicted on six criminal counts related to the production, advertisement, receipt, distribution and possession of child pornography.

    The indictment says Black engaged in that criminal conduct from January 2018 through October 2021.

    He has been held without bond since his arrest due to the ages of the victims in the case, the weight of the evidence, and his risk of lengthy incarceration, according to court documents.

    Black’s lawyers, in a court filing in September seeking his release, offered as a third-party custodian for him Genevieve Holm, who was described as “a retired, career 40-year trial attorney with the Department of Justice, who also has served as” a state court magistrate.

    The filing said authorities executed a search warrant at Black’s home on June 6 last year in connection with the child-porn probe.

    After material was seized from the home, Black “voluntarily self-referred to counseling” with a certified sex offender treatment provider, the filing said.

    The provider, in a statement cited by defense lawyers, said Black “is an excellent candidate for continued outpatient treatment.”

    “Mark Black is 50 years old, and the remaining months may be his last opportunity to see his teenage sons and make final arrangements to secure the stability of his family before he is incarcerated for a lengthy period of time,” defense lawyers wrote.

    “This time in the community is important in order to make sure all necessary appropriate legal and financial steps for his family for many years to come, may be his last opportunity in his life to spend some meaningful time with his family, and will with appropriate conditions not be a danger to the community.”

    A judge denied that request shortly after it was made.

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  • AG wants Trump banned from New York real estate business for life, fined $370 million in fraud case

    AG wants Trump banned from New York real estate business for life, fined $370 million in fraud case

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    Former U.S. President Donald Trump attends the trial of himself, his adult sons, the Trump Organization and others in a civil fraud case brought by state Attorney General Letitia James, at a Manhattan courthouse, in New York City on Oct. 3, 2023.

    Shannon Stapleton | Reuters

    The New York attorney general on Friday asked a judge to ban former President Donald Trump from the state’s real estate industry for life, ban him from serving as an officer or director of a New York corporation and for him to be fined $370 million.

    Attorney General Letitia James is also seeking a five-year ban on Donald Trump Jr. and Eric Trump, Donald Trump’s sons, from working in New York’s real estate industry, according to a new court filing.

    The filing comes weeks after the conclusion of testimony in the civil fraud case in Manhattan Supreme Court.

    James accuses Donald Trump, his two sons and the Trump Organization of a broad scheme to misstate the true values of various real estate assets for financial benefit, including better loan terms.

    The attorney general alleges that Donald Trump falsely inflated his statements of net worth by anywhere between $812 million and $2.2 billion because of those false valuations.

    The fine James seeks includes $168 million in interest payments the former president allegedly avoided through fraud.

    Read more CNBC politics coverage

    Donald Trump denies the claims, and says they are politically motivated.

    Alina Habba, a lawyer for Trump, in a statement Friday called James’ new filing “absurd” and that it “can be described as nothing less than a form of politically motivated persecution of the leading Republican presidential candidate.”

    “My clients did nothing wrong, there were no victims and the case presented has proven that his statements were under valued,” Habba said.

    In their own filings Friday, Trump’s attorney argue that the evidence at trial does not support a finding that he intended to defraud lenders or others.

    Judge Arthur Engoron is expected to issue his ruling in the case in the coming weeks.

    This is breaking news. Check back for updates.

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  • Second set of Jeffrey Epstein court filings unsealed in New York

    Second set of Jeffrey Epstein court filings unsealed in New York

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    Jeffrey Epstein and Ghislaine Maxwell attend de Grisogono Sponsors The 2005 Wall Street Concert Series Benefiting Wall Street Rising, with a Performance by Rod Stewart, at Cipriani Wall Street in New York City on March 15, 2005.

    Joe Schildhorn | Patrick McMullan | Getty Images

    A second batch of court filings related to sex predator Jeffrey Epstein were unsealed in New York on Thursday.

    The release comes a day after the first group of more than three dozen court filings were unsealed, making public names of people associated with Epstein, a money manager who accumulated a fortune in excess of $500 million at the time of his death by suicide in 2019.

    The fact that peoples’ names appear in the files does not necessarily mean they engaged in wrongdoing.

    The new filings Thursday comprise 19 exhibits, totaling 327 pages of previously sealed court documents that were docketed in a Manhattan federal court lawsuit filed by Epstein victim Virginia Giuffre against Epstein’s procurer, Ghislaine Maxwell. That case was settled out of court in 2017.

    Names mentioned in the new documents include Doug Band, a former aide to ex-President Bill Clinton, Yucaipa Companies co-founder Ron Burkle, the journalists Vicky Ward and Sharon Churcher, and Eva Dubin, who is the wife of billionaire Glenn Dubin.

    A spokesperson for Glenn Dubin on Wednesday told NBC News that he “strongly den[ies] these allegations” that Giuffre was direct to have sex with him, calling them unsubstantiated statements. CNBC has requested comment from Ward, Burkle, and Band.

    Churcher told CNBC she had not seen the document released Thursday, which related to Maxwell’s attempt to subpoena her because of her reporting on Giuffre. Maxwell’s lawyer had argued that Church was not acting as a journalist but as a friend to Giuffre in her dealings with her.

    “I’m a professional journalist and throughout this saga the only input I’ve had to this saga is as a journalist,” Churcher said. She added, referring to Giuffre, that “I have huge admiration for her character in this.”

    Clinton himself is mentioned in the new documents, and he was previously mentioned by name in the first tranche of filings unsealed Wednesday.

    A spokesman for Clinton, when asked for comment by NBC News, referred to a statement issued in 2019 that said he “knows nothing about the terrible crimes Jeffrey Epstein pleaded guilty to in Florida some years ago, or those with which he has been recently charged in New York.”

    The same statement in 2019 said that Clinton had not spoken to Epstein “in well over a decade.”

    The documents include details from a Florida police detective of how Epstein and Maxwell recruited young women to be abused. The detective says in a filing that he learned of 30 victims of Epstein in his probe in the mid-2000s.

    Other people were mentioned by name in the context of potentially having insight into the relationship between Epstein and Maxwell. 

    Epstein killed himself in 2019, a month after being arrested on federal child sex trafficking charges.

    The British socialite Maxwell is serving a 20-year federal prison sentence for charges related to recruiting and grooming young women to be sexually abused by her former boyfriend Epstein.

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  • Jeffrey Epstein court files: ‘There's lots more to come,’ victim's lawyer says

    Jeffrey Epstein court files: ‘There's lots more to come,’ victim's lawyer says

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    Jeffrey Epstein attends the launch of RADAR MAGAZINE at Hotel QT on May 18, 2005.

    Patrick McMullan | Getty Images

    The lawyer for multiple victims of Jeffrey Epstein says more court documents detailing the sex predator’s actions and names of associates will be released in the coming days after the bombshell disclosure of an initial set of files.

    “This is just the beginning batch,” the attorney, Sigrid McCawley, told NBC News hours after the first tranche of 40 case files was unsealed in Manhattan federal court Wednesday night.

    The documents contained the names of Epstein associates such as Donald Trump, Bill Clinton, Prince Andrew of Britain, billionaire Glenn Dubin, Michael Jackson, magician David Copperfield and more people.

    “There’s a lot more to come,” McCawley said. “There’s a significant amount left for sure.”

    “And as we’ve seen, in this case, truth is stranger than fiction. So we learn more each time about how the sophisticated trafficking operation happened for so many decades and how many people were involved,” said McCawley, who represents Epstein victim Virginia Giuffre and other victims.

    “It was vast, it was significant. And it harmed literally hundreds of young women. So you’re going to start seeing more of how that happened, who knew about it and what was going on,” McCawley said.

    The court documents being unsealed are part of a case file for a lawsuit that Giuffre filed years ago against Ghislaine Maxwell, the British socialite who acted as a procurer of young women for Epstein, her one-time boyfriend.

    Epstein killed himself in a New York jail in August 2019, a month after being arrested on federal charges of sex trafficking underage girls.

    Maxwell is serving a 20-year federal prison sentence on charges related to facilitating Epstein’s rampant sexual abuse of women.

    Read more CNBC coverage of Jeffrey Epstein cases

    Many of the names disclosed in the first set of court documents being released were previously known to have some kind of connection to Epstein and Maxwell.

    The mere presence of their names in the files does not mean they were necessarily accused of abusing women or facilitating that abuse.

    Epstein was known for years for socializing with rich and powerful businessmen, celebrities, and other high-profile people.

    Prince Andrew, nearly two years ago, reached an out-of-court settlement with Giuffre, who had sued him for allegedly sexually assaulting her when she was under the control of Epstein and Maxwell. Andrew has denied her claim.

    In a deposition unsealed Wednesday in Giuffre’s lawsuit against Maxwell, another Epstein victim, Johanna Sjoberg, testified that during a visit to Epstein’s house in New York, Andrew put his hand on her breast, and Maxwell or Epstein put the hands of a puppet that looked like Andrew on “Virginia’s breast.”

    Jeffrey Epstein and Ghislaine Maxwell attend de Grisogono Sponsors The 2005 Wall Street Concert Series Benefiting Wall Street Rising, with a Performance by Rod Stewart, at Cipriani Wall Street in New York City on March 15, 2005.

    Joe Schildhorn | Patrick McMullan | Getty Images

    Sjoberg elsewhere in that deposition was asked about Clinton by Giuffre’s lawyer McCawley.

    “Did Jeffrey ever talk to you about Bill Clinton?” McCawley asked.

    Sjoberg responded: “He said one time that Clinton likes them young, referring to girls.”

    Clinton has never been accused of sexual misconduct with women or girls connected to Epstein.

    McCawley, in her interview Wednesday night, lauded Giuffre for her court fight with Maxwell, which led to the disclosure of the documents, and charges against Epstein and Maxwell.

    “Virginia is an incredibly strong human being she has been through so much through this journey,” McCawley said.

    “When I started with her almost 10 years ago. She was she was resilient in wanting to have truth and justice,” the lawyer said. “And I think that this is really a shining moment bringing light to this issue. And having people recognize what not only she went through, but so many other young individuals and having that justice and people acknowledge what happened is really powerful for her.”

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  • Names in Jeffrey Epstein court documents unsealed

    Names in Jeffrey Epstein court documents unsealed

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    Jeffrey Epstein and Ghislaine Maxwell attend the Batman Forever/R. McDonald Event in New York City on June 13, 1995.

    Patrick McMullan | Getty Images

    New York federal court documents containing previously hidden names of people associated in some way with the late notorious sex offender Jeffrey Epstein began being unsealed Wednesday evening.

    Many of the more than 150 people named in the civil court filings have previously been publicly disclosed as connected in some way with Epstein, who killed himself in 2019 after being arrested on federal child sex trafficking charges.

    The documents were filed in connection with a Manhattan federal court lawsuit by Epstein victim Virginia Giuffre against Epstein’s longtime accomplice Ghislaine Maxwell.

    “Things should start getting unsealed today,” Edward Friedland, the district executive for that court, told CNBC.

    The fact that peoples’ names appear in the files does not necessarily mean they engaged in wrongdoing.

    Only Epstein and Maxwell have been criminally charged in connection with his longstanding abuse of girls and young women at residences in New York, the U.S. Virgin Islands and elsewhere.

    Read more CNBC coverage of Jeffrey Epstein cases

    Judge Loretta Preska ordered the unsealing in mid-December.

    Preska has granted a 30-day extension barring the disclosure of two names, including a woman identified as Doe 107 to review her claim that she faces a risk of physical harm in her home country if her identity is publicly revealed.

    Maxwell is serving a 20-year federal prison sentence on charges related to recruiting and grooming young women to be abused by Epstein.

    Epstein for years had socialized with former Presidents Bill Clinton and Donald Trump, as well as Britain’s Prince Andrew and many other rich and powerful people.

    On Tuesday, New York Jets quarterback Aaron Rodgers, during an interview on ESPN’s “The Pat McAfee Show,” said in regard to the list of names, “There’s a lot of people, including Jimmy Kimmel are really hoping that doesn’t come out.”

    “I’ll tell you what, if that list comes out, I definitely will be popping some sort of bottle,” Rodgers said.

    Kimmel, the host of ABC’s “The Jimmy Kimmel Live!” show, quickly fired back at Rodgers in a tweet on the social media site X, suggesting he would sue the football player if he persisted in implying Kimmel had a connection with Epstein.

    “Dear A——-: for the record, I’ve not met, flown with, visited, or had any contact whatsoever with Epstein, nor will you find my name on any ‘list’ other than the clearly-phony nonsense that soft-brained wackos like yourself can’t seem to distinguish from reality,” Kimmel wrote in the tweet.

    “Your reckless words put my family in danger. Keep it up and we will debate the facts further in court.”

    McAfee apologized Wednesday on his show.

    This is breaking news. Check back for updates. 

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  • Supreme Court sidesteps decision on Trump presidential immunity claim in federal election interference case

    Supreme Court sidesteps decision on Trump presidential immunity claim in federal election interference case

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    U.S. President Donald Trump in the Cabinet Room at the White House in Washington, July 9, 2020.

    Kevin Lamarque | Reuters

    Steering clear of a political firestorm for now, the Supreme Court said Friday it would not immediately decide the key issue of whether former President Donald Trump has broad immunity for actions he took challenging the 2020 presidential election results.

    The court denied without comment special counsel Jack Smith’s request asking the justices to circumvent the normal appeals court process and quickly decide the legal question, which looms large in Trump’s criminal prosecution in Washington over allegations of election interference.

    If Trump were to win on this threshold issue, the charges would be dismissed. If he loses, the legal proceedings in the trial court would continue, with Trump having other issues he could mount appeals over.

    As a result of the court’s refusal to intervene, the U.S. Court of Appeals for the District of Columbia Circuit will take first crack at the issue; it is scheduled to hear oral arguments on Jan. 9.

    Once that court rules, the Supreme Court could act quickly on whether to take up the case.

    In asking the court to step in on an expedited basis, Smith said the case “presents a fundamental question at the heart of our democracy: whether a former President is absolutely immune from federal prosecution for crimes committed while in office.”

    Trump’s lawyers argued in court papers that Smith had given “no compelling reason” why the Supreme Court should immediately step in ahead of the appeals court.

    On Dec. 7, Washington-based U.S. District Judge Tanya Chutkan denied Trump’s motion to dismiss his indictment on presidential immunity and constitutional grounds. The case is on hold while Trump appeals the decision.

    Trump’s lawyers argue that his role in questioning the result of the election was within the “outer perimeter” of his official responsibilities as president, citing a 1982 Supreme Court ruling about presidential immunity. Therefore, under Supreme Court precedent, Trump is immune from prosecution, his lawyers say.

    They also say the Senate’s acquittal of Trump following impeachment proceedings over his role in events that led to the Jan. 6, 2021, attack on the U.S. Capitol means he cannot be separately prosecuted for the same actions.

    Smith argues that Trump’s role in seeking to overturn the election was not related to his official responsibilities as president and that the Constitution’s language on impeachment allows for separate criminal proceedings even if the president is acquitted.

    In August, a federal grand jury in Washington indicted Trump on four charges: conspiracy to defraud the U.S., conspiracy to obstruct an official proceeding, obstruction, and conspiracy against the right to vote and to have one’s vote counted. Trump pleaded not guilty.

    The election interference case is one of four criminal prosecutions Trump faces heading into the 2024 presidential election season, in which he is a front-runner for the Republican nomination.

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  • Former Swiss finance executive pleads guilty to tax evasion scheme that hid $60 million

    Former Swiss finance executive pleads guilty to tax evasion scheme that hid $60 million

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    The Internal Revenue Service headquarters building in Washington, D.C.

    Chip Somodevilla | Getty Images News | Getty Images

    WASHINGTON — A former Swiss finance executive pled guilty in New York federal court on Thursday to conspiring to defraud the U.S. in a tax evasion scheme known as the “Singapore Solution” that hid $60 million in income and assets held by wealthy Americans, prosecutors said.

    Rolf Schnellmann, 61, former head of Zurich-based Allied Finance Trust AG, helped defraud the Internal Revenue Service by stashing money of U.S. taxpayer clients in undeclared accounts at a private Swiss bank, Privatbank IHAG Zurich AG, between 2008 and 2014, according to the Manhattan U.S. Attorney’s Office.

    In the “Singapore Solution,” Schnellmann and colleagues conspired to transfer more than $60 million from the undeclared accounts across several countries and Hong Kong, and back to the private bank in newly opened accounts under a Singapore-based asset management firm established by a co-conspirator.

    Schnellmann and the co-conspirators were paid large fees to assist the tax evasion scheme, prosecutors said.

    He was arrested in August in Italy, and extradited to the U.S.

    Schnellmann faces a maximum possible sentence of five years in prison when he is sentenced on July 19.

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  • Senior cardinal convicted of embezzlement in Vatican corruption trial

    Senior cardinal convicted of embezzlement in Vatican corruption trial

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    St Peters Square, Vatican City, Rome, Italy.

    Gonzalo Azumendi | The Image Bank | Getty Images

    Cardinal Angelo Becciu, the most senior Catholic Church official ever to stand trial before a Vatican criminal court, was convicted on Saturday of embezzlement and sentenced to five-and-a-half years in jail.

    The Italian prelate’s lawyer, Fabio Viglione, told reporters in the courtroom that he would appeal, saying his client was innocent. Becciu, who lives in the Vatican, was expected to remain free for the time being.

    In all, 10 defendants were accused of crimes including fraud, abuse of office and money laundering. All had denied wrongdoing.

    It took Court President Giuseppe Pignatone 25 minutes to read all the verdicts and sentences.

    Becciu, like most of the other defendants, was convicted on some counts and acquitted of others. Only one was acquitted of all charges.

    The trial, which exposed infighting and intrigue in the highest echelons of the Vatican, lasted for 86 sessions over two-and-a-half years.

    It revolved mostly around the messy purchase of a building in London by the Secretariat of State, the Vatican’s key administrative and diplomatic department.

    Becciu held the number two position there in 2014 when it began investing in a fund managed by Italian financier Raffaele Mincione, securing about 45% of the building at 60 Sloane Avenue, in an upmarket district.

    Mincione was also found guilty of embezzlement and given the same sentence as Becciu.

    In 2018, with Becciu in another Vatican job, the Secretariat of State felt it was being deceived by Mincione and turned to another financier, Gianluigi Torzi, for help in squeezing Mincione out and buying the rest of the building.

    Torzi also fleeced the Vatican, according to prosecutors. He was found guilty of fraud and extortion and sentenced to six years.

    The Vatican sold the building last year under a cloud of embarrassment, taking an estimated loss of about 140 million euros ($150 million).

    Becciu, who was fired by Pope Francis from his next job in 2020 for alleged nepotism, but remains a cardinal, was also found guilty of one embezzlement for funnelling money and contracts to companies or charities controlled by his brothers on their native island of Sardinia.

    Another accusation involved his hiring of Cecilia Marogna, a self-styled security analyst, also from Sardinia, as part of a secret project to help win freedom for a nun who had been kidnapped in Mali.

    Marogna, 46, received 575,000 euros from the Secretariat of State in 2018-2019. The money was sent to a company she had set up in Slovenia and she received some in cash, prosecutors told the court.

    Italian police said Marogna had spent much of the money on luxury clothing and health spas. Both she and Becciu were found guilty of charges related to the transfer of money.

    The other six defendants included the former president and director of the Vatican’s Financial Intelligence unit, the cardinal’s former secretary, Father Mauro Carlino, and three former Vatican employees.

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  • Trump mistrial request denied in $250 million New York fraud case

    Trump mistrial request denied in $250 million New York fraud case

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    A New York judge on Friday denied a request by former President Donald Trump and his co-defendants for a mistrial in the $250 million civil business fraud case against them.

    Manhattan Supreme Court Judge Arthur Engoron said the arguments for a mistrial were “utterly without merit” as he declined to sign the defendants’ bid for a motion to throw out the case.

    The ruling came two days after attorneys for Trump Sr., Donald Trump Jr., Eric Trump, the Trump Organization and its top executives argued that the case had been undermined by political bias.

    The defense lawyers claimed that Engoron and his principal law clerk have “tainted these proceedings” and that “only the grant of a mistrial can salvage what is left of the rule of law.”

    But Engoron in Friday’s ruling disputed each allegation of bias, and made clear that he intends to preside over the case until its conclusion.

    “As expected, today the Court refused to take responsibility for its failure to preside over this case in an impartial and unbiased manner,” Trump’s attorney Alina Habba said in a statement. “We, however, remain undeterred and will continue to fight for our clients’ right to a fair trial.”

    The lawsuit, brought by New York Attorney General Letitia James, accuses the defendants of fraudulently inflating the values of Trump’s real estate properties and other assets for years in order to obtain tax benefits, better loan terms and other financial perks.

    In addition to seeking $250 million in damages, James wants to permanently bar Trump and his two adult sons from running a New York business.

    Engoron has already found the defendants liable for fraud and ordered the cancellation of their New York business certificates. The trial, which is being conducted without a jury, will determine penalties and resolve James’ other claims of wrongdoing by Trump and his co-defendants.

    An appeals court has temporarily paused the process of dissolving Trump’s business entities.

    In Friday’s ruling, Engoron went through all of the defendants’ arguments for a mistrial and explained why each was “without merit.”

    The defense lawyers had pointed to articles that Engoron had linked to in his alumni newsletter, claiming they created an appearance of impropriety because they were related to the fraud case.

    Engoron responded that he “neither wrote nor contributed to any of the articles on which defendants focus, and no reasonable reader could possibly think otherwise.”

    He also shrugged off claims that he and his clerk are “co-judging,” writing, “my rulings are mine, and mine alone.”

    The clerk has become such a target of criticism that Engoron has imposed gag orders barring both Trump and his lawyers from making comments about her. Trump has already violated the narrow gag order twice, receiving a total of $15,000 in fines.

    A New York appeals judge on Thursday temporarily suspended those gag orders, citing the “constitutional and statutory rights at issue.”

    In their bid for a mistrial, the defense lawyers had also that the clerk’s presence in the case damages its integrity because of contributions she made to Democratic groups, including some that are supporting the attorney general.

    They had also accused the clerk of making contributions over the $500 limit that applies to members of a New York judge’s staff.

    But Engoron said Trump’s lawyers were ignoring that the clerk is a candidate for judicial office, and therefore is not bound by the $500 limit when contributing to her own campaign or buying tickets to political functions.

    Engoron said it was “nonsensical” to assume that the clerk’s attendance at events sponsored by political organizations suggests that she, and by proxy the judge himself, must therefore agree with the views of those groups.

    “And in any event, they are a red herring, as my Principal Law Clerk does not make rulings or issue orders — I do,” Engoron wrote.

    He noted that the attorney general’s office has called for a full briefing schedule on the mistrial motion. But “in good conscience, I cannot sign a proposed order to show cause that is utterly without merit, and upon which subsequent briefing would therefore be futile.”

    The trial, which began last month, is expected to last until late December. Trump, a leading Republican presidential candidate, faces four pending criminal cases in addition to the fraud case and other civil matters.

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