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Tag: Collusion

  • Trump valet’s lawyer complains of threats after special counsel revealed Mar-a-Lago worker changed story

    Trump valet’s lawyer complains of threats after special counsel revealed Mar-a-Lago worker changed story

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    Walt Nauta, personal aide to former U.S. President Donald Trump, arrives at Alto Lee Adams Sr. U.S. Courthouse, in Fort Pierce, Florida, U.S. August 10, 2023.

    Marco Bello | Reuters

    The defense attorney for Donald Trump‘s valet Walt Nauta complained Friday that he received threats after special counsel Jack Smith revealed that a Mar-a-Lago IT director had admitted to giving false testimony in the former president’s classified documents criminal case.

    The lawyer, Stanley Woodward, had represented IT director Yuscil Taveras when his client gave that false testimony to a grand jury, according to Smith’s recent court filing.

    Only after Taveras dropped Woodward and got another lawyer did he change his story, admitting he was told to destroy security footage, Smith said in Tuesday’s filing.

    Woodward on Friday blasted Smith’s filing as a “brazen and overt effort” to influence the case’s judge and “the court of public opinion” by quoting from a sealed document Woodward had previously submitted in connection with issues surrounding his representation of Taveras.

    Woodward’s outrage toward the prosecutor was laid out in his new filing in federal court for the Southern District of Florida, after Smith raised concerns about the defense attorney’s potential conflicts of interest in the case.

    Woodward currently represents Nauta and other witnesses in the case, but he no longer represents Taveras.

    On Friday evening, Smith in a new filing responding to Woodward’s claims said that permission for public disclosure of “all information” related to a hearing in Washington on Woodward’s potential conflicts in the case “was expressly granted” on July 31 by a judge there after the special counsel requested authorization of such disclosure.

    Trump, Nauta and Mar-a-Lago maintenance worker Carlos De Oliveira are charged in federal court in Florida with crimes related to Trump’s retention of classified documents after leaving the White House. They have all pleaded not guilty.

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    Among other things, the defendants are accused of a scheme that aimed to erase surveillance security footage at Mar-a-Lago — Trump’s private club in Palm Beach, Florida — showing boxes of classified records being moved around there by Nauta and De Oliveira.

    Nauta’s legal fees are being paid for by Trump’s political action committee, according to public election commission filings.

    Woodward disputes the idea that he currently has a conflict of interest, and he asked Judge Aileen Cannon in his filing Friday for a week to submit a detailed rebuttal explaining his position.

    Woodward also revealed Friday that Smith’s disclosure of the Taveras situation has created blowback for the lawyer.

    “In the time since the government’s submission, defense counsel has received several threatening and/or disparaging emails and phone calls.”

    “This is the result of the Special Counsel’s callous disregard for how their unnecessary actions affect and influence the public and the lives of the individuals involved in this matter,” Woodward wrote.

    De Oliveira is accused of asking Taveras to delete the footage at Trump’s behest.

    On Tuesday, Smith filed a document raising concerns that Woodward has a conflict of interest because he might have to cross-examine his former client, Taveras.

    Smith noted that Woodward was serving as Taveras’ lawyer when the IT director testified before a Washington, D.C., grand jury in March.

    During that testimony, Taveras “repeatedly denied or claimed not to recall any contacts or conversations about the security footage at Mar-a-Lago,” Smith wrote.

    On June 20, Smith’s office notified Taveras, “through Mr. Woodward … that he was the target of a grand jury investigation in the District of Columbia into whether he committed perjury” during his testimony in March, the prosecutor wrote in the filing.

    After the chief federal district judge in Washington had a federal public defender give advice to Taveras about the potential conflict of being represented by Nauta’s attorney, Taveras told the judge “he no longer wished to be represented by Mr. Woodward,” Smith wrote.

    And “immediately after” accepting the public defender as his new lawyer, Taveras “retracted his prior false testimony,” Smith wrote.

    Taveras also “provided information that implicated Nauta, De Oliveira, and Trump in efforts to delete security camera footage, as set forth in the superseding indictment,” the prosecutor wrote.

    Smith asked Cannon, the Florida judge, to schedule a hearing on Woodward’s alleged conflict of interests with “Mr. Woodward’s clients present and independent counsel available to provide them with advice should they so desire.”

    In his filing Friday, Woodward wrote that Smith “did not, and still has not, alleged any actual conflict in defense counsel’s representation of Mr. Nauta.”

    “It has not done so for the obvious fact that no conflict would arise unless and until Trump Employee 4 [as Taveras is identified in court filings] testified against Mr. Nauta,” Woodward wrote.

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  • Trump stiffed his alleged co-conspirators, whose false claims brought in $250 million

    Trump stiffed his alleged co-conspirators, whose false claims brought in $250 million

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    Former New York Mayor Rudy Giuliani and Republican presidential candidate Donald Trump arrive to speak to police gathered at a Fraternal Order of Police lodge during a campaign event in Statesville, North Carolina, Aug. 18, 2016.

    Carlo Allegri | Reuters

    Several of the attorneys who spearheaded President Donald Trump‘s frenzied effort to overturn the results of the 2020 election tried, and failed, to collect payment for the work they did for Trump’s political operation, according to testimony to congressional investigators and Federal Election Commission records. This is despite the fact that their lawsuits and false claims of election interference helped the Trump campaign and allied committees raise $250 million in the weeks following the November vote, the House select committee investigating the Jan. 6 Capitol riot said in its final report.

    Among them was Trump’s closest ally, former New York Mayor Rudy Giuliani. Trump and Giuliani had a handshake agreement that Giuliani and his team would get paid by the Trump political operation for their post-election work, according to Timothy Parlatore, an attorney for longtime Giuliani ally Bernard Kerik.

    But the Trump campaign and its affiliated committees ultimately did not honor that pledge, according to campaign finance records. The records show that Giuliani’s companies were only reimbursed for travel and not the $20,000 a day he requested to be paid.

    Parlatore also told CNBC that the Giuliani operation was never compensated for its work. According to Parlatore, the failure to pay Giuliani and his team came up last week in a private interview between prosecutors on special counsel Jack Smith’s team and Kerik, a member of Giuliani’s team in late 2020.

    “Lawyers and law firms that didn’t do s— were paid lots of money and the people that worked their ass off, got nothing,” Kerik complained in a 2021 tweet.

    Bob Costello, Giuliani’s attorney, declined to comment further about the agreement, citing privileged conversations between his client and then-President Trump.

    Trump has a long history of not paying his bills. But the revelation that he likely stiffed Giuliani, a longtime friend, is all the more striking given that much of the work Giuliani did for the Trump operation is detailed in a sprawling RICO indictment in Georgia released Monday, in which Giuliani is a co-defendant alongside Trump and 17 other people.

    The indictment details trips Giuliani made, phone calls he placed and meetings he attended, all in service of what prosecutors say was a criminal conspiracy to overturn the election.

    Criminal or not, what is indisputable is that Giuliani and his team did a lot of legal and PR work for Trump. Over more than two months, Giuliani served as the public face of Trump’s election challenges, which ultimately failed.

    Nonetheless, these challenges helped Trump and his allies raise an unprecedented $250 million from small-dollar donors in the weeks following the November election, according to the final congressional report by the House select committee on the Jan. 6, 2021, attack on the Capitol. The money came in response to countless fundraising appeals that claimed it was needed to fund Trump’s election challenges in court.

    Yet instead of paying the lawyers who tried unsuccessfully to overturn his loss, the money went into Trump’s leadership PAC, Save America.

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    According to the final report by the House select committee, “After raising $250 million dollars on false voter fraud claims, mostly from small-dollar donors, President Trump did not spend it on fighting an election he knew he lost.” Trump’s entire political network, including his joint fundraising committees, spent over $47 million combined from the start of 2020 through the end of 2021 on legal fees, according to a report by OpenSecrets.

    Today, that money raised by Trump’s political operation is instead helping Trump pay his own legal bills in the criminal cases against him. Trump’s Save America PAC spent over $20 million in the first half of the year alone on legal fees as the president faced the first two of his four indictments.

    The PAC began the second half of the year with only about $3 million in cash on hand.

    Sidney Powell, an attorney later disavowed by the Trump campaign, participates in a news conference with President Donald Trump’s personal lawyer Rudy Giuliani at the Republican National Committee headquarters in Washington, D.C., Nov. 19, 2020.

    Jonathan Ernst | Reuters

    Giuliani is not the only unindicted co-conspirator in the special counsel’s election case who got stiffed by the Trump operation.

    Federal Election Commission records and testimony from the House Jan. 6 select committee hearings reveal that none of the private-sector lawyers identified — but not indicted — in that case got paid for their post-election work: Not Sidney Powell, Kenneth Chesebro or John Eastman.

    Giuliani and Eastman wanted a mix of reimbursements and payments, but records show they received virtually none of that money. Powell had to turn to her own law firm to pay her volunteers. All the while, the Trump team raised hundreds of millions of dollars off the false claims of election fraud that Powell and Giuliani promoted on TV and in court.

    Chesebro, for his part, told the House committee that the work he did for the Trump team was pro bono.

    On Monday, all four lawyers entered a new phase in their legal relationship with Trump, when they were charged alongside him in the Georgia RICO case.

    Giuliani, Chesebro, Powell and Eastman were among the more than a dozen other co-defendants in the indictment brought against Trump in Georgia on charges of trying to illegally overturn the 2020 election results in the state and elsewhere.

    Giuliani wanted $20,000 a day

    Matthew Morgan, an election lawyer for the Trump campaign, recalled to the House select committee in 2022 that Giuliani requested $20,000 a day from the Trump political operation to fight the election results. Working five days a week for two months, November and December 2020, this would have amounted to around $800,000 in legal fees.

    But Giuliani never got it. According to federal records, two companies linked to the former New York City mayor got about $100,000 in travel fees and reimbursements from the Trump operation. Kerik’s company saw about $85,000 for travel-related expenses, according to the records. But not a penny more from team Trump for their services.

    Eastman wanted refunds and payment

    Longtime conservative attorney John Eastman had an alleged role in trying to stall the certification of the 2020 election results.

    Attorney John Eastman speaks next to President Donald Trump’s personal attorney Rudy Giuliani, as Trump supporters gather ahead of the president’s speech to contest the certification by Congress of the results of the 2020 U.S. presidential election on the Ellipse in Washington, D.C., Jan. 6, 2021.

    Jim Bourg | Reuters

    Morgan told the House select committee that when Eastman first officially came on board in December, he did so on a voluntary basis, but he requested that his expenses be reimbursed by Trump’s team.

    Federal Election Commission records show that Eastman didn’t directly receive a single reimbursement from Trump’s campaign, despite that agreement.

    Shortly after Jan. 6, 2021, Eastman requested payment “for services rendered,” according to Morgan’s testimony to the select committee. Though Morgan did not recall how much Eastman asked for, he said his understanding was that “the services requested was for the totality of all the work he’d done for the campaign.”

    Morgan told the committee that he sent the request to another Trump campaign legal advisor, Justin Clark.

    FEC records show that no payments were ever made by any of Trump’s committees to Eastman.

    Eastman’s attorneys declined to comment.

    The fact that neither Giuliani nor Eastman got paid also reflected a deep rift that emerged after the election between top staffers on Trump’s formal campaign and the small band of lawyers pushing fringe theories of how Trump could overturn his loss.

    A group of Trump campaign leaders and legal minds, occasionally referred to as “Team Normal,” pushed back against the conspiracy theories being peddled by the outside attorneys.

    Ultimately, it was members of “Team Normal” that had a say in the campaign’s purse strings.

    Clark later recounted an email he received on Christmas Eve 2020 from Giuliani associates, seeking payment.

    “What I make of it is that I think these guys were reporting directly to Mr. Giuliani, and when it came time to get paid, they were looking to me to get money, and I was never in the position to be prepared to just write checks to people ….we’re not just going to set money on fire to do stuff,” Clark told the House committee.

    An attorney for Clark declined to comment.

    Powell paid staff through her own firm

    Sidney Powell is the likely third unnamed co-conspirator in Smith’s federal indictment, according to NBC News. She’s also one of the co-defendants in the Georgia case brought against Trump and his allies.

    Powell was one of the leading voices on Fox News shortly after the election, peddling the false claim that voting machine companies Smartmatic and Dominion Voting Systems were each involved in conspiracies to stop Trump from becoming president.

    Both companies have denied the claims and taken Fox to court. This year, Fox settled the Dominion lawsuit, agreeing to pay the voting machine company an unprecedented $787.5 million. The defamation suit levied against Fox by Smartmatic is still open.

    Powell later told the House select committee that her firm, Sidney Powell P.C., not the Trump campaign, paid assistants who helped her pursue those claims about the election.

    “When money was donated, I wanted to make sure they got paid,” she said in her interview with the House panel. “That’s all I remember about that part. And I paid them.”

    FEC records indicate that no payments from Trump and his allies ever went to Powell’s law firm.

    But her nonprofit group Defending The Republic raised over $16 million since the November 2020 election, according to the group’s 990 tax forms. The group does not reveal its donors, however, and it’s unclear how much of that money ended up in Powell’s personal coffers.

    Powell did not respond to a request for comment.

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  • Jeffrey Epstein referred Obama White House counsel to JPMorgan as potential customer

    Jeffrey Epstein referred Obama White House counsel to JPMorgan as potential customer

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    Kathy Ruemmler, former White House Counsel, appears on “Meet the Press” in Washington, D.C., June 29, 2014.

    William B. Plowman | NBCUniversal | Getty Images

    Sex predator Jeffrey Epstein was involved in establishing a client relationship between Obama White House counsel Kathryn Ruemmler and JPMorgan Chase in February 2019, four months before he was arrested on federal child sex trafficking charges, a bombshell court filing revealed Tuesday.

    Ruemmler, who is now general counsel for Goldman Sachs, was touted by Epstein’s personal assistant to JPMorgan as an ideal customer, the filing shows.

    The suggestion that JPMorgan take Ruemmler on as a client — which the bank warmly embraced — came almost six years after JPMorgan said it had effectively fired Epstein as a client after internal controls repeatedly raised red flags about him.

    And it came five months before Epstein killed himself in August 2019 in a Manhattan federal jail, where he was being held without bail pending trial.

    Ruemmler declined to comment through a Goldman Sachs spokesman.

    CNBC separately emailed her to ask how she knew Epstein, and what knowledge she had of his history of being convicted in 2008 of a sex crime in Florida.

    The Manhattan federal court filing detailing her connection to Epstein was filed by the government of the U.S. Virgin Islands, which is suing JPMorgan.

    The American territory alleges that JPMorgan enabled and benefited from Epstein’s sex trafficking of young women to the Virgin Islands, where he had a home, during the years he maintained accounts at the bank, from 1998 through 2013.

    JPMorgan denies any wrongdoing in the case, where the territory is seeking at least $190 million in damages.

    The bank last month agreed to settle a similar lawsuit in the same court by an Epstein accuser, paying $290 million to her and other Epstein victims.

    The case is scheduled to go to trial in late October.

    “Even after his exit right up until his arrest in 2019, JPMorgan continued to work with Epstein,” the Virgin Islands said in its filing.

    The filing says that JPMorgan admits “Epstein was involved in the establishment of a customer relationship with Kathryn Ruemmler,” who was the longest-serving White House general counsel under former President Barack Obama

    The filing says that in February 2019 Epstein’s assistant, Leslie Groff, offered to introduce Mary Erdoes, a top JPMorgan executive, to Ruemmler, because she wanted to open an account with JPMorgan and Epstein thought the two of them “would bond.”

    “Erdoes escalated the referral to Stacey Friedman, JPMorgan’s General Counsel, who responded ‘she is a rock star litigator at Latham. . . . I would think she would be a great client,’” the Virgin Islands said in its filing.

    Ruemmler at the time worked at the law firm Latham & Watkins.

    In 2020 she joined Goldman Sachs as a partner, and now is Goldman’s chief legal officer and general counsel. 

    The filing also said that Epstein at one time referred as a potential JPMorgan client Nicholas Ribis, a gaming advisor who for decades ran casinos for former President Donald Trump.

    Ribis did not immediately respond to requests for comment.

    JPMorgan claims in court filings that the Virgin Islands was itself “complicit in the crimes of Jeffrey Epstein,” arguing that he gave high-ranking government officials money, advice and favors in exchange for looking the other way when he trafficked young women.

    JPMorgan also argues that its former executive Jes Staley, who was friends with Epstein when he was a client of the bank, is responsible for any civil liability of the bank due to its business relationship with the sex offender.

    On Tuesday, newly unsealed court filings by the bank show that Epstein was asked by former U.S. Virgin Islands Gov. John de Jongh Jr. for a loan of $215,000 after de Jongh was arrested on embezzlement charges that were later dismissed.

    Epstein’s company also paid de Jongh’s wife, Cecile, a $300,000 lump sum severance payment after Epstein killed himself in a federal jail while awaiting trial on child sex trafficking charges in August 2019, JPMorgan’s documents say. She had worked for Epstein at his Southern Trust Company.

    The documents also say that another Epstein employee who worked for him in the Virgin Islands was granted a U.S. Customs and Border Protection security seal, which allowed that worker to “escort passengers through” customs screening areas.

    The bank in other court filings has said that Epstein paid for the school tuitions of the children of the de Jonghs, and that Cecile had made efforts to obtain student visas and a work license for young women connected to Epstein.

    A spokesman for the Virgin Islands’ Attorney General’s Office told CNBC that Epstein’s loan to former Gov. de Jongh occurred after he left office in 2015. The charges against de Jongh were dropped in early 2016 by the Virgin Islands Department of Justice after he agreed to a separate monetary settlement.

    CNBC has reached out to comment from John de Jongh via an asset management company where he is a director.

    The Virgin Islands spokesman also said that “it was the federal government and not the Virgin Islands government that granted the ‘U.S. Customs and Border Protection security seal.’ “

    The Virgin Islands has said that JPMorgan’s leadership kept Epstein as a client for years despite multiple warnings about him being raised internally at the bank, which included payments to young women, and a 2008 sex crime conviction in Florida which led to a jail term.

    In its new court filing on Tuesday, the Virgin Islands cited a July 2011 email between Epstein and Erdoes, after JPMorgan’s rapid response team decided that Epstein should be off-boarded as a client, and after JPMorgan’s general counsel told Erdoes that Epstein was “not a person we should do business with — period.”

    Erdoes and Epstein emailed after he and the bank agreed to settle his lawsuit against JPMorgan related to money he said he was owed by Bear Stearns, the investment bank taken over by JPMorgan.

    “On July 26, 2011, Epstein wrote to Erdoes, ‘lets [sic] move on , [sic] and make some real money,’ ” the filing said.

    “Erdoes responded, ‘Onwards and upwards, on so many fronts,’ ” the filing said.

    Epstein was not severed as a JPMorgan client for another two years.

    The new Virgin Islands filing said that Staley, in his deposition for the lawsuit, disclosed the names of people and companies that Epstein had referred to the bank as potential clients. An unsealed portion of Staley’s deposition was made public Tuesday.

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    Among the high-powered names listed in the court filing are Google co-founder Sergey Brin, Sultan Ahmed bin Sulayem of Dubai, former Microsoft CEO Bill Gates, former Treasury Department Secretary Larry Summers and television journalist Katie Couric.

    Staley, who had been head of the bank’s asset and wealth management division, testified that he met all those people at Epstein’s townhouse on the Upper East Side of Manhattan.

    The deposition also shows that Staley said he had spoken to JPMorgan CEO Jamie Dimon in 2006 when Epstein was arrested on Florida state charges of procuring a minor for prostitution, and solicitation of a prostitute.

    JPMorgan has denied that claim. “Staley admits that in 2006 Jamie Dimon communicated with him regarding Epstein’s arrest,” the Virgin Islands said in the court filing.

    “Staley also testified that on or about July 26, 2006, he spoke to Dimon about Epstein’s indictment because Dimon was his boss and the indictment of Epstein, a client of the bank, ‘was a very public event.’”

    Elsewhere in the deposition, Staley answered questions about going to see Epstein after an article was published in 2006 that said, “Jeffrey Epstein craved big homes, elite friends — and, investigators say, underage girls.”

    The article also stated that two of “Epstein’s former employees told investigators that young looking girls showed up to perform massages two or three times a day when Epstein was in town.”

    The Virgin Islands filing said, “On July 25, 2006, Staley met with Epstein in person at Epstein’s home. In that visit, Epstein admitted to the alleged “conduct of engaging in sex for money with young women” — only denying the ‘ages.’”

    Staley afterward wrote Erdoes: “I went and saw him last night. I’ve never seen him so shaken. He also adamantly denies the ages,” Staley wrote Erdoes, the filing notes.

    In his deposition, Staley was asked: “The conduct that he was being accused of, he was admitting that he did it.  He was just denying that he knew the ages of the victims, right?”

    Staley replied, “Correct.”

    “And you were reporting that back to the bank, that what was being denied is the ages, right?” a lawyer for the Virgin Islands said.

    Staley said, “Right.”

    He then conceded that the bank knew that Epstein had admitted to engaging in sex for money with young women, while denying they were underage.

    The lawyer then asked, “And so when the bank is receiving that information, they now know what you know, which is, this is the type of conduct that our client is engaging in, and the only dispute that he has about the allegations are the ages of the victims, right?”

    Staley replied, “That’s correct.”

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  • U.S. judge sends FTX’s Sam Bankman-Fried to jail over witness tampering

    U.S. judge sends FTX’s Sam Bankman-Fried to jail over witness tampering

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    Sam Bankman-Fried will head to jail on Friday after a judge sided with a request by federal prosecutors to revoke the FTX founder’s bail over alleged witness tampering. Bankman-Fried was remanded to custody directly from a court hearing in New York.

    Judge Lewis Kaplan denied Bankman-Fried’s request for delayed detention pending an appeal. Unless the appeal is successful, he is expected to remain in custody until his criminal trial, which is due to begin on Oct. 2.

    “My conclusion is there is probable cause to believe the defendant tried to tamper with witnesses at least twice,” said Judge Kaplan during his ruling.

    As the court marshals took Bankman-Fried into custody at the end of the hearing, the defendant took off his blazer, tie, emptied his pockets, and appeared to remove his shoes. Bankman-Fried’s parents were both in the gallery. His mother had her face buried in her hands for much of Judge Kaplan’s lengthy ruling.

    The government requested that Bankman-Fried be remanded to a jail in Putnam, New York, where he’d have access to a laptop with internet access for defense preparation, as opposed to sending him to Brooklyn’s Metropolitan Detention Center, the facility closest to the courthouse that has limited internet access for prisoners.

    Courtroom scene during hearing for Samuel Bankman-Fried in New York, August 11, 2023.

    Since his arrest in December, Bankman-Fried had been out on a $250 million bail package which requires him to remain at his parents’ Palo Alto, California house.

    Bankman-Fried’s court appearance on Friday is the latest in a series of pre-trial hearings related to the ex-billionaire’s continued dealings with the press – exchanges which the Justice Department characterizes as a “pattern of witness tampering and evading his bail conditions.” 

    Judge Kaplan previously issued a direct and stern warning to Bankman-Fried in July over his conversations with the media.

    Members of the press, including counsel for The New York Times and the Reporters Committee for Freedom of the Press, had filed letters objecting to Bankman-Fried’s detention, citing free speech concerns. Defense attorneys had similarly argued that Bankman-Fried was asserting his first amendment right and did not violate any terms of his bail conditions by speaking with journalists.

    The defense had also been hoping that the discovery process would help Bankman-Fried’s case.

    Lawyers representing the former FTX chief stipulated that with Bankman-Fried jailed, he would not be able to properly prepare for his trial due to the mountainous amounts of discovery documents only accessible via a computer with internet access.

    In the motion requesting Bankman-Fried’s detention, the government said that, over the last several months, the defendant had sent over 100 emails to the media and had made over 1,000 phone calls to members of the press. The final straw, according to prosecutors, was Bankman-Fried leaking private diary entries of his ex-girlfriend, Caroline Ellison, to the New York Times. Ellison pleaded guilty to federal charges in Dec. 2022.

    Ellison, who is also the former chief executive of Bankman-Fried’s failed crypto hedge fund, Alameda Research, has been cooperating with the government since December and is expected to be a star witness for the prosecution. 

    During his 33-minute ruling, Judge Kaplan walked through his rationale as to why probable cause for witness tampering had been met by the prosecution, adding that Bankman-Fried’s contribution to the Ellison story was designed to “hurt” and “discredit” a witness.

    “Faced with a series of conditions meant to limit the defendant’s use of the internet and the phone, the defendant pivoted to in-person machinations,” the prosecution said of Bankman-Fried, whose revised bail conditions include restricted internet access and a ban from smartphone use. 

    The government added that Bankman-Fried had over 100 phone calls with one of the authors of the Times story prior to publication – many of which lasted for approximately 20 minutes. 

    The prosecution described the effort by Bankman-Fried – who faces several wire and securities fraud charges related to the alleged multibillion-dollar FTX fraud – as an attempt to discredit Ellison, characterizing it as a “means of indirect witness intimidation through the press.” 

    It is an argument that proved sufficient to convince Judge Kaplan to send Bankman-Fried to jail ahead of his trial.

    The prosecution has had to cull charges twice to comply with an extradition agreement inked with The Bahamas – where Bankman-Fried was previously held in custody. The government told the Judge in a letter that next week it plans to file a new superseding indictment.

    This story is developing. Please check back for updates.

    Bitstamp to wind down trading of some altcoins for U.S. customers: CNBC Crypto World

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  • Trump Organization monitor flags ‘incomplete,’ ‘inconsistent’ financial disclosures

    Trump Organization monitor flags ‘incomplete,’ ‘inconsistent’ financial disclosures

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    Former U.S. President and Republican presidential candidate Donald Trump looks on as he speaks during a campaign rally in Erie, Pennsylvania, July 29, 2023.

    Lindsay Dedario | Reuters

    The independent financial monitor for the Trump Organization told a New York judge she identified issues of incompleteness and inconsistency in certain disclosures to lenders and others by the company owned by former president Donald Trump.

    Barbara Jones, the monitor, told New York Supreme Court Judge Arthur Engoron that Trump and his company defended the Trump Organization’s disclosure practices in the areas she had flagged, but will change how they disclose information in light of her claims.

    “In the interest of cooperation and transparency, Defendants have agreed to address in future disclosures to lenders the items I have identified and otherwise adjust their practices based upon my observations,” Jones wrote in a letter filed in court Friday.

    CNBC has reached out to lawyers and representatives of the Trump Organization requesting comment about Jones’ claims.

    The former federal judge was appointed in November as a financial monitor as part of a case where the company, Trump and several of his children are being sued by New York Attorney General Letitia James for alleged widespread fraud related to financial statements.

    The trial in the case is set for Oct. 2.

    James, last year, requested an outside monitor after becoming concerned that Trump was trying to move the legal structure of his companies out of New York to avoid her jurisdiction.

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    Engoron wrote that James’ request was justified given the “persistent misrepresentations throughout every one of Mr. Trump’s [Statements of Financial Condition] between 2011 and 2021.”

    Jones, in her letter to the judge, noted that the Trump Organization is comprised of assets held by the Donald J. Trump Revocable Trust, which acts as a guarantor for loans and owns commercial and residential real estate, hotels, golf courses and licensing ventures, among other things.

    During her review of nine loan agreements, more than 75 financial disclosures and thousands of supporting documents, Jones said she observed that “information regarding certain material liabilities provided to lenders … has been incomplete.”

    Those liabilities, she noted, included “intercompany loans between or among Truth entities and Donald J. Trump, certain of the Trust’s contingent liabilities, as well as refundable golf club membership deposits.”

    Jones wrote that “the Trust also has not consistently provided all required annual and quarterly certifications attesting to the accuracy of certain financial statements.”

    She noted that the company’s annual audited financial statements for certain entities, which are prepared by an outside accounting firm, “list depreciation expenses.”

    “However,” Jones added, interim financial statements given to third parties, which are prepared internally by the Trump Organization about the same entities, “inconsistently report depreciation expenses.”

    The attorney general, in her lawsuit, alleges the defendants committed widespread fraud involving years’ worth of false financial statements related to the company’s business.

    James is seeking $250 million and a bar on the Trump Organization from doing business in New York.

    James alleges that Trump massively overstated the values of assets in statements to banks, insurance companies and the IRS to obtain more favorable loan and insurance terms for his company, and to lower its tax obligations.

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  • Dimon says Jeffrey Epstein lawsuits have impacted JPMorgan brand, and he is sorry for having him as a client

    Dimon says Jeffrey Epstein lawsuits have impacted JPMorgan brand, and he is sorry for having him as a client

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    Jamie Dimon, CEO of JPMorgan Chase speaking with CNBC’s Leslie Picker in Bozeman, MT on Aug. 2nd, 2023.

    CNBC

    JPMorgan Chase CEO Jamie Dimon told CNBC on Wednesday that lawsuits against the giant bank related to its former client, the sex offender Jeffrey Epstein, have impacted its brand equity “a little bit.”

    “But we banked Jeffrey Epstein and I’m so sorry that we did. I wish we hadn’t,” Dimon told CNBC’s Leslie Picker. “Had we known then what we know today, we obviously wouldn’t have.”

    “And yes, we make terrible mistakes sometimes and we apologize for it,” Dimon later said.

    JPMorgan in June agreed to settle for $290 million a New York federal court lawsuit by an Epstein accuser alleging that the bank enabled Epstein’s sex trafficking of young women during the years he kept millions of dollars on deposit there, from 1998 to 2013. Other victims of Epstein will share in that settlement, in which the bank did not admit wrongdoing.

    The bank is continuing to fight a similar lawsuit in the same court over its relationship with Epstein by the government of the U.S. Virgin Islands, which is scheduled to go to trial this fall. JPMorgan has denied any wrongdoing in that case.

    The Virgin Islands accuses JPMorgan of retaining Epstein as a client despite multiple red flags being raised internally about him over the years.

    Epstein had pleaded guilty in 2008 to a Florida state charge of soliciting sex from a minor, five years before JPMorgan booted him as a client.

    Asked Wednesday if JPMorgan had changed the way it vets potential clients, Dimon said, “Yes, because we have to be very careful again, we can’t kick out people based on allegations, but again, yes, I think we can do more, particularly around a whole bunch of things.”

    JPMorgan spokeswoman Patricia Wexler, when asked about Dimon’s comments, told CNBC, “Any association with Epstein was a mistake and in hindsight we regret it, but we did not help him commit his heinous crimes.”

    “We would never have continued to do business with him if we believed he was engaged in an ongoing sex trafficking operation,” Wexler said.

    Epstein, 66, killed himself in a Manhattan federal jail in August 2019, a month after he was arrested on child sex trafficking charges.

    In May, Republican attorneys general in 19 states wrote Dimon a letter accusing the bank of closing some customers’ accounts “due to their religious or political affiliation.”

    JPMorgan has flatly rejected that claim, telling The Wall Street Journal at the time, “We have never and would never exit a client relationship due to their political or religious affiliation.”

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    Last week, employees of Florida retail health company Mercola Market told the Florida Voice that JPMorgan abruptly terminated their personal and company bank accounts without explaining the move.

    “One of the employees believes the account shutdowns were politically motivated and due to their employer’s controversial stance on COVID-19,” the news outlet reported. Dr. Joseph Mercola owns the company.

    JPMorgan told Florida Voice last week, “For privacy reasons, we can’t discuss customer relationships, but we don’t close accounts because of political affiliations, and we didn’t do so in this case.”

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  • JPMorgan moved $1.1 million from Jeffrey Epstein to ‘women or girls’ after terminating client relationship, USVI alleges

    JPMorgan moved $1.1 million from Jeffrey Epstein to ‘women or girls’ after terminating client relationship, USVI alleges

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

    Patrick McMullan | Getty Images

    JPMorgan Chase handled more than $1.1 million in payments from Jeffrey Epstein to “girls or women” after the giant bank says it fired the sex offender as a client, a lawyer for the U.S. Virgin Islands told a judge Monday.

    Many of the girls or women had Eastern European surnames, the attorney, Linda Singer, wrote to Manhattan federal Judge Jed Rakoff.

    And more than $320,000 of the payments were made to “numerous individuals for whom JPMorgan had no previously identified payments,” Singer wrote in the letter.

    The letter accuses JPMorgan of failing to disclose the payments until after the end of discovery, the period during which the bank and the Virgin Islands exchanged evidence as part of an ongoing lawsuit.

    Singer asked Rakoff to impose monetary sanctions on JPMorgan for not turning over the information when the Virgin Islands said it should have been disclosed, and to order the bank to turn over “all financial records for any newly disclosed girls or women to whom Epstein made payments.”

    The Virgin Islands in its suit alleges that JPMorgan facilitated and financially benefited from sex trafficking by Epstein of young women during the years when he was a client.

    Epstein maintained a residence on a private island in the American territory where he sexually abused scores of women, and during that time kept tens of millions of dollars on deposit at JPMorgan.

    JPMorgan says it cut ties to Epstein in 2013. But Monday’s court filing challenges the bank’s timeline.

    The bank, which denies any wrongdoing related to Epstein, had no immediate comment on the letter.

    Singer wrote that documents recently turned over by JPMorgan contained information that had been previously sought by the Virgin Islands during the discovery period.

    That information was assembled internally by the bank in October 2019, more than three months after Epstein was arrested on federal child sex trafficking charges. Epstein killed himself in jail in August 2019.

    “There is no legitimate reason for JPMorgan failing to identify payments to girls or women the bank itself identified as being related to Epstein — and potential evidence of Epstein’s sex trafficking venture — years before receiving the USVI’s discovery requests,” the attorney wrote.

    The letter says that a spreadsheet prepared by JPMorgan listing the dates and beneficiaries of more than 9,000 transactions payable to Epstein-related persons between 2005 and 2019 “had a combined value of over $2.4 billion.”

    “Many of the entries reflected accounts and payments, numbering in the thousands and totaling in the hundreds of millions of dollars in value, of which USVI had no prior knowledge or information from JPMorgan’s responses and productions during the fact discovery period,” Singer wrote.

    The letter says that JPMorgan has argued the information was not disclosed earlier “because it was not in a custodial production and/or did not relate to individuals specifically identified by the USVI as related to Epstein.”

    But Singer noted, “The USVI has repeatedly made clear that its discovery requests are not limited to individuals it specifically identified as being related to Epstein.”

    “The USVI specifically identified the individuals it knew were related to Epstein to make its discovery requests clearer — not relieve JPMorgan of its duty to produce known relevant documents,” the lawyer wrote.

    Singer told Rakoff that it remains unclear whether JPMorgan has now disclosed all of the payments from Epstein to girls and women.

    The lawyer asked the judge to order JPMorgan to produce, within five days, all documents and information concerning its 2019 review of its business with Epstein, and “all financial records for any newly disclosed girls or women to whom Epstein made payments.”

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  • Trump hit with new charges in classified documents case, third defendant added

    Trump hit with new charges in classified documents case, third defendant added

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    The DOJ’s indictment includes photos of classified documents found at former President Donald Trump’s Mar-a-Lago residence.

    DOJ

    Donald Trump was hit Thursday night with three new federal criminal charges, and a third defendant was added to the case where the former president already was accused of dozens of felonies related to retaining classified documents at his Florida residence after leaving the White House.

    Trump, the front-runner for the 2024 Republican presidential nomination, is charged in a new superseding indictment with his valet, Walt Nauta, over an alleged attempt to delete video surveillance footage at his Mar-a-Lago club in Palm Beach, Florida, during the summer of 2022.

    At that time, federal officials were seeking the return of government records they suspected of being kept at that location.

    Trump is also newly accused of retaining a classified document detailing a U.S. military plan of attack on Iran, which Trump showed to a writer, publisher and two staff members at his club in Bedminster, New Jersey, on July 21, 2021.

    At the time, Trump had not been president for six months, and his guests “did not have security clearances” to view the document, according to the superseding indictment in U.S. District Court for the Southern District of Florida.

    Carlos de Oliveira, the third defendant added to the case against Trump and Nauta, is head of maintenance at Mar-a-Lago.

    De Oliveira allegedly told another Mar-a-Lago employee that “the boss” wanted to delete a server containing surveillance footage showing how Trump’s boxes had been moved around at the club, according to the superseding indictment.

    The new charging document also identifies de Oliveira as the person who helped Nauta move about 30 boxes from Trump’s residence to a storage room.

    He also allegedly told the FBI he was not involved in moving documents that officials sought, telling agents, “Never saw anything.”

    New charges

    Former U.S. President Trump appears on classified document charges after a federal indictment at Wilkie D. Ferguson Jr. United States Courthouse, alongside his attorney Chris Kise in Miami, Florida, U.S., June 13, 2023 in a courtroom sketch. 

    Jane Rosenberg | Reuters

    The new charges against Trump include an additional count of willful retention of national defense information and two new counts of obstruction against both him and Nauta.

    The new obstruction counts relate to the alleged efforts by Trump, Nauta and de Oliveira to delete Mar-a-Lago security camera footage that was sought by a federal grand jury in June 2022.

    With the new charges, Trump now faces 40 criminal counts in the case, which was first lodged in early June by Department of Justice special counsel Jack Smith.

    The most serious counts against Trump carry 20-year maximum prison terms.

    De Oliveira, 56, was charged Thursday with conspiracy to obstruct justice, altering destroying, mutilating a document and false statements.

    The updated indictment against former President Donald Trump, Walt Nauta and Carlos De Oliveira is photographed Thursday, July 27, 2023.

    Jon Elswick | AP

    The false statements charge relates to the voluntary interview De Oliveira gave FBI agents in January.

    Trump, who is seeking the 2024 Republican presidential nomination, stored hundreds of government documents at Mar-a-Lago after he left office, and according to prosecutors took steps to keep them hidden from U.S. officials seeking their return.

    Trump and Nauta have pleaded not guilty in the case. A trial in the case has been scheduled for May, just months before the general election.

    John Irving, a lawyer for de Oliveira, declined to comment, according to NBC News.

    What’s next?

    De Oliveira has been ordered to appear in Miami federal court on Monday for his first hearing in the case.

    Peter Carr, a spokesman for Smith, said in a statement, “Today, a superseding indictment was returned by a grand jury in the Southern District of Florida that adds one defendant and four charges to the prior indictment filed against Donald J. Trump and Waltine Nauta.”

    Trump spokesman Steven Cheung slammed the DOJ over the new charges. “This is nothing more than a continued desperate and flailing attempt by the Biden Crime Family and their Department of Justice to harass President Trump and those around him,” he said in a statement.

    “Deranged Jack Smith knows that they have no case and is casting about for any way to salvage their illegal witch hunt and to get someone other than Donald Trump to run against Crooked Joe Biden,” Cheung said.

    Smith separately is overseeing a criminal investigation of Trump related to his efforts to undo his 2020 electoral loss to President Joe Biden. The special counsel last week informed Trump that he is a target in that probe, a notification that typically occurs before the target is charged in a case.

    A grand jury that has been hearing testimony and reviewing evidence in that case in U.S. District Court in Washington, D.C., ended a session Thursday afternoon without issuing an indictment.

    Trump faces other legal issues. In spring, a Manhattan grand jury charged him with falsifying business documents related to a hush money payment to porn star Stormy Daniels. In Georgia, meanwhile, a local district attorney is probing the former president over his attempt to overturn his 2020 electoral loss in that state.

    Correction: Donald Trump had not been president for six months on July 21, 2021. An earlier version misstated the time frame.

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  • Convicted Ponzi schemer granted clemency by Trump charged with new Ponzi scheme

    Convicted Ponzi schemer granted clemency by Trump charged with new Ponzi scheme

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    Former US President and 2024 Republican Presidential hopeful Donald Trump gestures about weight lifting as he speaks at a Republican volunteer recruitment event at Fervent, a Calvary Chapel, in Las Vegas, Nevada, July 8, 2023. 

    Mario Tama | Getty Images

    WASHINGTON — A New Jersey man who had his prison sentence for running a massive Ponzi scheme commuted by Donald Trump on the final day of his presidency was charged Wednesday with orchestrating a similar scheme.

    Eliyahu “Eli” Weinstein Weinstein and four accomplices are accused of overseeing a new Ponzi scheme that prosecutors say has defrauded 150 victims out of more than $35 million.

    Weinstein, 48, has now been charged with defrauding investors three times.

    The first came in 2013, when he pleaded guilty to 45 counts of fraud and conspiracy for stealing more than $200 million from investors. In 2015, he pleaded guilty in a second case, this time to committing wire fraud while he was on trial for the Ponzi scheme.

    Weinstein had served eight years of his 24-year prison sentence when Trump granted him clemency in 2021, as one of 143 people who received either pardons or commutations during Trump’s final hours in office.

    His release from prison capped a costly lobbying effort that enlisted people close to Trump, including attorney Alan Dershowitz, to argue that Weinstein never got a fair trial.

    The campaign to get Trump to grant clemency to Weinstein was later the subject of a New York Times story, which detailed how Weinstein’s allies paid for access to various Trump insiders.

    CNBC Politics

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    On the day of his commutation, the White House described Weinstein as the “father of seven children and a loving husband.”

    “Upon his release, he will have strong support from his community and members of his faith,” said the official statement on his commutation.

    At a news conference Wednesday announcing the latest charges, U.S. Attorney Philip R. Sellinger said “Weinstein picked up right where he left off: stealing millions of dollars from investors through a web of lies and deceit.”

    According to the criminal complaint, Weinstein and his accomplices created fake investment funds and told prospective investors that their money would be used “to invest in lucrative deals involving, among other things, COVID-19 masks, scarce baby formula, and first-aid kits bound for Ukraine.”

    In order to hide his true identity and his criminal past, Weinstein used the name “Mike Konig” when communicating with investors.

    In addition to the criminal charges facing Weinstein, the Securities and Exchange Commission on Wednesday filed a civil complaint against him and five other alleged co-conspirators.

    “Over and over, the defendants took money from unsuspecting investors for fake deals and shuffled funds around to pay out earlier investors to give the false impression that they were receiving real profits from those deals,” said Antonia Apps, director of the SEC’s New York regional office in a statement Wednesday. 

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  • U.S. Virgin Islands seeks at least $190 million from JPMorgan Chase in Jeffrey Epstein case

    U.S. Virgin Islands seeks at least $190 million from JPMorgan Chase in Jeffrey Epstein case

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    The government of the U.S. Virgin Islands in a court filing Friday estimated that it will seek damages of at least $190 million from JPMorgan Chase in a lawsuit accusing the big bank of facilitating sex trafficking by its former long-time customer Jeffrey Epstein.

    The Virgin Islands also said it wants an order requiring JPMorgan to take a series of steps to protect young women and girls from other predators in the future.

    “These sets of recommendations aim to address the same core problem: JPMorgan’s knowledge of
    and failure to report Epstein’s trafficking because it lacked the economic incentive and motivation
    to place compliance with the law and prevention of trafficking ahead of its own profits,” the filing in U.S. District Court in Manhattan says.

    The American territory also said it will seek further compensatory damages specifically for victims of Epstein beyond the nearly $300 million JPMorgan agreed to pay victims last month to settle a lawsuit by one of his accusers. The filing did not give an amount for those additional damages from the bank, which has staunchly denied any wrongdoing.

    The new filing came in response to a request last week by Judge Jed Rakoff that the territory detail the damages it seeks in the case as it heads toward a scheduled Oct. 23 trial.

    The Virgin Islands’ suit accuses JPMorgan of benefiting from Epstein’s trafficking of young women to be abused by him and others during the 15 years he was a client of the bank, which is the largest in the United States.

    The complaint alleges JPMorgan allowed Epstein to keep many millions of dollars in accounts at the bank, which he used to fund his trafficking of women, despite multiple red flags about him raised by bank employees over the years.

    “We are pursuing this enforcement action because JPMorgan Chase’s institutional failure enabled Jeffrey Epstein’s sex trafficking, and JPMorgan Chase must make significant changes to detect, report and stop human trafficking,” said U.S. Virgin Islands Attorney General Ariel Smith in a statement Friday.

    “Financial penalties, as well as conduct changes, are important to make sure that JPMorgan Chase knows the cost of putting its own profits ahead of public safety,” said Smith.

    She said that if the Virgin Islands wins its suit, it will uses the monetary damages it receives “to support efforts to strengthen, inform, and expand local law enforcement and enhance the Virgin Islands’ services for victims of human trafficking and other victims of crime.”

    A JPMorgan spokeswoman, when asked for comment about the filing, indicated for what appears to be the first time that the bank’s attorneys have discussed a possible settlement of the lawsuit with lawyers for the Virgin Islands, which would avoid a trial.

    “This document does not reflect the nature of settlement conversations,” said the spokeswoman, Patricia Wexler. ” As for the USVI’s misdirected damages theories, they are not well founded and are being challenged by JPM in court.”

    It is common in civil litigation for cases to be settled without trial.

    The filing says the Virgin Islands wants at least $150 million in civil penalties alone. The filing also says that it wants JPMorgan to disgorge at least another $40 million in fees that Epstein generated for the bank, and that JPMorgan received from “many ultra-high net worth clients” he referred to the bank.

    Those people, the filing said, included Google co-founder Sergey Brin, Microsoft founder Bill Gates, Lex Wexner, the founder of Limited Brands, and the billionaire Glenn Dubin.

    A spokesperson for Gates contacted CNBC after this article first was published, and in an email, “Mr. Gates was never a client of JP Morgan.”

    In addition to the monetary damages, the Virgin Islands also is asking JPMorgan be compelled “to implement new policies, including separating its business and compliance functions and designating an independent compliance consultant, to prevent human trafficking,” according to a press release by Smith’s office.

    JPMorgan in its own court filings has accused the Virgin Islands itself of being “complicit in the crimes of Jeffrey Epstein.”

    The bank alleges Epstein gave high-ranking officials there money, advice and favors in exchange for looking the other way when he trafficked young women to be abused there.

    Epstein had a residence on a private island in the territory, where accusers say he and other people sexually abused them.

    Last month in the same court where the Virgin Islands is suing the bank JPMorgan agreed, without admitting wrongdoing, to pay $290 million to victims of Epstein to settle a suit by one of his accusers.

    In May, Deutsche Bank agreed to pay Epstein victims $75 million to settle a separate lawsuit by an accuser who accused that back of abetting his sex trafficking of her and others. Deutsche Bank took on Epstein as a customer after JPMorgan severed ties with him in 2013, years after bank employees first voiced concerns about him.

    Deutsche Bank previously agreed to pay New York state’s Department of Financial Services a $150 million penalty for failure to detect or prevent millions of dollars of suspicious transactions related to Epstein, which included “payments to Russian models and to numerous women with Eastern European surnames,” the filing Friday by the Virgin Islands noted.

    Epstein, who had been a friend to former Presidents Donald Trump and Bill Clinton, as well as Prince Andrew of Great Britain, pleaded guilty in 2008 to a Florida state charge of soliciting sex from an underage girl. He served 13 months in jail, but spent much of that time on work release each day.

    Epstein, then 66, killed himself in a federal jail in New York in August 2019, a month after he was arrested on federal child sex trafficking charges.

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  • Trump opposes quick trial date in classified documents case

    Trump opposes quick trial date in classified documents case

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    Walt Nauta (L), a US Navy veteran and a White House military valet to former US president Donald Trump, and Stanley Woodward (R), lawyer, arrive at the James Lawrence King Federal Justice Building on July 06, 2023 in Miami, Florida.

    Eva Marie Uzcategul | Anadolu Agency | Getty Images

    Former President Donald Trump on Monday night asked a federal court to hold off on setting a date for the criminal trial over his handling of classified documents, arguing that the unprecedented case requires “a measured consideration and timeline.”

    Attorneys for Trump and Walt Nauta, the former president’s valet and co-defendant, also noted that it will be “challenging” for them to prepare for a trial before the Nov. 5, 2024, presidential election, for which Trump is seeking the Republican nomination.

    “There is simply no question any trial of this action during the pendency of a Presidential election will impact both the outcome of that election and, importantly, the ability of the Defendants to obtain a fair trial,” the attorneys argued.

    Their joint court filing in U.S. District Court for the Southern District of Florida came in response to the Department of Justice, which had already asked the court to delay the start of the trial by nearly four months to mid-December.

    Judge Aileen Cannon, a Trump appointee, had initially scheduled the former president’s criminal trial to start on Aug. 14. Court watchers and legal experts widely expect that the trial will be postponed to a much later date to give the parties adequate time to prepare.

    Nauta had only recently pleaded not guilty to the six counts against him because his arraignment was twice delayed. Nauta is charged with conspiracy to obstruct justice, withholding and corruptly concealing documents, and making false representations. Trump was arraigned weeks earlier, pleading not guilty to 37 criminal counts.

    The sensitive subject matter at the heart of the case could also lengthen the timeline. Since it centers on the top secret documents stored at Trump’s residence, the case and eventual trial will need to adhere to the federal statute that governs how the proceedings will play out.

    The Justice Department and Nauta’s lawyers had clashed earlier Monday about when a pre-trial hearing focused on that statute, called the Classified Information Procedures Act or CIPA, should take place. The DOJ opposed Nauta’s request to delay that hearing, which was set for Friday, arguing it was unnecessary.

    In a subsequent filing Monday evening, Trump’s attorneys said they had struck an agreement with the DOJ to hold the CIPA hearing Tuesday, July 18.

    This is breaking news. Please check back for updates.

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  • Trump’s latest attack includes special counsel’s family after bombshell tape revealed

    Trump’s latest attack includes special counsel’s family after bombshell tape revealed

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    Former U.S. President Donald Trump addresses The Faith and Freedom Coalition’s 2023 “Road to Majority” conference in Washington, U.S., June 24, 2023. 

    Tasos Katopodis | Reuters

    Hours after the release of an audio tape in which Donald Trump discusses a classified document that he kept after leaving office, the former president intensified his attacks on the special counsel who oversees the probe that led to Trump’s historic indictment.

    In an all-caps social media post Tuesday morning, Trump decried the criminal charges that have been filed against him in federal court and asked “somebody” to “explain” his position to special counsel Jack Smith, “his family, and his friends.”

    A spokesman for the Department of Justice declined to comment on Trump’s latest broadside against Smith, who was tapped last year to lead multiple criminal investigations involving the former president.

    Trump was indicted on charges stemming from his alleged mishandling of classified documents and efforts to keep them from the government after leaving office. He pleaded not guilty earlier this month to 37 counts, including willful retention of national defense information and conspiracy to obstruct justice.

    Trump’s post claimed that “as president of the United States, I come under the Presidential Records Act,” instead of the Espionage Act, which is the law cited in 31 of the counts against Trump. Fact-checkers have disputed Trump’s characterizations of both laws.

    That statement on Truth Social was not the first time Trump has referenced Smith’s personal circle. On the morning of his arraignment in federal court in Florida, the ex-president wrote that Smith is a “Trump Hater, as are all his friends and family.” That post also asserted without evidence that materials found in the boxes of records at the center of the classified documents case were “probably ‘planted.’”

    Trump’s latest post followed the Monday night release by CNN of an audio recording of a July 2021 meeting in Bedminster, New Jersey, in which Trump references a document that he says is “highly confidential” and “secret.”

    “This was done by the military, and given to me,” Trump said in the tape, which was recorded months after he left the White House. Trump indicates that the document has to do with a plan of attack on Iran.

    “As president I could have declassified it. Now I can’t,” he said in the recording.

    Trump was reportedly speaking to a writer and publisher who were working on a book about former White House chief of staff Mark Meadows. Two of Trump’s staff members were also present.

    None of them had security clearances or any need to know the classified information referenced by Trump, according to the indictment, which references a transcript of the recording.

    Trump’s attacks on Smith fit the pattern and style that the former president has employed against many of his other legal and political foes.

    He has regularly fired rhetorical salvos against Manhattan District Attorney Alvin Bragg, who is leading a separate, state-level criminal prosecution against Trump in connection with hush money payments made before the 2016 presidential election.

    Trump in April pleaded not guilty to 34 counts of falsifying business records in that case. Ahead of that court appearance in Manhattan, Trump targeted the presiding judge, Juan Merchan, accusing him and his family of being “Trump haters.

    Smith is overseeing a separate probe of the facts surrounding the Jan. 6 Capitol riot and the post-presidential transfer of power in 2020. No charges have yet been filed stemming from that investigation, which is ongoing.

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  • Judge bars Trump from disclosing — or keeping — evidence in documents case

    Judge bars Trump from disclosing — or keeping — evidence in documents case

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    Former U.S. President Donald Trump delivers remarks during an event following his arraignment on classified document charges, at Trump National Golf Club, in Bedminster, New Jersey, U.S., June 13, 2023. 

    Amr Alfiky | Reuters

    A federal judge issued a protective order Monday barring former President Donald Trump from disclosing — or keeping — evidence set to be turned over to him by the government in the classified documents case on social media.

    The order against Trump and Walt Nauta, his co-defendant in the criminal case alleging he mishandled national security information, prohibits them from sharing evidence federal investigators are set to begin turning over to their lawyers as part of the discovery process in the case.

    “The Discovery Materials, along with any information derived therefrom, shall not be disclosed to the public or the news media, or disseminated on any news or social media platform, without prior notice to and consent of the United States or approval of the Court,” Magistrate Judge Bruce Reinhart said in the order.  

    Read more from NBC News
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    It bars them from disclosing information about the government’s evidence to people not directly involved in the case without explicit permission from a judge, and warns they could face criminal contempt charges if they violate the order.

    It also puts limits on Trump’s access to the material.

    “Defendants shall only have access to Discovery Materials under the direct supervision of Defense Counsel or a member of Defense Counsel’s staff. Defendants shall not retain copies of Discovery Material,” the ruling said.

    The ruling largely tracks with a request for a protective order the government filed in the case on Friday. The government said in that filing that Trump and Nauta’s lawyers had “no objections to this motion or the protective order.”

    Trump attorney Todd Blanche declined comment on the order.

    The information prosecutors sought to guard includes “sensitive and confidential information,” including “information that reveals sensitive but unclassified investigative techniques; non-public information relating to potential witnesses and other third parties (including grand jury transcripts and exhibits and recordings of witness interviews); financial information of third parties; third-party location information; and personal information contained on electronic devices and accounts.”

    “The materials also include information pertaining to ongoing investigations, the disclosure of which could compromise those investigations and identify uncharged individuals,” their Friday filing said.

    Trump, 77, was indicted earlier this month on 37 federal felony counts, including willful retention of national defense information, making f

    alse statements and representations, and conspiracy to obstruct justice.

    He pleaded not guilty at his arraignment last week. Nauta, whose lawyer has declined comment on the case, is expected to enter a not guilty plea next week.

    Trump was slapped with a similar order in the New York criminal case where he’s charged with dozens of counts of falsifying business records. Trump’s attorneys had objected to portions of the order in that case.

    Prosecutors from the Manhattan district attorney’s office said those restrictions were necessary because the “risk” that Trump would use the evidence “inappropriately” was “substantial.”

    “Donald J. Trump has a longstanding and perhaps singular history of attacking witnesses, investigators, prosecutors, trial jurors, grand jurors, judges, and others involved in legal proceedings against him, putting those individuals and their families at considerable safety risk,” the DA’s office had argued in a court filing.

    Trump has pleaded not guilty in that case.

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  • Trump charged with 37 counts in classified documents case, indictment says

    Trump charged with 37 counts in classified documents case, indictment says

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    A 37-count criminal indictment against Donald Trump for retaining classified government records and conspiring to prevent their return to U.S. officials was unsealed Friday.

    The charging document was made public a day after the former president was indicted by a grand jury in U.S. District Court in Miami.

    Among other allegations, the indictment says that Trump showed classified documents to other people in the summer of 2021, after leaving office.

    Follow our live coverage of Donald Trump’s indictment in the classified documents case.

    One of those documents was a “plan of attack” that he said was prepared by the Pentagon, while the other was a classified map related to a military operation, the indictment alleges.

    Also charged in the indictment was Trump’s valet, Walter Nauta, who faces several of the same charges as his boss, with whom he allegedly conspired to keep classified records and hide them from a federal grand jury.

    The FBI raid of Trump’s Florida home last August discovered hundreds of classified documents, which he had failed to turn over to U.S. officials despite months of efforts to recover them.

    Former U.S. President Donald Trump is seen in Midtown on April 03, 2023 in New York City. Trump is scheduled to be arraigned tomorrow at a Manhattan courthouse following his indictment by a grand jury.

    Gotham | Gc Images | Getty Images

    The indictment says Trump was aware of the highly sensitive nature of the documents, quoting him at one point as saying: “As president, I could have declassified it … but this is still secret.”

    Trump and Nauta are due to be arraigned in Miami on Tuesday, the day before the ex-president’s 77th birthday.

    He and Nauta each face a maximum possible sentence of 20 years in prison if convicted of the most serious charges, which are conspiracy to obstruct justice and counts related to withholding and concealing the government records.

    Thirty-one of the counts accuse Trump of willful retention of national defense information. He is also charged with conspiracy to obstruct justice; withholding a document or record; corruptly concealing a document or record; concealing a document in a federal investigation; scheme to conceal; and false statements and representations.

    Trump was put under criminal investigation in the spring of 2022, after the FBI was notified that classified documents were found in the 15 boxes of government records he gave to the National Records and Archives Administration after months of effort by NARA to recover documents the agency believed were missing.

    By law, presidents must give NARA all government records when they leave office.

    The indictment notes, “As he departed the White House, TRUMP caused scores of boxes, many of which contained classified documents, to be transported to The Mar-a-Lago Club in Palm Beach, Florida, where he maintained his residence.”

    “TRUMP was not authorized to possess or retain those classified documents,” the indictment says.

    Trump later suggested to any attorney that he lie to the FBI and a grand jury by saying that he did not have the documents they were seeking, and directed Nauto to move boxes of documents to conceal them from Trump’s own lawyer, the FBI and the grand jury, the indictment alleges.

    Trump also is accused in the indictment of suggesting to his lawyer that the attorney hide or destroy documents, that he gave the FBI and the grand jury only some of the documents he had kept while claiming he was fully cooperating.

    And Trump caused a certification to be submitted to the FBI and grand jury, falsely representing that all documents had been produced when he knew that was not true, according to the indicment.

    The indictment estimates that Trump’s trial would take between 21 and 60 days.

    Earlier Friday, two of his lawyers resigned from representing him in the classified documents case, and in another pending federal criminal investigation for his efforts to overturn his loss in the 2020 presidential election.

    Read the indictment against Donald Trump

    This is breaking news. Check back for updates.

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  • Trump told he is target of Mar-a-Lago documents criminal probe by special counsel

    Trump told he is target of Mar-a-Lago documents criminal probe by special counsel

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    Former President Donald Trump greets supporters at a Team Trump volunteer leadership training event held at the Grimes Community Complex on June 01, 2023 in Grimes, Iowa. 

    Scott Olson | Getty Images

    Former President Donald Trump has been informed he is a target of the federal criminal probe into his retention of hundreds of classified government records after leaving the White House, NBC News reported Wednesday evening.

    Such notification typically occurs before prosecutors decide whether to lodge criminal charges against a target.

    Trump’s attorneys were told at a meeting Monday at the Department of Justice with special counsel Jack Smith and other DOJ officials that he is a target of the classified documents investigation, according to two sources briefed on the meeting, NBC reported. It was not clear if they previously had been notified of that status for him.

    Targets are people who prosecutors believe committed a crime. Targets often end up being indicted.

    DOJ regulations say that a prosecutor, “in appropriate cases, is encouraged to notify such person a reasonable time before seeking an indictment in order to afford him or her an opportunity to testify before the grand jury.”

    A DOJ spokesperson declined to comment.

    Disclosure of Trump’s status in the investigation came as Taylor Budowich, a top aide of his, testified to a grand jury in U.S. District Court in Miami, which has been gathering evidence for the case.

    Smith is probing Trump both for keeping classified records at his residence in his Mar-a-Lago club in Palm Beach, Florida, and his suspected efforts to hide those documents and keep them from government officials seeking their return. By law, presidents must surrender government records when they leave office.

    A raid on Mar-a-Lago last August by the FBI uncovered hundreds of classified documents and other government records.

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    Trump in a social media post on Wednesday said, “no one has told me I’m being indicted.”

    He added that he should not be criminally charged in the case “because I’ve done nothing wrong.”

    Trump did not directly answer a New York Times reporter, Maggie Haberman, when she asked him if he had been told he was a target, she reported.

    Trump, who is seeking the 2024 Republican presidential nomination, was indicted by a New York state grand jury in March on charges of falsifying business records in connection with a 2016 hush money payment to porn star Stormy Daniels by his then-personal lawyer.

    He has pleaded not guilty in that case, which is due to go to trial next year in Manhattan Supreme Court.

    Smith separately is overseeing a criminal probe of Trump’s efforts to reverse his loss in the 2020 national presidential election. A state prosecutor in Georgia likewise is investigating him and his allies for such efforts in that state’s presidential election that year.

    Trump on Wednesday called the prosecutors in all of those cases “fascists” who were trying to harm him politically.

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  • JPMorgan CEO Jamie Dimon says other bank exec could have booted Jeffrey Epstein as customer

    JPMorgan CEO Jamie Dimon says other bank exec could have booted Jeffrey Epstein as customer

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    JP Morgan CEO Jamie Dimon looks on during the inauguration of the new French headquarters of US’ JP Morgan bank on June 29, 2021 in Paris.

    Michel Euler | AFP | Getty Images

    JPMorgan Chase CEO Jamie Dimon testified last week that a top executive at the bank, Mary Erdoes, who had raised concerns about long-time customer Jeffrey Epstein, had the power to boot him as a client, according to a transcript of his deposition obtained by CNBC on Wednesday.

    Dimon’s testimony Friday came after disclosures that Erdoes as early as 2006 was aware of suspicious transfers of money out of Epstein’s accounts, which lawsuits now allege were used for sex trafficking of young women.

    Dimon also testified that JPMorgan’s then-general counsel Stephen Cutler had “the ultimate authority to kick him out if” issues surrounding Epstein “had gone too far.”

    “He was delegating reputational decisions to somebody els” Dimon said.

    During the deposition, Dimon was shown an email that Cutler sent Erdoes an email about Epstein on July 21, 2011, in which Cutler wrote: “I would like to put it and him behind us. Not a person we should do business with, period.”

    Epstein was terminated as a customer in 2013, two years after that email and five years after he pleaded guilty to a Florida state charge of soliciting sex from a minor.

    Dimon also testified he was not informed that Epstein was indicted in Florida for sex crimes in 2006, or of other concerns about him that others at the bank raised, the deposition reveals.

    “I don’t recall knowing anything about Jeffrey Epstein until the stories broke sometime in 2019” Dimon said, referring to when Epstein was arrested on federal child sex trafficking charges.

    “I was surprised that I didn’t even — had never even heard of the guy, pretty much. And how involved he was with so many people,” Dimon said.

    A lawyer asked Dimon: “As CEO of private [banking] or asset and wealth management, Mary Erdoes could have decided to terminate Jeffrey Epstein as a customer, as a client, of JPMorgan; is that right?”

    Dimon answered, “I generally would say that’s true, yes.”

    JPMorgan is accused in two lawsuits of enabling and benefiting from sex trafficking by Epstein.

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    Dimon was deposed at JPMorgan’s headquarters in New York by lawyers for the plaintiffs, and for former bank executive Jes Staley, who JPMorgan argues is responsible for any civil liability a jury might find.

    “I think what happened to these women is atrocious, and I’m horrified at the amount of human trafficking that takes place,” Dimon said when asked if the accusers of Epstein deserved an apology.

    “And I wouldn’t mind personally apologizing to them, not because we committed the crime, we did not, and not because we believe we’re responsible, but that any potential thing, what little role that we could have eased it or helped catch it quicker or something like that, or get it to law enforcement quicker or get law enforcement to react to it quicker, which they obviously didn’t,  you know, I would apologize to them.”

    “For that, yes,” he said.

    This is breaking news. Check back for updates.

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  • JPMorgan rejects claim that Dimon and Staley discussed Epstein: ‘We believe this is false’

    JPMorgan rejects claim that Dimon and Staley discussed Epstein: ‘We believe this is false’

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    Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., US, on Thursday, Sept. 22, 2022.

    Al Drago | Bloomberg | Getty Images

    JPMorgan Chase on Wednesday rejected allegations cited in a new report that CEO Jamie Dimon over years discussed the bank’s then-customer Jeffrey Epstein — a sex predator — with Jes Staley, who at the time was a top JPMorgan executive.

    “We believe this is false. There is no evidence that any such communications ever occurred — nothing in the voluminous number of documents reviewed and nothing in the nearly dozen depositions taken, including that of our own CEO,” JPMorgan spokeswoman Patricia Wexler said in a statement to CNBC.

    “The one person who claims this to be true is currently accused of horrific acts and dishonesty – and hasn’t been deposed,” Wexler said, referring to Staley.

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    Wexler’s comments came hours after The Wall Street Journal published an article saying that Staley, in legal documents, said that for years he communicated with Dimon about JPMorgan’s business with Epstein.

    Epstein was a client of the bank from 1998 to 2013, keeping hundreds of millions of dollars on deposit in multiple accounts.

    “In the documents, Staley said that Dimon communicated with him when Epstein was arrested in 2006 and in 2008 when Epstein pleaded guilty” to a sex crime in Florida, The Journal reported.

    “Staley also said that Dimon communicated with him various times about whether to maintain Epstein as a client through 2012,” according to The Journal.

    Epstein served more than a year in jail for the Florida conviction of soliciting sex from a minor, a case that was widely reported at the time.

    The Journal also reported that it had seen documents indicating that Dimon and Staley had a meeting scheduled with Epstein on March 2, 2010. JPMorgan told that newspaper that Dimon did not attend that meeting, and that it was not on the CEO’s calendar.

    Dimon was deposed on Friday for two civil lawsuits in U.S. District Court in Manhattan against the bank accusing JPMorgan of enabling and financially benefitting from sex trafficking by Epstein.

    One suit was filed by the government of the U.S. Virgin Islands, where Epstein maintained a residence on a private island. The other complaint was filed by an Epstein accuser who is seeking to make her complaint a class-action suit on behalf of other women.

    The suit against JPMorgan by an Epstein accuser alleges that Staley “knew without any doubt that Epstein was trafficking and abusing girls.”

    JPMorgan has claimed in a court filing that Staley is the person identified, without being named in that suit, as using “aggressive force” in sexually assaulting an Epstein accuser.

    Staley denies wrongdoing and also denies having known about Epstein’s abuse of young women.

    Deutsche Bank, which became Epstein’s bank in 2013 after JPMorgan severed ties with him on the heels of Staley’s exit from the bank, earlier this month agreed to settle for $75 million a lawsuit by another Epstein accuser. That deal will benefit other women who were victimized by Epstein during the time he was a Deutsche Bank customer.

    JPMorgan, which denies any wrongdoing, has alleged in legal filings that Staley is responsible for any civil liability arising from Epstein’s use of funds he had on deposit at that bank to send young women to the Virgin Islands and elsewhere to be abused by him and others.

    Wexler last week said after Dimon’s deposition, “Our CEO reaffirmed after his deposition that, as he has previously said, he never met with him, never emailed him, does not recall ever discussing his accounts internally, and was not involved in any decisions about his account.”

    “There are over a million pages of emails and other documents that have been produced in this case and not one comes close to even suggesting that he had any role in decisions about Epstein’s accounts,” Wexler said. 

    “As we have said, we now know that Epstein’s behavior was monstrous, and his victims deserve justice. In hindsight, any association with him was a mistake and we regret it, but these suits are misdirected as we did not help him commit his heinous crimes.” 

    Epstein, 66, killed himself in a Manhattan jail in August 2019, a month after federal authorities arrested and charged him with child sex trafficking.

    Dimon has expressed regret that JPMorgan did business with Epstein

    “I am so sad that we had any relationship to that man whatsoever,” the CEO told Bloomberg in an interview May 11.

    “You know, we had top lawyers evaluating, from the [U.S. Securities and Exchange Commission] enforcement, the [Department of Justice], you know, and obviously, had we known then what we know today, we would have done things differently,” Dimon said.

    –CNBC’s Dawn Giel contributed to this report.

    If you are having suicidal thoughts, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.

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  • Theranos founder Elizabeth Holmes set to report to prison on Tuesday

    Theranos founder Elizabeth Holmes set to report to prison on Tuesday

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    Theranos founder and former CEO Elizabeth Holmes pauses while going through a security checkpoint as she arrives for trial at the Robert F. Peckham Federal Building on December 07, 2021 in San Jose, California.

    Justin Sullivan | Getty Images

    Disgraced Theranos CEO Elizabeth Holmes is expected to report to prison Tuesday to begin her more than 11-year sentence for defrauding investors about the capabilities of her company’s blood-testing technology.

    U.S. District Judge Edward Davila ordered Holmes to surrender no later than 2 p.m. local time Tuesday at a minimum-security facility in Bryan, Texas in a ruling earlier this month. The ruling followed a day after an appeals court rejected Holmes’ bid to stay out of prison while she appeals her conviction.

    Holmes, 39, has two young children with her current partner, William “Billy” Evans. Her second child was born earlier this year after her sentencing in Nov. 2022.

    A federal jury in San Jose, California, convicted Holmes on four counts of defrauding investors in Theranos, the company she dropped out of Stanford University to found in 2003. In another ruling this month, Davila ordered that Holmes and former Theranos executive Ramesh “Sunny” Balwani pay $452 million in restitution to victims.

    Balwani and Holmes, former romantic partners, helmed Theranos during its meteoric rise. At its peak, Theranos was valued at more than $9 billion and attracted backers ranging from the DeVos family to news magnate Rupert Murdoch. It was one of Murdoch’s publications, The Wall Street Journal, that first reported on irregularities with Theranos’ supposedly revolutionary blood-testing machines.

    Balwani was convicted on 12 counts of wire fraud and conspiracy to commit wire fraud. He is serving his nearly 13-year sentence in a prison in Southern California.

    Holmes’ saga began when she dreamed of running hundreds of laboratory tests with just a finger prick of blood. The idea was to make blood tests cheaper, more convenient and accessible to consumers, but Theranos’ technology ultimately proved to be faulty and unreliable.

    Patients were given inaccurate test results relating to conditions such as HIV, cancer and miscarriages. In closing arguments during Holmes’ trial, prosecutors argued that she “chose fraud” over “failure.”

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  • JPMorgan CEO Jamie Dimon testifies he had no involvement with Jeffrey Epstein account, bank says

    JPMorgan CEO Jamie Dimon testifies he had no involvement with Jeffrey Epstein account, bank says

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    JPMorgan Chase CEO Jamie Dimon talks to reporters as he leaves the U.S. Capitol after an unannounced meeting with U.S. Senate Majority Leader Schumer that was reportedly about the possibility of the U.S. defaulting on its debt, outside the U.S. Capitol in Washington, May 17, 2023.

    Evelyn Hockstein | Reuters

    JPMorgan Chase CEO Jamie Dimon testified at a deposition in New York on Friday that he had no involvement in the accounts of longtime customer Jeffrey Epstein, the bank said.

    Dimon was being deposed for lawsuits accusing JPMorgan of facilitating and profiting from Epstein’s sex trafficking of young women, which he financed with money he had on deposit there.

    “At today’s deposition, our CEO repeatedly confirmed that he never met with him, never emailed him, does not recall ever discussing his accounts internally, and was not involved in any decisions about his account,” said a bank spokeswoman. ”There are millions and millions of emails and other documents that have been produced in this case and not one comes close to even suggesting that he had any role in decisions about Epstein’s accounts.”

    The spokeswoman added: ”As we have said, we now know that Epstein’s behavior was monstrous, and his victims deserve justice. In hindsight, any association with him was a mistake and we regret it, but these suits are misdirected as we did not help him commit his heinous crimes.”

    Dimon gave his deposition at JPMorgan’s headquarters in Manhattan. The bank earlier lost an effort to dismiss the suits by the plaintiffs – the government of the U.S. Virgin Islands and an anonymous Epstein accuser.

    The suits claim that JPMorgan, the biggest bank in the United States, kept Epstein as a customer even after learning he was being investigated for sexually abusing underage girls in Florida and after he pleaded guilty in a state charge there in 2008 to paying for sex from a minor.

    The bank is accused in the complaints in U.S. District Court in Manhattan of doing so in order to keep Epstein, who kept tens of millions of dollars in accounts there, despite internal concerns about his slimy reputation.

    The Virgin Islands says Epstein used frequent cash withdrawals he made from those accounts to pay for young women to travel to the American territory so that he and others could abuse them at his residence on a private island he owned.

    “Human trafficking was the [principal] business of the accounts Epstein maintained at JPMorgan,” the Virgin Islands’ suit says.

    Dimon’s deposition is being taken in private. The questions he is asked and the answers he gives would only become public if they are used in court filings and proceedings, or if they are leaked.

    JPMorgan didn’t immediately respond to CNBC’s request for comment.

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    In addition to questioning Dimon under oath, the Virgin Islands has issued a flurry of subpoenas seeking documents related to Epstein and JPMorgan from a number of high-profile people the government suspects Epstein tried to recruit as fellow clients of the bank.

    They include Tesla CEO Elon Musk, Google co-founders Larry Page and Sergey Brin, former Disney executive Michael Ovitz, Hyatt Hotels executive chairman Thomas Pritzker and Mort Zuckerman, the billionaire real estate investor.

    Dimon’s deposition comes more than a week after Deutsche Bank agreed to pay $75 million to Epstein victims to settle a would-be class action lawsuit by one of his accusers. Deutsche Bank had taken on Epstein as a customer after JPMorgan severed ties with him in 2013, after keeping him as a client for 15 years.

    JPMorgan has said Dimon had not reviewed Epstein’s accounts when he was a client there from 1998 through 2013, the year that JPMorgan severed its relationship with him.

    Epstein died six years later from suicide in a New York jail a month after federal authorities charged him with trafficking girls for sex.

    JPMorgan pushes back

    JPMorgan, in a related complaint, has said that any civil liability it would have from Epstein’s conduct is the responsibility of its former executive Jes Staley, who was a friend of Epstein and his main business contact at the bank.

    Staley, who also denies any wrongdoing, earlier this week lost a bid to dismiss JPMorgan’s complaint against him, which among other things seeks to recoup $80 million in compensation from him.

    In addition to trying to shift blame to Staley, JPMorgan this week in a court filing accused the Virgin Islands of being “complicit in the crimes of Jeffrey Epstein.”

    The filing said the Virgin Islands looked the other way as Epstein trafficked young women because he was giving high-ranking officials there money, advice and favors.

    The filing specifically says that Epstein paid tuition for the children of John de Jongh and his wife, Cecile, when John served as Virgin Islands governor and when Cecile worked for Epstein managing his companies in the territory.

    Cecile also allegedly made efforts to secure student visas for young women connected to Epstein, and was his “primary conduit for spreading money and influence throughout the USVI government.”

    The Washington Post on Friday published details of a deposition earlier taken of Mary Erdoes, who runs JPMorgan’s asset and wealth management division.

    “Oh boy,” Erdoes wrote in a 2011 email to another bank executive after she found out Epstein’s status as a sex offender as a result of his Florid conviction had been affirmed, The Washington Post reported.

    The newspaper said that was “at least the sixth time Erdoes … had been alerted to Epstein’s criminal or civil legal trouble for sex crimes.”

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  • JPMorgan Chase says Jeffrey Epstein paid tuition for kids of U.S. Virgin Islands governor

    JPMorgan Chase says Jeffrey Epstein paid tuition for kids of U.S. Virgin Islands governor

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    Sex offender Jeffrey Epstein paid school tuition for the children of then-governor of the U.S. Virgin Islands, whose wife made efforts to secure student visas and a work license for young women connected to Epstein, according to an updated court filing Thursday by JPMorgan Chase.

    Those tuition payments, whose duration and amounts were not revealed, allowed then-Gov. John de Jongh Jr. “to funnel additional money to his political campaigns,” JPMorgan said in the filing in U.S. District Court in Manhattan.

    Epstein also “offered to fund Governor de Jongh’s defense in the Governor’s criminal case,” where the then-governor was charged in 2015 in connection with the use of public funds to make security improvements at his private residence, according to the filing. Those charges were dropped in early 2016 by the Virgin Islands Department of Justice.

    JPMorgan alleges Epstein’s generosity was part of his broader effort to build sway on the islands.

    The filing is part of the bank’s defense of a civil lawsuit by the U.S. Virgin Islands alleging JPMorgan facilitated Epstein’s sex trafficking of young women. Epstein, who was a JPMorgan customer between 1998 and 2013, owned two private islands in the territory and abused multiple young women at his residence on one of those islands.

    JPMorgan denies wrongdoing in the case.

    JPMorgan CEO Jamie Dimon is due to be deposed Friday for the Virgin Islands’ lawsuit, as well as for a similar one filed against the bank by an accuser of Epstein.

    “Lest there be doubt that Epstein’s goal was to gain influence, First Lady [Cecile] de Jongh explicitly advised Epstein on how to buy control of the USVI political class,” the filing says.

    The document also refers to one time when Cecile de Jongh was “asking Epstein what visas the ‘ladies’ have and trying to arrange English as a Second Language classes for them.”

    Former Gov. de Jongh served as Virgin Islands governor between 2007 and 2015.

    Cecile de Jongh worked for Epstein, managing his companies in the territory. She made $200,000 in 2007 alone, the filing notes.

    CNBC has reached out to the de Jonghs for comment through an asset management firm in the Virgin Islands where the former governor is a director.

    The filing was first docketed Tuesday with extensive redactions, but it was refiled Thursday, with some details about former Gov. de Jongh and Cecile now visible. Also visible are allegations related to current Virgin Islands Gov. Albert Bryan Jr. and his immediate predecessor in that office, Kenneth Mapp.

    Bryan, who is due to be deposed June 6 in the case, suggested schools to which Epstein should donate $50,000, the filing said. Bryan also asked $30,000 go to the Virgin Islands Little League, according to the document.

    Portions of the filing that were visible Tuesday said the government of the Virgin Islands was “complicit in the crimes of Jeffrey Epstein.”

    JPMorgan said Epstein — who died in 2019 by a jailhouse suicide while awaiting trial on federal sex trafficking charges — gave top officials in the territory money, advice and favors as they looked the other way when he trafficked young women there.

    A spokesperson for the Office of the Attorney General of the Virgin Islands, in an emailed statement responding to the updated filing, said, “JPMorgan Chase facilitated Jeffrey Epstein’s abuse, and should be held accountable for violating the law.”

    “This is an obvious attempt to shift blame away from JPMorgan Chase, which had a legal responsibility to report the evidence in its possession of Epstein’s human trafficking, and failed to do so,” the spokesperson said.

    The document calls Cecile de Jongh, who managed Epstein’s companies there when she was first lady, “a ready partner” in helping Epstein transport young women to exploit in the Virgin Islands, where he maintained a home.

    The bank alleged Cecile de Jongh was “Epstein’s primary conduit for spreading money and influence throughout the USVI government.” The filing said she emailed him in 2011 proposed language for a bill in the Virgin Islands legislature that would update sex offender monitoring laws.

    “This is the suggested language; will it work for you?” she asked in that email, according to the filing.

    The document also said Epstein, who was a registered sex offender due to his conviction in Florida state court in 2008 for soliciting sex from a minor, replied, “We should add out of country for more than 7 days, otherwise I could not go for a day trip to Tortola, at the last minute.”

    JPMorgan alleged Epstein, despite receiving “lucrative tax incentives” and “lax enforcement” of his sex offender status from the Virgin Islands, “still could not freely transport and exploit young women without assistance from USVI government officials.”

    The filing said Cecile de Jongh “arranged for Epstein to meet with a local immigration lawyer to assist at least one” young woman who needed a visa to visit the American territory.

    Cecile de Jongh also “contacted the University of the Virgin Islands … to find out whether three young women could enroll there to obtain student visas,” according to the filing.

    “Perhaps cognizant of the risk in having a registered sex offender sign the letter, First Lady de Jongh wrote to Epstein that he should think about whether ‘[he] should sign [the letter] or one of us,’” the document said.

    “Ultimately UVI structured a bespoke class to enroll victims and provide cover for their presence in the territory — the same year Epstein donated $20,000 to the university through one of his companies,” the filing said.

    “In addition to visas, some of the young women Epstein brought to the island also needed
    employment,” the filing noted.

    The document said when one of those women needed a dental license, “First Lady de Jongh reached out to the Director for the Office of Professional Licensure and Health Planning at the USVI Department of Health regarding a ‘new practice act’ that would have ‘significant changes and allowances for reciprocity.’”

    “The Director wrote to Ms. de Jongh that once the act went before the Senate Committee she would have a ‘clearer idea on what [the young woman’s] options are moving forward,’” it said.

    The filing alleged Cecile de Jongh also reached out to contacts in the attorney general’s office and solicitor general’s office about the new rules.

    “Ultimately, First Lady de Jongh was successful,” the filing said. “The young woman eventually set
    up a local dental practice in the USVI and shared an office with Epstein’s companies.”

    In detailing claims Cecile advised Epstein on how to use his money to control politicians in the Virgin Islands, the filing says Epstein, at her suggestion, “explored paying monthly retainers to USVI politicians to ensure their ‘loyalty and access.’”

    “First Lady de Jongh suggested that Epstein ‘consider putting Celestino [White] on some sort of monthly retainer. That is what will get you his loyalty and access,’” said the document.

    White was a Virgin Islands senator.

    The filing also details how Epstein met often with the leadership of the Virgin Islands Port Authority, which leased hangar space to him at its airport, where women were brought in for Epstein.

    Cecile de Jongh at one point asked Epstein, on behalf of her husband, the governor, “if he would support” the bid by then-Sen. Carlton Dowe to return to the Port Authority, the filing said.

    Dowe, according to the message from Cecile, would be a “good person for us” there, the filing said.

    “Based on his government connections, when traveling through the USVI’s airport accompanied by young women as a registered sex offender, Epstein could count on his ‘great relationship’ with the officials there to avoid scrutiny or detection,” the filing said.

    “In sum, in exchange for Epstein’s cash and gifts, USVI made life easy for him,” JPMorgan’s filing said.

    The document added, “The government mitigated any burdens from his sex offender status. And it made sure that no one asked too many questions about his transport and keeping of young girls on his island.”

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