| SEC Virtual Trial Against
Paulsen Has Paul McCartney Concert Review on
Cross
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- The
Source
SDNY COURTHOUSE,
July 15 – On
Valentine's Day weekend in
2015, the Securities and
Exchange Commission alleges,
John A. Paulsen took part in
bribing Navnoor S. Kang of the
New York State Common
Retirement Fund to steer
business to Paulsen's
then-firm Sterne Agee. The
bribe include a skiing trip to
Park City, Utah.
On July 15, 2020
a bench trial began in the
case, before U.S. District
Court for the Southern
District of New York Judge
Paul G. Gardephe. Inner City
Press is covering it. The
SEC's opening statement quoted
Paulsen's messages to
co-workers about concealing
the trip and which client was
on it.
Judge
Gardephe indicated he will
need more from the parties on
the applicable (scienter)
legal standard the SEC much
meet.
Paulsen's
lawyer painted a different
picture, and before the 45
minute lunch break undertook
two cross-examinations of SEC
witnesses who had filed
declarations as their direct
testimony.
Inner City Press
tweeted it, including:
SEC witness
Deborah D. Kelley is being
cross-examined about Sterne
Agee's entertainment of
clients. Seems to have been
extensive.
Court
reporter asks Judge Gardephe
to stop shuffling papers. He
says he's not sure where the
microphone is- will stay away
from laptopDefendant's Exhibit
YY shows Sterne Agee wanted
entertainment resources used
most effectively...
Defense lawyer:
You were good at your job,
correct? Kelley: (in
joking/forced voice) Yeeees.
Defense lawyer:
You don't have to be
self-effacing. I think you
were great
Turns out,
beyond the Utah skiing trip
Paulsen is charged for, Sterne
Agee approved spending on
NYSCRF Kang's U.S. Open
tickets, and a concert in New
Orleans.
Defense lawyer:
Is it fair to say you got an
exemption? Judge Gardephe:
Sustained!
After tech
break-downs. Witness says,
"Remind me not to use Skype
for Business." (In another
SDNY proceeding today, a bail
revocation hearing, the
defendant called in on Skype
for Business and was asked to
enter his "Business
Organization," Inner City
Press story here.)
Kelley answered
about "the Paul McCartney
concert" & expensing it,
triggering investigation.
Messages are read into the
record, "He's 72, he's
amazing, you *have* to go to
the concert." But Paulsen is
charged with skiing.
So it it goes
during the Coronavirus
pandemic. Inner City Press
will continue to follow this
trial.
The case is
SEC v. Paulsen, 18-cv-6718
(Gardephe)
***
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