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By Matthew Russell Lee, Patreon, Alamy photos

SDNY COURTHOUSE, May 28 – When Michael Avenatti appeared for an initial conference on charges of aggrevated identity theft of Stormy Daniels on May 28 before U.S. District Court for the Southern District of New York Judge Deborah A. Batts, his first move was to have his Miami-based lawyer in the Nike case against him ask to transfer the Daniels case to California.

  The U.S. Attorney for the SDNY's office opposed the request, saying it met none of the Supreme Court's factors for change in venue in the 1964 case Platt v. Minnesota Mining & Mfg. Co., 376 U.S. 240.  Attorney Srebnick's motion to make a motion was denied.

[Assistant U.S. Attorney Matthew Podolsky told Judge Batts he had recently beaten back a similar attempt to delay by bifurcated venue motions. For more, see Patreon, here.]

Judge Batts set June 18 for the next conference, by which time she said Avenatti should have retained counsel in the case. Outside a cluster of camera people had formed for a promised gaggle or appearance by Avenatti after the third of his three SDNY appearances of the day, in the Nike case before SDNY Judge Paul G. Gardephe at 3:30 pm in 40 Foley Square. Inner City Press will be there.

  Earlier before SDNY Magistrate Judge James L. Cott, Avenatti was released on $300,000 bond. The U.S. Marshals who bought him in from the cell block entrance - he surrendered at 6:54 am in the morning - were not needed to take him on remand to the MCC.

  Avenatti still had a Federal Defenders lawyer, though only for purposes of presentment. The rest, Judge Cott said, will have to be dealt with later. Two other proceedings awaited Avenatti on May 28 in the SDNY: a 2 pm conference in the Stormy Daniels case before Judge , and a 3:30 pm proceeding in the indictment about alleged extortion of Nike before

   For the Stormy Danial ID theft case, Avenatti agreed to the requirement he notify Pre Trial Services before any domestic travel beyond the Southern and Eastern Districts in New York and the Central District of California.

  In this agreed package, U.S. Attorney for the SDNY Geoffrey L. Berman imposed more restrictions on Avenatti than last week on briber banker Stephen M. Calk.

Back on May 23 Calk of FDIC-regulated Federal Savings Bank was presented and arraigned for financial institution bribery for corruptly using his position with FSB to issue $16 million in high-risk loans to Paul Manafort in a bid to obtain a senior position with the Trump administration, namely Undersecretary of the Army.

  On May 23 Magistrate Judge Debra Freeman  accepted the government's proposal of $5 million bond with no co-signer (although that is usually required for moral suasion) and travel allowed throughout the United States (though more defendants are usually confined to the Soutern and Eastern District of NY and one other district). Money talks.

  Afterward in front of the SDNY courthouse Inner City Press asked Calk's lawyers Daniel Stein and Jeremy Margoles about Manafort saying he had misstated his financial situation to get the FSB loans. When did Calk know? They did not answer. Video here, Facebook video here.  Inner City Press' Alamy photos here.

  On May 23, still from the SDNY courthouse covering other cases including one involving the death penalty, Inner City Press reported finding no U.S. Home Mortgage Disclosure Act data for "Federal Savings Bank." But there's more.

The Federal Savings Bank's website, while providing a generic link to the FDIC, and a statement "Member FDIC," has no link for the U.S. Community Reinvestment Act. (Nor does it mention the indictment of Stephen Calk, simply listing his brother John Calk now as CEO and Vice Chairman. Who is the chairman?)

  It lists a loan production office on Avenue J in Brooklyn, and two deposit taking braches in Illinois. Did it see some exemption from the CRA and other consumer protection laws? From fair lending laws?

  Earlier on the morning of May 24 Inner City Press asked the FDIC, "Having covered yesterday's arraignment of the Chairman of The Federal Savings Bank in the SDNY courthouse, including the FDIC's involvement, I checked the bank's website and found "Member FDIC" but no mention of the Community Reinvestment Act."

  The FDIC's spokesperson David Barr, to his credit, responded quickly, writing to Inner City Press: "The Federal Savings Bank, Chicago, is regulated by the Office of the Comptroller of the Currency. They would be responsible for CRA and regulatory oversight. You should contact the OCC for more information."

  Now the OCC under Comptroller Joseph Otting has done everything possible to block the release of information, denying FOIA fees waivers and expedited treatment, refusing comments. But for now online the OCC has said this about The Federal Savings Bank: "While TFSB originated a substantial majority of its loans outside of its AAs; the bank’s business strategy is to operate as a mortgage banking entity with a nationwide presence and market place. Taking the bank’s business strategy into consideration the bank’s performance under this lending criterion is deemed reasonable." Reasonable? Bribery, too, seems to have been part of its business strategy, right under the nose of the OCC of Otting.

  Before 2 pm on May 24 Inner City Press in writing asked Otting's OCC: "This is a Press question for the OCC, from Inner City Press... Please confirm that The Federal Savings Bank is subject to HMDA, and/or if it is below a threshold, as I can find no data in its name on FFIEC.gov. Also, please today provide as an OCC response to the Press this OCC-regulated bank's CRA public file and other information in the OCC's possession concerning the bank's CRA and fair lending performance.   Is it normal for a bank not to mention these things on its website, nor to provide any link to its actual regulator, the OCC, but only to the FDIC?     Please explain what steps the OCC is taking beyond Stephen Calk no longer being the CEO. What about his brother?"

  More than three hours later, even to the questions at the end, the OCC had only provided this:   "We are reviewing your questions, but we may not be able to respond by your deadline.     Regards,  Stephanie        Stephanie Collins  Manager, Media Relations  Public Affairs Operations  Office of the Comptroller of the Currency." This is the same OCC which has delayed FOR MONTHS providing basic information about a merger it has now already rubber stamped.

  On the morning of May 28 Inner City Press received from the OCC a statement that The Federal Savings Banks is subject to HMDA - how they are listed in the HMDA database remains a question - and this: "Question:  Is it normal for a bank not to mention these things [CRA and HMDA] on its website, nor to provide any link to its actual regulator, the OCC, but only to the FDIC?  [OCC answer:] This question is best directed to the bank."

  So wait: Otting's OCC leaves it entirely up to the banks it ostensibly regulates whether to mention on their website and presumably branches CRA, HMDA or even the OCC where consumers could complain? We'll have more on this.

  Stephen Calk was quoted, at least in 2012, opposing regulation: "As Mr. Stephen Calk writes in the September 7, 2012 edition of Origination News: “Basel III is designed to level the playing field among major banking institutions that operate internationally. Force-feeding these same rules to community banks in the United States is unnecessary and in fact counter-productive, particularly in the current economic environment.” Basel III is one thing. But no Community Reinvestment Act?

The Federal Savings Bank lists locations - and bankers - in       Arizona - Scottsdale California - Irvine Colorado - Fort Collins Delaware - Selbyville Florida - Sarasota Illinois - Chicago Illinois - Lake Forest Illinois - Oak Brook Illinois - Park Ridge Indiana - Bloomington Indiana - Indianapolis Kansas - Overland Park Louisiana - Laplace Maryland - Annapolis Maryland - Timonium CD Massachusetts - Lawrence New Jersey - Hackensack New Jersey - Lakewood New York - Brooklyn New York - Melville New York - New York New York - Queens North Carolina - Raleigh Ohio - Columbus Rhode Island - South Kingstown Tennessee - Nashville Virginia - Alexandria Virginia - Fredericksburg Virginia - Newport News Virginia - Richmond Virginia - Vienna Virginia - Warrenton...  We'll have more on this.

  In the indictment press release, FDIC OIG Special Agent-in-Charge Patricia Tarasca said, “Today’s indictment charges Stephen Calk with misusing his position as Chairman and CEO of a bank for his own personal gain.  The FDIC Office of Inspector General remains committed to investigating cases where bank officials cause multimillion-dollar losses to a financial institution and undermine its integrity.” (The FDIC stands to be the lead regulator of BB&T whose money laundering enforcement action was just terminated by the Federal Reserve to facilitate merger with Suntrust, click here for that and Inner City Press' FOIA request and appeal.)

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

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

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

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

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

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

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

   One story down and just two days before but as if in another universe on May 1 defendant Jesus Lopez walked into the SDNY courtroom of Judge Valerie E. Caproni to be sentenced on May 1 for driving 10 kilograms of cocaine from California to New York.

  He was wearing a suit; he had been allowed out on bond while awaiting sentencing due to his mother having Stage Four cancer. Before the sentencing he uploaded a video directed at Judge Caproni but still online as of this writing on Vimeo, here.

   The courtroom was full, with two U.S. Marshals in the back row, and the two front rows, Inner City Press was later informed by a participant in the proceeding, filled by judges from China. Lopez' lawyer Jeff Greco argued in his sentencing submission for time served, essentially one month.

  But Judge Caproni, after asking Assistant U.S. Attorney Nathan Rhen why the government wasn't seeking forfeiture of the truck Lopez used to drive the drugs - "there's a lot of equity in there," she said -- looked sternly at Lopez.

   Judge Caproni was not impressed by Lopez' statement that he took drugs because he was bored, that boredom was one of his triggers. She said she did not believe that he had only agreed to drive the drugs in order to feed his own habit. First she sentenced him to 60 month, five years, in prison.

  Then as the U.S. Marshals rustled in the row behind Inner City Press, she said she would be remanding Lopex into custody today. Right now. Her courtroom deputy handed the Marshals an order to that effect.

   Defense attorney Greco said that Lopez' mother could die at any time, and that the Bureau of Prisons would be unlikely to let him out to attend her funeral. Judge Caproni said there was no way to know when his mother would die, and that she had allowed him to remain out on bond pending sentencing so he could spent time with her. The Chinese judges sat as Jesus Lopez took his wallet out of his pants and put his hands out for shackling.

  A well known courtroom artist in the SDNY has told Inner City Press about the time she managed to sketch a similar remand of a higher profile defendant, Bernie Madoff. But there was no artist present for the remand of Jesus Lopez, and cameras are not allowed - only this article. The case is U.S. v. Lopez, part of the larger conspiracy prosecution U.S. v. Soto et al., 18-cr-00282 (Caproni).

  Notably one floor above in 40 Foley Square, a man who pled guilty to stealing $7 million in Medicare and Medicaid fraud has had his sentencing delayed for a year already, and perhaps another year, so that his wife can finish a medical residency program. That case is U.S v. Javed, 16-cr-00601-VSB. Unlike the unpublicized case of Jesus Lopez, the Office of the US Attorney for the SDNY announced the Javed sentencing to the press (but not its subsequent deferral). Click here for that story.

  Which approach is the right one? How can these disparities be explained? These are among the questions that Inner City Press will be pursuing, in the SDNY. Watch this site, and the new @SDNYLIVE Twitter feed.

Background: Even in Judge Caproni's courtroom, there are more positive or lenient stories. When Todd Howe, who pled guilty in the New York State corruption case(s), came up for sentencing on April 5, Judge Caproni was told that Howe is now working more than 12 hours a day in Idaho, on ski slopes and now a golf course. After his guilty plea he had been remanded to the Metropolitan Correctional Center when he disputed to Capital One some credit card charges and the government believed it to be another attempted fraud.

With him out of MCC for seven months, Judge Caproni said it may have just been a mistake. She put off sentencing Howe, instead putting him on five years probation. If he "stays clean" during that time, it all goes away. If not, he faces serious time.

  In the elevator down after Howe's lawyer, in what she called her last criminal sentencing, said Howe still respects government service after his lobbying career meltdown, Inner City Press asked Howe what he thought for example of congestion pricing. He laughed and said it is not needed in Idaho. Meanwhile a shackled prisoner Jones was led into Judge Caproni's now empty courtroom to plead guilty to selling crack in The Bronx and hiding a gun after a 1999 felony conviction. That sentencing is set for August 1. Inner City Press and @SDNYLIVE will be there.

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