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By Matthew Russell Lee, Patreon Thread, Plea
BBC The Times (UK) Daily Mail

SDNY COURTHOUSE, Nov 18 – Amid the Miami money laundering trial of Mark Scott in the SDNY, the same US Attorney has on November 18 announced "the arrest today of BRUCE BAGLEY on charges of conspiracy to commit money laundering and money laundering.  BAGLEY allegedly participated in a conspiracy to launder the proceeds of a Venezuelan bribery and corruption scheme into the United States.  BAGLEY will be presented today in federal court in Miami, Florida.  The case is assigned to U.S. District Judge Jed S. Rakoff in the Southern District of New York.     U.S. Attorney Geoffrey S. Berman said:  “Bruce Bagley, a college professor and author of the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, allegedly opened bank accounts for the express purpose of laundering money for corrupt foreign nationals.  Moreover, the funds Bagley was allegedly laundering were the proceeds of bribery and corruption, stolen from the citizens of Venezuela.  Today’s charges of money laundering and conspiracy should serve as an object lesson for Bruce Bagley, who now faces a potential tenure in federal prison.'"

But where are the rest of the Mark Scott trial exhibits?

More: "   In or about November 2016, BRUCE BAGLEY, a professor of international studies with publication credits including the book Drug Trafficking, Organized Crime, and Violence in the Americas Today, opened a bank account (“Account-1”) on behalf of a company (“Company-1”) that BAGLEY owned and controlled.  Between in or about November 2016 and in or about November 2017, Account-1 had minimal activity.  In or about November 2017, Account-1 began receiving monthly deposits of hundreds of thousands of dollars from bank accounts located in Switzerland and the United Arab Emirates (the “Overseas Accounts”).  Each month, BAGLEY would receive a deposit of approximately $200,000 from one of the Overseas Accounts into Account-1.  Thereafter, he would withdraw approximately 90 percent of the funds in the form of a cashier’s check, payable to an account held by another individual (“Individual-1”).  BAGLEY would send the remainder of the funds to his personal account.  BAGLEY and Individual-1 would visit the bank together to complete these transactions.  Between in or about November 2017 and in or about October 2018, Account-1 received approximately $2.5 million from the Overseas Accounts.                 The Overseas Accounts belonged to a Colombian individual (“Individual-2”).  BAGLEY and Individual-1 discussed the fact that they were moving Individual-2’s funds and that the funds represented the proceeds of foreign bribery and embezzlement stolen from the Venezuelan people.  Despite this fact, BAGLEY continued to receive money from accounts belonging to Individual-2, and continued to pass the majority of those funds to Individual-1.  Moreover, BAGLEY entered into sham contracts that purported to justify the transfer of Individual-2’s funds into Account-1.                 In or about October 2018, Account-1 was shut down for suspicious activity.  Nevertheless, in or about December 2018, BAGLEY provided Individual-1 with information for a new bank account (“Account-2”) in order to transfer additional money belonging to Individual-2.  On two occasions, BAGLEY received funds into Account-2 after Individual-1 had told BAGLEY that the funds represented the proceeds of bribery and public corruption.  BAGLEY transferred the majority of these funds to Individual-1 but retained approximately 10 percent as a commission for his services."

  After OneCoin's Konstantin Ignatov got a stay of the civil case against him, his criminal case was said to have been kicked down the road for at least another two months.

It was a productive two months, at least for the U.S. Attorney's Office for the Southern District of New York. They got Konstantin Ignatov to sign a plea agreement and become a cooperating witness.

  On Sunday November 17 before what promises to be the last week of accused OneCoin money launder Mark Scott's trial, the prosecutors wrote to SDNY Judge Ramos to "request that the Court: (1) preclude the defendant from eliciting testimony from defense character witnesses regarding specific instances of the defendant’s conduct; and (2) instruct the jury that (a) the duty of client confidentiality cannot serve as a defense to criminal conduct; and (b) none of the email communications admitted by the Government at trial—including communications between the defendant and Ruja Ignatova—are privileged."

  At the tail end of the trial day on Friday, November 15, Scott's lawyers begrudgingly disclosed one such character witness, apparently Renier David de La Portilla. (Judge Ramos asked it was "del;" the answer was "de la.") 

 If it is, or even Miguel de La Portilla, both have been described for their roles in Cuban-American / Republican politics in Florida, casting addition light on the role in the case of George W. Bush's brother Neil Bush, first reported by Inner City Press, including at least $300,000 from Ruja Ignatova. We will have more on this during the November 18 trial day. Watch this site, this platform (Patreon) - and @InnerCityPress on Twitter.

 Inner City Press also first reported that Mark Scott associate David R. Pike was arrested on OneCoin charges and quietly presented in and bailed by the SDNY Magistrate Court on September 12, 2019 by Magistrate Judge James L. Cott, based on a complaint signed sealed back on August 29 by this week's Magistrate Judge Katharine H. Parker.

  Since then Special AUSA Julieta V. Lozano has asked for continuances, during the Scott trial, to figure out what to do with Pike afterward. Inner City Pres, cover this closely, will have more. More on Patreon here.

  On November 15, on which the government had said it might rest its case, AUSA Christopher Demase questioned  a witness from BNY Mellon about irregularities it found in Mark Scott's Fenero Funds' business with DMS Bank in Cayman Islands.

  The questioning established the FDIC insurance, an element in bank fraud charges, applies not only to BNY Mellon but also other involved banks including TD Bank, JPMorgan Chase, HSBC and Northern Trust. The implications of the evidence in the case for these banks is not yet clear. More on Patreon here.

 Near midnight on November 14 defendant Mark Scott's lawyer Arlo Devlin-Brown wrote to SDNY Judge Edgardo Ramos urging admission into evidence of two emails involving Scott.

  Each email, it is argued, undermine the credibility of Konstantin Ignatov's testimony that in Ruja Ignatova's July 20, 2016 meet with Scott, Irina Dilkinska was present.

  In the first, Dilkinska tell Scott she will be traveling that week. In the second she says, in essence, "Me too" - that she too is traveling.

  By footnote, Devlin-Brown implied that Konstantin Ignatov embellished what he initially told the prosecutors, from that Ruja asked him to leave her meeting with Scott to that she instructed him, as her personal assistant, to make all OneCoin staff other than Dilkinska leave OneCoin's Sophia building during the meeting.

   As of 2:30 am before the November 15 trial day starts at 9:30, Judge Ramos had not ruled on the request. But it is questionable if the two proffered emails, even if admitted, would undermine the rest of Konstantin Ignatov's extensive cooperating testimony, or the other evidence entered about Mark Scott's guilty knowledge. More on Patreon here.

 Inner City Press will continue to report, live, on the trial.

 On November 13 the prosecution and the defense both questioned the deputy Chief Operating Officer of Locke Lord, the law firm Mark Scott worked at from June 2015 through September 2016. Thread here.

  E-mails were shown in which OneCoin's Ruja Ignatova told Scott, "I have some cash with me. About 220K GBP. Can you store it for me in London?" Other exhibits concerned a bank in Zimbabwe, a penthouse in London, and funds put into and quickly taken out of the law firm's escrow account.

  There is also in evidence an e-mail from the defendant Mark Scott to now-cooperating witness Konstantin Ignatov, as his sister Ruja's personal assistant, stating that "I would prefer not meeting in Sophia as I don't want too many travels there on my flight list." More on Patreon here.

On November 12 Inner City Press obtained and put online here, on Scribd, Konstantin Ignatov's plea agreement, including "On the understandings specified below, the Office of the United States Attorney for the Southern District of New York (“this Office”) will accept a guilty plea from Konstantin Ignatov (the “defendant”) to the above-referenced four-count Superseding Information (the “Information")...

If the defendant fully complies with the understandings specified in this Agreement, he will not be further prosecuted criminally by this Office for any crimes, except for criminal tax violations, related to his participation in: (1) an international cryptocurrency fraud scheme known as “OneCoin” (the “OneCoin Scheme"), from in or about 2016, up to and including in or about 2019, as charged in Counts One and Two of the Information; (2) a conspiracy to defraud banks and other financial institutions worldwide by causing them to transfer proceeds of the OneCoin Scheme by misrepresenting and omitting material facts to those banks and financial institutions, from in or about 2016, up to and including in or about 2019, as charged in Count Four of the Information; and (3) a conspiracy to launder criminal proceeds derived from the OneCoin Scheme, and to transfer funds internationally to promote the OneCoin Scheme, from in or about 2016, up to and including in or about 2019, as charged in Count Three of the Information; to the extent that he has disclosed such participation to this Office as of the date of this Agreement.

  It is understood that Ignatov's truthful cooperation with this Office is likely to reveal activities of individuals who might use violence, force, and intimidation against Ignatov, his family, and loved ones. Should Ignatov's cooperation present a significant risk of physical harm, this Office, upon the written request of Ignatov, will take steps that it determines to be reasonable and necessary to attempt to ensure his safety and that of his family and loved ones.

These steps may include application to the Witness Security Program of the United States Marshals Service, whereby Ignatov, his family, and loved ones, if approved, could be relocated under a new identity...

This Office will, however, bring the cooperation of the defendant to the attention of other prosecuting offices, if requested by him.  It is understood that the sentence to be imposed upon the defendant is within the sole discretion of the Court.

This Office cannot, and does not, make any promise or representation as to what sentence the defendant will receive, and will not recommend any specific sentence to the Court. However, this Office will inform the Probation Office and the Court of (a) this Agreement; (b) the nature and extent of the defendant's activities with respect to this case and all other activities of the defendant which this Office deems relevant to sentencing; and (c) the nature and extent of the defendant's cooperation with this Office. In so doing, this Office may use any information it deems relevant, including information provided by the defendant both prior to and subsequent to the signing of this Agreement.

In addition, if this Office determines that the defendant has provided substantial assistance in an investigation or prosecution, and if he has fully complied with the understandings specified in this Agreement, this Office will file a motion, pursuant to Section 5K1.1 of the Sentencing Guidelines, requesting the Court to sentence the defendant in light of the factors set forth in Section 5K1.1(a)(1)-(5).

It is understood that, even if such a motion is filed, the sentence to be imposed on the defendant remains within the sole discretion of the Court. Moreover, nothing in this Agreement limits this Office's right to present any facts and make any arguments relevant to sentencing to the Probation Office and the Court, or to take any position on post-sentencing motions. The defendant hereby consents to such adjournments of his sentence as may be requested by this Office.

 It is understood that, should this Office determine either that the defendant has not provided substantial assistance in an investigation or prosecution, or that the defendant has violated any provision of this Agreement, such a determination will release this Office from any obligation to file a motion pursuant to Section 5K1.1 of the Sentencing Guidelines, but will not entitle the defendant to withdraw his guilty plea once it has been entered.

 It is understood that, should this Office determine, subsequent to the filing of a motion pursuant to Section 5K1.1 of the Sentencing Guidelines and/or 18 U.S.C. Sec. 3553(e), that the defendant has violated any provision of this Agreement, this Office shall have the right to withdraw such motion."

 A sample TD Bank letter to Gilbert Armenta is here. We'll have more on this.

  Inner City Press has asked the US Attorney's Office when it was that Konstantin Ignatov pled guilty, since he gave no indication of such a plea in a September 6 status conference that Inner City Press covered, and has asked if it was before Judge Ramos, and if it was sealed.

  The government's next witness was the anti money laundering expert Donald Semesky. Inner City Press will continue to cover the trial. November 7 thread here. More on Patreon here.

  On November 6 Konstantin Ignatov testified that the bodyguards to took Ruja on her final public trip told him she was met by "Russian guys," and that Ruja had told him that in Russia she knew a rich and powerful person. More on Patreon, here.

The case is US v. Scott / Ignatov, 17-cr-630 (Ramos).

 More on Patreon, here.

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