| In Eaze
Wirecard Trial Weigand Got 15 Months,
Akhavan 30 Now Forfeits $103,750 Not $17M
By Matthew
Russell Lee, Patreon Podcast
Order
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
August 30 – The trial of US v.
Weigand and Akhavan began
before Judge Jed S. Rakoff in
the U.S. District Court for
the Southern District of New
York on March 1. Inner City
Press, which has been covering
the case including its
Wirecard aspects, live tweeted
Day 1, here
and below.
Inner City
Press requested and got
unsealed the Government's
redactions as to cooperator
Oliver Hargreaves, who
mentioned Wirecard's Jan
Marsalek and OneCoin money
launderer Gilbert Armenta,
Judge Rakoff's preliminary
order here.
Full 13-page
order here.
On June 18, both
men were sentenced. Inner City
Press was there. Here is
Weigand, live tweeted here
and Weigand fling on Hargreave
etc on Patreon here
On August 30,
Judge Rakoff issued a 20 page
order weighing what forfeiture
for Akhavan would be
proportional - and
Constitutional. He found that
$17 million was
unconstitutionally excessive,
but found proportionate
$103,750 - the value of the
Eaze stock option given to
Akhavan - and ordered it paid.
From June 18:
Weigand's counsel quotes
former Chief Judge McMahon
that MCC is worse, in some
ways, that Colombian prisons.
Weigard has submitted three
letters of support from former
NYPD officers. Judge Rakoff:
We don't have to compare where
conditions were worse, City or
BOP
Weigand's lawyer:
It is unfair that the press
has linked Mr. Weigand to
Wirecard. Judge Rakoff: That
is not a strong argument.
Weigand's lawyer: He is
suffering, this will be a
consequence to him.
Weigand's lawyer:
It's his father's 70th
birthday today. What he's been
through in the past 15 months,
he's lost his business. View
him for who he is, not the
extraneous factors.
AUSA: He needs a significant
sentence.
AUSA: They
used Mr. Weigand's expertise
to set up accounts with
off-shore processing banks.
It's $108 million in
transactions. Mr. Weigand is
at the center, touching every
aspect of this scheme. In the
docket: Weigand put in a
letter of support from
security guard paid to
"enforce home confinement of
Mr. Weigard" - and to
"protect," here
AUSA trashes
"Weigand's continual attempts
to blame the victims."
She's
referring to banks.
Weigand's lawyer:
It was Oliver Hargreaves
[cooperator] who set up all
the accounts. He was "the man
in Europe," and not Reuben
Weigand who was just helping
out. There was a recorded
conversation that shows they
were like two ships passing in
the night.
Weigand
himself: I want to apologize
by my fiancee and my business
partners. Even if I don't
agree with the wervict... I
had a lot of opportunity. I
achieved a lot. My
professional life is gone. And
my reputation, one of my most
important assets.
Weigard: I am
forfeiting my commissions from
an "unindicted co-conspirator
in the case." The members of
the security staff, they help
me. I ask for leniency.
Judge
Rakoff: So. This was a
serious, blatant,
sophisticated fraud built on a
mountain of lies.
Judge
Rakoff: There is a need for
some general deterrence. I'll
go modest - half of what Mr
Akhavan got. I sentence you to
15 months in prison, then 3
years of supervised release. A
fine of $50,000, to be paid of
10% of gross month income
Weigand's lawyer:
We oppose supervised release.
He will be returning
home.
AUSA: It's
relevant to the fine. Judge
Rakoff: I don't see how I can
not impose supervised release.
The argument will be made he
is not a US citizen and all
like that
Weigand's
lawyer: He had a visa to pass
thru on this way to a Costa
Rica vacation. He can't stay
here. Judge Rakoff: It's just
to monitor the financial
situation.
Weigard's lawyer:
He'll be going to
Luxembourg. [this came
in mid-thread: Ruben Weigand |
LinkedIn
Weigand is
to self-surrender on or before
August 2. He wants LOMPOC in
Southern California.
Akhavan here.
Citing the
preliminary order, another
journalist Jordan Ellison
wrote in. He was referred to
the US Attorney's Office press
contact - but the docket
number of US v. Oliver
Hargreaves, though still
sealed / not found, has been
obtained: 18-cr-746.
Now as of this
writing on April 1 at 1 pm,
the case is *still* not found.
Inner City Press will have
more on this. Inner City
Press will have more on this.
For now, Weigand's post-arrest
Q&A on Patreon here.
On March
23, the jury left at 3
pm without yet deciding. But
they asked for an exhibit in
which Wirecard was discussed,
now on Patreon here.
Podcast with dramatic reading
including green tea fake
company website favored by
"Jan," here.
Inner City Press live tweeted
the jury notes session here.
And now, on March
24 before now, the jury has
returned with two guilty
verdicts. Inner City Press
live tweeted it here
(and podcast here)
Eaze /
Wirecard jury deliberations
Day 2. Now Weigand is his
defense chair, but detained
Akhavan not yet brought in.
Judge Rakoff just
spoke to the lawyer about
rules involving speaking to
jurors after the case is over.
Voice: The public dial-in is
silent. Jury is coming in,
filing in front of the
prosecutors' table.
Judge Rakoff:
Please be seated. In a moment
we will read out your verdict.
I will not comment on it. You
have been a terrific jury.
Opening of verdict form. Judge
Rakoff: It appears to be in
proper form.
Judge Rakoff: On
Mr. Akhavan, how do you find?
Foreman: Guilty.
Judge Rakoff: And
Mr. Weigand?
Foreman: Guilty.
Judge Rakoff
(after excusing jury) -
Sentencing will be July 26,
one at 4 and one at 5. Request
is made for expedited
sentencing. Dispute if that
means 3 months or 2 months.
So: June 25 at 11 am and noon.
Judge Rakoff: I
think it makes sense to have
Mr Akhavan be sentenced first.
So he is 11 am and Mr. Weigand
noon. Request for more time to
file motions. So, April 21 for
moving papers.
AUSA: We are
seeking Mr. Weigand's
detention.
Defense:
This trial has confirmed that
this is a case involving no
loss. We are aware your Honor
does not follow the
[Sentencing] Guidelines
rigorously --
Judge
Rakoff: That's an
understatement.
Weigand's lawyer:
He's been out, paying his own
guards, without issue.
AUSA Folly: He is
a German citizen and could
flee there.
Defense: Mr.
Weigand has letters --
Judge Rakoff:
I'll cut you off because I'm
going to rule in your favor.
The calculus may be different
on the day of sentencing. Let
me say, this case was a
pleasure. But I've got another
proceeding...
Back on
March 2, evidence began - and
witnesses with immunity deals.
(Tassone's immunity deal is
now on Patreon, here).
Inner City Press tweeted in
Day 2, here.
Day Four
began with news, tweeted
by Inner City Press, that a
juror had tested positive for
COVID, and ended with cooperator
Oliver Hargreaves on the
stand.
Day Five,
things took off. The remaining
13 jurors all tested negative
and when Hargreaves testified,
first about fake website for
golf equipment and facial
cream, he soon turned to the
meat: Wirecard and Jan
Marsalek, live tweeted thread
below. Inner City Press has
asked the US Attorney's Office
to make available the
exhibits, as is done in other
cases. So far, nothing. Some
live tweets from the thread, here:
Hargreaves is
reading out in court his
message with Jan Marsalek of
Wirecard.
Hargreaves quotes
Marsalek saying, stop sending
to this ProtonMail, send it to
"EUprocessing."
Hargreaves wrote, EU
[Processing] equals Ruben"
[Weigand]
AUSA: Who is the
deleted account?
Hargreaves: Can I
see the page before? It's
Ray's.
Assistant US
Attorney: For which acquiring
banks did you prepare
fraudulent application packs?
Hargreaves:
Wirecard...
AUSA: Who
responds to your chat?
Hargreaves: Ruben
Weigand
Defense:
Objection, to the extent that
the document is cut off
Judge Rakoff:
Overruled.
AUSA: Where
is Wirecard headquartered?
Hargreaves: Munich, Germany...
AUSA: What is a
"card not present
transaction"? Hargreaves: A
transaction not in a brick and
mortar shop.
AUSA: Was
the fact that Eaze
transactions were intended to
be run through these Hot
Robots accounts disclosed
anywhere?
Hargreaves: No.
AUSA: In this Ali Baba chat,
Ray says, So darling what will
be submitted, right?
Hargreaves: Yes. And Reuben
says, it's fine
The case is US
v. Weigand,
20-cr-188
(Rakoff).
***
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