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By Matthew Russell Lee, Patreon Podcast
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SDNY COURTHOUSE, March 3 – 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.

 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.

 Now, from Day 3:

Defense lawyer: It was  Eaze 's policy to "not touch the plant." But now the subsidiary does, right?

Witness: Right.

Defense lawyer: At that time, you had delivery drivers who had to check IDs?

Witness: These were the dispensaries' drivers.

 Now questioning turns to why the witness switched from GroupOn to Eaze...

Jury is just back. Now it's re-cross of the same witness, Tassone. Now Tassone, again, refers to his conversation with Eaze 's former CEO Jim Patterson - who beyond an immunity deal like Tassone's has pled guilty as a cooperator, 5K1

Next witness: John Verdeschi. He has worked at MasterCard since 1999.

 Judge Rakoff asks the defense is they want to begin cross examination for 10 minutes, or start tomorrow. Defense: We need to address a document first. Judge Rakoff lets the jury go.

 Judge Rakoff: Some of this document should be redacted. We're down to the question, is this timely or not?

Defense: It's from Feb 2020. But it reflects the policy of MasterCard from before. It's consistent with that we've heard from the witness today.Judge Rakoff: So it will depend on what the witness says. If he says it reflect past policy, I'll admit it. If not, I may not. You can ask in front of the jury. Inner City Press @innercitypress · 4h Defense: The Government will be calling Oliver Hargreaves... Judge Rakoff: I've never heard *that* name. [Laughs] Defense: Or Ollie, as he prefers. They may put on another witness before. Judge Rakoff: They have up to 6 pm to make alterations.

 Now Akhavan's lawyer asks for an order to bring his client a sandwich for lunch in lockup.

Judge Rakoff: What kind? Does it contain cannabis? [Laughs.] Yes you can bring in a sandwich. Adjourned.

  Later on March 2, the US Attorney's Office has filed with Judge Rakoff seeking to "Preclude Cross-Examination of CW-1 about Weigand's May 2019 Statement." Full filing on Patreon here.

From March 2: Jury is not yet in the courtroom. Judge Rakoff is ruling on objections, in this case to 1st witness, alleged co-conspirator from "Wildflower." Defense objection: hearsay and relevance. Overruled.

 Defense: Hearsay within hearsay. Judge Rakoff: Not offered for its truth. So, overruled... The juror said he'd be at Grand Central by 9:30, which would have put him here by now. But he's not. This might take a while.

 Update: while now at 11:40 the lawyers are milling around the courtroom, the first witness (from  Eaze ) described operations around 2015, home delivery of pot for cash, then the transition to taking cards. When asked, he said he has a Freedom card from Chase Bank

Update: Things are plodding along, witness in Plexiglass box being asking about his emails to EUprocessing at protonmail about charge-backs.

 Finally: cross-examination. Q: Isn't one of your goals to have  @Eaze  come out of this going well?

Witness: Yes. I work for them. Those I'm paid by Stacks. I have stock grants. They are options. They have vested but I have not purchased them.

 Q: On direct you said you believed you were a participant in a scheme to commit bank fraud. But delivering marijuana is legal? Judge: End in 2 minutes.

Defense: I have six questions. Is selling marijuana legal? A: In California. Not in the eyes of the US.

Q: Is it legal if they pay with a debit card? A: Yes it is.

Q: But not with a credit card?

A: That is my understanding.

Defense: We can take a break.

Judge Rakoff: We've off to a good start.

  Inner City Press will stay on the case. For now, a summary: "ORDER as to Ruben Weigand, Hamid Akhavan: ORDERED that, pursuant to Title 18, United States Code, Sections 6002 and 6003, TASSONE give testimony and provide other information as to all matters about which he may be questioned in United States v. Hamid Akhavan, et al.; and IT IS FURTHER ORDERED that, pursuant to Title 18, United States Code, Sections 6002 and 6003, no testimony or other information compelled under this Order, or any information directly or indirectly derived from such testimony or other information, may be used against TASSONE in any criminal case, except a prosecution for perjury, giving a false statement, or otherwise failing to comply with this Order. This order shall become effective only if after the date of this Order TASSONE refuses to testify or provide other information on the basis of his privilege against self-incrimination. (Signed by Judge Jed S. Rakoff on 3/2/2021)"

Tassone's full immunity deal on Patreon here.

From Day 1, March 1: Assistant US Attorney: You're going to hear a lot about a company these two men were lying for. It is called  Eaze . It is a marijuana company. It marketed itself as the Uber of pot. But it wanted its customers to be able to use credit cards. But it had a problem

AUSA: These purchases are still illegal under Federal law. So these two men offered to trick US credit card companies and banks. They lied. They created layer upon layer of lies.

 AUSA: You're also going to here about credit card networks.  Visa and MasterCard are at the center. They set rules that banks have to follow. The merchants work with merchant banks. Then you have card-holder or issuing banks. You might have a BofA card, or Wells

 AUSA: They claimed they were selling organic face cream. But it was a lie. Step 3 - the defendants hid transactions in the VISA and MasterCard network.  The goal was to prevent the banks from understanding the true nature of the transactions.

 AUSA: The card holder banks wanted to know who they were doing business with. But they were tricked, for transactions worth at least $150 million. That is the scheme. Let's start with Hamid Akhavan, or Ray. He was the leader. He hired a team to purchase shell companies.

AUSA: Akhavan brought in Weigand, who had connections with the overseas merchant bank accounts. The defendants are charged with one count of conspiring to commit bank fraud. We have Weigand's computer from when he was arrested. It shows the fraud. AUSA: You will hear from the former CEO of  Eaze  [that's Patterson, just pled guilty with a cooperation deal just before trial]. You will also hear from someone who set up the fake companies, fake websites, fake traffic

AUSA:  @eaze 's former CEO hopes to receive leniency at sentencing for his testimony. So you should scrutinize it.  I'm going to sit down... The defendants are guilty. Defense lawyer: Who are the supposed victims? Not the card holders...

 Defense lawyer: The big banks just want plausible deniability. They continue to this day, to this day, selling marijuana using debit cards. The banks did not lose one cent. Marijuana sales are legal in California and Oregon, where these transactions took place.

Defense lawyer: Look at the form they have people sign: You will not use your card for transaction that are illegal. But it's legal in California and Oregon. And there's not mention of marijuana in these credit card contracts. Gambling yes, marijuana no

 Defense lawyer: As the prosecutor said, there will be an  Eaze  witness with a cooperation agreement. [Patterson] You will learn that two others still work at Eaze. They haven't been fired. They're still there. Eaze still doesn't use a code for marijuana

Defense lawyer: There was another man, Oliver, who set up these websites after he was already cooperating with the government. There is an objection; overruled. Defense lawyer: Sorry for putting my head out [of the plexiglass counsel's box], I couldn't hear you

2d Defense lawyer (for Weigand) - You can still use a credit card to buy marijuana through  @eaze . As far as Reuben is concerned, his focus was not on Eaze but on Europe and the merchant banks in Europe, not US issuing banks.

 Weigand's lawyer: So how is he here? He was headed to vacation in Costa Rica, connecting flight in LA, he was arrested by FBI. Before Reuben, Eaze was a Silicon Valley darling, the Uber of pot. It had big money investors, who wanted it to use credit cards.

Weigand's lawyer: Reuben is from Germany. He ran a company called Payment Consultants-- AUSA: Objection! Judge Rakoff: Sustained. Weigand's lawyer: He traveled to a trade show in the US, at Ray Akhavan's office.

Judge Rakoff (to jury) - Both sides are predicting different things you'll hear in the evidence. This is just supposed to give you an overview. Counsel, I'd suggest you trim your remarks a little bit. D: The merchant banks in Europe were accepted by Visa and MC

 Weigand's lawyer: How can you defraud someone you're not even thinking about? Reuben Weigand is not guilty. Judge Rakoff: OK, ladies and gentlemen, I'll see you tomorrow. But wait there's more: with jury done, Judge Rakoff is taking up some objections that were made. AUSA: The evidence of what Mr. Weigand said on that particular call is just hearsay. Judge Rakoff: The cooperator was being asked to elicit incriminating statements

Judge Rakoff: ...and lo & behold, there was nothing incriminating. Why isn't that admissible? 

AUSA: The government has not intend of introducing those calls. Judge Rakoff, final quip: There's no juror who has other than total devotion to hearing your testimony

The case is US v. Weigand, 20-cr-188 (Rakoff).

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