SDNY COURTHOUSE,
Oct 5 – Neil Cole, the brand
manager charged with financial
chicanery was freed on $1
million bond on December 5,
2019 and allowed to travel
throughout the United States
by agreement of the US
Attorney's Office, contrary to
the "SDNY and EDNY only"
restrictions they routinely
place on less affluent
defendants.
SDNY Magistrate
Judge Barbara Moses accepted
the agreed bail conditions,
and said that they can be
appealed or asked to be
modified before SDNY Judge
Edgardo Ramos to whom the case
was assigned.
On October 6,
2021, the jury trial began and
Inner City Press live tweeted
it here,
podcast here,
vlog here:
Assistant US
Attorney Solowiejczyk:
The defendant, Neil Cole, got
caught red-handed, lying. This
case is about lying. Lie after
lie. I want to walk you
through three sets of lies.
First, to
investors. He was the CEO of
Iconix, a fashion company but
it didn't make clothes. AUSA:
Iconix owned brands. It had to
file quarterly reports - thank
of them like a check under the
hood of a car. They are
critically important to
investors. The defendant was
having Iconix lie about
revenue.
AUSA
Solowiejczyk: In the 2d
quarter of 2014, Iconix had to
bring in money to meet
predictions. So defendant
chose to lie. He went to
executives at the Business
Partner and he proposed a
secret deal. They were
supposed to pay $10 million,
but Cole said, $15 million
AUSA: The extra
$5 million wasn't really
Iconix' money. Because the
defendant was going to send it
right back. This was not a
one-off. Next, defendant had
to hide his dirty deals from
auditors. He had to make up a
cover story for the $5M - as
marketing expenses
AUSA: When
the Business Partner set
invoices that didn't look
right, defendant told them to
change them to try to make
them look more legitimate.
Then the defendant lied to the
SEC.
AUSA: You
are going to hear from former
COO Seth Horowitz. He has
committed crimes. But he had
pleaded guilty to his crimes.
He has a cooperation agreement
that requires him to testify.
[What about concealing...
#Whorowitz?
AUSA: You will
hear from executives from the
Business Partner. But they
will have a form of immunity.
You will hear from the
auditors. Pay close attention.
Use your common sense. If you
do that, the defendant will
get a fair trial [but] you
will find him guilty.
Cole's lawyer:
This case never should have
been brought. It involves
contacts between Iconix and
another well-established
company. The evidence will
show that there was no scheme,
no obligations other than what
was in the contracts.
Cole's lawyer:
The facts will demonstrate
that Mr. Cole did not believe
there was anything improper.
First, some background on Neil
Cole. He is a leader in
developing and marketing
brands. He's considered a
visionary. He is a life long
New Yorker.
Cole's
lawyer: Neil worked hard to
build Iconix. It had over 30
brands: Snoopy, London Fog,
Joe Boxer. [No mention of
Jay-Z or Roca]. Iconix
employed people here and in
the UK. Iconix licensed
Danskin to Wal-Mart.
Cole's
lawyer: You will learn that
BDO signed off on the deals.
The SEA-2 transaction also,
there was no side commitment.
You will see the contracts,
ladies and gentlemen, and you
will see they contain no
further commitments. They say,
this is the entire agreement
Cole's
lawyer: I suspect that the
government's cooperating
witness will say Neil had a
side agreement. But Horowitz
is not credible. He is not to
be trusted. [#Whorowitz?
Cole's lawyer: Horowitz felt
disrespected by Neil. Things
came to a head. Horowitz was
being blamed for the issues in
the SEC comment letter, about
puts. #Putz
Cole's lawyer:
Horowitz was being accused of
negotiating these terms
without Neil's involvement.
Things got over the top -
Horowitz decided to point the
finger at Neil, the big fish,
the CEO. Years later when the
government offered him a deal,
he took it.
Cole's lawyer:
Horowitz kept self-serving
diaries and notes. But they
don't even mention side deals.
Nor in his resignation letter.
His conversation with Neil is
a fiction. It's a fiction.
Cole's
lawyer: The only just verdict
is not guilty. Thank you.
Judge Ramos: Government, call
your first witness. AUSA: The
Government calls Seth
Horowitz. #Whorowitz
AUSA: Mr.
Horowitz are you currently
employed? Horowitz: No. AUSA:
What was your last job?
Horowitz: CEO of Baked by
Melissa. My employment ended
when I pled guilty to charges
of fraud in December of 2019.
AUSA: Why
did you plead guilty?
Horowitz: Because I am guilty.
AUSA: Could you identify Neil
Cole? Horowitz: He is wearing
a striped tie and a light
colored mask. AUSA: When did
you join Iconix? Horowitz:
2012.
Horowitz:
Iconix owed Rocawear and 39
other brands. AUSA: What
were your previous jobs?
Horowitz: I was with the
boxing equipment and licensing
company Everlast. Prez of
Modell Sporting Goods. Then
Neil interviewed me, for a job
atop Rocawear that Jay-Z owned
Judge Ramos calls
the break.
Back on December
29, the US Attorney's Office
opposed Cole's subpoena served
on Baked by Melissa, where
Seth Horowitz, a Government
cooperating witness, was the
CEO. The US Attorney's Office
says the information sought is
not relevant, but rather a
fishing expedition.
On January 4
Cole's lawyers at Paul Weiss
wrote to Judge Ramos, "We
understand that Seth Horowitz,
now a cooperating witness for
the government, also was
scheduled to provide SEC
testimony in late 2018, but
that at or around the same
time that Mr. Cole's testimony
was rescheduled, Mr.
Horowitz's testimony was
canceled, likely at the
request of the U.S. Attorney's
Office, to prevent Mr.
Horowitz from testifying and
avoid creating a record that
could be helpful to Mr.
Cole... In July 2020, counsel
for Mr. Cole submission a FOIA
request to the SEC."
On September 10,
Cole filed a motion in limine
seeking to exclude evidence of
his sale of a million shares
of Iconix stock, saying
allowing it in would create
"unfair prejudice."
On
October 3, Cole insisted there should only
be vaccinated jurors on his jury, while
redacting two full lines and a footnote of
his submission.
On October 5,
after picking the jury and before opening
statements begin October 6 at 9:30 am, Judge
Ramos explained why like EDNY Judge Donnelly
in the R.Kelly trial, he did not require
prospective jurors to be vaccinated.
Then, in open
court, Cole's lawyer said he wants to cross
examining cooperation witness Seth Horowitz
about concealment of prostitution related
activities. Judge Ramos said that question
will not be allowed - and when the Assistant
US Attorney asked to seal the transcript,
Judge Ramos agreed. But it was in open
court. Can you say, #Whorowitz?
On September 30
in an in-person final pre
trial conference, Cole's
lawyer argued that hearing
"$28 million" would be
prejudicial. The AUSA said it
show motive, and Judge Ramos
agreed, citing US v.
Quattrone, 441 F.3d 153,
179-80 (2d Cir. 2006).
Inner City
Press will continue to cover
the trial.
Watch this site.
The case is US
v. Cole, 19-cr-869
(Ramos).
***
Your
support means a lot. As little as $5 a month
helps keep us going and grants you access to
exclusive bonus material on our Patreon
page. Click
here to become a patron.
Feedback:
Editorial [at] innercitypress.com
SDNY Press Room 480, front cubicle
500 Pearl Street, NY NY 10007 USA
Mail: Box 20047, Dag
Hammarskjold Station NY NY 10017
Reporter's mobile (and weekends):
718-716-3540
Other, earlier Inner City Press are
listed here,
and some are available in the ProQuest
service, and now on Lexis-Nexis.
Copyright 2006-2021 Inner City
Press, Inc. To request reprint or other
permission, e-contact Editorial [at]
innercitypress.com for
,
