| Calk Got
Year and a Day For Manafort Loans Now US
OK with End of Supervised Release
By Matthew
Russell Lee, Patreon Podcast 2 3 5
SDNY COURTHOUSE,
Dec 2 – After months of preliminaries,
the trial of Stephen Calk for
conspiracy to trade his bank's
loans to Paul Manafort for the
Secretary of the Army position
began on June 23. Inner City
Press live tweeted, here,
previous coverage here,
podcast here
On July 13,
after mere hours, the jury
found him guilty. Inner City
Press verdict tweet here; in
front of 40 Foley Square, Calk
refused questions (including
on his bank and desire of UN
Ambassador position) and was
whisked off in a black car.
Video here.
Sentencing set for January 10,
2022. Podcast here.
On February
7, 2022 Calk was sentenced to
a year and a day - but got
bail pending appeal.
Two years later,
with Calk still not in prison,
on February 22, 2024 his
lawyers wrote in: "Mr. Calk
has remained on bail pending
his criminal appeal. On
February 13, 2024, the Court
of Appeals for the Second
Circuit denied Mr. Calk’s
petition for rehearing of the
denial of his appeal and the
mandate issued on February 21,
2024... we respectfully
request a reduction of Mr.
Calk’s sentence pursuant to 18
U.S.C. § 3582(c)(2). Based on
recent changes to the
Sentencing Guidelines,
including the adoption of a
new Section 4C1.1 (“Adjustment
for Certain Zero-Point
Offenders”), Mr. Calk is
eligible to receive a twolevel
reduction to his total offense
level. The result is an
amended Guidelines range of 0
to 6 months, in Zone A, for
which the Guidelines as
amended now state that a
noncustodial sentence is
generally appropriate. We
therefore respectfully request
that Mr. Calk’s sentence be
reduced to a non-custodial
sentence." Letter on Patreon here.
On
February 28, 2024 the US
Attorney's Office wrote in
that the year and a day
sentence had been rendered
without respect to the
Guidelines, so the change
shouldn't change anything - a
surrender date should be set.
On February 29,
Calk's lawyers replied, trying
to distinguish 2024 cases on
Section 4C1.1 in White Plains
and 40 Foley Square (VEC),
saying the former was a
violent crime and Judge
Caproni's case had a
co-defendant, unlike Calk.
On March 4, Judge
Schofield denied Calk's
motion, and set a surrender
date: "ORDER as to Stephen M.
Calk: ORDERED that Defendant's
motion for a reduction of
sentence is DENIED. It is
further ORDERED that Defendant
shall surrender for service of
sentence at the institution
designated by the Bureau of
Prisons by 2:00 P.M. on April
18, 2024. The Clerk of Court
is respectfully directed to
close the motion at Dkt. No.
311. (Signed by Judge Lorna G.
Schofield on 3/4/2024)."
On December 2,
2025 Calk's counsel wrote in
asking to eliminate the last
year of supervised release,
saying the US Attorney has no
objection.
Inner City
Press live tweeted the
sentencing, here:
now sentencing of
Manafort's lending Stephen
Calk, by @SDNYLIVE
Judge Schofield. Government
has asked for 51-63 months.
Judge Schofield:
I denied Defense's post-trial
motions. In the pre-sentencing
report, Mr. Calk objects to
the characterization of harm
to the bank. I will modify it,
I will add Mr. Calk's
counsel's language almost
verbatim
Judge
Schofield: The value of the
bribe triggers the sentencing
guideline. The government
proposed 51 to 63 months,
based on a value of more than
$550,000. They have the
burden. AUSA: Mr.
Calk claims we have to use
alternate loan terms from the
same institution.
Calk's
lawyer: A hard money lender is
an entirely different kind of
lender than The Federal Saving
Bank. It's apple and
oranges. Judge
Schofield: I decline to apply
the 14 level increase.
Judge
Schofield: The government has
withdrawn its request for an
increase for obstruction of
justice, asking instead that
it be considered under Section
3553. I will do so. Defense'
opposition to enhancement for
abuse of trust I do not find
persuasive.
Judge Schofield:
There will be no restitution,
and there is no request for
forfeiture. Let me hear from
the government on sentencing.
AUSA: FDIC insurance benefits
society, & the banks and
bankers. Defendant doesn't get
to benefit from it then
corrupt it by bribes
AUSA: We often
see politicians wanting to be
rich. This is the opposite.
Being a banker made the
defendant rich, but he wanted
power, in a government
position. Defense: We believe
a non-carceratory sentence is
appropriate. He is a good and
decent man.
Defense: Why did
Mr. Calk want to be
under-secretary of the Army?
He wanted to help people in
the military. [But the
evidence showed he had a list
of positions to buy, including
US Ambassador to the UN -
double corruption]
Defense: He
dreamed of public service. And
there is no harm - he did not
get within 50 miles of a US
post. He got a courtesy
interview at Trump Tower. Mr.
Calk is a banker.
Defense:
The US Marshals let vagrants
into Manaford's Brooklyn
brownstone. This was bribery
from a publicly-minded motive.
Send a message? To who? Who
else would risk his life's
work for what Mr. Calk got in
this case.
Defense: He
can never run a bank again. He
will have his dignity
destroyed. There is no need
for further punishment.
Judge Schofield: I'm not sure
I heard anything new in there.
Mr. Calk? Calk: May I remain
seated? Thanks for reading my
letters (voice cracking)
Calk: I am grateful for the
many in the armed forces who
have reached out to me, both
enlisted and enlisted. My
credit cards were taken away.
My bank was my life's work. It
was my legacy. It has helped
thousands of people to reach
the American Dream.
Calk: There
are so many great people who
work there who have been
impacted. (Sob). It's also
brought me profound sorry the
government questioned my
devotion to the military.
Service to the country has
been at the core of who I am
as an American.
Calk: I
hope your honor will consider
it in passing judgment. I
disagree with the jury's
verdict. But I have searched
myself deeply. Thanks you for
listening to me. Judge
Schofield: The guideline now
is six to 12 months. You are
57 years old, you have an MBA
Judge Schofield:
You went to Harvard Business
School. You took advantage of
your opportunities. Your
income is from the bank; the
other shareholders are your
brother and your ex-wife. You
were in the Reserves, not in
activity duty. You are
divorced.
Judge Schofield:
You turned yourself in and
were released on bond the same
day [Inner City Press covered
that, in SDNY Mag Court]. The
probation department
recommends three years. I have
concluded to impose a sentence
of incarceration.
Judge
Schofield: Mr. Calk, it is the
judgment of the court that you
are remanded to the custody of
the Bureau of Prisons for a
year and a day. [That allows
calculation of "good time" -
so, less than a year]
Judge
Schofield: Do you intend to
reside in Florida? A: Yes,
Your Honor. Judge Schofield:
The sentence is imposed.
Defense: We request bail
pending appeal.
Schofield:
I grant bail pending appeal.
The conditions of bail will
continue.
Defense: fwiw We
are for designation at the
minimum security camp at
Oxford, Wisconsin. Judge
Schofield: Granted. We are
adjourned.
Jump cut to
December 26, 2023, when there
was a move forward on the
fine, but also with an eye
toward the appeal(s) -
"STIPULATION AND ORDER as to
Stephen M. Calk: IT IS HEREBY
STIPULATED AND AGREED that
MORGAN STANLEY SMITH BARNEY,
LLC shall liquidate securities
as needed to submit the sum
certain amount of
$1,215,030.83 from STEPHEN M.
CALK's brokerage account
number ending in 6870 to
"Clerk of Court" at United
States District Court, 500
Pearl Street, Room 120, New
York, New York 10007, Attn:
Cashier for 19-CR-366, and
that the Government agrees to
accept said payment in full
satisfaction of the judgment
debt and release its lien on
the remaining funds. If the
fine is vacated, this payment
shall be refundable to the
defendant in accordance with
the Clerk's standard operating
procedures. SO ORDERED.
(Signed by Judge Lorna G.
Schofield on 12/26/2023)."
The trial: the
defense opening statement and
first witness, here,
and Inner City Press question
to Calk on Scaramucci, here
(& Alamy photo here)
On June 29 came
the cross examination of
Anthony Scaramucci, which
Inner City Press live tweeted
here and below, (podcast
here)
Song I here.
On July 12 the
jury got the case late in the
afternoon, and will be
deliberating on July 13. Inner
City Press live
tweeted, here from the
defense summation and US
rebuttal:
Calk's lawyer:
The question is, Would Mr.
Calk think that getting foot
in the door for a Tiger Team
interview, which some got for
free, would constitute a
bribe? No. Let's turn to
bank bribery. They have to
prove corrupt intent.
Calk's lawyer: Mr. Calk had to
sit through this trial behind
a mask. But there is a face
behind that mask. He has a
life outside this courtroom.
My time is almost up. I could
on you to think, when the
government rebuts, what would
the defense say? Say, Not
guilty
US rebuttal
summation, AUSA: I don't have
time to respond to everything
the defense said. But I don't
have to - you know what
happened here. Look at how the
loans were stalled until the
election - then they moved
forward.
AUSA
Rothman: The defense showed
you a spaghetti chart. Did you
see Steve Bannon on it? Calk
sent one email to Steve Bannon
- but did Mr. Bannon do
anything? I can sent an email
to Santa Claus. What does it
mean?
AUSA: This
is a case about a corrupt CEO,
a bank chairman, who took
advantage of his power to try
to buy more more. The idea
that he didn't value
Manafort's help is
disingenuous. You saw how
greedy he was, in his texts
with Mr. Scaramucci
AUSA: He
valued this, he wanted this.
And one person got him in the
door: Mr. Manafort. The case
person he was giving $16
million in loans to.
And the jurors
left for the day, to resume
with deliberation on July 13 -
when he was found guilty.
The case is US v. Calk, 19-cr-366
(Schofield)
***
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