Mark Scott’s legal professional has put ahead the extraordinary argument that mendacity to banks isn’t financial institution fraud.
The declare was made in an October twenty third letter to the court docket, relating to the DOJ’s request to cost Mark Scott with financial institution fraud.
Scott was indicted on financial institution fraud by way of an S10 superseding indictment earlier this month.
As summed up by Scott’s legal professional;
The Superseding Indictment alleged that unspecified false statements made by Scott and others have been launched into the worldwide monetary system by means of numerous entities together with overseas banks that aren’t monetary establishments underneath the Financial institution Fraud statute in some way making their option to FDIC insured banks which made transfers of sure funds that have been the article of the scheme.
Scott’s legal professional thus argues that as a result of Scott allegedly lied to banks and monetary establishments that aren’t FDIC insured (primarily non-US), no financial institution fraud was dedicated.
The proof towards Mr. Scott includes nearly solely his dealings with off-shore banks and monetary establishments, not establishments insured by the FDIC.
The Fenero Funds Mr. Scott managed that allegedly obtained proceeds of a OneCoin wire fraud scheme had relationships with the Financial institution of Eire, DMS Financial institution within the Cayman Islands and different non-U.S. monetary establishments.
The Authorities has repeatedly represented that Mr. Scott made numerous false statements to those non-U.S. monetary establishments immediately or by means of middleman fund managers corresponding to Apex in an effort to persuade these non-U.S. banks to just accept funds from his buyers and to make investments and different monetary transactions by means of these accounts.
Such conduct wouldn’t be financial institution fraud.
Scott’s legal professional has requested the court docket to ban the DOJ from representing to the jury that Scott’s alleged lies to ‘Apex or non-U.S. banks alone may represent financial institution fraud.‘
It is necessary that the Court docket not allow the Authorities to conflate in its jury addresses or witness examinations “mendacity to banks” world wide with the extra restricted idea of financial institution fraud conspiracy.
On the flipside, the DOJ claims it recognized transfers tied to Scott at no less than three U.S. monetary establishments.
As a substitute Scott’s legal professional proposes the DOJ make this proof obtainable for jury instruction (a part of the authorized guidelines jurors observe when deciding a case).
A choice on the matter stays pending. Keep tuned…