Memo #3 - Goldman Sachs Deferred Prosecution Agreement
Gunnar Larson
g at xny.io
Wed Jul 26 12:54:40 PDT 2023
>
>>> https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=drivesdk
>>>
>>>
>>> February 21, 2022
>>>
>>> BY ELECTRONIC MAIL
>>>
>>> Mr. John Marzulli
>>> United States Department of Justice
>>> Eastern District of New York
>>> 271 Cadman Plaza East
>>> Brooklyn New York, 11201
>>> John.Marzulli at usdoj.gov
>>>
>>> Re: Memo #3 - Goldman Sachs Deferred Prosecution Agreement
>>> <https://www.justice.gov/criminal-fraud/file/1329926/download>
>>>
>>> Dear Mr. Marzulli:
>>>
>>> The Department of Justice has yet to respond to Memo #1
>>> <https://docs.google.com/document/d/1OsxfjN3TUepftKklopkQDSMwFWstWozuku4IPPuV1ho/edit>
>>> and Memo #2
>>> <https://docs.google.com/document/d/10BYgCtCf9F7A4YnhN792cTBU6P-pfdaOg0UTRbt5BFg/edit?usp=sharing>
>>> with our recent inquiry to the 1Malaysia Development Berhad Deferred
>>> Agreement. Goldman Sachs' Deferred Prosecution Agreement
>>> <https://www.justice.gov/usao-edny/pr/goldman-sachs-resolves-foreign-bribery-case-and-agrees-pay-over-29-billion>
>>> with the United States of America is in potential breach, with ethical
>>> enforcement being concerned.
>>>
>>> Memo #3
>>> <https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=sharing>
>>> aims to associate malfeasance with Marketplace Manipulation.
>>>
>>> The 2021 Apple Card Investigation
>>>
>>> What would Steve Jobs say?
>>>
>>> xNY.io - Bank.org feels this is one part of a broader discussion we must
>>> have about equal credit access. Corruption occurs when the private
>>> search for economic advantage and personal advancement clashes with laws
>>> and norms that condemn such behavior. Further complicating the picture,
>>> some illegal corrupt transactions drain public resources away from
>>> education, health care, and effective infrastructure—the kinds of
>>> investments that can improve economic performance and raise living
>>> standards for all.
>>>
>>> The cost of corruption is greater than the sum of lost money.
>>> Distortions in spending priorities undermine the ability of the state to
>>> promote sustainable and inclusive growth. This is possible in a framework
>>> already characterized by weak law that creates both a certain alteration of
>>> the rules of the market and perverse dynamics distorting the economy and
>>> inhibiting free competition.
>>>
>>> -
>>>
>>> Goldman Sachs has a history of poor ethical stewardship, at the
>>> global level. Similarly, New York's former Governor Andrew Cuomo and NY-DFS
>>> Superintendent Linda Lacewell are now world famous for women's rights.
>>> -
>>>
>>> On March 23, 2021, Lacewell published NY-DFS' Findings on Apple Card
>>> and its Underwriter Goldman Sachs Bank. Former Superintendent of NY-DFS,
>>> Ms. Linda Lacewell's stone faced propaganda assured that Apple Card did not
>>> discriminate against women, while under Goldman Sachs management.
>>> -
>>>
>>> The red flags started to appear when an authorized user drew
>>> attention to the following: A person who relies on a spouse's access to
>>> credit, and only accesses those accounts as an authorized user, may
>>> incorrectly believe they have the same credit profile as the spouse.
>>> -
>>>
>>> xNY.io - Bank.org recently collated 61 highlights
>>> <https://drive.google.com/file/d/1xH16OKyuXzB-MVqIznMWDE9w8RRdmZCw/view>
>>> to the Report on Apple Card Investigation from March 2021.
>>>
>>> Mr. Marzulli, the Apple Card investigation was to assess women's access
>>> to equitable finance. March 2021 also saw New York State Attorney General
>>> Letitia James' formal green light to launch an independent investigation
>>> <https://nypost.com/2021/02/27/second-woman-accuses-gov-andrew-cuomo-of-sexual-harassment-report>
>>> into sexual harassment allegations Lodged against Gov. Andrew Cuomo.
>>> Lacewell's legacy is authoring reports disparaging women.
>>>
>>> The integrity of the Apple Card investigation must be rationally
>>> considered as flawed. Likewise, Goldman Sach has a history of unethical
>>> posturing on matters specific to women and girls (via global regulatory
>>> arbitrage structures).
>>>
>>> 1.
>>>
>>> Mr. Marzulli, Peter Oppenheimer is Apple's former CFO and in 2014
>>> joined Goldman Sachs' board of directors and serves on key committees such
>>> as Audit (Chair), Governance, Risk.
>>> 2.
>>>
>>> There is no logical reason for Apple to trust the Apple Card Report
>>> and Apple’s former CFO is well aware of the legacy of Goldman's unethical
>>> antics and regulatory arbitrage frameworks that take advantage of the
>>> world's most vulnerable populations.
>>> 3.
>>>
>>> Mr Marzulli, at the very least, it is now clear that New York’s
>>> former Superintendent is famous for publishing reports that disperage
>>> women.
>>>
>>> Given the obvious logical factors at play, it may appear that elements
>>> of the Deferred Agreement may have been ignored in the facts, figures and
>>> assessment of impact on women and girls concerning the Apple Card Report
>>> under the former Superintendent.
>>>
>>> We seek DOJ guidance on the Apple Card Report as a marketplace
>>> manipulation instrument. Next, Memo #3, will explore our organization’s
>>> management analysis of marketplace manipulation partnering with MoneyGram
>>> and Ripple.
>>>
>>> United States and Africa Marketplace Manipulation Instruments
>>>
>>> xNY.io - Bank.org feels this is one part of a broader discussion of
>>> marketplace manipulation architectures operating from lower Manhattan that
>>> potentially function as a cross-border regulatory arbitrage banking
>>> operation in the United States and Africa.
>>>
>>> -
>>>
>>> MoneyGram, which has about 227,000 global money transfer agent
>>> locations in 191 countries and territories, was recapitalized in 2008 (same
>>> year as Bitcoin's whitepaper
>>> <https://www.ussc.gov/sites/default/files/pdf/training/annual-national-training-seminar/2018/Emerging_Tech_Bitcoin_Crypto.pdf>
>>> ).
>>> -
>>>
>>> Walmart is the only MoneyGram agent, for both the Global Funds
>>> Transfer and Financial Paper Products segments, that accounts for more than
>>> 10% of revenue. In 2020, Walmart accounted for 13% of total MoneyGram’s
>>> revenue and 16% in 2019 and 2018.
>>> -
>>>
>>> Goldman Sachs acquired an equity interest of 63 percent in MoneyGram
>>> for about $710 million. Per the 2008 agreement, MoneyGram also received
>>> $500 million in debt financing from Goldman Sachs (Cordeiro 2011)
>>> <https://sciwheel.com/work/citation?ids=10952410&pre=&suf=&sa=0>.
>>> -
>>>
>>> Goldman Sachs as a MoneyGram investor has a Participation Agreement
>>> with Walmart Inc. under which the Investor is obligated to pay Walmart
>>> certain percentages of any accumulated cash payments received by the
>>> Investor in excess of the Investor's original investment in the Company
>>> (MONEYGRAM INTERNATIONAL INC 2021)
>>> <https://sciwheel.com/work/citation?ids=10952491&pre=&suf=&sa=0>.
>>> -
>>>
>>> In 2016, Ripple received New York’s First NY-DFS BitLicense for an
>>> Institutional Use Case of Digital Assets (Larsen 2016)
>>> <https://sciwheel.com/work/citation?ids=10953308&pre=&suf=&sa=0>.
>>>
>>> Shortly after being NY-DFS accredited, Ripple announced it was teaming
>>> up with MoneyGram to test payments using Ripple’s xRP virtual currency.
>>> During this time, Ripple was making headlines as the xRP digital currency
>>> had surged — and fallen — dramatically (Browne 2018)
>>> <https://sciwheel.com/work/citation?ids=10953324&pre=&suf=&sa=0>. Soon
>>> after, Ripple announced a $50 million investment in MoneyGram snagging a
>>> 10% equity stake in the firm. Brad Garlinghouse, Ripple’s CEO, added that
>>> his firm would support MoneyGram’s “further expansion” into the European
>>> and Australian payment corridors (De 2019)
>>> <https://sciwheel.com/work/citation?ids=10953333&pre=&suf=&sa=0>.
>>>
>>> Connecting the dots, MoneyGram is now one of the most expensive transfer
>>> providers (Tierney 2019)
>>> <https://sciwheel.com/work/citation?ids=10953437&pre=&suf=&sa=0> on
>>> planet Earth. Customers incur fees for postal mail, telephone calls,
>>> electronic mail, and other computerized messaging services.
>>>
>>> -
>>>
>>> Computer crimes as a threat is no less a threat because it is
>>> contingent, because the speaker does not intend or is unable to carry it
>>> out when the threat was not directly communicated to the MoneyGram customer
>>> as a target, or because the language used might be considered cryptic or
>>> ambiguously not part of the current New York BitLicense mandate.
>>> -
>>>
>>> Ripple simply made MoneyGram’s business more efficient, thus
>>> accruing more profits for Goldman Sachs directed out of Manhattan.
>>> -
>>>
>>> From 2019 - 2020, MoneyGram received more than $40 million in market
>>> development fees from Ripple Labs in return for providing liquidity to its
>>> On-Demand Liquidity (ODL) network. It can be calculated that 10%-15% of the
>>> proceeds came from Walmart customers, who are some of the most
>>> disenfranchised Americans financially.
>>>
>>> Over the last five years, through conscious organizational HR
>>> management, Goldman Sachs created layer upon layer of New York
>>> BitLicense-related disguises and cross-border systems under potential
>>> conspiracy and plausible deniability to computer crimes and marketplace
>>> manipulation. Goldman Sachs' various direct and/or indirect BitLicensee
>>> connections profit daily from virtual currency market manipulation computer
>>> crimes with cross-border reach, operating as a large syndicate group from
>>> lower Manhattan.
>>>
>>> New York banks have a long and profitable history of exploiting
>>> regulatory arbitrage. Similar to the MoneyGram instance, some evidence
>>> shows that Goldman Sachs also seems to have entered Africa.
>>>
>>> -
>>>
>>> What is astonishing is that Ripple is powering some of
>>> www.JUMO.World’s <http://www.jumo.world> bank customers (Ripple 2020)
>>> <https://sciwheel.com/work/citation?ids=10959408&pre=&suf=&sa=0>, in
>>> a troublesome manner similar to MoneyGram.
>>> -
>>>
>>> Given that several enforcement actions and lawsuits in the United
>>> States specifically targeted banks’ treatment of minority borrowers (Taibbi
>>> 2014)
>>> <https://sciwheel.com/work/citation?ids=10961062&pre=&suf=&sa=0>, it
>>> may not be surprising to learn of www.Jumo.World or “JUMO” (Buchak
>>> et al. 2017)
>>> <https://sciwheel.com/work/citation?ids=10956108&pre=&suf=&sa=0>
>>> -
>>>
>>> A domain extension, in this case “.World” domain, is the targeted
>>> subject area of a computer program. It is a term used in software
>>> engineering (Wikipedia 2021)
>>> <https://sciwheel.com/work/citation?ids=10968017&pre=&suf=&sa=0>:
>>>
>>> During the fourth quarter of 2018, JUMO successfully finalized a $65
>>> million capital raise that was led by Goldman Sachs in New York. JUMO is a
>>> full technology software stack for building and running financial services,
>>> targeted at the world’s most disadvantaged populations.
>>>
>>> Today, JUMO operates across numerous African markets including Tanzania,
>>> Ghana, Zambia, Kenya, Uganda, and most recently in Pakistan, with plans to
>>> expand further across the sub-continent.
>>>
>>> 1.
>>>
>>> Since its launch in 2014, more than 15 million people have saved or
>>> borrowed on the JUMO platform, with over $1.6 billion in funds disbursed to
>>> customers. Nearly 70% of JUMO’s customers are micro and small business
>>> owners.
>>> 2.
>>>
>>> JUMO targets the unbanked population across several emerging and
>>> developing markets. A variety of JUMO’s partnerships with leading banks and
>>> mobile network operators creates a marketplace where consumers can access
>>> financial services and banks can access a new pool of mobile money
>>> customers (Vostok Emerging Finance Ltd 2020)
>>> <https://sciwheel.com/work/citation?ids=10955874&pre=&suf=&sa=0>.
>>> 3.
>>>
>>> Given the regulatory environment in Africa, it could be suggested
>>> that from New York, Goldman Sachs and Ripple’s organizational HR management
>>> structures once again aim to profit from some of the most vulnerable of the
>>> human population.
>>>
>>> Memo #1
>>> <https://docs.google.com/document/d/1OsxfjN3TUepftKklopkQDSMwFWstWozuku4IPPuV1ho/edit?usp=sharing>,
>>> Memo #2
>>> <https://docs.google.com/document/d/10BYgCtCf9F7A4YnhN792cTBU6P-pfdaOg0UTRbt5BFg/edit?usp=sharing>
>>> and Memo #3
>>> <https://docs.google.com/document/d/1QFZ2sFXx1cSYRcZTOGdPelZbVtuhpHuCKk011UzCNfM/edit?usp=sharing>
>>> profile instances that correspond with potential breaches to the Deferred
>>> Agreement that are impacting our global enterprise. Finally, we have made 28
>>> highlights to Deferred Agreement
>>> <https://drive.google.com/file/d/1Yx88RMoeLyyfbNK0RtPl4r-m8N21_1Sp/view?usp=sharing>
>>> as a reference resource tool.
>>>
>>> We are looking forward to learning more about the DOJ’s approach to
>>> assessing any potential breaches to the Deferred Agreement’s mandates.
>>>
>>> Respectfully yours with anticipation,
>>>
>>> Gunnar Larson - xNY.io <http://www.xny.io> | Bank.org
>>>
>>> <http://bank.org>MSc
>>> <https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
>>> - Digital Currency
>>> MBA
>>> <https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
>>> - Entrepreneurship and Innovation (ip)
>>> G at xNY.io +1-646-454-9107
>>>
>>
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