Posted on March 01 2019
Claude and I are friends both online and in real life. We fundamentally disagree on one particular issue, Avenatti. This does not mean that he’s right or that I’m wrong. It simply means that two adults can respectfully agree to disagree yet still respect one another. For the record, nothing in this entry reflects the views or opinions of Claude or the MadDogPAC. This entry reflects my opinions and I remain committed to providing you with facts and links to original data source. -SpiicyFiles
FinCEN and IRS CI and leakers
Before we dive in to this entry, I am going to provide you with a glossary of acronyms, a brief explanation. The Beltway “lingo” has its own unique lexicon and it can be confusing, even for those of us who essentially grew up here. As per usual I will provide you with links to the original data source.
Internal Revenue Serice - Criminal Investigation IRS-CI found here. The easiest way I can explain the IRS-CI is their agency has multiple subordinate agencies that roll up. Each sub-agency has a specific area of focus, which range from tax code violation, to RICO, to drug enterprises etc. To say the IRS-CI are a bunch of nerdy accountants would be absolutely incorrect. The IRS CI is a Federal Law Enforcement Agency.
...investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law...
Due to the increased use of automation for financial records, CI special agents are trained to recover computer evidence.
This link will take you to the IRS CI Financial Investigative Task Force regulations, procedures and various statutory authority. Narcotics-Related Financial Crimes and Counterterrorism Financing and Organized Crime Drug Enforcement Task Force (OCDETF) Program
...created and is managed by the Department of Justice "to identify, investigate, and prosecute members of high-level drug trafficking enterprises, and to destroy the operations of those organizations."
Financial Crimes Enforcement Network - FinCEN
The average person may make the mistake thinking that FINCEN is merely an enforcement agency, for the record they are. However I would submit to you that FINCEN is also an Intelligence Agency, as affirmed by their own Mission Statement, which reads in part:
The mission of the Financial Crimes Enforcement Network is to safeguard the financial system from illicit use, combat money laundering, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.
As with most of our Government Agencies, FinCEN has a “strategic plan”:
FinCEN supports the Department of the Treasury’s Strategic Plan for Fiscal Years 2018-2022 to fulfill its mission to enhance the integrity of financial systems by facilitating the detection and deterrence of financial crime.
Specifically, FinCEN supports:Treasury Goal 3: Enhance National Security and the following strategic objectives for these efforts. Strategic Objective 3.1: Strategic Threat Disruption Strategic Objective 3.2: Anti-Money Laundering and Combating Financing of Terrorism Framework
This link will take you to FinCEN’s previous (and now archived) strategic plans.
IRS-CI; “conducts criminal investigations regarding alleged violations of the Internal Revenue Code, the Bank Secrecy Act and various money laundering statutes. The findings of these investigations are referred to the Department of Justice for recommended prosecution.”
FinCEN; “safeguard the financial system from illicit use and combat money laundering and promote national security through the collection, analysis, and dissemination of financial intelligence and strategic use of financial authorities.” They also focus on areas of law: Bank Secrecy Act (BSA) Anti- Money Laundering Act, (AML)
It goes without saying, if you are a government employee that holds a security clearance that means the Government believes after a rigorous background check that you are a person whom is trustworthy, thus granting you accessability to sensitive and possibly Top Secret data.
John C Fry & Michael Avenatti
Full disclosure this is the topic that most likely lead to my Twitter Suspension (as detailed in yesterday’s entry). I should also disclose that none of this is personal. I am merely providing facts and content and context, which are not mutually exclusive and are in the public domain. Facts matter and they should inoculate any lawyer’s or politicia’s spinn or disinformation. Facts ARE Facts. Period. Full Stop.
About a week ago the DOJ-OPA published this press release, which reads in part:
charging John C. Fry with unlawful disclosure of Suspicious Activity Reports (SARs)... “The Los Angeles attorney put Fry in contact with an investigative reporter in New York which led to confirmation of the confidential banking information..
You can read the Orginal February 21, 2019 archived twitter thread here.
Neither I nor R. Farrow did anything wrong or illegal with the financial info relating to Cohen’s crimes (the courts have found that the BSA does not apply - see below). And if we did (we didn’t), then every reporter in America would be jailed and unable to do their job.— Michael Avenatti (@MichaelAvenatti) February 21, 2019
I am going to point out in May of 2018 Avenatti was on every Cable TV network known to man. He was repeatedly asked by numerous reporters how did he obtained financial information about Cohen. See archived twitter thread of the May 8, 2018 Executive Summary research, found here.
On or about May 26, 2018 I realized I had made a grievous mistake by intitally rooting for Avenatti. At which point I decided to disengaged. At the time I voiced my concerns about his sources, methods and what I view as unethical behavior. For reasons I can not disclose at the moment, I knew with zero doubt that Avenatti had illegally obtained the Cohen SARs information. And yes as the months continued to pass, I’ve realized that my amended assessments and concerns about Michael Avenatti, were with merit.
During Avenatti’s Spring 2018 Media blitz, I grew tired of how the media and social media fawned over him. To that end Avenatti’s media saturation was just vulgar. As I’ve repeatedly stated when you are an Attorney, you take an oath as an officer of the Court. As an Attorney you are held to very specific “Canons” of Professional Conduct. The fact that Avenatti continues to engage in unethical behavior is not lost on me. The excuse Avenatti profffered to various reporters that pressed him on how he became in possession of sensitive financial information, Avenatti equivocation of: “work product doctrine” 🙄.
In my opinion Avenattis rationale is patently false and horribly flawed. I am of the belief that Avenatti is threading a very tight needle. The work-product doctrine typically applies to:
”tangible material or its intangible equivalent" that is collected or prepared in anticipation of litigation is not discoverable...”
John C Fry & Avenatti 2018 timeline:
Based on an exhaustive search, I am going to walk you through the timeline and events regarding Michael Cohen’s confidential financial information. Again none of this is personal, these are facts not opinions. This April 3, 2018 tweet and corresponding letter from Avenatti to the Treasury Secretary is a decent starting point:
April 3, 2018 “pretext tweet”
Here is the letter we sent to the Sec. of the Treasury requesting that he publicly release the Suspicious Activity Report (SAR) relating to the $130k hush payment. This report may show the money trail and disprove the claims of Mr. Cohen. #releasetheSARhttps://t.co/adUxfkRrJp— Michael Avenatti (@MichaelAvenatti) April 3, 2018
Which makes me conclude that this March 2018 Wall Street Journal Article and the question remains who was/is “a person familiar with the matter”...for the record this would not be the first time Avenatti leaked to the WSJ.
🌶As I said this would not be the first time Avenatti leaked to the WSJ. Ask yourself why would Avenatti want “attribution” if he wasn’t the source of highly personal information that resulted in a medical procedure to terminate a pregnancy? It really is a genuine question. Avenatti “markets” himself as a woman’s right advocate. Was he advocating for Ms Bechard? Granted the assumption here is Avenatti leaked to the WSJ as it relates to the confidential settlement between two adults, one of which who was married
May 4 and 18, 2018 Defendant Fry made several unauthorized searches in the FinCEN SARs Database. Earlier today his indictment was unsealed. The government charged Fry with the following counts:
31 U.S.C. § 5322(a), unauthorized disclosure of suspicious activity reports;
18 U.S.C. § 1030(a)(2), misuse of a computer;
42 U.S.C. § 408(a)(8), illegal use of a social security number.
Page 5, paragraph 2:
states in part that Defendant Fry used his position (credentials) to unlawfully access sensitive financial information. In turn Fry then verbally relayed this information to Attorney Michael Avenatti. One can assume the means and manner of such verbal communiques were telephonic.
Page 5, paragraph 3:
The Government states on May 4, 2018 Defendant Fry, using his position as a Senior IRS Agent, unlawfully and without authorization accessed a Government computer (I’d argue that Fry accessed a database) and obtained confidential financial information.
Page 5, paragraph 4:
Count three, on May 7, 2018 Defedant Fry accessed a Government Computer and unlawfully accessed sensitive financial information. This particular date and count is actually important. Why? Avenatti appeared on multiple Cable News programs on May 8, 2018
Page 6, paragraph 1;
My assumption that the social security number that Defendant Fry used was Michael D Cohen’s.
This is the Penatly Sheet to Defendant Fry’s Indictment. When you combine all four counts Fry is looking at a potential maximum sentence of twenty years of imprisonment and hundreds of thousands of dollars in monetary fines. Again that is the maximum allowable
As previously discussed the February 21, 2019 Criminal Complaint for Defendant Fry offers a plethora of information, specifically time/dates, files, metadata, corroborating documentary evidence and a decent amount of Inculpatory evidence. All of which repeatedly references and I’d argue actually implicates Attorney Michael Avenatti.
Let’s go ahead and re-read the February 21st Filing, specifically the Statement of Probale Cause of TIGTA Special Agent Linda Cieslak, dated February 4, 2019:
TIGTA SA Cieslak affirmed that in the course of the TIGIA investigation surrounding the unlawful disclosures of Michael Cohen and the numerous SARs reports that Attorney Michael Avenatti used to formulate his May 2018 Executive Summary (see archived twitter thread). On May 4, 2018 at 2:54PM Defendant Fry impermissibly accessed and down loaded five SARs files related to Michael Cohen.
Page 4 paragraph a:
it is important to note that the following paragraph in the February 4, 2019 Statement of Probable Cause, itemizes the various SARs that Defendant Fry unlawfully accessed and downloaded:
SAR-1234 First Republic Bank - Account for Essential Consultants, LLC, account owner Michael Cohen. Which noted that Columbus Nova is affiliated with Russian Oligarch Victor Vekselberg, who donated some $250,000 to Donald Trump’s 2017 Inauguration Fund. TIGIA Special Agent Cieslak noted that SAR-1234 was a continuation of two previous filed by First Republc Bank, SAR-8133 and SAR-9426. The three aforementioned SARs started in October 2016 thru January 2018, the curative monetary value was: $4,425,033.46
Page 4, paragraph b:
TIGIA Special Agent Cieslak affirms that over the course of the TIGIA investigation, City National Bank (which is a subsidiary of the Royal Bank of Canada) filed SAR-0026, which itemized several “suspicious transactions”:
KD is Keith Davidson, not to belabor the matter on the very same day the FBI raided Cohen’s apartment, hotel and offices, the FBI simultaneously raided Keith Davidson’s home and office. Davidson has subsequently opted to cooperate with Federal Investigators. I’ve written extensively about Keith Davidson’s role in the “catch and kill apparatus”, found here and here.
Pages 4 & 5:
The close proximity to the 2016 Presidential Election should not be lost on you. In fact I can’t help but wonder, what if the Electorate knew that Donald Trump had paid hundreds of thousands of dollars to at least two women. Who alleged to have had an extramarital affair with Trump. Conversely there is no way to know, given that just a few weeks prior the Washington Post released the now infamous “grab them by the pussy” tape.
Michael Avenatti is in it...
Again none of this is personal, at least for me it isn’t...this isn’t an opinion, the facts laid out in the Orginal Criminal Complaint are clear as day. Zero ambiguity. Facts are Facts. For the record neither Avenatti or Fry claimed/invoked “whistle blower” if they had there are various protections afforded to actual whistleblower. The bottom line is this “protected status” wasn’t invoked.
Page 5, paragraph 11 of the February 21, 2019 unsealed Criminal Complaint:
On May 4, 2018 starting at 3:11PM, Fry made multiple phone calls to a phone numbers associated with Michael Avenatti. The first call lasted for approximately four minutes. Defendant Fry then hung up, (based on the timeline and facts Defendant Fry then unlawfully accessed multiple SARs) and subsequently made a second call to Michael Avenatti. That second call lasted about “seven and a half minutes”.
One has to wonder, who or how did Defedant Fry obtain Michael Cohen’s Social Security number. You also should ask, what did Fry and Avenatti discuss in their two back to back telephone calls? These two telephone calls, culminated to: eleven and half minutes.
Meaning in the course of these two calls Defendant Fry placed to Michael Avenatti, did Avenatti give Fry specific instructions as to what to look up. Granted I’m certain in due course time we will know the answers to those questions. But to say Avenatti doesn’t have exposure here, that would be a terrible miscalculation. In my opinion Avenatti has significant exposure. Off the top of my head Avenatti could and should face criminal charges for: conspiracy, obsruction of multiple federal investigations, possible witness tampering...
I guess this might explain Avenatti’s unhinged protracted rage tweets to me last week. It sure seems like I may have inadvertently pressed down on a nerve...
Avenatti’s prolific media saturation: you do understand that he is in fact making the prosecution, the investigators and the Judges jobs harder, right? What I mean is he is giving rise to a credible and potentially reasonable argument that his proclivity to run to any microphone or TV camera gives the defendant(s) a decent argument that they can not get a fair trial. That Avenatti’s media saturation has tainted numerous Jury pools. Most attorneys I know do not want to be quoted in the media or argue thier case on Cable TV...that’s why I continue to hold significant animus towards Avenatti. He gives ethical attorneys and law firms a really bad name. Again that’s my opinion and you don’t have to agree with me.
The subsequent May 7 2018 FinCEN searches, defendant Fry then used the employer idenfication of First Repblic Bank and Essential Consultants. This May 7th Search TIGTA Special Agent Cieslak attest that during the course of her investigation Defendant Fry (assumption on my end) for the first time used Michael Cohen’s Social Security Number to run additional searches in the FinCEN database. This genuinely makes me wonder how did Fry obtain Cohen’s SSN?
Page 6, paragraphs 14 and 15:
This is not my opinion, this is driectly from the TIGIA Special Agent Cieslak’s Statement of Probale Cause, Michael Avenatti used UNLAWFUL confidential financial information obtained by Defendant Fry. Avenatti then published his Executive Findings via his twitter account to countless individuals. This is not what an ethical attorney does, this is how thugs and mobsters act. In a grotesque “color of law” or as Avenatti said “work product doctrine” it is unbelievable to me that the media and Avenatti’s digital army sought to silence the truth and facts. As an officer of the Court Avenatti has an ethical and professional obligation to adhere to the rules. He did not. Yet some on the left want to prop Avenatti up as the messiah.
Again you can read the unsealed February 21, 2019 DOJ-OPA “official” Criminal Complaint, found here. These are not opinions these are the facts stated in the TIGIA Agent’s Statement of Probale Cause.
Case Numbers re Fry:
and as you know I’m a fan of footnotes, in the February 21, 2019 Criminal Complaint, on November 27, 2018 the TIGIA Special Agent obtained a Federal Search Warrant, Case Number CR 18-71636-MISC-TSH, which is still under seal.
Although if I were a reporter I would look in the Central District of California Bankruptcy Court...and that’s alll I’m going to say about that /snort & winks
Oh and before I forget on February 22, 2019 Defedant Fry filed an Emergency Ex Parte motion, concerning leaks surrounding his criminal proceedings. There is no Open Source Link but here’s what I pulled down:
Immediately following this initial appearance, undersigned counsel was greeted by a media report containing government leaks concerning the charges filed against Mr. Fry revealing alleged confidential plea discussions, including possible disposition, and confidential grand jury matters, provided to at least one media outlet by a “person familiar with the talks.”
In some respects Fry’s attorneys do have a valid point that if (that’s a BIG if) the Government leaked details of Grand Jury proceedings, Interviews, possible plea deal and a Deposition or Interviews that would be a huge and gross lapse in Prosecutorial conduct. And could in fact hamper Defendant Fry’s Constitutional right to a untainted Jury pool.
It should be noted that the Court issued the following Order on February 23, 2019 and denied Defendant Fry’s requests but the Judge did not mince words. As evident by the following paragraph, concerning Fry’s “alleged” Plea Deal:
“..court held a hearing on February 22, 2019, denies the motion for court-mandated relief without prejudice, and issues this order to memorialize its decisions and the remedial measures that it suggested at the hearing.”
More troubling is the leak about the plea negotiations and the plea offer, which arguably prejudices Mr. Fry’s right to a fair trial by an impartial jury. Also, the leak about the contemplated new charges (misuse of a Social Security number and misuse of a government computer) may violate Federal Rule of Criminal Procedure 6(e). Rule 6(e) prohibits “disclosure of matters occurring before the grand jury” by all participants in the grand-jury process — prosecutors, agents, grand jurors, interpreters, and court reporters — except witnesses themselve
May 8, 2018 Avenatti interviews:
While appearing on the RMS, Maddow point blank asked Avenatti how he obtained the financial information. I found his response unpersuasive and frankly unethical. Again an Attorney is an officer of the Court, they are bound by the oath they take and are bound by the Canons of both the ABA and Bar in which they are admitted into. Avenatti responded;
So my point, sure you can fawn all over Avenatti but I will once again caution you. He has now been involved in TWO Senior Federal Employees who specialized in financial crime investigations are now criminally indicted.
Edwards Indictment October 2018, see archived twitter thread here.
Avenatti May 2018 Executive Summary, (we NOW know he used illegal SARs info), see archived twitter thread here.
See John Fry February 22, 2019 Criminal Complaint archived thread here.
But Twitter decided my account should be suspended...because a little troll army decided to fraudulently mass report my twitter account...
Who’s the thug now Bastalavista?
Get your ass in the barrel
....................../´¯/) ....................,/¯../ .................../..../ ............./´¯/'...'/´¯¯`·¸ ........../'/.../..../......./¨¯\ ........('(...´...´.... ¯~/'...') .........\.................'...../ ..........''...\.......... _.·´ ............\..............( ..............\.............\... Literally sit on it and stfu. -Spicy
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