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January 9, 2025, 8:05 am Criminal, Top
Do Kwon Criminal Trial Set for 2026 as Lawyers Deal with ‘Massive’ Trove of Evidence
HomeCriminalDo Kwon Criminal Trial Set for 2026 as Lawyers…
Terraform Labs co-founder and former CEO Do Kwon’s criminal fraud trial in the U.S. has been tentatively scheduled for next January, allowing prosecutors and Kwon’s defense attorneys adequate time to review the “massive” six-terabyte trove of data expected to be produced during the discovery process.
During an initial hearing in Manhattan on Wednesday, lead prosecutor Jared Lenow told the court that the government expected to face additional delays due to challenges accessing encrypted information and unlocking four cell phones provided by Montenegrin authorities when they extradited Kwon to the U.S. on Dec. 31st. Lenow added that the government must also translate extracted material from Kwon’s native Korean.
“Sounds like we’re going to be backing up a U-Haul to the Southern District,” District Judge Paul Engelmayer of the Southern District of New York (SDNY) quipped on Wednesday.
>“Sounds like we’re going to be backing up a U-Haul to the Southern District,” District Judge Paul Engelmayer of the Southern District of New York (SDNY)
https://www.securitiesdocket.com/2025/01/09/do-kwon-criminal-trial-set-for-2026-as-lawyers-deal-with-massive-trove-of-evidence/
==Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict
Kwon to contribute more than $200 million, Terraform to wind down, and assets to be distributed to investor victims and creditors in bankruptcy==
For Immediate Release
2024-73
Washington D.C., June 13, 2024 —
The Securities and Exchange Commission today announced that Terraform Labs PTE, Ltd. and Do Kwon agreed to pay more than $4.5 billion following a unanimous jury verdict holding them liable for orchestrating a years-long fraud involving crypto asset securities that led to massive investor losses when the scheme unraveled.
A nine-day jury trial in April exposed the extent of the defendants’ lies to victims about the false use of the Terraform blockchain to settle transactions and about the stability of their crypto asset security, UST. The SEC also offered evidence at trial showing that, in May 2022, after UST de-pegged from the U.S. dollar, the price of UST and Terraform’s other tokens plummeted to close to zero. This wiped out $40 billion in market value nearly overnight and caused devastating losses to countless investors, including numerous retail investors who believed defendants’ lies and poured their life savings into Terraform’s ecosystem.
“This case affirms what court after court has said: The economic realities of a product—not the labels, the spin, or the hype—determine whether it is a security under the securities laws,” said SEC Chair Gary Gensler. “Terraform and Do Kwon’s fraudulent activities caused devastating losses for investors, in some cases wiping out entire life savings. Their fraud serves as a reminder that, when firms fail to comply with the law, investors get hurt. Terraform and Kwon fought our efforts to investigate – taking a fight over investigative subpoenas all the way to the Supreme Court. Thankfully, with this settlement, the victims of their massive fraud will now get some justice.”
“Do Kwon and Terra orchestrated one of the largest securities frauds in U.S. history by, among other things, falsely claiming that they had achieved the Holy Grail of crypto: a non-illicit use case. As the jury found, that was a lie, as was their claim of creating an ‘algorithmic stablecoin.’ In the end, all they succeeded in doing was lying to investors, wiping out tens of billions of dollars in market value, and creating a trail of victims,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Today’s multi-billion dollar settlement not only holds them accountable and prioritizes the return of hundreds of millions of dollars to harmed investors, but also makes clear that, despite the vast resources that crypto asset defendants deploy against us, the dedicated staff of the Division of Enforcement will not stop until they achieve justice for the victims of these breathtaking frauds.”
The SEC charged Terraform and Kwon in U.S. District Court for the Southern District of New York onFebruary 16, 2023,with securities fraud and for offering and selling securities in unregistered transactions. On December 28, 2023, the District Court found Terraform and Kwon liable for offering and selling crypto asset securities in unregistered transactions. On January 21, 2024, Terraform filed a voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware. On April 5, 2024, a jury unanimously found Terraform and Kwon liable for securities fraud after less than two hours of deliberation.
>Terraform and Kwon to Pay $4.5 Billion Following Fraud Verdict
As part of the settlement, Terraform agreed to pay $3,586,875,883 in disgorgement, $466,952,423 in prejudgment interest, and a $420,000,000 civil penalty. Terraform also agreed to stop selling its crypto asset securities, wind down its operations, replace two of its directors, and distribute its remaining assets to investor victims and creditors through a liquidation plan, subject to approval by the court in Terraform’s pending bankruptcy case.
Kwon agreed to pay $110,000,000 in disgorgement and $14,320,196 in prejudgment interest on a joint and several basis with Terraform, as well as an $80,000,000 civil penalty.
In addition, the defendants consented to the entry of a final judgment permanently enjoining them from violating the registration and fraud provisions they violated.
The litigation is being handled by Devon Staren, Laura Meehan, Christopher Carney, and Carina Cuellar from the Trial Unit, as well as Roger Landsman, and supervised by James Connor and Jorge Tenreiro. The SEC is represented in Terraform’s bankruptcy case by Therese Scheuer, Michael Kelly, and William Uptegrove, with supervision by Alistaire Bambach. The investigation was conducted by Mr. Landsman, Elisabeth Goot, Kathleen Hitchins, James Murtha, Daniel Koster, Donald Battle, and David Crosbie and was supervised by Reid Muoio, Osman Nawaz, Mr. Tenreiro, and David Hirsch from the Complex Financial Instruments and Crypto Assets and Cyber Units.
###
Last Reviewed or Updated: July 2, 2024
https://www.sec.gov/newsroom/press-releases/2024-73
>“Sounds like we’re going to be backing up a U-Haul to the Southern District,” District Judge Paul Engelmayer
WEDDINGS; E. F. Mandelstam, Paul Engelmayer
July 3, 1994
WEDDINGS; E. F. Mandelstam, Paul Engelmayer
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Emily Felice Mandelstam, the daughter of Charles and Gloria Mandelstam of New York, is to be married today to Paul Adam Engelmayer, the son of Louis and Ilene Engelmayerof New York. Rabbi Devorah Jacobson is to officiate at the Brooklyn Botanic Garden. Judge Patricia M. Wald of the United States Court of Appeals in Washington is to take part in the ceremony.
Ms. Mandelstam is keeping her name. She was until recently a program development specialist at the New York Association for New Americans, a refugee resettlement organization. She graduated cum laude from Harvard University and received a master's degree in criminology from the University of Cambridge and a master's degree in journalism from Columbia University.
The bride's father is a partner in Dornbush Mensch Mandelstam & Schaeffer, a New York law firm. Her mother, who retired as the managing director of Ascap, the music licensing organization in New York, is a consultant on intellectual property rights.
Mr. Engelmayer is a deputy chief appellate attorney with the United States Attorney's office in New York. He is a former law clerk to the late Justice Thurgood Marshall and to Judge Wald. The bridegroom graduated summa cum laude from Harvard University, from which he also received his law degree.
His mother retired as a remedial reading specialist with the New York City Public Schools. His father is a lawyer in New York.
A version of this article appears in print on July 3, 1994, Section 1, Page 35 of the National edition with the headline: WEDDINGS; E. F. Mandelstam, Paul Engelmayer. Order Reprints | Today’s Paper | Subscribe
https://archive.ph/z2fZD
>WEDDINGS; E. F. Mandelstam, Paul Engelmayer
Cyber Experts React to Court Decision in the SEC’s SolarWinds Enforcement Action
Editor’s Note: PCCE has been watching the developments in the SEC’s enforcement action against SolarWinds and its CISO over allegedly misleading disclosures and controls failures related to the compromise of its Orion product by putative Russian hackers. In this post, cybersecurity experts and lawyers discuss the recent decision by U.S. District Judge Paul Engelmayer to dismiss most of the SEC’s claims in the case.
Reverberations from the SEC’s Enforcement Action in the CISO Community
by Randal Milch
The SEC’s fraud complaint against SolarWinds and Tim Brown reverberated throughout the CISO community. Some commenters suggested significant changes to the CISO’s corporate position – mandatory D&O insurance, access to the Board of Directors, enhanced severance provisions – as an antidote to being “scapegoated” for security failures. Experts like Ed Amoroso with a broad reach in the CISO community cataloged what CISOs see as the negative security effects of the SEC’s decision to go after Brown personally: decreased information flow as the entire security apparatus seeks to avoid liability over a “poorly worded email,” increased meetings with lawyers and regulators which distract from the CISOs real work, and warnings to younger security practitioners to “stay away from the CISO position.”
It is too early to tell if the dismissal of nearly all the SEC’ charges will be received as a real measure of relief to CISOs. I think there is positive news for the CISO community even as to the SEC’s much-reduced theory of liability that remains after the motion to dismiss.
SolarWinds’ and Browns’ alleged frauds now rest solely on the “Security Statement” that SolarWinds published on the “Trust Center” of its public-facing website in late 2017. Judge Englemayer allowed these claims to go forward because SEC plausibly plead that (i) Brown was principally responsible for the content of the Statement; (ii) the Statement informed the investing public that SolarWinds was effectively mitigating the risk of cyber-attack; (iii) there were large and negative discrepancies between the published security policies and the true state of security at SolarWinds of which Brown and SolarWinds were aware and would be material to investors; and (iv) the Statement remained on the SolarWinds public website, unchanged, for years despite these discrepancies.
Why is this good news? Unlike the rest of the dismissed allegations pertaining to SEC filings, and policies and controls outside the CISO’s authority, the remaining alleged CISO liability is of a sort that could be addressed by the CISO herself. A CISO could, for instance, follow this rule: don’t publish statements to the public touting your company’s cybersecurity policies unless you are sure they are accurate, and you are willing to adjust these public statements to keep them accurate. Of course this is a burden, but not an unfair one. There is no reason CISOs should be shielded – unlike other senior executives – from the consequences of making material misstatements to the investing public.
The SEC’s remaining allegations against SolarWinds and Brown remain just that – allegations. We don’t know how the litigation will unfold in the coming months. We can hope, however, that CISOs will now feel like they can safely turn their full attention to their critical jobs.
https://wp.nyu.edu/compliance_enforcement/2024/08/05/cyber-experts-react-to-court-decision-in-the-secs-solarwinds-enforcement-action/
Paul Engelmayer
Political Campaign Contributions
2010 Election Cycle
Contribution Totals
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from 1999 to present
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2020 Transaction Count/Amount 0/$0
2018 Transaction Count/Amount 0/$0
2016 Transaction Count/Amount 0/$0
2014 Transaction Count/Amount 0/$0
2012 Transaction Count/Amount 0/$0
2010 Transaction Count/Amount 4/$2,000
2008 Transaction Count/Amount 7/$11,850
2006 Transaction Count/Amount 2/$500
2004 Transaction Count/Amount 6/$4,500
2002 Transaction Count/Amount 0/$0
2000 Transaction Count/Amount 1/$250
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Paul Engelmayer Political Contributions in 2010
Name & Location Employer/Occupation Dollar
Amount Date Primary/
General Contibuted To
ENGELMAYER, PAUL A
NEW YORK, NY
10024 WILMER HALE/PARTNER $1,000 05/12/2010 PFRIENDS OF SCHUMER - Democrat
ENGELMAYER, PAUL
NEW YORK, NY
10024 WILMER HALE/PARTNER AT LAW FIRM $250 10/23/2009 PACTBLUE
ENGELMAYER, PAUL
NEW YORK, NY
10024 WILMER HALE/PARTNER $250 10/23/2009 P BENNET FOR COLORADO - Democrat
ENGELMAYER, PAUL
NEW YORK, NY
10024 PARTNER/WILMER HALE $500 09/28/2009 P HODES FOR SENATE - Democrat
https://www.campaignmoney.com/political/contributions/paul-engelmayer.asp?cycle=10
>Paul Engelmayer
>Political Campaign Contributions
>2010 Election Cycle
Paul Engelmayer Political Contributions in2008
Name & Location Employer/Occupation Dollar
Amount Date Primary/
General Contibuted To
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Hale/Partner $2,400 10/16/2008 POBAMA VICTORY FUND- Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Hale/Partner $2,300 07/15/2008 P OBAMA VICTORY FUND - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Hale/Partner $250 03/25/2008 P PATRICK MURPHY FOR CONGRESS - Democrat
Engelmayer, Paul A
NEW YORK, NY
10022 Wilmer Hale/Attorney $1,300 01/22/2008 POBAMA FOR AMERICA- Democrat
Engelmayer, Paul A
NEW YORK, NY
10022 Wilmer Hale/Attorney $1,000 03/27/2007 POBAMA FOR AMERICA- Democrat
Engelmayer, Paul
NEW YORK, NY
10024 WilmerHale/Lawyer $2,300 03/13/2007 GBIDEN FOR PRESIDENT, INC. - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 WilmerHale/Lawyer $2,300 03/07/2007 PBIDEN FOR PRESIDENT, INC. - Democrat
>Paul Engelmayer
>Political Campaign Contributions
Paul Engelmayer Political Contributions in 2004
Name & Location Employer/Occupation Dollar
Amount Date Primary/
General Contibuted To
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Cutler Pickering Hale and Do $1,000 10/19/2004 P DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Cutler Pickering LLP/Attorne $1,750 05/31/2004 P JOHN KERRY FOR PRESIDENT INC - Democrat
ENGELMAYER, PAUL A
NEW YORK, NY
10024 WILMER CUTLER & PICKERING $1,000 05/26/2004 P FRIENDS OF SCHUMER - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Cutler Pickering LLP/Attorne $250 02/04/2004 P JOHN KERRY FOR PRESIDENT INC - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Cutler & Pickering/Partner l $250 12/12/2003 P JOE LIEBERMAN FOR PRESIDENT INC - Democrat
Engelmayer, Paul
NEW YORK, NY
10024 Wilmer Cutler & Pickering/Partner l $250 11/19/2003 P JOE LIEBERMAN FOR PRESIDENT INC - Democrat
Paul Engelmayer Political Contributions in 2000
Name & Location Employer/Occupation Dollar
Amount Date Primary/
General Contibuted To
ENGELMAYER, PAUL A
NEW YORK, NY
10024 WILMER CUTLER & $250 01/03/2000 P FRIENDS OF SCHUMER - Democrat
Name/Location Employer/Occupation $ Amount Contributed Contributed To Primary/
General Date
MANDELSTAM, EMILY
NEW YORK, NY 10024 Not Employed/Not Employed/Not Employed $2,800 ACTBLUE 09/02/2019
MANDELSTAM, EMILY
NEW YORK, NY 10024 Not Employed/Not Employed/Not Employed $2,800 BIDEN FOR PRESIDENT - DEMOCRAT P 09/02/2019
Name/Location Employer/Occupation $ Amount Contributed Contributed To Primary/
General Date
MANDELSTAM, EMILY F
NEW YORK, NY 10024 N/A/HOMEMAKER $250 BENNET FOR COLORADO - DEMOCRAT P 11/23/2009
Name/Location Employer/Occupation $ Amount Contributed Contributed To Primary/
General Date
Mandelstam, Emily
NEW YORK, NY 10024 None/Homemaker $250 FRIENDS OF SCOTT HARPER - DEMOCRAT G 09/29/2008
Mandelstam, Emily
NEW YORK, NY 10024 My kids!/Full-time mother $250 ACTBLUE P 09/29/2008
Mandelstam, Emily F
NEW YORK, NY 10024 Not employed/Homemaker $1,300 OBAMA FOR AMERICA - DEMOCRAT P 02/22/2008
Mandelstam, Emily F
NEW YORK, NY 10024 Not employed/Homemaker $1,000 OBAMA FOR AMERICA - DEMOCRAT P 01/29/2008
Mandelstam, Emily
NEW YORK, NY 10024 N/A/Homemaker $2,300 BIDEN FOR PRESIDENT, INC. - DEMOCRAT G 03/13/2007
Mandelstam, Emily
NEW YORK, NY 10024 N/A/Homemaker $2,300 BIDEN FOR PRESIDENT, INC. - DEMOCRAT P 03/07/2007
>Emily Felice Mandelstam, the daughter of Charles and GloriaMandelstam of New York, is to be married today to Paul Adam Engelmayer, t
GLORIA MANDELSTAM Obituary
MANDELSTAMGloria M.The Trustees and the faculty and staff of Trinity School note with sorrow the death of Gloria M. Mandelstam, mother of our esteemed board president, Emily Mandelstam–, and grandmother of Caroline Engelmayer '16 and William Engelmayer '19.
To plant trees in memory, please visit the Sympathy Store.
Published by New York Times on Mar. 29, 2013.
>esteemed board president, Emily Mandelstam–
NYC’s Trinity School bares its unholy leftist hate
By Miranda Devine
Published Sep. 11, 2022
Updated Sep. 12, 2022, 10:26 a.m. ET
There were hopeful signs last week that reality might slowly be dawning on the tony Trinity School on the Upper West Side, when the board of trustees issued a statement subtly repudiating the headmaster’s clueless handling of the racist “Dexter” scandal.
In a statement to parents, David Perez, president of the board of trustees, did what headmaster John Allman failed to do the previous week when a senior teacher was caught on video saying that “we just need some vigilante Dexter” to get rid of the “horrible … white boys” at the school.
Since Dexter is a TV serial killer, Trinity teacher Jennifer Norris appeared to be advocating for white male students to be murdered when she was secretly recorded by gonzo journalism outfit Project Veritas.
Perez was lead author on last week’s revisionary statement assuring parents that he and Allman “categorically denounce the derogatory and antagonistic comments in the recently released video about our white students … Bias of any kind or the threat of violence toward any person has no place at Trinity School.
“The comments made in the video do not reflect the mission or values of Trinity School. Ms. Norris is not speaking for Trinity School.”
Well, that’s a relief. But why is Norris still employed?
As of Sunday, she was still on paid leave, according to Kevin Ramsey, Trinity’s director of communications.
School’s initial silence
Why did it take five days and two statements for the school to state the bleeding obvious? You’d think it was a no-brainer to immediately come out and say that Trinity does not share the values of a teacher who thinks white boys should be murdered by a serial killer.
But no, the previous week the school had issued a tone-deaf statement expressing anger — at Project Veritas. The primary complaint was “the reprehensible way Ms. Norris and our school community were targeted,” and that she was recorded “without her knowledge and permission by someone who misrepresented himself.”
ennifer Norris was secretly recorded by Project Veritas talking about her left-leaning agenda at Manhattan’s Trinity School. Project Veritas/YouTube
The hateful bigotry expressed by Norris was mentioned only as a mild afterthought, something that “does not reflect the mission or values of Trinity School.”
No surprise, really, considering Norris implies that other school members share her hostile view of conservatives, and considering Allman’s bizarre outpouring of grief in 2016 after Donald Trump was elected president.
>>esteemed board president, Emily Mandelstam–
When Norris told Veritas that Trinity is “definitely a school where conservatives would not feel comfortable,” she was telling the truth.
In the end, Perez must have felt enough heat to issue a stronger statement a few days after the school’s initial limp offering.
Maybe there has been a change of heart. Or, more likely, the trustees don’t enjoy getting calls from journalists.
It’s a prestigious gig to sit on the board of trustees of an elite Manhattan private school whose annual fees start at $61,000, and it’s guaranteed to earn you esteem in the social pecking order, and all the best invitations.
The last thing the trustees want is to be engulfed in a scandal.
But they are involved. The board “bears ultimate responsibility for the well-being of the school,” says its mission statement.
It’s their fault that the nation’s oldest Episcopal school, a once-great institution of learning, has gone so far off the rails.
It is not onFe teacher but the entire woke ethos of the school.
Perez, a Cuban-born investment banker, must understand from life in his former homeland the lethal trajectory of far-left ideological manipulation in schools.
See Also
Trinity School staffer on leave after admitting she sneaks ‘agenda’ into classroom
Unfortunately, calls and emails to Perez and other board members have gone unanswered, unless you count Ramsey’s emailed statements.
But take billionaire William P. Lauder, heir to the Estée Lauder cosmetics fortune, Trinity Class of 1978 and respected emeritus trustee of the school board.
Does he think it’s OK for the school to exclude conservatives, and for a teacher to advocate that white male students, like he once was, be murdered? He won’t say, but he should.
He comes from a family that well understood the murderous nature of hate and bigotry. His uncle Ronald Lauder, as president of the World Jewish Congress, used to talk about confronting bullies: “When there is no reaction to their hate, they are emboldened. Silence gives them strength.”
He was talking about anti-Semitism, but the sentiment applies to bigotry of all kinds, including dehumanizing conservatives and plotting the painful deaths of “white boys.”
Or how about board member Rabbi Joy Levitt, regarded as one of the most influential rabbis in America, the first woman to be elected president of a national rabbinical organization. As the recently retired CEO of the Marlene Meyerson Jewish Community Center, she got every synagogue on the Upper West Side to read aloud the names of Holocaust victims, from 9 a.m. to 7 p.m. on Yom Hashoah. She understands the lethal path of bigotry and scapegoating. With her power in this city, she could force Trinity to repudiate hateful wokery.
Trinity School
Otherwise, we have to assume the board agrees with the sentiments expressed by Norris. Perhaps any children of their own are girls, or not white, or have already graduated, so they don’t care.
A warning from history
They should remember the prophetic words of German pastor Martin Niemöller, an opponent of Adolf Hitler who survived the Dachau concentration camp:
“First they came for the communists and I didn’t speak out because I wasn’t a communist. Then they came for the trade unionists and I didn’t speak out because I wasn’t a trade unionist. Then they came for the Jews and I didn’t speak out because I wasn’t a Jew.
“Then they came for me. And there was no one left to speak out for me.”
We owe Project Veritas for revealing the true nature of woke education — hateful, bigoted, even murderous. But one elite school in Manhattan is a tiny fraction of the problem. People in charge need to be held accountable. This poison is being injected straight into the veins of American children and if it isn’t stopped, the country is lost.