Credit Suisse said March 31 that its offices in London, Paris and Amsterdam were searched March 30 by authorities in connection with client tax matters.

The U.K. tax authority is investigating “senior employees” at a global financial institution, it said in a statement. Australia’s Serious Financial Crime Taskforce said it had identified 346 of its citizens “with links to Swiss banking relationship managers alleged to have actively promoted and facilitated tax evasion schemes.”

Credit Suisse has previously been hit hard in tax probes. The bank was fined $2.6 billion in the US in 2014 after pleading guilty to helping American citizens evade tax and it was also fined €150 million in Germany in a similar case back in 2011.

[July 7 2015 Fana Hlongwane, SA agent on Gripen sale, had HSBC Swiss account]

 

Gripen by SAAB

Gripen by SAAB

Former South African arms deal advisor, Fana Hlongwane, holds one of more than 2,000 accounts held by South Africans at HSBC . Saab and BAE paid over a billion rand in commission to agents to secure the sale of 26 Gripen fighter jets to South Africa,
Apparently R154 million of the R1.5 billion in commission was paid to Fana Hlongwane, adviser to late defence minister Joe Modise. According to Expressen, R2 million was paid to Hlongwane in October 1999 via the company Red Diamond. The money then travelled via a Swiss agent into Hlongwane’s company Westunity.

In February 2015 the HSBC leak found 100 million kronor ($11.7 million) in three Swiss bank accounts belonging to Hlongwane. The programme reported that the money was related to the sale of Gripens to South Africa.

[May 14 HSBC Brazil CEO Guilherme André Brandão has no details on Switzerland bank accounts]

HSBC Brazil CEO Guilherme André Brandão Marcelo Camargo

HSBC Brazil CEO Guilherme André Brandão Marcelo Camargo

According to documents leaked by Hervé Falciani, which lists client names as of 2006, a total 8,000 Brazilians had accounts with HSBC Switzerland in that year. But no further information on suspected fraud has emerged so far
HSBC Brazil CEO Guilherme André Brandão was heard May 5 by a congressional committee of investigation (CPI) at the Senate that is probing potentially fraudulent bank accounts held by Brazilians with HSBC Switzerland. He claimed he has no details on Switzerland bank accounts, not even those held by Brazilian nationals.
According to Brandão, when a Brazilian client contacts the bank to open an account in Switzerland, bank executives in Brazil merely refer the applications to the agents overseas in charge of analyzing and approving investment recommendations and account applications. The bank’s office in Brazil holds a list of client referrals, but has no information as to which of them are successful.more on “operation Car Wash”

[February 21 Geneva’s Attorney General Olivier Jornot raids HSBC- implications for the bank]

Swiss prosecutors investigating allegations of tax avoidance have raided HSBC’s Geneva offices. The FT’s Martin Arnold and Jonathan Guthrie discuss the implications for the bank, and what this means for investors.

[February 18 Geneva’s Attorney General Olivier Jornot raids HSBC]

Geneva's Attorney General Olivier Jornot is seen leaving an HSBC Swiss branch of the bank in Geneva on February 18. Geneva's public prosecutor searched the premises of HSBC Holdings PLC in Geneva on Wednesday and said it had opened a criminal inquiry into allegations of aggravated money laundering.

Geneva’s Attorney General Olivier Jornot is seen leaving an HSBC Swiss branch of the bank in Geneva on February 18. Geneva’s public prosecutor searched the premises of HSBC Holdings PLC in Geneva on February 18 and said it had opened a criminal inquiry into allegations of aggravated money laundering.

FEB 18, 2015 – 10:47 ” A search is currently under way in the premises of the bank, led by Attorney General Olivier Jornot and the prosecutor Yves Bertossa,” Geneva’s prosecutor said in a statement. The Geneva public prosecutor says it has initiated proceedings against the Swiss branch of HSBC for suspected money laundering. The prosecutor announced that following recent public revelations about the HSBC Private Bank – a Swiss subsidiary of a leading British bank – a criminal case has been filed against the bank and unknown persons for money laundering.
Regardless of the criminal liability of its employees, the bank can be prosecuted if it failed to take all the organisational measures necessary to prevent infringement from occurring.
Depending on its evolution of the investigation, the process is also likely to extend to individuals suspected of participating in money laundering within the bank, according to a statement by the prosecutor’s office. read more

[February 14 HSBC scandal in U.S.: Loretta Lynch avoided criminal prosecution of bank officers?]

 U.S. Attorney for the Eastern District of New York 2012

U.S. Attorney for the Eastern District of New York 2012

Republicans believe leak ‘throws a monkey wrench’ into Lynch becoming the next attorney general as questions swirl over her role in $1.9bn bank settlement in 2012

The office of Sen. David Vitter, R-La., announced it is investigating why Loretta Lynch, in her capacity as U.S. Attorney for the Eastern District of New York, allowed banking giant HSBC to avoid criminal prosecution of bank officers and other employees. HSBC paid a hefty fine, instead, for laundering uncounted billions of dollars of illegal drug and terrorist money through its U.S. bank in the service of Mexican drug cartels and Middle Eastern terrorists.
Main Justice prosecuted these cases, Lynch’s name just appeared on the press releases, it was Eric Holder’s show. But as a federal prosecutor, Lynch could have easily made decisions to charge individuals after the settlements were completed. She had the information at her disposal. But she chose instead to go along to get along, and you can see her elevation to attorney general as part of the reward.

[February 12 HSBC & Lord Fink “‘I didn’t object to his use of the word tax avoidance, because tax avoidance – everyone does it’.]
Shabana Mahmood, the shadow Treasury minister, has called for a “full and frank” statement from Lord Green, the former HSBC boss and former Tory trade minister, about what he knew about the tax scandal at HSBC.
Launching Labour’s education policy for the May general election at his former school in north London, Mr Miliband accused the coalition Government of failing to “act properly against tax avoidance”. The Labour leader said: “Yesterday a Conservative donor challenged me to stand by what I said in the House of Commons. I do. “And believe it or not, now today he confirmed it as well. He has just said, and I quote ‘I didn’t object to his use of the word tax avoidance, because tax avoidance – everyone does it’. “David Cameron must explain why he appointed a treasurer of the Conservative Party who boasts about engaging in tax avoidance and thinks it is something that everyone does. Baron Fink is a British former hedge fund manager, the former CEO and deputy chairman of the Man Group plc
The peer branded the Labour leader’s jibe in the Commons yesterday “untrue and defamatory” and challenged him to step out from the cover of parliamentary privilege so he could take legal action: he had a Swiss bank account because he was working for the Man Group in the country for four years from 1996 to 2000. “During this time I had need of a local bank account to do simple things like receive my Swiss franc salary and pay grocery bills,” he said.

[February 10 HSBC Private Bank (Suisse) SA -Hillary Clinton’s Foundation received $1M from account]

HSBC’s notes contain an instruction to ‘transfer [$1m] to Bill Clinton’s Foundation as a contribution following his involvement in the charity function.’

HSBC’s notes contain an instruction to ‘transfer [$1m] to Bill Clinton’s Foundation as a contribution following his involvement in the charity function.’ i.e.The Bill, Hillary & Chelsea Clinton Foundation. After leaving the State Department, she officially joined the foundation, which changed its name to the Bill, Hillary & Chelsea Clinton Foundation.

The files released by the International Consortium of Investigative Journalism detail 30,000 accounts held with the bank between 2005 and 2007 covering assets of nearly £78 billion. The files cover almost 7000 UK citizens and have been in the hands of HMRC since 2010.
HMRC has clawed back around £135 million from some of the 3600 British clients of the bank alleged to have avoided tax. Only one person has been prosecuted.

[February 9

David Cameron with HSBC's[now] Lord Green

David Cameron with HSBC’s[now] Lord Green February 14 Lord Stephen Green, the former HSBC boss at the centre of the storm over the bank’s alleged tax dodging, is to resign from his role with an influential financial services lobby group.

HSBC files show how HSBC Private Bank (Suisse) SA helped clients dodge taxes and hide millions
Data in massive cache of leaked secret bank account files lift lid on questionable practices at subsidiary of one of world’s biggest financial institutions. Data from around 130,000 customers at the Anglo-Asian bank -see below
Under the terms of the 2012 agreement, HSBC was obligated for five years to both fully cooperate with prosecutors on any other investigations and commit no crimes after it signed the deal. HSBC Holdings plc (HSBA.L) could see its 2012 deferred prosecution deal with U.S. authorities over anti-money laundering lapses reopened as a result of separate, ongoing probes into the bank’s alleged role in manipulating currency rates and helping Americans evade taxes.

[November 21 2014 HSBC tax fraud and money laundering charges in France, Belgium from Hervé Falciani, whistleblower in Switzerland]

HSBC Private Bank (Suisse) SA

HSBC Private Bank (Suisse) SA

Hervé Falciani, a French citizen and former employee of HSBC Private Bank in Geneva, has helped uncover an international tax evasion scandal.

Hervé Falciani, a French citizen and former employee of HSBC Private Bank in Geneva, has helped uncover an international tax evasion scandal.

“We confirm that HSBC Private Bank (Suisse) SA has been placed under formal investigation by French magistrates who are examining whether the bank acted appropriately between 2006-07 in relation to certain clients of the bank who had French tax reporting requirements, as well as in relation to the way the bank offered its services in the country,” HSBC Private Bank In connection with the investigation, the bank has agreed to deposit a bail bond of 50 million euros ($62 million.
The investigation follows the theft of personal details of HSBC private banking clients in Switzerland that were passed on to Belgian and French authorities in 2010. HSBC Private Bank was charged with tax fraud and money laundering in Belgium on November 17.

At the end of 2008, Hervé Falciani committed what is believed to have been the most portentous theft of banking data in history. The systems engineer and former employee at the Geneva offices of HSBC left Switzerland for France and took data from around 130,000 customers at the Anglo-Asian bank along with him.

France’s finance minister at the time, current International Monetary Fund head Christine Lagarde, then handed data supplied by Falciani on to other countries. With the help of the information, authorities were able to uncover hundreds of cases of tax evasion, including those involving members of Spain’s Botín banking family. In Greece, the data, which is often referred to as the “Lagarde List,” was largely forgotten until it returned to the headlines during the debt crisis.
Falciani, 41, has also cooperated with the American authorities. Indeed, on the strength of the information he provided, HBSC was forced to pay a $1.9 billion settlement with the United States after a Senate committee found that failures in HSBC’s money-laundering controls had enabled terrorists and drug cartels to gain access to the US financial system.

Last year, officials in Spain arrested Falciani in Barcelona. After a Spanish court rejected a Swiss extradition request for the Franco-Italian, he returned a few weeks ago to France, where examining magistrates have opened a new investigation into HSBC. The Botin family, which owns barely 2 percent of Santander, paid 200 million euros in penalties in 2011 to avoid charges of tax evasion related to a secret Swiss bank account. ‘Botin was the unofficial king of Spain.’

[October 22 Accounting system by consortia evades 1.7 billion euros in taxes for private companies of national importance]

Piero Tulli, presidente del Gruppo Cisco Italia

Piero Tulli, presidente del Gruppo Cisco Italia

Italy’s financial police on Tuesday said they had broken up a ring of companies they believe used false accounting to defraud the state of 1.7 billion euros ($2.2 billion) of tax. Police said two Rome businessmen, Pierino Tulli and Maurizio Ladaga, created a system using false invoices issued by intermediary subcontracting companies in areas such as security services and industrial cleaning to perpetrate the fraud. Using these false invoices, large sums of money were put into the accounts of shell companies. The funds were then taken out in cash and deposited in San Marino or Luxembourg, and the companies declared bankrupt, the police said.
The mechanism fraudulently used since 2001 to today’s date consisted generally in foster subcontracting services to co-operative societies specially constituted by the consortia administered by the suspects, who reportedly accounted for contracts from public entities, both by private companies of national importance . Cooperative societies, in turn, through the issuance of invoices for nonexistent transactions for about 400 million euro – credit the money received to further cooperative so-called “final”, whose accounts were gradually emptied by withdrawals cash, not justified by any business logic.
A total of 62 people are suspected of taking part in the fraud to some degree.

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Tunisia Conference 2020 will be held in Tunis on 29 and 30 November. In the preamble, the economic leaders of the country are currently on a European tour to attract financiers.
Dominique Strauss-Kahn was called to the bedside of Tunisia still recovering, more than five years after the revolution. Former IMF chief part, via his firm Parnassus and ARJIL bank consortium to promote the 2016-2020 development plan … former IMF director Dominique Strauss-Kahn as project manager.

Former prime minister Alain Juppe has widened his lead over rival Nicolas Sarkozy to win the center-right’s nomination for France’s 2017 presidential elections, an opinion poll showed on October 25. Juppe is seen winning 41 percent of the votes in the first round on Nov. 20, up four points from last month.
The former head of state and candidate for the primary from the right Nicolas Sarkozy would vote against the FN and for Francois Hollande should the situation arise, he hinted Thursday on RMC and BFM TV.
“I have never voted for the National Front and I do not intend to do so,” he said when asked about his choice in such circumstances. He would vote for Hollande? “No light heart,” said he dropped without uttering the name of the one who beat him in 2012. “I think between us with the FN there is an insurmountable barrier. For them immigration it is a problem of principle, for me it is a number of problem is not quite the same thing, “said the former head of state.
Not without causing a few snickers, the option Dominique Strauss-Kahn was a time evoked too. Polls have shuddered. But the scenario of a return does not seem possible.

September 24 DSK and Karl Rove in Kiev for conference ]
7784939705_dominique-strauss-kahn-face-a-un-journaliste-de-quotidien-a-kiev_zpsr3upigji

video-dominique-strauss-kahn-casse-le-micro-d-un-journaliste-de-quotidien_zpsfnrwthnl

Myriam l’Affouffir and DSK leaving Kiev

Dominique Strauss-Kahn and Karl Rove attended the 13th Yalta European Strategy Annual Meeting of  Victor Pinchuk, the Ukrainian tycoon who married the daughter of Ukrainian strongman Leonid Kuchma ,this week in Kiev,

[March 31 DSK: organised fraud, misuse of corporate assets and breach of trust ]

myriam l'aouffir and friend

Myriam L’Aouffir and friend

French prosecutors have charged organised fraud, misuse of corporate assets and breach of trust against Paris-listed Leyne Strauss-Kahn and Partners (LSK)
Jean-Francois Ott, former chief of real estate firm Orco, launched the initial complaint, saying he was given false information about LSK and lost 500,000 euros ($560,000) that he invested in July 2014.
Strauss-Kahn has blamed the company’s mismanagement on his business partner, Thierry Leyne, who committed suicide in October 2014.
The company was declared bankrupt a few weeks later.
Strauss-Kahn quit the firm just days before Leyne’s death and accused his former associate of “excessive borrowing”.
The investigators will seek to determine whether he had a direct role in managing the company’s funds, which he denies.
Critics say he must have known about LSK’s financial difficulties, noting that the firm stopped making payments in May 2014.
But Strauss-Kahn said in a letter to the Luxembourg judiciary in November 2014, seen by AFP, that board meetings did not reveal any serious difficulties in the finances, and daily operations were left to Leyne.

more LSK

[February 5  Kiev’s Kredit-Dnipro Bank appoints DSK to independent watchdog ]

Dominique Strauss-Kahn has been appointed to the supervisory board of a bank owned by Ukraine’s second-richest businessman Viktor Pinchuk. Kiev’s Kredit-Dnipro Bank said the decision to accept Strauss-Kahn and five others to the advisory body was taken on February 1 and goes into immediate effect. It added that Strauss-Kahn would serve as an independent committee member who does not represent shareholders’ interests. Pinchuk is the son-in-law of former Ukrainian president Leonid Kuchma and is believed to have holdings worth $1.43 billion (1.29 billion euros).

LSK

[December 5 2014 DSK resigned three days before Leyne’s plunge ]

Mémorial is the official gazette of the Grand Duchy of Luxembourg. The Mémorial C on Tuesday 2 December confirmed that Dominique Strauss Kahn did record his resignation from the Presidency of the Board of Directors of the financial holding company Leyne Strauss-Kahn on October 20, is three days before the suicide of teammate Thierry Leyne. The disappearance of the founder of LSK precipitated the collapse of the group implemented between Luxembourg, Switzerland, Tel Aviv and the Channel Islands. The holding company was declared bankrupt on November 7, 2014 by the tribunal of Luxembourg sitting in commercial matters.

“The Board of Directors (…)”. During his October 20 took note of the resignation of Dominique Strauss-Kahn of the Board with immediate effect. Council entrusts the Presidency of the company to Mr. Thierry Leyne who accepts it,”said an extract from the minutes.

November 6 DSK on the demise of LSK: ‘I think first of the investors and employees.’]
His comments:
It is clear that AK Asset Management had cash-flow problems and had spread payments. This is the reason why the Bâloise reacted.
What happens to the 20% that you held in LSK?
I had more than 15% since an increase in capital which had diluted my participation. I am in the same situation as all other shareholders.
How much have you lost in this case?
I think first to the investors and employees. Regarding me, I probably lost my investment and have never received any remuneration. For me, it is a lot of money.
Under what circumstances did you met Thierry Leyne?
I knew him for a short time, he was introduced to me by a very long time friend who became his companion.
What is the reason for his suicide according to you?
Honestly it’s hard to say. There are obviously some personal reasons which probably I do not know. Nevertheless, everyone knows that he was deeply troubled by the disappearance of his wife. I think also that he had contracted a series of excessive borrowings. -Parisien – Aujourd’hui en France

“After the tragic death of Thierry Leyne, Chairman, the members of the Board of Directors of the company LSK discovered additional commitments within the group of which they had no knowledge and which deepen the delicate financial situation”, said the company in a short release. Le Nouvel Observateur
“Consequently [the board] has decided to declare insolvency.” -WSJ

[October 31 LSK: thousands of shares changing hands on single days in target company]

 Leyne Strauss-Kahn & Partners (LSK) Dominique Strauss-Kahn and his partner Thierry Leyne recently visited Nicosia.

Leyne Strauss-Kahn & Partners (LSK) Dominique Strauss-Kahn and his partner Thierry Leyne recently visited Nicosia.

LSK Partners were is trouble with Commission de Surveillance du Secteur Financier in Luxembourg and Finma in Switzerland before Leyne’s suicide.
Insch Capital Management made a formal complaint to Swiss regulators Finma claiming that LSK & Partners made “totally unauthorised purchases” of shares in Firstcaution, an insurer of which LSK & Partners owned a majority stake, using $400,000 from the firm’s funds deposited in VP Bank- a private bank headquartered in the Principality of Liechtenstein.
LSK bought back the bulk of the shares in March this year, according to Insch’s letter to the Luxembourg regulator, and also transferred just under €40,000 from LSK to the Insch fund’s account.
Only 10 shares of Firstcaution typically traded on a daily basis in 2011 and there were no trades in 2012 or in the first two months of 2013. Volume then spiked last year, with tens or hundreds of thousands of shares changing hands on single days. The stock was at 7.99 euros on Oct. 27, valuing the company at 18.3 million euros.
Part of this trading included a transaction worth more than $400,000 from Insch’s account at VP Bank, a Luxembourg-based private bank, according to Insch’s letter.

LSK itself was just-over-30%-owned by Mr. Leyne, while Mr. Strauss-Kahn owns just over 20%.
October 29 DSK asset-management fling fell 59% in 2014, he resigned, partner jumped]

LSK&Partners, Monaco Bourse

LSK&Partners, Monaco Bourse

Mr. Leyne, 48, jumped off the 23rd floor of one of the Yoo towers

Mr. Leyne, 48, jumped off the 23rd floor of one of the Yoo towers

Strauss-Kahn, 65, gave up the chairmanship at Leyne, Strauss-Kahn & Partners (MLLSK) on Oct. 20 “to dedicate himself to other activities,” the firm said in an e-mailed statement dated October 27.

Strauss-Kahn bought a 20 percent stake in Leyne’s investment-banking and asset-management company in 2013 as part of an effort to rebuild his post-IMF life after a scandal dashed his chance to run for the French presidency. LSK & Partners, as the Paris-listed bank is known, said in March it planned to use Strauss-Kahn’s economic and political knowledge to help start a $2 billion hedge fund.

LSK & Partners shares were halted in Paris on Oct. 23, after falling 59 percent in 2014. Assya Asset Management Luxembourg SA, a unit of LSK & Partners, filed a suspension of payments request on Oct. 24 to a local court, Luxembourg’s financial supervisor said October 27.

[October 24 Thierry Leyne, partner of Dominique Strauss-Kahn in a Hedge Fund, jumps out 23rd Story window]
Thierry Leyne, a French-Israeli banker and partner of Dominique Strauss-Kahn, the disgraced former chief of the International Monetary Fund, was found dead on Thursday after apparently taking his own life in Tel Aviv.

Mr. Leyne, 48, jumped off the 23rd floor of one of the Yoo towers, a prestigious residential complex, according to Israeli officials. Strauss-Kahn was slated to become LSK’s [Leyne, Strauss-Kahn & Partners, Compagnie Financière] chairman on Oct. 18 after a shareholders’ meeting, while Leyne would be chief executive officer and would also be the chairman of the group’s units,

[March 21 Dominique Strauss-Kahn trying on a Hedge Fund]

a little lunch

;
Mr. Strauss-Kahn, a former International Monetary Fund chief and French presidential hopeful, is currently in China making the rounds of global investors and seeking to drum up interest in a hedge fund, Mohamad Zeidan, chief operating officer of Mr. Strauss-Kahn’s Luxembourg-based investment firm, LSK & Partners, said by telephone from Shanghai.

[October 20 2013]

On October 16, Dominique Strauss-Kahn, accompanied by two people, one who was Minister of Economy and Finance of the government of Lionel Jospin had lunch on the terrace of Olive cafe on the Boulevard Victor Hugo. Nîmes. Decorated with a mix of stonework, exposed beams and contemporary features, Café Olive is one of the ‘in’ places in the heart of Nîmes.

[October 1]
Dominique Strauss-Kahn has accepted to be named Chairman of the Board of Anatevka S.A,, now “Leyne, Strauss-Kahn & Partners, Compagnie Financière” (LSK), to develop an international investment bank activity.

In order to develop such activities, former French Minister of Economy and Finance now wishes to rely on the teams and international presence of Anatevka, a Group founded in 1994 by banker Thierry Leyne (co-founder of Consors, Synthesis Bank, EBPF-Financière de l’Echiquier, Assya, Firstcaution …). ,Assya, a subsidiary of Anatevka S.A, a holding company in Luxembourg. This parent company, which heads the group, focuses on three complementary business lines: asset management, investment capital and insurance.

Strauss-Kahn is slated to become LSK’s chairman on Oct. 18 after a shareholders’ meeting, while Leyne will be chief executive officer and will also be the chairman of the group’s units, according to the firm’s statement.

 Thierry Leyne (co-founder of Consors, Synthesis Bank, EBPF-Financière de l’Echiquier, Assya, Firstcaution …)

Thierry Leyne (co-founder of Consors, Synthesis Bank, EBPF-Financière de l’Echiquier, Assya, Firstcaution …)

[May 21, 2011]

France Soir

71 Broadway

71 Broadway

71 Broadway

71 Broadway

DSK is expected to be released on bail May 20. Assistant DA Artie McConnell tried to get the move to house arrest delayed until the mayor’s office and NYPD could approve the decision because of the disruption Strauss-Kahn’s presence will cause to the neighborhood.
“This location is in downtown Manhattan it’s one or at most two lanes of traffic there. It’s near Ground Zero, and near transit hubs and construction sites,” said McConnell. “It’s an extremely problematic area for the police to control.”

Alleged Victim. Figaro
Ira Judelson said to be the bondsman more
Judge Obus grants bail: Strauss-Kahn has been granted bail on several conditions. He must post a $1 million cash bail, surrender his travel documents and agree to home detention. He must also post a $5 million cash bond.

Justice Micheal Obus

Justice Micheal Obus

Justice Michael J. Obus The Hon. Michael J. Obus currently serves as the Administrative Judge for Criminal Matters in New York County. Upon graduating from the Columbia University School of Law in 1973, Judge Obus joined the Legal Aid Society of Nassau County, NY, where he was Chief of the Criminal Appeals Bureau from 1979 to 1986. He received his undergraduate degree from Rutgers University in 1970.

3 pm est Dominique Strauss-Kahn has been formally indicted,on 7 counts, says NYC DA John McConnell at a bail hearing

Dominique Strauss-Kahn prisoner movement slip

Dominique Strauss-Kahn prisoner movement slip

Dominique Strauss-Kahn Resignation Letter

Dominique Strauss-Kahn Resignation Letter

SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, CRIMINAL TERM, PART 1

THE PEOPLE OF THE STATE OF NEW YORK, -againstDOMINIQUE STRAUSS-KAHN, Defendant.

) ) ) ) ) ) ) ) )

Docket No.: 2011NY035T73

————————–~)
AFFIRMATION OF SHAWN P. NAUNTON IN SUPPORT OF MOTION FOR ORDER FIXING BAIL FOR THE RELEASE OF DOMINIOUE STRAUSS-KAHN SHA WN P. NAUNTON, affinns the following to be true under penalty of perjury: 1. I am an attorney for Dominique Strauss-Kahn herein and am familiar with the

facts and circumstances surrounding this action. 2. This affidavit is being made, pursuant to N.Y. Crim. Proc. Law ? 530.30, for an

Order of bail pending disposition of the felony charges herein, now pending in the Criminal Court of the City of New York, County of New York. 3. On May 16, 2011, Mr. Strauss-Kahn was arraigned on a felony complaint,

charging Mr. Strauss-Kahn with two counts of criminal sexual acts in the first degree, under PL130.50(1), a class B felony; one count of attempted rape in the first degree, under PL1301130.35(1), a class C felony; one count of sexual abuse in the first degree, under PL130.65(1), a class D felony; one count of unlawful imprisonment in the second degree, under PL135.05, a class A misdemeanor; one count of sexual abuse in the third degree, under PL130.55, a class B misdemeanor; and one count of forcible touching, under PL130.52, a class A misdemeanor.

4.

Since May 14,2011, Mr. Strauss-Kahn has been confined at various locations in

the custody of the New York City Police Department. Currently, upon information and belief, since his arraignment on May 16, 2011, he is in the custody of the New York City Department of Corrections confined at the West Facility ofthe Rikers Island jail. 5. On May 16,2011, the Criminal Court of the City of New York, County of New

York (the “Criminal Court”), made and entered an order denying Mr. Strauss-Kahn’s application for bail and directing that Mr. Strauss-Kahn be remanded in custody. 6. This application sets forth additional bail conditions that were not before the

Criminal Court, including agreement that Mr. Strauss-Kahn will be confined to home detention at an address in Manhattan 24 hours per day, with electronic monitoring. We respectfully submit that these additional bail conditions eliminate any concern that Mr. Strauss-Kahn would or could leave this Court’s jurisdiction. No previous application has been made to this Court for the relief requested herein. 7. “The policy of our law favors bail because of the presumption that the prisoner is

innocent.” People ex rei. Lobell v. McDonnell, 71 N.E.2d 423, 296 N.Y. 109, 111 (1947); see
People v. Keeper o/City Prison, 49 N.E.2d 498,501,290 N.Y. 393,298 (1943) (“Denial of bail

is no light matter, and needs to be buttressed by a real showing ofreasons therefore.”); People v.
Mohammed, 653 N.Y.S.2d 492, 496 (Sup. Ct. Kings Co. 1996) (“[P]ublic policy favors release

pending a determination of guilt or innocence.”); People v. Bach, 306 N.Y.S.2d 365, 368 (Co. Ct. Dutchess Co. 1970) (“The right to bail is one of our most cherished rights, and the policy of our law from time memorial has always favored it.”); cf People ex reI. Klein v. Krueger, 255 N.E.2d 552, 554-55, 25 N.Y.2d 497, 499-501 (1969) (recognizing that denial of bail presents issues of constitutional dimension).
8.

Consideration of the factors set forth in N.Y. Crim. Proc. Law ? 510.30(2)

strongly supports an Order of release on bail pending disposition of the felony complaint herein.
See People ex reI. Ryan v. Infante, 108 A.D.2d 987, 988, 485 N.Y.S.2d 852, 853 (3rd Dept.

1985) (bail determination “must be upon a rational basis delineated by the criteria listed under CPL 510.30.”); People v. Mohammed, 653 N.Y.S.2d 492,497 (Sup. Ct. Kings Co. 1996) (“The general principle is that the only matter of legitimate concern is whether any bail or the amount fixed is necessary to ensure a principal’s future appearances in court.”) (citing Matter ofSardino v. State Comm In on Judicial Conduct, 448 N.E.2d 83, 58 N.Y.2d 286, 289 (1983)); id (“New York has consistently rejected preventative detention as a bail policy consideration.”); People ex
rei. Bauer v. McGreevy, 555 N.Y.S.2d 581, 583 (Sup. Ct. Rensselaer Co. 1990) (“A court cannot

deny bail solely for the reason that it wishes to protect the community from any possible future criminal conduct of the defendant.”); People ex rei. Bryce v. Infante, 144 A.D.2d 898, 899, 535 N.Y.S.2d 215,216 (3rd Dept. 1988) (holding that “probability of conviction and the severity of sentence” did not justify denial of bail when weighed against “petitioner’s reputation, employment and financial resources, lack of prior criminal record and previous record of responding to court appearances”); People ex rei. Benton v. Warden, 118 A.D.2d 443, 445, 499 N.Y.S.2d 738 (1st Dept. 1986) (holding improper for trial court to increase bail “exclusively on its conviction that petitioner would be found guilty of serious crimes entailing a lengthy term of imprisonment”).

Mr. Strauss-Kahn’s History and Background
9. Mr. Strauss-Kahn’s history and background weigh strongly in favor of an Order Mr. Strauss-Kahn is a loving

of release on bail. N.Y. Crim. Proc. Law ? 51O.30(2)(a)(i).

husband and father, and a highly regarded international diplomat, lawyer, politician, economist,

and professor, with no prior criminal record.

He has been married for over ten years to Ms.

Anne Sinclair, and has four children from a prior marriage, including a daughter who resides in New York City. 10. Since November 2007, Mr. Strauss-Kahn has been the Managing Director of the

International Monetary Fund (the “IMF”). The IMF, which is headquartered in Washington, D.C., is a specialized agency of the United Nations that works to foster international monetary cooperation. The IMF has 187 member countries. 11. Prior to taking his position at the IMF, Mr. Strauss-Kahn was a member of the

French National Assembly and a Professor of Economics at the Institut d’Etudes Politiques de Paris. From 2001 to 2007, he was reelected three times to the National Assembly. Mr. StraussKahn has taught economics at the Institut d’Etudes Politiques de Paris and has been named a visiting professor at Stanford University. 12. From 1991 to 1999, Mr. Strauss-Kahn held various high-level Minister positions

in the French government, including Minister of Economy, Finance and Industry, and Minister of Industry and International Trade. Mr. Strauss-Kahn was entrusted with substantial responsibility and authority in these positions, and achieved important political milestones, including managing the launch of the Euro and participating in the Uruguay Round of trade negotiations. 13. Between 1993 and 1997, Mr. Strauss-Kahn practiced law in the private sector as a

corporate lawyer. Mr. Strauss-Kahn began his career as assistant professor, then professor of economics at the University of Paris where he was tenured in 1978. He was then appointed Deputy Commissioner of the Economic Planning Agency (1981-1986). Mr. Strauss-Kahn was elected Deputy (Member of Parliament) to the National Assembly in 1986, where he chaired the Finance Commission from 1988 to 1991.

14.

Mr. Strauss-Kahn holds a Ph.D. in economics from the University of Paris. He As an

also holds degrees in law, business administration, political studies, and statistics.

academic, Mr. Strauss-Kahn’s research fields include household saving behavior, public finance, and social policy. Mr. Strauss-Kahn Has Strong Family Ties To New York 15. Section 51 0.30(a)(iii), which evaluates the defendant’s “family ties and length of

his residence if any in the community,” also strongly supports Mr. Strauss-Kahn’s release on bail pending trial. Mr. Strauss-Kahn has extensive family and financial ties to the United States, both in Washington, D.C. and in New York City. As noted above, Mr. Strauss-Kahn has been

married for over ten years to Ms. Anne Sinclair, and has four children from a prior marriage. Ms. Sinclair was born in New York. Ms. Sinclair completed part of her secondary schooling in the United States, before completing her education in France, majoring in politics and law. Ms. Sinclair is employed as a freelance journalist and television interviewer and has reported both on American and international political news, and is currently working on a book about American political life. 16. Mr. Strauss-Kahn and Ms. Sinclair have lived in Washington, D.C. since In

November 2007, when Mr. Strauss-Kahn was named Managing Director of the IMF.

November 2007, the couple purchased a home in Washington, D.C., where they currently reside. A copy of the deed, which is in Ms. Sinclair’s name, is attached hereto as Exhibit A. photograph of the property is attached hereto as Exhibit B. 17. Mr. Strauss-Kahn is very close to all four of his children and is known as a loving A

and involved father. His daughter, Camille Strauss-Kahn, is a graduate student at Columbia University and lives pennanently on the Upper West Side of Manhattan. Mr. Strauss-Kahn is in requent touch with Camille and visits her often in New York City, when traveling away from Washington, D.C. Mr. Strauss-Kahn Has No Prior Criminal Record 18. Mr. Strauss-Kahn has no prior criminal record in the United States, France, or any

other jurisdiction, a factor that should weigh substantially in granting his application for bail. N.Y. Crim. Proc. Law ? 510.30(2)(a)(iv). Mr. Strauss-Kahn’s Employment and ,Financial Resources 19. As noted, Mr. Strauss-Kahn has held the position of Managing Director of the

IMF since November 2007 and has adequate financial resources to post bail. N.Y. Crim. Proc. Law ? 510.30(2)(a)(ii). Mr. Strauss-Kahn Does Not Present A Risk of Flight 20. Mr. Strauss-Kahn has no “previous record … with respect to flight to avoid

criminal prosecution,” N.Y. Crim. Proc. Law ? 510.30(2)(a)(vi), and poses no such risk. 21. The felony complaint alleges that Mr. Strauss-Kahn committed the offenses

alleged therein in a hotel room at about 12:00 p.m. on May 14,2011. Mr. Strauss-Kahn checked out of the hotel at approximately 12:28 p.m. and proceeded to a previously scheduled lunch a few blocks away at approximately 12:45 p.m. 22. After lunch, Mr. Strauss-Kahn was driven to John F. Kennedy International

Airport to catch an Air France flight to Paris, which was scheduled to depart at 4:40 p.m. A seat for Mr. Strauss-Kahn had been reserved on that particular flight approximately one week in advance, in anticipation of a meeting Mr. Strauss-Kahn, on behalf of the IMF, had scheduled with German Chancellor Angela Merkel in Berlin on Sunday, May 15,2011, and a meeting he had scheduled with various European finance ministers in Brussels on Monday, May 16, 2011.
23.

Prior to the flight’s departure, Mr. Strauss-Kahn contacted the hotel at which he

had been staying in New York to inquire about a cell phone he had left at the hotel. In a conversation with hotel security, Mr. Strauss-Kahn voluntarily disclosed that he was at John F. Kennedy International Airport and was scheduled to depart for France at 4:40 p.m. 24. Mr. Strauss-Kahn also has voluntarily submitted to forensic and scientific testing

for DNA evidence at the request of the District Attorney’s Office. 25. We respectfully submit that the following bail conditions, set forth in the

accompanying proposed Order, eliminate any concern that Mr. Strauss-Kahn would or could leave this Court’s jurisdiction: Mr. Strauss-Kahn will post $1 million in cash bail; Mr. StraussKahn has agreed to be confined to home detention at an address in Manhattan 24 hours per day, with electronic monitoring; Mr. Strauss-Kahn has already surrendered his official French passport to the District Attorney’s Office; in addition, his laissez-passer travel document issued by the United Nations will be turned over to co-counsel William Taylor, who will surrender it to the District Attorney’s Office. 26. Mr. Strauss-Kahn is willing to represent to the Court that he will voluntarily

appear in the Criminal Court of the City of New York, County of New York and in this Court for all proceedings relating to the matters with which he is charged. An affidavit signed by Mr. Strauss-Kahn waiving all rights to extradition proceedings of every kind and character is attached hereto as Exhibit DC.

WHEREFORE. the undersigned respectfully prays for an order, pursuant to N.Y. Crim. Proc. Law ? 530.30, fixing bail for the release of Mr. Strauss-Kahn pending disposition of the felony complaint herein, and for such other relief as the Court deems just and proper.

Dated: May 18, 2011

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Shawn P. Naunton Zuckerman Spaeder LLP 1540 Broadway, Suite 1604 New York, NY 10036-4039 Tel.: (212) 704-9600 Fax: (212) 704-4256 snaunton@zuckennan.com

Attorney for Dominique Strauss-Kahn

AFFIDA VIT OF DOMINIQUE STRAUSS-KAHN ) ) SS. COUNTY OF NEW YORK ) Dominique Strauss-Kahn, having been duly sworn, hereby deposes and says: 1. I am a citizen of the Republic of France. I am over the age of eighteen years and I STATE OF NEW YORK

am competent to make this Affidavit. 2. I acknowledge that I am charged in the Criminal Term of the Supreme Court of

the State of New York, County of New York (the “New York Court”), with felony offenses and that a warrant has been issued from the State for my arrest. 3. I have surrendered my official French passport to officers of the New York Court.

I do not intend to leave the United States of America without the permission of the New York Court until trial of the matters with which I am charged. 4. I acknowledge to the New York Court that I am willing to voluntarily appear, and

I intend to voluntarily appear, in the New York Court for all proceedings relating to the matters with which I am charged. 5. In the event I fail to voluntarily appear in the New York Court for any such

proceedings, I waive the issuance and service of the warrant provided by law for my extradition from the Republic of France or any other jurisdiction. I understand that I have the right to demand that extradition proceedings be initiated and carried out in this matter and I voluntarily waive all extradition proceeding of every kind and character. 6. I understand that this is not in any way a plea of guilty and that I do not waive any of my rights in the trial of the matter with which I am charged in the New York Court.

7f5OMrNK/UE STRAUSS-KA Sworn to and Subscribed before me This _ day May, 2011.

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