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Elizabeth Lopatto

Elizabeth Lopatto

Senior Reporter

Senior Reporter

    More From Elizabeth Lopatto

    Elizabeth Lopatto
    Elizabeth Lopatto
    One thing I’ve been wondering...

    If the government wanted to put Zhao in jail for serious time, why did they let him plead to something with such a short sentence? It makes me wonder about the matter under seal we keep hearing about.

    Elizabeth Lopatto
    Elizabeth Lopatto
    “This is unprecedented in terms of volume, scale and massiveness in dollar impact of noncompliance,” says Judge Richard Jones.

    He and Burck are having a back-and-forth now about the appropriateness of jail time as recommended by the probation department.

    Elizabeth Lopatto
    Elizabeth Lopatto
    I do find it curious that defense lawyers keep referring to “a mistake.”

    We know from CZ’s messages quoted in multiple court cases that avoiding anti-money laundering controls was not exactly a mistake but a strategy. The language cuts against the idea that CZ is taking “full responsibility” for his misconduct...

    Elizabeth Lopatto
    Elizabeth Lopatto
    Second reference to “matters that are under seal.”

    👀

    Elizabeth Lopatto
    Elizabeth Lopatto
    Burck is by far a better speaker than Bartlett.

    He’s making a strong case that the government’s request for three years is way out of line. CZ looks less unhappy listening to his lawyers speak; he’s listening intently, with his eyebrows up.

    Elizabeth Lopatto
    Elizabeth Lopatto
    A second defense lawyer, William Burck, is now speaking on CZ’s behalf.

    “When we read the government’s submission... it read to us like the kind of submission a desperate defendant would write” because it says, essentially, to ignore the sentencing guidelines.

    Elizabeth Lopatto
    Elizabeth Lopatto
    There is some secret “compelling factor” the court should consider, says CZ’s lawyer.

    Some of the filings have been sealed. Wonder what this is!!

    Elizabeth Lopatto
    Elizabeth Lopatto
    “He never minimized his conduct,” says Mark Bartlett, CZ’s lawyer.

    He “admitted his mistake,” Bartlett says, and asks whether there is anything else CZ could possibly have done to show remorse. Bartlett says he can’t think of anything else.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Defense speaking now.

    “When I hear the government discussing the crime here, they don’t seem to be discussing the actual crime,” which is that CZ pleaded guilty to not having an anti-money laundering program. The sanctions violations are irrelevant.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Probation department is speaking now.

    They’re recommending a custodial sentence of 5 months, which they feel is enough to deter defendant and others “without being unnecessarily harsh.” It would be one of the longest sentences for such conduct in this country.