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  3. UNITED STATES DISTRICT COURT
  4. SOUTHERN DISTRICT OF NEW YORK
  5. In the Matter of a Warrant for All
  6. Content and Other Information
  7. Associated with the Email Accounts
  8. fi)omnil
  9. Maintained at
  10. Premises Controlled by Google, Inc.,
  11. the Email Account
  12. Maintained at Premises Controlled by
  13. Oath, Inc., and the Email Account
  14. maintained at
  15. Premises Controlled by 1 & 1 Intemet,
  16. Inc., USAO Reference No.
  17. 2018R00127
  18. TO BE FILED UNDER SEAL
  19. AGENT AFFIDAVIT
  20. 18 MAG 169 6
  21. I
  22. Agent Affidavit in Support of Application for a Search Warrant
  23. for Stored Electronic Communications
  24. STATE OF NEW YORK )
  25. ) ss.
  26. COUNTY OF NEW YORK )
  27. Special Agent
  28. of the United States Attorney's Office for the Southem
  29. District of New York, being duly sworn, deposes and states:
  30. I. Introduction
  31. A. Affiant
  32. 1. Iam a Special Agent with the United States Attorney's Office for the Southem District
  33. of New York (the "USAO"). I have been a Special Agent with the USAO since August 2016. I
  34. previously served as a Special Agent with the United States Department of Labor Inspector
  35. General from May 2011 to August 2016. In the course of my experience and training in these
  36. positions, I have participated in criminal investigations into federal offenses involving a wide array
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  39. of financial crimes, including frauds on financial institutions. I also have training and experience
  40. executing search warrants, including those authorizing the search of email accounts.
  41. B. The Provider, the Subject Account and the Subject Offenses
  42. 2. I make this affidavit in support of an application for a search warrant pursuant to 18
  43. U.S.C. 2703 for all content and other information associated with the email accounts
  44. @gmail.com (the "Cohen Account"), "1vDCPC
  45. (the
  46. Account")' and @aol.com (the ' ÄAccount") (collectively, the
  47. —Account, and
  48. "Subject Accounts"). The Cohen Account,
  49. Account are maintained and controlled by Google, Inc., headquartered at 1600 Amphitheatre
  50. Parkway, Mountain View, California 94043 ("Google"), the MDCPC Account is maintained and
  51. controlled by 1 & 1 Internet, Inc., headquartered at 701 Lee Road, Suite 300, Chesterbrook,
  52. Pennsylvania 19087 ("1 & 1"), and th—
  53. Account is maintained and controlled by Oath, Inc.,
  54. 22000 AOL Way, Dulles, Virginia 20166 ("Oath") (together, the "Providers"). The information
  55. to be searched is described in the following paragraphs and in Attachments A, B, C and D to the
  56. proposed warrants.
  57. 3. As detailed below, there is probable cause to believe that the Subject Accounts contain
  58. evidence, fruits, and instrumentalities of violations of 18 U.S.C. 371 (conspiracy to defraud the
  59. United States), 1005 (false bank entries), 1014 (false statements to a financial institution), 1343
  60. (wire fraud), and 1344 (bank fraud) (collectively, the "Subject Offenses"). The Target Subjects of
  61. this investigation are MICHAEL COHEN ("Cohen") and others known and unknown. This
  62. affidavit is based upon my personal knowledge, my review of documents produced pursuant to
  63. grand jury subpoenas and prior search warrants, my review of interview reports prepared by other
  64. law enforcement officers, and my conversations with other law enforcement officers, as well as
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  69. my training and experience concerning the use of email in criminal activity. Because this affidavit
  70. is being submitted for the limited purpose of establishing probable cause, it does not include all
  71. the facts I have learned during my investigation. Where the contents of documents and the actions,
  72. statements, and conversations of others are reported herein, they are reported in substance and in
  73. part, except where otherwise indicated.
  74. C. Services and Records of the Provider
  75. 4. I have learned the following about the Providers:
  76. a. The Providers offer email services to the public. In particular, Google permits
  77. subscribers to maintain email accounts under the domain name gmail.com. Google also allows a
  78. subscriber to maintain email accounts under any domain name under the subscriber's control. For
  79. example, if a subscriber controls the domain name '
  80. ' Google enables the subscriber
  81. to host any email address under this domain name on servers operated by Google. Oath permits
  82. subscribers to maintain email accounts under the domain name aol.com. 1 & 1 permits subscribers
  83. to maintain email accounts under any domain name under the subscriber's control. For example,
  84. if a subscriber controls the domain nam€
  85. ' 1 & 1 enables the subscriber to host any
  86. email address under this domain name on servers operated by •1 & 1. A subscriber using the
  87. Providers' services can access his or her email account from any computer connected to the
  88. Internet.
  89. b. The Providers maintain the following records and information with respect to every
  90. subscriber account:
  91. i. Email contents. In general, any email (which can include attachments such
  92. as documents, images, and videos) sent to or from a subscriber's account, or stored in draft form
  93. in the account, is maintained on the Providers' servers unless and until the subscriber deletes the
  94. email. If the subscriber does not delete the email, it can remain on the Providers' computers
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  99. indefinitely. Even if the subscriber deletes the email, it may continue to be available on the
  100. Provider's servers for a certain period of time.
  101. ii. Address book. The Providers also allow subscribers to maintain the
  102. equivalent of an address book, comprising email addresses and other contact information of other
  103. email users.
  104. iii. Subscriber and billing information. The Providers collect and maintain
  105. (typically unverified) identifying information about each subscriber, including, for example, name,
  106. username, address, telephone number, and alternate email addresses. The Providers also maintain
  107. records concerning the date on which the account was created, the Internet protocol ("IP") address
  108. of the user at the time of account creation, the current status of the account (e.g., active or closed),
  109. the length of service, and the types of services utilized by the subscriber. Additionally, for paying
  110. subscribers, the Providers maintain records of the subscriber's means and source of payment,
  111. including any credit card or bank account number.
  112. iv. Transactional information. The Providers also typically retain certain
  113. transactional information about the use of each account on its system. This information can include
  114. records of login (i.e., session) times and durations and the methods used to connect to the account
  115. (such as logging into the account through the Providers' website).
  116. v. Customer correspondence. The Providers also typically maintain records
  117. of any customer service contacts with or about the subscriber, including any inquiries or
  118. complaints concerning the subscriber's account.
  119. vi. Search history. Google and Oath also typically maintain records of any
  120. search history or web history associated with the subscriber's account.
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  125. vii. Associated content. Google also typically maintains content and records
  126. relating to the following applications that are associated with its e-mail accounts: (A) "Google
  127. Docs," which providés document-editing software that can be used to create, share, store, and
  128. manage documents online; (B) "Google Drive," which enables users to store files on Google
  129. servers, where they can be accessed remotely by the user and others; and (C) "Gchat" or "Instant
  130. Messenger," which provides a chat interface through which users can communicate with each
  131. other in real time. Oath also typically maintains content and records relating to AOL instant
  132. message, which provides a chat interface through which users can communicate with each other
  133. in real time.
  134. viii. Preserved and backup records. The Providers also maintain preserved
  135. copies of the foregoing categories ofrecords with respect to an account, for at least 90 days, upon
  136. receiving a preservation request from the Government pursuant to 18 U.S.C. 2703(f). The
  137. Providers may also maintain backup copies of the foregoing categories of records pursuant to its
  138. own data retention policy.
  139. D. Jurisdiction and Authority to Issue Warrant
  140. 5. Pursuant to 18 U.S.C. 2703(a), (b)(1)(A) & (c)(1)(A), the Government may require
  141. a provider of an electronic communications service or a remote computing service, such as the
  142. Providers, to disclose all stored content and all non-content records or other information pertaining
  143. to a subscriber, by obtaining a warrant issued using the procedures described in the Federal Rules
  144. of Criminal Procedure.
  145. 6. A search warrantunder 2703 maybe issued by "any district court of the United States
  146. (including a magistrate judge of such a court)" that "has jurisdiction over the offense being
  147. investigated." 18 U.S.C.
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  152. 7. When the Government obtains records under 2703 pursuant to a search warrant, the
  153. Government is not required to notify the subscriber of the existence of the warrant. 18 U.S.C.
  154. 2703(a), (b)(1)(A), (c)(2) & (3). Additionally, the Government may obtain an order precluding
  155. the Provider from notifying the subscriber or any other person of the warrant, for such period as
  156. the Coutt deems appropriate, where there is reason to believe that such notification will seriously
  157. jeopardize an investigation. 18 U.S.C. 2705(b).
  158. E. Prior Applications
  159. 8. On or about July 18, 2017, in connection with an investigation being conducted by the
  160. Office of the Special Counsel ("SCO"), the Federal Bureau of Investigation ("FBI") sought and
  161. obtained from the Honorable Beryl A. Howell, Chief United States District Judge for the District
  162. of Columbia, a search warrant for emails in the Cohen Account sent or received between January
  163. I, 2016 and July 18, 2017. On or about November 13, 2017, the FBI sought and obtained from
  164. Judge Howell search warrants for emails in the Cohen Account sent or received between June 1,
  165. 2015 and November 13, 2017, and emails in the MDCPC Account sent or received between the
  166. opening of the account and November 13, 2017. The SCO has since referred certain aspects of
  167. their investigation into Cohen to the USAO, which is working with the FBI's New York Field
  168. Office. As patt of that referral, the SCO provided the USAO with emails and other content
  169. information obtained pursuant to the search warrants executed by the SCO, which had already
  170. been reviewed for privilege. As discussed below, this affidavit is based in part on my review of
  171. 1
  172. In an abundance of caution, in a separate application the USAO has sought authorization,
  173. pursuant to Fed. R. Crim. P. 41, to review the emails obtained pursuant to the Prior Cohen Account
  174. Warrants for evidence related to certain additional conduct that was not the focus of the Prior
  175. Cohen Account Warrants. The emails obtained from the Prior Cohen Account Warrants that relate
  176. to that additional conduct do not form a basis for the instant application.
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  182. responsive materials produced pursuant to the July 18 and November 13, 2017 warrants (the "Prior
  183. Cohen Account Warrants").
  184. 9. On or about November 7, 2017, and January 4, 2018, as well as certain prior dates, the
  185. SCO sought and obtained from Judge Howell orders authorizing and extending the installation and
  186. use of pen registers and trap and trace devices to record communications sent to or from the Cohen
  187. Account. The SCO has provided pen register data obtained pursuant to those orders to the USAO.
  188. This affidavit, as discussed below, is based in part on my review of the pen register data obtained
  189. pursuant to the November 7, 2017 and January 4, 2018 orders (the "Pen Register Data").
  190. 10. On or about February 16, 2018, the USAO sought and obtained from the Honorable
  191. Debra Freeman, United States Magistrate Judge for the Southern District of New York, an order
  192. pursuant to 18 U.S.C. 2703(d) for email header information associated with the MDCPC
  193. Account. This affidavit, as discussed below, is based in part on my review of email header
  194. information produced by 1 & 1 in response to that order (the "MDCPC Header Information").
  195. II. Probable Cause
  196. A. Overview
  197. 11. The United States Attorney' s Office for the Southern District ofNew York and FBI are
  198. investigating, among other things, a scheme by Target Subject Michael Cohen to defraud multiple
  199. banks. Cohen is an attorney who currently holds himself out as the personal attorney for President
  200. Donald Trump, and who previously served for over a decade as an executive in the Trump
  201. Organization, an international conglomerate with real estate and other holdings.
  202. 12. The investigation has revealed that Cohen has made affirmative misrepresentations in
  203. and omitted material information from financial statements and other disclosures that Cohen
  204. provided to multiple banks in connection with a transaction intended to relieve Cohen of
  205. approximately $22 million in debt he owed on taxi medallion loans from the banks. As set forth
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  211. in detail below, in these financial statements, and in his oral and other written statements to these
  212. banks, Cohen appears to have (i) intentionally omitted cash assets that he began receiving in 2017
  213. from new consulting work; (ii) significantly understated his total holdings of cash and cash
  214. equivalents; and (iii) failed to inform the banks from which he was seeking debt relief that he had
  215. agreed to make a $3.8 million cash payment to a third party,
  216. in connection with
  217. acquisition of the taxi medallions securing Cohen's debt. By making these
  218. misrepresentations and material omissions, Cohen avoided making monthly payments on his
  219. loans, and attempted to and had secured proposed agreements from the banks to relieve him of
  220. certain repayment obligations worth millions of dollars.
  221. 13. Based on my review of emails obtained from the Prior Cohen Account Warrants,
  222. MDCPC Header Information, and documents produced pursuant to subpoenas, I have learned that
  223. Cohen has used the Cohen Account and/or N'IDCPC Account to, among other things, (i)
  224. communicate with
  225. and their attomey=
  226. about the proposed transfer of Cohen's medallions and associated debts; (ii) negotiate a pay-down
  227. of the principal amount of the taxi medallion loans; (iii) communicate with his accountant about
  228. the contents of the false financial statements at issue; and (iv) send those false financial statements
  229. to banks. Additionally, the
  230. Account, respectively, to communicate with Cohen
  231. Account,
  232. about the status of the taxi medallion transaction, and to send relevant financial statements to
  233. banks. Accordingly, and as set forth in more detail below, there is probable cause to believe that
  234. the Subject Accounts will include evidence of the Subject Offenses.
  235. B. Cohen's Statements to Sterling National Bank
  236. 14. As set forth in detail below, in 2014, Cohen, through limited liability corporations
  237. ("LLCs") controlled by him and his wife, Laura Cohen, entered into a series of loans from Sterling
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  242. National Bank ("Sterling") and the Melrose Credit Union ("Melrose"), secured by taxi medallions,
  243. for approximately $20 million. Though entered into by LLCs, the loans were also secured by
  244. personal guarantees in the names of both Cohen and his wife. Over time, as the taxi industry
  245. weakened and the medallions were devalued, Cohen sought to renegotiate the terms of those loans
  246. and/or relieve himself from their obligations, including the personal guarantees. As part of that
  247. effort, Cohen made a series of representations to Sterling and Melrose about his net worth, assets,
  248. available cash, and financial outlook. Specifically, based on my review of records maintained by
  249. Sterling and Melrose, and public sources concerning the taxi industry and the value of taxi
  250. medallions, as well as my review of reports prepared by law enforcement officers of interviews
  251. with a Sterling executive vice-president (the "Sterling Employee-I") and my participation in an
  252. interview with a Sterling employee (the "Sterling Employee-2"), I have learned, among other
  253. things, the following:
  254. a. Taxi medallions are small metal plaques affixed to taxis. Without a medallion, it
  255. is illegal to operate a taxi in cities with medallion systems, such as New York City. Cohen and his
  256. wife own multiple LLCs that collectively own 32 taxi medallions (each LLC owns two
  257. medallions).2 Cohen's purchase of these New York taxi medallions was originally financed by
  258. loans from Capital One Bank, for which the medallions served as collateral. Cohen was not a taxi
  259. operator, and leased his medallions to a third party. That third party made monthly payments to
  260. Cohen, who in turn used some of those proceeds to pay his monthly loan payments.
  261. b. In early 2014, Cohen became a customer of Sterling when he sought to refinance a
  262. mortgage on a rental property that he owned. In or around April 2014, Cohen raised with Sterling
  263. 2 One of these companies, Mad Dog Cab Corp., was jointly owned by Sondra Cohen, who I
  264. believe is Cohen's mother.
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  269. the prospect of refinancing his taxi medallion loans, which were then at Capital One Bank. By in
  270. or about September 2014, Cohen began negotiating a lending transaction with Sterling that would
  271. allow Cohen to pay off his loans at Capital One and borrow more money from the then-increase in
  272. value of the medallions. According to Sterling Employee-I, in 2014, prior to the recent upheaval
  273. in the taxi industry—as a result of the emergence of ride-sharing services, such as Uber—taxi
  274. medallion loans were viewed by banks and investors as safe, short term credits, as the market value
  275. of taxi medallions was consistently rising. Consequently, taxi medallion loans—like the loans held
  276. by Cohen—were frequently refinanced at increasing amounts as the value of the medallions rose.
  277. According to Sterling Employee-I , borrowers typically cashed out the increase in the loan amount
  278. and used the additional funds for other purposes. Cohen appears to have followed this approach in
  279. 2014, when he agreed to refinance his medallion loans for approximately $22 million, which—
  280. according to letters from Capital One Bank in Sterling's files—was greater than his previous debt
  281. at Capital One Bank ($21 million, of which $14.6 million was a line of credit to Cohen). This
  282. allowed Cohen to cash out the proceeds from the transaction.
  283. c. Based on my review of records maintained by Sterling, I have learned that on or
  284. about December 8, 2014, each of Cohen's sixteen taxi medallion corporations entered into loan
  285. agreements and promissory notes with Sterling for the principal sum of $ 1,375,000, with repayment
  286. due on December 8, 2016. Each loan was signed by Michael or Laura Cohen, depending on who
  287. was the sole shareholder of the corporation. The loans were also each secured by a security
  288. agreement, dated the same day, making the medallions collateral for the notes. To give Sterling
  289. additional security, Michael and Laura Cohen signed personal guarantees and confessions of
  290. judgment, giving Sterling the right to pursue collection against the Cohens' personal assets were
  291. their corporations to default under the loan agreements. In total, Sterling agreed to lend
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  296. approximately $22 million to the Cohens' companies. Pursuant to participation agreements,
  297. Sterling transferred 45 percent of that debt to Melrose.3 Under the terms of Sterling's participation
  298. agreements with Melrose, Sterling was precluded from amending or modifying the loans without
  299. the consent of Melrose.
  300. d. In evaluating Cohen's requested refinancing of the taxi medallions, Sterling (and
  301. Melrose, consistent with its participation in the deal) conducted due diligence. At Sterling's
  302. request, Cohen provided Sterling with a statement of financial condition, dated August 1, 2014
  303. (the "August 2014 Financial Statement"), which indicated that Cohen had $100,740,000 in total
  304. assets, $23,550,000 in total liabilities, and a net worth of From my review of a
  305. Sterling credit memorandum, dated September 29, 2014, I know that Sterling viewed the
  306. transaction favorably because, accounting for loan payments, cash flows from the medallions were
  307. projected to be positive, the value of the collateral (as estimated by Sterling) exceeded $42 million,
  308. and the net worth of Cohen—who was the direct obligor under the guarantee agreements—was
  309. over $77 million. An internal Sterling credit and risk rating analysis report, dated October 20,
  310. 2014, recommended approval of the loans for substantially the same reasons.
  311. e. Based on my review of records maintained by Sterling and public sources, I have
  312. learned that over time, the collateral backing Cohen's loans (taxi medallions) lessened in value due
  313. to the rise in ride-sharing companies and significant devaluation oftaxi medallions. Additionally,
  314. Cohen began falling behind on loan payments to Sterling and Melrose. I know from records
  315. maintained by Sterling and an interview with Sterling Employee-2 that, beginning in or around
  316. 3 Melrose, which had a business principally focused on taxi medallion loans, is now in
  317. conservatorship by the National Credit Union Administration ("NCUA").
  318. 4 Cohen subsequently provided Sterling with a revised statement of financial condition, also
  319. dated August 1, 2014, which reported assets of $99,420,000, total liabilities of $23,550,000, and a
  320. net worth of $75,870,000.
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  325. September 2015, Cohen told Sterling, in sum and substance, that the individual leasing Cohen's
  326. medallions had fallen behind in making payments to Cohen, and that as a result, the monthly cash
  327. flow from his taxi medallions had been reduced, leaving him with a shortfall of approximately
  328. $16,000 each month. For instance, I have reviewed an email from Sterling Employee-2, dated
  329. September 9, 2015, summarizing a call with Cohen—which according to the email and toll records
  330. for Cohen's cellphone occurred on September 8, 2015—during which Cohen told Sterling
  331. Employee-2, in sum and substance, about his cash flow problems and a monthly shortfall of
  332. approximately $16,000. In that same email, Sterling Employee-2 commented that despite Cohen's
  333. statements, his personal financial information "indicate[dl a strong ability to make up the difference
  334. in payments." Cohen, however, according to Sterling Employee-2, pushed the bank for a reduction
  335. in Cohen's monthly payments.
  336. f. From my review of records maintained by Sterling and my participation in an
  337. interview with Sterling Employee-2, I have learned that Cohen and Sterling Employee-2 spoke
  338. again on September 28, 2015, and that during the call Cohen stated, in sum and substance, that the
  339. individual to whom Cohen leases the medallions had again reduced monthly payments to Cohen. I
  340. know from my review of records maintained by Sterling that between in or about September 2015
  341. and November 2015, Sterling raised the possibility—both internally and with Cohen—-of Cohen
  342. posting his real estate holdings, personal residence, or some other collateral as additional security
  343. for the banks. According to these records, however, Cohen resisted these requests. From my review
  344. of loan documents and records maintained by Sterling, I know that in or about November 2015, as
  345. a result of Cohen's representation that he was not earning sufficient returns on his medallions to
  346. cover monthly interest payments, Sterling and Melrose agreed to amend their loans with Cohen by,
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  351. among other things, reducing the interest rate Cohen paid to Melrose and extending the loan
  352. maturity date to December 8, 2017.
  353. g. I know from interviews with Sterling Employee-I and Sterling Employee-2, as well
  354. as emails 1 have reviewed, that in or about October 2016, Cohen told Sterling Employee-I that
  355. Cohen had a potential buyer of his taxi medallions, named
  356. who would agree to
  357. assume Cohen's debt with Sterling and Melrose. Based on my review of records maintained by
  358. Sterling, as well as the interviews with Sterling Employee-I and Sterling Employee-2 referenced
  359. above, I know that by or before October 2016, Cohen had entered into negotiations to sell his sixteen
  360. corporate taxi medallions to who is a medallion owner and taxi operator, for the
  361. balance of the loans, which at the time was $21,376,000. 1 know from my review of records
  362. maintained by Sterling, and my participation in an interview with Sterling Employee-2, that as a
  363. condition of the transfer of the medallion loans—and because Sterling was unfamiliar withÄ
  364. ——Sterling requested that Cohen make a substantial principal payment on the loan, of
  365. approximately one million dollars, prior to the transfer. Cohen rejected this request initially. But
  366. on or about January 31, 2017, Cohen told Sterling Employee-I, in sum and substance, that he would
  367. make a one million dollar principal reduction payment in order to move forward with the medallion
  368. transfer deal with
  369. Indeed, in an email sent from the Cohen Account to Sterling
  370. Employee-2 on or about February 22, 2017, Cohen confirmed that he "agreed to pay down 1 million
  371. from the loan amount."
  372. h. Pursuant to the participation agreements between Sterling and Melrose, Sterling
  373. was required to secure Melrose's agreement to participate in the transfer of the taxi medallion debt
  374. from Cohen to
  375. On or about April 17, 2017, Sterling sent a memorandum to
  376. Melrose summarizing the terms of the proposed transaction, and noting the requirement that
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  381. Melrose agree to the terms. On or about May 2, 2017,
  382. emailed Sterling
  383. Employee-I from the
  384. Account to inquire about the status of the transaction.
  385. at the
  386. Account that
  387. Sterling Employee-I responded to
  388. a sheet
  389. Melrose had agreed to the deal, and that Sterling would be sending
  390. shortly.
  391. i. In order for the banks to evaluate the proposed transaction fully, they requested
  392. financial information from the parties. On or about October 26, 2016, a Sterling employee emailed
  393. the
  394. Account about the "Cohen Medallion Purchase," and stated "[i]n order to
  395. proceed with the assumption of Michael's loans," Sterling needed certain financial information
  396. from
  397. responded from the
  398. Account, copying
  399. t the
  400. Account, that he would send a financial statement and tax
  401. returns shortly. Additionally, on or about June 7, 2017, Sterling Employee-I emailed Cohen to
  402. request an "updated personal financial statement," completed jointly with Cohen's wife, and
  403. Cohen's most recent federal income tax return. On or about June 8, 2017, Cohen emailed Sterling
  404. Employee-I from the Cohen Account, attaching a Sterling personal financial statement form that
  405. had been filled out by hand, which referenced a statement of financial condition, dated May I,
  406. 2017 (the "May 2017 Financial Statement'), that was also attached. The May 2017 Financial
  407. Statement included a cover letter from Cohen's accountant, Jeffrey Getzel, stating, in sum and
  408. substance, that the information in the statement came from Cohen and that Getzel had not
  409. confirmed its accuracy or completeness. The May 2017 Financial Statement stated that Cohen had
  410. total assets of $41,955,000, total liabilities of $39,130,000, and a net worth of $2,825,000. The
  411. May 2017 Financial Statement indicated that Cohen's assets were comprised of $1,250,000 in
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  416. cash, $26,155,000 in closely held companies (such as the taxi medallion entities and his real estate
  417. holdings), $3,200,000 in real estate investments, and his $11,000,000 personal residence.
  418. j. Based on my review of reports of law enforcement interviews of Sterling
  419. Employee-I, I have learned that Sterling Employee-I reviewed each line ofthe May 2017 Financial
  420. Statement with Cohen to, among other things, verify its accuracy, and Sterling Employee-I asked
  421. Cohen about the cash amount listed on the May 2017 Financial Statement. Cohen stated to Sterling
  422. Employee-I, in sum and substance, that the May 2017 Financial Statement was accurate.
  423. k. On or about August 16, 2017, Sterling Employee-I emailed Cohen at the Cohen
  424. Account and
  425. at the
  426. Account, attaching a non-binding term
  427. sheet memorializing the potential transaction between Sterling, Melrose, Cohen, and
  428. :mailed Sterling Employee-I from the
  429. On or about August 29, 2017,
  430. Account, requesting that he be included on "all future e-mails to
  431. concerning this matter," and providing propoSed edits to the term sheet. On or about
  432. August 30, 2017, Sterling Employee-I emailed
  433. Account, Cohen at the Cohen Account, and —at the —Account, and provided them with a
  434. revised tenn sheet. On or about September 5, 2017, Sterling Employee-I sent
  435. at the
  436. \ccount, Cohen at the Cohen Account, and
  437. copy of the executed term sheet. According to the term sheet,
  438. $20,000,000 from Sterling and Melrose, to be secured by the medallions that
  439. acquire from Cohen.
  440. Xccount a
  441. would borow
  442. was to
  443. l. Aspart of the agreement, accordingto the term sheet, $1,265,913 inprincipal(which
  444. is what would remain after the $20,000,000 payment on the outstanding loan balance) would be
  445. repaid by Cohen and the two banks, with Cohen paying fifty percent and the banks dividing the
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  450. remaining half of the balance. Based on my review of an internal Sterling credit memorandum,
  451. dated October 4, 2017, the parties reached a preliminary agreement that Cohen would pay $632,956
  452. of the remaining $1,265,912 principal loan balance, and Sterling and Melrose would absorb
  453. $357,167 and $275,789 respectively in the form of charge-offs. According to Sterling Employee-
  454. 1, Sterling was willing to divide the repayment of the outstanding principal balance—despite its
  455. prior insistence that Cohen make a principal pay-down of at least one million dollars because
  456. Cohen represented on a telephone call with Sterling Employee-I, in sum and substance, that he had
  457. insufficient liquidity to pay the full outstanding principal balance. As part of the agreement, Sterling
  458. and Melrose also agreed to relieve Cohen and his wife of the personal guarantees that they made
  459. on behalf of the LLCs. Thus, after completing the
  460. transaction, Cohen would no longer
  461. have had any outstanding obligations to Sterling or Melrose.
  462. m. Based on my review of emails sent by Sterling employees, I have learned that
  463. because the transaction between the parties was subject to full credit underwriting by Sterling and
  464. Melrose (as well as Melrose's regulators at NCUA), in August and September 2017, Sterling
  465. required and requested additional financial statements for Cohen and
  466. for its credit
  467. underwriting process. In response to Sterling's requests, on or about October 5, 2017,
  468. Account to a Sterling employee a copy of
  469. personal financial statement. The financial statement lists the
  470. Account as the email contact for
  471. Additionally, on or about October 5, 2017,
  472. Cohen, using the Cohen Account, re-sent Sterling Employee-2 a copy of his May 2017 Financial
  473. Statement. A day later, on October 6, 2017, Cohen, using the Cohen Account, emailed Sterling
  474. Employee-2 a statement of financial condition, dated September 30, 2017 (the "September 2017
  475. Financial Statement").
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  480. n. Like the May 2017 Financial Statement, the September 2017 Financial Statement
  481. included a cover letter from Jeffrey Getzel, Cohen's accountant, stating, in sum and substance, that
  482. the information in the statement came from Cohen, and that Getzel had not confirmed its accuracy
  483. or completeness. The September 2017 Financial Statement stated that Cohen had total assets of
  484. $33,430,000, total liabilities of $45,630,000, and a negative net worth of $12,200,000. Notably,
  485. unlike Cohen's May 2017 Financial Statement, the September 2017 Financial Statement
  486. represented to Sterling that Cohen had a negative net worth. The September 2017 Financial
  487. Statement indicated that Cohen's assets were comprised of $1,250,000 in cash, $17,630,000 in
  488. closely held companies (such as the taxi medallion entities and his real estate holdings), 5
  489. $3,200,000 in real estate investments, and his $11,000,000 personal residence (which, for the first
  490. time, he indicated was held in trust). The September 2017 Financial Statement included assets and
  491. liabilities not held in Cohen's name, such as various entities associated with his taxi medallions and
  492. some-of his real estate investment entities.
  493. o. From my participation in an interview with Sterling Employee-2, and my review of
  494. records maintained by Sterling, I have also learned that at or around the time Cohen pi•ovided
  495. Sterling with these financial statements—in or around September 2017—Cohen stopped paying
  496. monthly loan payments on his taxi medallion loans altogether. According to Sterling Employee-
  497. 2, Cohen informed Sterling, in sum and substance, that he had insufficient funds to pay the monthly
  498. principal and interest payments on his medallion loans. By in or about December 2017, Sterling
  499. and Melrose had not been paid approximately $276,937.92 in monthly principal and interest
  500. payments on the medallion loans. Based on Cohen's financial condition as conveyed in the
  501. 5 Notably, the September 2017 Financial Statement valued each of Cohen's thirty-two New
  502. York taxi medallions at approximately $180,187.50, which was considerably less than the
  503. $650,000 valuation ascribed to each medallion in the Cohen-—term sheet.
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  508. September 2017 Financial Statement, and his delinquency in making payments to Sterling, among
  509. other things, the bank's credit underwriting committee determined (and memorialized in a
  510. December 2017 memorandum) that the Cohen-'
  511. transaction was favorable for the bank
  512. — that is, that
  513. would be a better borrower than Cohen.
  514. p. On or about December 26, 2017, Sterling sent Cohen a demand letter requesting
  515. the immediate receipt of past-due loan payments. On December 29, 2017, Sterling sent Cohen a
  516. letter stating that he was in default under the loans between Sterling and Cohen's medallion
  517. corporations. Cohen did not make an immediate payment on the loans, but instead sent an e-mail
  518. to Sterling Employee-I on or about January 24, 2018, from the Cohen Account, stating that during
  519. the closing Of the Cohen-—
  520. transaction, Cohen would "bring all payments up to date as
  521. well as deposit the payoff differential." Cohen also requested by email sent from the Cohen
  522. Account on January 24, 2018, that at the closing of the Cohen-
  523. transaction, Sterling
  524. provide a letter stating that all of Cohen's debts have been satisfied and that Cohen's personal
  525. guarantees of the medallion loans had been terminated.
  526. 29, 2018,
  527. q. The Cohen2
  528. the
  529. transaction, however, did not close. On or about January
  530. attorney, emailed attorneys for Sterling from the
  531. Kccount
  532. and stated that "at this time there is no deal with Michael Cohen. Some of the numbers have
  533. changed and we are not prepared to go forward."
  534. r. Based on my participation in the interview with Sterling Employee-2 and my
  535. review of records maintained by Sterling, I know that after the Cohen-
  536. deal fell apart,
  537. Sterling assigned Cohen's loans to an employee at Sterling who specializes in collecting on
  538. defaulting loans ("Sterling Employee-3"). From my review of telephone call notes, I know that
  539. Sterling Employee-3 spoke to Cohen on or about January 30, 2018 about paying down and/or
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  544. restructuring Cohen's outstanding taxi medallion loans. Based on my review of an email between
  545. Sterling Employee-3 and Cohen, I know that on the January 30, 2018 call, Cohen stated that he
  546. would send a "corrected current' version of his personal financial statement. Following that call,
  547. on or about January 31, 2018, Cohen emailed Sterling Employee-3 from the Cohen Account a
  548. copy of the September 2017 Financial Statement. Later that day, Cohen again emailed Sterling
  549. Employee-3 from the Cohen Account and proposed paying $500,000 to bring the loans current
  550. and $750,000 to bring the principal balance to $20,500,000. Cohen also suggested revised monthly
  551. interest payment amounts. On or about January 31, 2018, Sterling Employee-3 responded to
  552. Cohen at the Cohen Account and stated, in sum and substance, that Cohen would need to pay the
  553. entirety ofthe overdue payments and pay down the principal balance of the loan to $20,000,000
  554. (in total, a payment of approximately $ 1,750,000), and would need to make larger monthly interest
  555. payments.
  556. s. On or about February 1, 2018, Cohen emailed Sterling Employee-3 from the Cohen
  557. Account and proposed "[playment of $1.250m which ALL can be used to pay down principal, if
  558. [Sterling] will waive past due amounts," but stated "I do NOT have more than the $1.250m."
  559. (Emphasis in original.) Cohen also stated, in sum and substance, that he had insufficient financial
  560. resources to post additional collateral or pre-fund monthly payments. Based on my participation
  561. in an interview with Sterling Employee-2, I have learned that Sterling continues to renegotiate the
  562. medallion loans with Cohen based on Cohen ' s representations about his current financial position.
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  567. C. Cohen Made Material Misrepresentations About His Finances to Banks
  568. Cohen Concealed from Sterling and Melrose Cash Derived from Consulting Work
  569. 15. As set forth in detail below, despite multiple representations by Cohen to Sterling (and,
  570. by extension, Melrose6) that he had insufficient funds to pay down the principal balance of the
  571. medallion loans, make monthly interest payments, or pay past-due amounts, it appears that
  572. between 2016 and the present, Cohen opened and maintained bank accounts at First Republic Bank
  573. ("First Republic"), and then received millions of dollars in purported consulting payments in these
  574. accounts, which he did not disclose to Sterling. Cohen set up these accounts and received these
  575. funds during the very period in which he made disclosures to Sterling about his personal finances
  576. (including his assets and liabilities) and his ability to make payments on the medallion loans. In
  577. these disclosures to Sterling—and despite being asked about these bank accounts by his
  578. accountant—Cohen withheld information about liquid financial assets at First Republic.
  579. 16. Specifically, based on my review of documents and bank records produced pursuant to
  580. a subpoena by First Republic, and my participation in and review of reports of interviews with two
  581. First Republic employees, I have learned, among other things, the following:
  582. a. Cohen and his wife have been customers of First Republic since approximately
  583. June 2011. Cohen controls several checking and loan accounts, some in his own name and others
  584. in the names of corporate entities.
  585. 6 Based on my review of a report of an interview conducted with an employee of Melrose, I
  586. have learned that, pursuant to the participation agreement between Sterling and Melrose, Cohen's
  587. financial statements and other records in Sterling's possession were forwarded to Melrose so that
  588. Melrose could make a determination as to whether to approve of the Cohen-
  589. transaction. Based on my review of reports of interviews with employees, also Know
  590. transaction.
  591. that Cohen called employees at Melrose regarding the Cohen,
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  596. b. On or about October 26, 2016, in Manhattan, New York, Cohen opened a new
  597. checking account at First Republic in the name of Essential Consultants LLC (the "Essential
  598. Consultants Account"). Cohen was the only authorized signatory on the account. When Cohen
  599. opened the Essential Consultants Account, a First Republic employee ("First Republic Employee-
  600. 1") conducted an in-person interview of Cohen. In response to a series of know-your-customer
  601. questions7 about the purpose of the account—the answers to which First Republic Employee-I
  602. entered into a form 8—-Cohen stated, in sum and substance, that he was opening Essential
  603. Consultants as a real estate consulting company to collect fees for investment consulting work,
  604. and all of his consulting clients would be domestic individuals based in the United States. Cohen
  605. also stated, in sum and substance, that his purpose in setting up the account was to keep the revenue
  606. from his consulting business—which he said was not his main source of income—separate from
  607. his personal finances. As set forth below, there is probable cause to believe that Cohen's
  608. statements about the intended purpose of the account and source of funds for the account were
  609. false. Specifically, the account was not intended to receive—and does not appear to have
  610. received—money in connection with real estate consulting work; in addition, the account has
  611. received substantial payments from foreign sources.
  612. c. First, on or about October 27, 2016—the day after he opened the Essential
  613. Consultants Account, Cohen used the account to wire $130,000 to an account held in the name of
  614. attorney Keith Davidson's law firm. Based on my review ofemails between Cohen and Davidson,
  615. Certain financial institutions are required to conduct such procedures pursuant to the Bank
  616. 7
  617. Secrecy Act and its implementing regulations. See 31 U.S.C. 5318; 31 C.F.R. 1020.220.
  618. 8 First Republic Employee-I first filled out the form on the day he interviewed Cohen, October
  619. 26, 2016. On or about December 19, 2016, at the request of bank compliance personnel, First
  620. Republic Employee-I updated the form to add more detail about Cohen's statements.
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  625. obtained pursuant to the Prior Cohen Account Warrants, I believe that this payment did not relate
  626. to any real estate consulting work, but rather was a "settlement" payment made to Davidson's
  627. client. 9 Based on my review of public sources, I have leamed that Davidson's client is alleged to
  628. have had an extramarital affair with Donald Trump. On or about February 13, 2018, Cohen made
  629. a public statement that "[i]n a private transaction in 2016, I used my own personal funds to
  630. facilitate a payment of $130,000 to [Davidson's client]."
  631. d. Second, I know from my review of First Republic bank records that were scheduled
  632. by an FBI forensic accountant that after Cohen opened the Essential Consultants Account, Cohen
  633. received payments into that account from foreign •businesses and entities that do not reflect the
  634. stated client profile for the residential and commercial real-estate consulting services. Specifically,
  635. from my review of the Essential Consultants Account schedule and public sources, I know the
  636. following:
  637. i. Beginning on or about January 31, 2017, Cohen began receiving monthly
  638. payments of $83,333 from an entity called Columbus Nova LLC, which were deposited into the
  639. Essential Consultants Account. According to public sources, Columbus Nova is an investment
  640. management firm controlled by Renova Group, an industrial holding company based in Zurich,
  641. Switzerland that is controlled by Russian national Viktor Vekselberg. From January 2017 to
  642. August 2017, the Essential Consultants Account received seven payments totaling $583,332.98
  643. from Columbus Nova LLC.
  644. 9 Specifically, I have learned from my review of bank records that on or about October 26,
  645. 2016, Cohen transferred $131,000 from a home equity line of credit account at First Republic to
  646. the Essential Consultants Account; on or about October 27, 2016, Cohen transferred $130,000
  647. from the Essential Consultant Account to an account held in the name of Davidson's law firm at a
  648. bank based in Los Angeles; and on or about November 1, 2016, a wire transfer in the amount of
  649. approximately $96,645 was made from Davidson's account to a bank account in the name of
  650. Davidson's client.
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  655. ii. Beginning on or about April 5, 2017, Cohen beganreceivingpayments from
  656. Novartis Investments, SARL, which I believe to be the in-house financial subsidiary of the Swiss
  657. pharmaceutical company Novartis International AG ("Novartis"). Between April 2017 and January
  658. 2018, the Essential Consultants Account received ten wire payments from a Swiss bank account
  659. held in the name ofNovartis, each in the amount of $99,980, for a total of $999,800.
  660. iii. Beginning in or about April 2017, the Essential Consultants Account started
  661. receiving wire payments from a bank account associated with the telecommunications company
  662. AT&T Inc. ("AT&T"). Specifically, on or about April 14, 2017, AT&T wired $100,000 to the
  663. Essential Consultants Account and, from in or about June 2017 to in or about January 2018, the
  664. Essential Consultants Account received nine $50,000 payments from AT&T. In total, AT&T wired
  665. $550,000 to the Essential Consultants Account.
  666. iv. On or aboutMay 10, 2017, June 9, 2017, July 10, 2017, and November 27,
  667. 2017, the Essential Consultants Account received four deposits in the amount $150,000 (totaling
  668. $600,000) from a bank account in South Korea. The account holder from which the money was
  669. sent is Korea Aerospace Industries Ltd. ("KAI"). KAI is a South Korea-based company that
  670. produces and sells fixed-wing aircraft, helicopter aircraft, and satellites to the United States
  671. Department of Defense, among other customers.
  672. v. On or about May 22, 2017, the Essential Consultants Account received a
  673. $150,000 deposit from an account at Kazkommertsbank, a Kazakhstani bank. The listed account
  674. holder at Kazkommertsbank was a second Kazakhstani bank named BTA Bank, AO. A message
  675. accompanying the wire payment indicated that the payment was a ' 'monthly consulting fee as per
  676. Inv BTA-IOI DD May 10, 2017 consulting agreement WIN DD 08 05 2017 CMR W/NDD
  677. 08/05/2017."
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  682. vi. In total, from on or about January 31, 2017 toon or about January 10, 2018,
  683. the Essential Consultants Account received approximately $2,883,132.98 in transfers and checks
  684. from the aforementioned entities. As of on or about January 10, 2018, the balance in the Essential
  685. Consultants Account was $1,369,474.23.
  686. e. On or about April 4, 2017, Cohen opened another new checking account at First
  687. Republic, this one in the name of Michael D. Cohen & Associates, P.C. (the "MDC&A Account").
  688. Cohen was the only authorized signatory on the account. Among other things, the MDC&A
  689. Account received ten wire transfers and one check from an account in the name of Squire Patton
  690. Boggs, a law firm. In total, from on or about April 5, 2017, to on or about January 2, 2018, the
  691. MDC&A Account received $426,097.70 in deposits, and the balance in the account as of January
  692. 2, 2018, was $344,541.35. As discussed below, Cohen never disclosed any of the balance in the
  693. Essential Consultants or VIDC&A accounts to Sterling during the negotiations with respect to the
  694. transaction, including in his May 2017 Financial Statement and September 2017
  695. Financial Statement.
  696. 17. Based on my review of emails from the Cohen Account that were seized pursuant to
  697. the Prior Cohen Account Warrants, and my review of reports of interviews with employees of
  698. AT&T and Novartis, it appears that the aforementioned payments to the Essential Consultants
  699. Account and MDC&A Account ostensibly were for political consulting work, including consulting
  700. for international clients on issues pending before the Trump administration. 10 Specifically, from
  701. my review of emails from the Cohen Account and public sources, I have learned the following:
  702. 10 Based on my review of public sources, I have learned that Cohen is not registered as a
  703. lobbyist or as a person acting as an agent of foreign principals, as may have been required by the
  704. Foreign Agents Registration Act.
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  709. a. On or about April 28, 2017, Cohen sent an email from the Cohen Account to an
  710. individual whom I believe is affiliated with KAI. In the email, Cohen attached a document
  711. purporting to be a "Consulting Agreement" between KAI and Essential Consultants dated as of
  712. about May 1, 2017. The document indicates that Essential Consultants would render "consulting
  713. and advisory services, as requested" by KAI, and that KAI would pay Essential Consultants "a
  714. consulting fee of One Million Two Hundred Thousand ($1,200,000.00) US Dollars," disbursed
  715. through eight $150,000 installments between May 2017 and December 2017.
  716. b. On or about May 10, 2017, Cohen sent an email from an alternate email address,
  717. copying the Cohen Account, to an employee of BTA Bank. To the email, Cohen attached an
  718. invoice to BTA Bank in the name ofEssential Consultants. The invoice contemplated a $150,000
  719. payment to Essential Consultants for a "monthly consulting fee."
  720. c. On or about February 13, 2017, Cohen emailed an AT&T employee from the Cohen
  721. Account what appears to be a consulting agreement, which contemplates that Essential Consultants
  722. "shall render consulting and advisory services to [AT&T]" and that AT&T would "advise [Essential
  723. Consultants] of those issues and matters with respect to which AT&T Services desires [Essential
  724. Consultants]'s assistance and advice." The contract calls for AT&T "to pay the Consultant for his
  725. . a consulting fee of Fifty Thousand ($50,000) Dollars ... per month." Based on my
  726. services ..
  727. review of reports of interviews with AT&T employees, I have learned that AT&T retained Cohen
  728. to consult on political issues, including net neutrality, the merger between AT&T and Time Warner,
  729. and tax reform.
  730. d. On or about January 17, 2017, Cohen emailed to a representative of Novartis from
  731. the Cohen Account a contract between Novartis and Essential Consultants, which provides that
  732. Essential Consultants will consulting and advisory services to Novartis on matters that
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  737. relate to the repeal and replacement of the Affordable Care Act in the US and any other issues
  738. mutually agreeable to [Essential Consultants] and Novartis." The contract provides for a
  739. "consulting fee of One Million Two Hundred Thousand ($1,200,000) US dollars," to be paid to
  740. Essential Consultants in even monthly installments over the course ofa year. Based on my review
  741. of reports of interviews with Novartis employees, I have learned that Novartis retained Cohen to
  742. provide political consulting services and to gain access to relevant policymakers in the Trump
  743. Administration.
  744. e. On or about April 3, 2017, Squire Patton Boggs, a law firm, announced on its
  745. website that is had formed a "strategic alliance" with Michael D. Cohen & Associates and would
  746. "jointly represent clients."
  747. 18. Despite the significant amount of money that Cohen received into the Essential
  748. Consultants Account and the N'DC&A Account, and the cash balance in both accounts, Cohen did
  749. not disclose that infoi•mation to Sterling or Melrose. Specifically, based on my review ofdocuments
  750. provided by Getzel, and my review of notes and a
  751. have leamed the following:
  752. 1
  753. a. In or about May 2017, Getzel met with Cohen at a law firm in Manhattan, New
  754. York. At the meeting, Cohen told Getzel, in sum and substance, that he had set up a law practice
  755. called Michael D. Cohen & Associates P.C., and a consulting company called Essential Consultants
  756. LLC. Cohen told Getzel, in sum and substance, that he expected to earn $75,000 per month in
  757. connection with his law practice, and that he expected gross revenues for the consulting business to
  758. be between five and six million dollars annually.
  759. b. In or about October 2017, ifnot earlier, Getzel was preparing a personal financial
  760. statement for Cohen. On or about October 6, 2017, Getzel sent an email to Cohen at the Cohen
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  765. Account in which Getzel wrote that "[a]ttached is a draft of the new PFS as of September 30, 2017"
  766. and attached a draft of the September 2()17 Financial Statement. The draft statement reflected that
  767. as of September 30, 2017, Cohen had only $1,250,000 in cash, total assets of approximately
  768. $33,430,000 (comprised oftaxi medallion interests, real estate interests, and his personal residence
  769. and property), and liabilities of approximately $45,630,000, leaving him purportedly over $12
  770. million in debt. In the same email, Getzel questioned Cohen, in sum and substance, about the fact
  771. that the financial statement did not list any assets associated with either the Essential Consultants
  772. Account or the MDC&A Account: "[w]e did not add any value for you[r] two operating entities —
  773. Michael D. Cohen & Associates POC [sic] and Essential Consultants LLC. Please advise whether
  774. or not these should be disclosed and what value."
  775. c. On or about October 6, 2017, Cohen called Getzel by telephone—which is reflected
  776. on toll records for Cohen's cellphone—and told Getzel, in sum and substance, not to include
  777. Essential Consultants or MDC&A in the September 2017 Financial Statement because they had no
  778. value.
  779. d. On or about October 6, 2017, following the call with Getzel, Cohen, using the Cohen
  780. Account, responded to Getzel's email with the answer "[l]ooks good to me." Cohen never directed
  781. Getzel to make any changes to his cash position as listed in the September 2017 Financial
  782. Statement. Neither Essential Consultants nor lvDC&A was listed on the September 2017 Financial
  783. Statement that was provided to Sterling.
  784. 19. Based on the foregoing, and from my review of bank records and emails sent by Cohen
  785. to Sterling, I know that the September 2017 Financial Statement made no mention whatsoever of
  786. assets that Cohen held in the Essential Consultants Account or the MDC&A Account. As of
  787. September 30, 2017—the date of the September 2017 Financial Statement—Cohen had
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  792. approximately $673,729.95 in the Essential Consultants Account and $248,619.28 in the MDC&A
  793. Account. As of October 6, 2017, the date when Getzel asked Cohen about the two accounts, Cohen
  794. had approximately $823,709.95 in the Essential Consultants Account and $248,619.28 in the
  795. MDC&A Account.
  796. Cohen Understated His Available Cash
  797. 20. In addition to withholding the existence of the Essential Consultants Account and the
  798. MDC&A Account from Sterling and Melrose, it appears that Cohen also substantially understated
  799. his available cash and cash equivalents in his financial disclosures. Specifically, I know from my
  800. review of the September 2017 Financial Statement that Cohen provided to Sterling that Cohen
  801. represented that he had $1,250,000 in cash as of September 30, 2017. But, from my review ofa
  802. summary of bank records that were scheduled by an FBI forensic accountant, I have learned that
  803. Cohen had over $5,000,000 in cash and cash equivalents as of September 30, 2017. Specifically,
  804. from my review of the account schedule and bank records, I have learned the following:
  805. a. Cohen has three checking and/or savings accounts at Capital One Bank, one of
  806. which is in his wife's name. As of September 30, 2017, Cohen had $1,105,680.35 in his savings
  807. account, and $1,262,982.29 in total in the three accounts at Capital One Bank.
  808. b. Cohen has three accounts at Morgan Stanley in his name. As of September 30,
  809. 2017, the combined total in cash and cash equivalents in those three accounts was $1,270,600.41.
  810. c. As of September 30, 2017, Cohen had $260,689.18 inan accountat Signature Bank.
  811. d. In addition to the Essential Consultants Account and MDC&A Account at First
  812. Republic, Cohen also had two joint checking accounts with Laura Cohen at First Republic. In total,
  813. as of September 30, 2017, Cohen had at least $1,876,209.27 in total in his four accounts at First
  814. Republic.
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  819. e. Cohen has an account at Bethpage Credit Union with $25,931.39 in it as of
  820. September 30, 2017.
  821. f. As of September 30, 2017, Cohen had $17,542.54 in accounts at Sterling.
  822. g. Cohen has two accounts at TD Bank—one in his name and one heldjointly with his
  823. wife—and the total balance across the two accounts as of September 30, 2017 was $300,096.72.
  824. h. In total, as ofSeptember 30, 2017, Cohen had at least $5,014,051.80 in his accounts
  825. at Capital One Bank, Signature Bank, TD Bank, Bethpage Credit Union, First Republic, and
  826. Morgan Stanley.
  827. 21. Accordingly, based on the foregoing, it appears that Cohen' s representations to Sterling
  828. and Melrose that he did not have more than $1,250,000 were false, and that Cohen withheld
  829. information regarding approximately $5 million in funds from Sterling and Melrose in order to
  830. secure favorable terms in his renegotiation of his medallion loan. Based on my participation in an
  831. interview with Sterling Employee-2, and my review of reports of interviews with Sterling
  832. Employee-I and two Melrose employees, it is my understanding that that Sterling and Melrose
  833. would view Cohen's understating of his assets as material to its decision whether to renegotiate
  834. Cohen's medallion loans and on what terms, or approve of the transfer of those loans to
  835. Cohen Had a Side Agreement With
  836. 22. As set forth in detail below, it appears that during the course of Cohen's negotiations to
  837. sell his interest in taxi medallions and the associated debt to
  838. , Cohen not only
  839. misrepresented his financial position to Sterling, but also failed to disclose a side deal he had
  840. that
  841. Agreed to pay an above-market price for
  842. negotiated with
  843. Cohen's taxi cab medallions, and in exchange, Cohen agreed to pay
  844. 29
  845. 02.28.2018
  846. approximately
  847.  
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  849. $3.8 million in cash. Specifically, from my review ofdocuments produced pursuant to a subpoena
  850. by Sterling, and reports prepared by law enforcement officers of interviews with Sterling
  851. Employee-I, as well as my participation in an interview with Sterling Employee-2, I have learned,
  852. among other things, the following:
  853. a. On or about September 5, 2017, an executed term sheet was circulated by Sterling
  854. See supra 14(k). According to the term sheet,
  855. Employee-I to Cohen and
  856. that
  857. would borrow $20,000,000 from Sterling and Melrose, to be secured by the medallions
  858. was to acquire from Cohen. At a price of$20 million for thirty-two taxi medallions,
  859. the proposed transaction valued each medallion as worth $625,000. The term sheet also
  860. contemplated a $1,265,913 pay-down of the principal balance of the loan. The term sheet made no
  861. mention of a $3.8 million payment from Cohen to
  862. financial transaction between the parties.
  863. or any other form of payment or
  864. b. Additionally, an internal Sterling credit memorandum, dated October 4, 2017,
  865. describing the terms of the Cohen.
  866. transaction and the new loan tc
  867. did
  868. including a $3.8 million payment. The
  869. not mention any payments from Cohen to
  870. memorandum also noted that the "loan amount of $20MM indicates a $625M purchase price per
  871. medallion" but "it is recognized that this is not in line with current market values." Indeed,
  872. according to an internal Sterling memorandum dated February 5, 2018, in the month of January
  873. 2018, taxi medallions sold for amounts ranging from $120,000 to $372,000. Accordingto Sterling
  874. Employee-I and Sterling Employee-2, they were never told that
  875. agreed to a purchase
  876. price of $625,000 in exchange for a lump sum payment from Cohen, or that Cohen would make
  877. any payment to
  878. 30
  879. 02.282018
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  882. 23. While Cohen and
  883. did not disclose any payment from Cohen to
  884. n communications with Sterling, it appears that such a payment was contemplated.
  885. Indeed, based on my review of records maintained by Getzel, and a report prepared by law
  886. enforcement agents of an interview with Getzel, I have learned the following, in substance and in
  887. part, regarding the proposed side-payment from Cohen to—
  888. a. On or about September 19, 2017, Getzel prepared a memorandum for Cohen
  889. entitled, "Sale of NYC Medallion Entities and Debt Assumption" (the "Getzel Memorandum").
  890. The Getzel Memorandum summarized the proposed transaction between Cohen and
  891. in pan, as follows: "Michael and Laura Cohen will transfer ownership of their 13 NYC medallion
  892. entities to a Buyer who will assume their bank indebtedness, upon the [Cohens'] paying down the
  893. debt portfolio of the 13 entities by $500,000 and a cash payment to the Buyer of $3,800,000.
  894. b. According to Getzel, Cohen told him the parameters of the deal, including the
  895. payment of $3,800,000 to
  896. to pay
  897. but Getzel did not know where Cohen was going to obtain
  898. As noted above, Cohen had more than $5,000,000 in cash and
  899. cash equivalents as of September 2017, but had only disclosed in his September 2017 Financial
  900. Statement that he had $1.25 million in cash.
  901. 24. Based on my review of records maintained by Sterling (as well as Melrose, the bank
  902. with the participating interest in the loans) and reports of interviews of representatives of Sterling
  903. (and Melrose), I have seen no evidence that Sterling, Melrose, or any other financial institution
  904. involved in the potential deal with Cohen and
  905. side payment from Cohen to
  906. was aware of the planned $3.8 million
  907. 11
  908. 'Ihe reference to thineen medallions appears to be an error by Getzel. Cohen and his wife
  909. together owned sixteen corporations, which in turn owned 32 taxi medallions.
  910. 31
  911. 02.282018
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  914. D. Probable Cause Regarding the Subject Accounts
  915. 25. As set forth above, since at least September 2015, if not earlier, Cohen has told Sterling
  916. that he has diffculty making payments on his medallion loans and, since at least October 2016,
  917. Cohen has been actively engaged in an attempt to sell his taxi medallions and the associated debts
  918. to
  919. In the course of doing so, Cohen has used the Cohen Account and/or MDCPC
  920. Account to engage in email communications regarding the terms of the transactions and the
  921. undisclosed side-payment with
  922. =atth and —atthÄAccount. Specifically,
  923. as described above, there is probable cause to believe that the Subject Accounts have been used
  924. regarding the proposed Cohen-
  925. transaction with Sterling:
  926. a. Cohen has used the Cohen Account to, among other things, negotiate a pay-down
  927. of the principal amount of the loan, see supra 14(g), to send term sheets to Sterling, see supra
  928. 14(j), to communicate with his accountant about the contents of financial statements, see supra
  929. 16, to send financial statements to Sterling, see supra 14(i), (l), to check on the status of the
  930. transaction as of January 24, 2018, see supra 14(n), to negotiate a reduction of his debt with
  931. Sterling on or around January 31, 2018, see supra 14(0), to tell Sterling on February 1, 2018, he
  932. does not have the ability to pay more than $1 see supra 14(p), and to communicate with
  933. individuals responsible for sources of payments to the Essential Consultants Account, see supra
  934. 15. In other words, from the communications described above, it appears likely that the Cohen
  935. Account will contain recent evidence of the Subject Offenses, including communications and
  936. potential misrepresentations to Sterling, and evidence indicating that statements made to Sterling
  937. are false or misleading.
  938. b.
  939. Account to communicate about
  940. the proposed taxi medallion transaction with Cohen, which appears to have been discussed as early
  941. 32
  942. 02.282018
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  945. as October 2016. See supra Specifically, as described above, as early as May 2, 2017,
  946. Account to inquire about the status of the transaction,
  947. see supra 14(h). He used the—Account to exchange drafts of the proposed tenn
  948. Sterling, see supra 140). The
  949. Account was also
  950. sheet with Cohen,
  951. used by
  952. to send a personal financial statement for
  953. to Sterling,
  954. see supra 14(1). The
  955. Account was copied on emails from the.
  956. Account about the transaction, see supra 14(i), and was listed on = financial
  957. see supra 14(m). Additionally, based on my
  958. statement as the contact email for
  959. review of IVDCPC Header Information, I know that on or about September 1 , 2017—at or around
  960. the time the
  961. Ind Cohen were negotiating a term sheet—
  962. xsed the
  963. and
  964. Account to send and receive eight emails from Cohen at the MDCPC Account.
  965. —has used the
  966. iccount to communicate with Sterling employees, Cohen,
  967. c.
  968. about the proposed taxi medallion transaction since at least December 2016.
  969. told Sterling that he
  970. See supra 14(g), 24(c). Specifically, on or about August 29, 2017,
  971. should be included on "all future e-mails" involving the proposed transaction, see supra 146).
  972. was involved in making revisions to the parties' term sheets, and he told
  973. Additionally,
  974. Sterling on January 29, 2018 that
  975. would not go forward with the planned transaction,
  976. see supra 140), (n). Accordingly, there is probable cause to believe that the—Account will
  977. contain evidence of the negotiations between Sterling and the parties, evidence of a payment from
  978. Cohen to
  979. Ind the reasons for the collapse of the Cohen-'
  980. transaction.
  981. 12 For instance, from records provided by Sterling, I know that on or about December 2,
  982. an email to a Sterling employee using
  983. Account. The email forwarded correspondence between—who was using the—
  984. Account, and an employee of Capital One regarding extending loan with
  985. Capital One.
  986. 33
  987. 02.282018
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  990. 26. Additionally, it appears that Cohen set up the MDCPC Account to receive emails he
  991. was previously receiving at the Cohen Account. Specifically, based on my review of records
  992. maintained by AT&T, I have learned that on or about May 5, 2017, Cohen sent an email from the
  993. MDCPC Account to a blind copy list of recipients stating that "[d]ue to the overwhelming volume
  994. of phone calls and emails coming into my previous cellular number and e-mail address, I have
  995. elected to create for Clients Only the following. Kindly use this new information for all future
  996. contact and communications." The signature line on the email listed "Essential Consultants LLC"
  997. and "Michael D. Cohen & Associates, PC," as well as the MDCPC Account as the email address. 13
  998. 27. In addition, based on my review of emails from the MDCPC Account produced
  999. pursuant to the Prior Cohen Account Warrants and the MDCPC Header Information, I have learned
  1000. that Cohen has used the MDCPC Account to send and receive emails from the Cohen Account, to
  1001. communicate with
  1002. Xccount, and to send and receive emails from other email accounts
  1003. about his political consulting business. Additionally, from my review of the MDCPC Header
  1004. Information, it appears that since the November 13, 2017 search warrant on the MDCPC Account,
  1005. Cohen has continued to send and receive emails at the lv1DCPC Account that appear likely to be
  1006. relevant to the commission of the Subject Offenses. For example, emails obtained pursuant to the
  1007. Prior Cohen Account Warrants, as well as the MDCPC Header Information have revealed the
  1008. following:
  1009. a. On approximately eight occasions in August and September 2017, while Cohen,
  1010. were communicating about a term sheet for the Cohen-
  1011. taxi
  1012. 13 Based on my review of emails from the MDCPC Account obtained pursuant to subpoena, I
  1013. have learned that Cohen has used the account to communicate with numerous individuals with
  1014. whom he does not enjoy an attorney-client privilege, including some of the individuals described
  1015. below. See infraff27.
  1016. 34
  1017. 02.282018
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  1020. medallion transaction, see supra 14(k), Cohen used the MDCPC Account to send or receive
  1021. Kccount. For instance, on or about August 22, 2017,
  1022. emails from
  1023. Account to send an email to Sterling Employee-I and copied Cohen on the email at the
  1024. the
  1025. MDCPC Account. On the same day, Sterling Employee-I responded to
  1026. Vccount
  1027. and Cohen at the MDCPC Account. On or about August 22, 2017, Cohen also used the MDCPC
  1028. Account to send an email to Sterling Employee-I.
  1029. b. As noted above, on or about September 1, 2017, Cohen used the MDCPC Account
  1030. to send or receive eight emails with the
  1031. Account.
  1032. c. Cohen used the MDCPC Account to send and receive emails from individuals who
  1033. work at companies with whom it appears Cohen has a political consulting agreement. For
  1034. example, beginning in April 2017—the same month when Cohen began receiving payments from
  1035. AT&T, see supra 16(d), 17(c)—-Cohen used the YIDCPC Account to send and receive emails
  1036. from AT&T employees. These emails contain, among other things, invoices from Cohen to AT&T
  1037. for consulting work by Cohen. Similarly, beginning in April 2017—which is also the month
  1038. Cohen began receiving payments from Novartis for consulting work, see supra 16(d), 17(d)—
  1039. Cohen used the MDCPC Account to send and receive emails from employees of Novanis. These
  1040. emails concern, among other things, invoices from Cohen and requests for Novartis for Cohen's
  1041. assistance on an initiative relating to drug pricing.
  1042. d. From my review of the MDCPC Header Information, I have learned that Cohen has
  1043. continued to use the MDCPC Account to send and receive emails from individuals who work at
  1044. companies with whom it appears Cohen had a political consulting agreement, such as Novartis and
  1045. AT&T. For instance, on approximately six occasions between November 28, 2017 and January
  1046. 30, 2018, the lv1DCPC Account was used to send and receive emails from accounts belonging to
  1047. 35
  1048. 02.28.2018
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  1051. individuals using @att.com email addresses. Similarly, on approximately seventeen occasions
  1052. between December 1, 2017 and February 20, 2018, the MDCPC Account was used to send and
  1053. receive emails from accounts belonging to individuals using @novartis.com email addresses.
  1054. Since November 15, 2017 , the MDCPC Account has also sent and received emails with individuals
  1055. using the email domains @bta.kz, which I believe is the email domain used by employees ofBTA
  1056. employees of the law firm Squire Patton Boggs—both of which Cohen appears to have a
  1057. consulting relationship with, see supra 16(e), 17(e). Accordingly, it appears that Cohen
  1058. continues to use the MDCPC Account to send and receive emails that will be relevant to whether
  1059. he is maintaining a consulting business, what type of consulting work he is doing, and whether he
  1060. is receiving money for that consulting work.
  1061. 28. In addition to the foregoing, based on my review of the Pen Register Data, see supra 'l
  1062. 9, it appears that since the date of the last search warrant on the Cohen Account (i.e., November
  1063. 13, 2017), Cohen has continued to use the Cohen Account to communicate with the
  1064. Account, and other email accounts that appear likely to be relevant
  1065. to the commission of the Subject Offenses described above. For example, the Pen Register Data
  1066. has revealed the following:
  1067. a. Emails sent by the Cohen Account to the
  1068. Xccount on or about December 18,
  1069. 2017 at 8:26 p.m., December 21, 2017 at 9:35 p.m., December 22, 2017 at 4:32 p.m., January 3,
  1070. 2018 at 8:01 a.m., January 3, 2018 at 2:56 p.m., and January 4, 2018 at 3:31 p.m.
  1071. b. An email sent by the Cohen Account to the
  1072. January 25, 2018 at 8:55 p.m.
  1073. 36
  1074. 02.28.2018
  1075. Account on or about
  1076.  
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  1078. c. Emails from the Cohen Account to the email account
  1079. on or
  1080. about December 1, 2017 at 2:14 p.m., December 29, 2017 at 10:20 p.m., January 2, 2018 at 3:52
  1081. p.m., January 2, 2018 at 5:44 p.m., and January 8, 2018 at 6:38 p.m. Based upon my review of
  1082. emails contained in the Cohen Account, I have learned that the
  1083. email account
  1084. belongs to Jeffrey Getzel, Cohen's accountant, through whom Cohen made misrepresentations to
  1085. financial institutions, as discussed above.
  1086. d. Emails from the Cohen Account to email accounts belonging to Sterling employees,
  1087. including Sterling Employee-I, on or about January 25, 2018 at 10:23 p.m., January 26, 2018 at
  1088. 12:55 a.m., January 29, 2018 at 5:30 p.m., January 29, 2018 at 8:29 p.m., January 30, 2018 at 6:44
  1089. p.m.
  1090. e. An email sent from the Cohen Account to the email account
  1091. clientserviceny@firstrepublic.com on or about January 25, 2018 at 5:29 p.m. As stated above,
  1092. First Republic is the bank at which the Essential Consultants Account is held.
  1093. f. Numerous emails sent from the Cohen Account to the email account
  1094. including emails on or about December 4, 2017 at 2: 17 p.m. and January 29,
  1095. 2018 at 5:43 p.m. Based upon the email address and domain name, as well as my review ofreports
  1096. of interviews and documents reflecting that Cohen's taxi medallions were leased and operated by
  1097. I believe that the
  1098. email address belongs to
  1099. 29. Based on my review of records maintained by Sterling, I know that Cohen used the
  1100. Cohen Account to send and receive documents related to the Cohen-
  1101. ransaction.
  1102. Based on my training and experience, I know that Google allows users of e-mail accounts to easily
  1103. save documents to file sharing and retention platforms such as Google Docs and Google Drive. I
  1104. 37
  1105. 02.281018
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  1108. also know, from my training and experience, that users of e-mail accounts often use instant
  1109. messaging interfaces linked to their email accounts. Further, I have learned that the Providers
  1110. maintain records of search and web histories associated with email accounts and, based on my
  1111. training and experience, users of e-mail accounts use associated web search browsers associated
  1112. with a subscriber's account to research topics they are e-mailing about. Accordingly, there is
  1113. probable cause to believe that content infonnation associated with the Subject Accounts will also
  1114. contain evidence related to the Subject Offenses.
  1115. 30. Thus, I respectfully submit that there is probable cause to believe that emails and other
  1116. content information from the Subject Accounts will contain evidence of Cohen' s eff01ts to sell his
  1117. taxi medallions and the associated debt, and his misrepresentations and omissions to Sterling and
  1118. Melrose in connection with these negotiations. Although Cohen appears to have communicated
  1119. an aprimarily through the Cohen Account and
  1120. with
  1121. MDCPC Account, I know, based on my involvement in the investigation, that Cohen also used at
  1122. least one other email account associated with his position at the Trump Organization. 'Ihus, I
  1123. respectfully submit that there is probable cause to believe that emails and other content information
  1124. from the
  1125. Account since on or
  1126. about October 1, 2016—the approximate date of when Cohen's efforts to sell his taxi medallions
  1127. and the associated debt began—will reflect communications with the Cohen Account, MDCPC
  1128. Account, and possibly one or more additional accounts used by Cohen, and probable cause to
  1129. believe that such emails will constitute evidence of Cohen's commission of the Subject Offenses,
  1130. including the extent to which Cohen did or did not inform other individuals involved in the conduct
  1131. described above—such as
  1132. omissions to financial institutions.
  1133. 38
  1134. 0228.2018
  1135. f his misstatements and
  1136.  
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  1138. 31. Temporal Limitation. This application seeks all emails and other requested content
  1139. information specified in Attachments A, B, C, and D for the following periods:
  1140. a. For the Cohen Account, this application seeks all emails sent, created, or received
  1141. between November 14, 2017, and the date ofthe proposed warrant, inclusive. As described above,
  1142. pursuant to the Prior Cohen Account Warrants, the SCO obtained and provided to the USAO
  1143. emails from the Cohen Account that were sent, created, or received before November 14, 2017.
  1144. This application also seeks other information specified above associated with the Cohen Account
  1145. that was created between December 1, 2014 (the month when Cohen entered into the medallion
  1146. loans with Sterling), and the date of the proposed warrant, inclusive.
  1147. b. For the MDCPC Account, this application seeks all emails sent, created, or received
  1148. between November 14, 2017, and the date ofthe proposed warrant, inclusive. As described above,
  1149. pursuant to a prior warrant, the SCO obtained and provided to the USAO emails from the MDCPC
  1150. Account that were sent, created, or received before November 14, 2017.
  1151. —Account and
  1152. Account, this application
  1153. c. For the
  1154. seeks emails and all other content information specified above sent, created, or received between
  1155. October 1, 2016, and the date of the proposed warrant, inclusive. As described above, October
  1156. 2016 is the month in which Cohen began negotiating the taxi medallion sale with the=
  1157. Account, this application seeks emails and all other content
  1158. d. For the
  1159. information specified above sent, created, or received between December 1, 2016, and the date of
  1160. the proposed warrant, inclusive. As described above, December 2016 is the month in which
  1161. began representing the
  1162. n relation to the taxi medallion transaction.
  1163. E. Evidence, Fruits and Instrumentalities
  1164. 32. Based upon the foregoing, I respectfully submit there is probable cause to believe that
  1165. information stored on Google's servers associated with the Cohen Account will contain evidence,
  1166. 39
  1167. 02282018
  1168.  
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  1170. fruits, and instrumentalities of violations of the Subject Offenses, as more fully described in
  1171. Section II of Attachment A to the proposed warrant for the Cohen Account and MDCPC Account,
  1172. including the following:
  1173. a. Communications, records, documents, and other files necessary to establish the
  1174. identity of the person(s) who created or used the Cohen Account or MDCPC Account.
  1175. b. Communications, records, documents, and other files involving Sterling, Melrose,
  1176. and/or taxi medallions;
  1177. c. Communications, records, documents, and other files involving a plan, proposal, or
  1178. agreement for Cohen and/or entities associated with him to transfer any interest in taxi medallions,
  1179. and any associated debts or liabilities, to others, including to
  1180. associated with him;
  1181. and/or entities
  1182. d. Communications, records, documents, and other files involving Essential
  1183. Consultants, LLC or Michael D. Cohen & Associates, including those which indicate the nature
  1184. and purpose of payments made to or from Essential Consultants or Michael D. Cohen &
  1185. Associates;
  1186. e. Communications, records, documents, and other files necessary to establish the
  1187. identity of any person(s) — including records that reveal the whereabouts of the person(s) — who
  1188. communicated with the Cohen Account and/or MDCPC Account about any matters relating to
  1189. Essential Consultants, LLC, or about any plan or proposal or agreement for Cohen and/or entities
  1190. associated with him to transfer any interest in taxi medallions, and any associated debts or
  1191. liabilities, to others, including to
  1192. and/or entities associated with him;
  1193. f. Communications between the Cohen Account and/or MDCPC Account and Jeffrey
  1194. Getzel relating to Cohen's bank accounts, taxes, debts, and/or finances;
  1195. 40
  1196. 02.28.2018
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  1199. g. Communications, records, documents, and other files reflecting false
  1200. representations to a financial institution with relation to the intended purpose of an account or loan
  1201. at that financial institution; the nature of any business or entity associated with an account at a
  1202. financial institution; the source of funds flowing into an account; or the purpose or nature of any
  1203. financial transactions involving that financial institution;
  1204. h. Evidence indicating how and when the Cohen Account and MDCPC Account was
  1205. accessed or used, to determine the geographic and chronological context of account access, use,
  1206. and events relating to the crimes under investigation and to the account owner; and
  1207. i. Evidence indicating the Cohen Account and tvfDCPC Account owner's intent as it
  1208. relates to the Subject Offenses under investigation.
  1209. 33. Based upon the foregoing, I further submit there is probable cause to believe that
  1210. information stored on Google's servers associated with thk
  1211. Xccount will contain evidence, fruits, and instrumentalities of violations ofthe Subject
  1212. Offenses, including the following:
  1213. a. Communications, records, documents, and other files necessary to establish the
  1214. identity of the person(s) who created or used
  1215. Account;
  1216. b. Communications, records, documents, and other files involving a plan or proposal
  1217. or agreement for Cohen and/or entities associated with him to transfer any interest in taxi
  1218. medallions, and any associated debts or liabilities, to
  1219. with him;
  1220. and/or entities associated
  1221. c. Communications, records, documents, and other files necessary to establish the
  1222. identity of any person(s) — including records that reveal the whereabouts of the person(s) — who
  1223. 41
  1224. 02.282018
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  1227. communicated with the
  1228. Account about any
  1229. matters relating to any plan or proposal or agreement for Cohen and/or entities associated with him
  1230. to transfer any interest in taxi medallions, and any associated debts or liabilities, to
  1231. md/or entities associated with him;
  1232. d. Communications between the
  1233. Account and others, including employees or representatives of Sterling, Melrose, or other financial
  1234. institution(s), regarding Cohen's finances;
  1235. e. Communications, records, documents, and other files reflecting false
  1236. representations to a financial institution with relation to the intended purpose of an account or loan
  1237. at that financial institution; the nature of any business or entity associated with an account at a
  1238. financial institution; the source of funds flowing into an account; or the purpose or nature of any
  1239. financial transactions involving that financial institution;
  1240. f. Evidence indicating how and when the
  1241. Account were accessed or used, to determine the geographic and chronological context
  1242. of account access, use, and events relating to the crimes under investigation and to the account
  1243. owner;
  1244. g. Evidence indicating the
  1245. Account
  1246. owners' intent as it relates to the Subject Offenses under investigation.
  1247. 34. Based upon the foregoing, I further submit there is probable cause to believe that
  1248. information stored on Oath's servers associated with the
  1249. Account will contain evidence,
  1250. fruits, and instrumentalities of violations of the Subject Offenses, including the following:
  1251. a. Communications, records, documents, and other files necessary to establish the
  1252. identity of the person(s) who created or used the
  1253. Account;
  1254. 42
  1255. 02.28.2018
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  1258. b. Communications, records, documents, and other files involving a plan or proposal
  1259. or agreement for Cohen and/or entities associated with him to transfer any interest in taxi
  1260. medallions, and any associated debts or liabilities, to
  1261. with him;
  1262. nd/or entities associated
  1263. c. Communications, records, documents, and other files necessary to establish the
  1264. identity of any person(s) — including records that reveal the whereabouts of the person(s) — who
  1265. about any matters relating to any plan or proposal or
  1266. communicated with the
  1267. agreement for Cohen and/or entities associated with him to transfer any interest in taxi medallions,
  1268. and any associated debts or liabilities, to
  1269. d. Communications between the
  1270. and/or entities associated with him;
  1271. ssccount and others, including employees or
  1272. representatives of Sterling, Melrose, or other financial institution(s), regarding Cohen's finances;
  1273. and
  1274. e. Communications, records, documents, and other files reflecting false representations
  1275. to a financial institution with relation to the intended purpose of an account or loan at that financial
  1276. institution; the nature of any business or entity associated with an account at a financial institution;
  1277. the source of funds flowing into an account; or the purpose or nature of any financial transactions
  1278. involving that financial institution.
  1279. Ill. Review of the Information Obtained Pursuant to the Warrant
  1280. 35. Pursuant to 18 U.S.C. 2703(g), the presence of a law enforcement officer is not
  1281. required for service of a search warrant issued under 2703, or for the collection or production of
  1282. responsive records. Accordingly, the warrant requested herein will be transmitted to the Providers,
  1283. which shall be directed to produce a digital copy of any responsive records to law enforcement
  1284. personnel within 30 days from the date of service. Law enforcement personnel (including, in
  1285. addition to law enforcement officers and agents, and depending on the nature of the ESI and the
  1286. 43
  1287. 02.282018
  1288. I
  1289.  
  1290. ****** Result for Image/Page 44 ******
  1291. status of the investigation and related proceedings, attorneys for the government, attorney support
  1292. staff, agency personnel assisting the government in this investigation, and outside technical experts
  1293. under government control) will retain the records and review them for evidence, fruits, and
  1294. instrumentalities of the Subject Offenses as specified in Section Ill of Attachments A, B and C to
  1295. the proposed warant.
  1296. 36. In conducting this review, law enforcement personnel may use various methods to
  1297. locate evidence, fruits, and instrumentalities of the Subject Offenses, including but not limited to
  1298. undertaking a cursory inspection of all emails within the Subject Account. This method is
  1299. analogous to cursorily inspecting all the files in a file cabinet in an office to determine which paper
  1300. evidence is subject to seizure. Although law enforcement personnel may use other methods as
  1301. well, particularly including keyword searches, I know that keyword searches and similar methods
  1302. are typically inadequate to detect all information subject to seizure. As an initial matter, keyword
  1303. searches work only for text data, yet many types of files commonly associated with emails,
  1304. including attachments such as scanned documents, pictures, and videos, do not store data as
  1305. searchable text. Moreover, even as to text data, keyword searches cannot be relied upon to capture
  1306. all relevant communications in an account, as it is impossible to know in advance all of the unique
  1307. words or phrases that investigative subjects will use in their communications, and consequently
  1308. there are often many communications in an account that are relevant to an investigation but that
  1309. do not contain any keywords that an agent is likely to search for.
  1310. re attorneys, the review of the content within the Subject
  1311. 37. Because Cohen and
  1312. Accounts will be conducted pursuant to established screening procedures to ensure that the law
  1313. enforcement personnel involved in the investigation, including attorneys for the Government,
  1314. collect evidence in a manner reasonably designed to protect any attorney-client or other applicable
  1315. 44
  1316. 02.28.2018
  1317.  
  1318. ****** Result for Image/Page 45 ******
  1319. privilege. When appropriate, the procedures will include use ofa designated "filter team," separate
  1320. and apart from the investigative team, in order to review potentially privileged communications
  1321. and determine which communications to release to the investigation and prosecution team.
  1322. IV. Request for Non-Disclosure and Sealing Order
  1323. 38. The existence and scope ofthis ongoing criminal investigation are not publicly known.
  1324. As a result, premature public disclosure of this affidavit or the requested warrants could alert
  1325. Cohen that he is under investigation, causing him to destroy evidence, flee from prosecution, or
  1326. otherwise seriously jeopardize the investigation. Ifi particular, based on my experience
  1327. investigating white collar cases, including cases featuring documents such as agreements, drafts
  1328. of agreements, notes of conversations, and other documentary evidence, premature disclosure of
  1329. an investigation may cause the target of the investigation to attempt to destroy or conceal such
  1330. evidence. In addition, as also set forth above, Cohen uses computers and electronic
  1331. communications in furtherance of his activity and thus could easily delete, encrypt, or otherwise
  1332. conceal such digital evidence from law enforcement were he to leam of the Government's
  1333. investigation. See 18 U.S.C. 2705(b)(3). Cohen also appears to have the financial means that
  1334. would facilitate his flight from prosecution. See 18 U.S.C. 2705(b)(2), (5).
  1335. 39. Accordingly, there is reason to believe that, were the Providers to notify the subscriber
  1336. or others of the existence of the warrant, the investigation would be seriously jeopardized.
  1337. Pursuant to 18 U.S.C. 2705(b), I therefore respectfully request that the Court direct the Providers
  1338. not to notify any person of the existence of the warrant for a period of 180 days from issuance,
  1339. subject to extension upon application to the Court, if necessary.
  1340. 40. For similar reasons, I respectfully request that this affidavit and all papers submitted
  1341. herewith be maintained under seal until the Court orders otherwise, except that the Govemment
  1342. be permitted without further order of this Court to provide copies of the warrant and affidavit as
  1343. 45
  1344. 02.28.2018
  1345.  
  1346. ****** Result for Image/Page 46 ******
  1347. need be to personnel assisting it in the investigation and prosecution of this matter, and to disclose
  1348. those materials as necessary to comply with discovery and disclosure obligations in any
  1349. prosecutions related to this matter.
  1350. Conclusion
  1351. 41. Based on the foregoing, I respectfully request that the Court issue the warrants sought
  1352. herein pursuant to the applicable provisions of the Stored Communications Act, 18 U.S.C.
  1353. 2703(b)(1)(A) (for contents) and 2703(c)(1)(A) (for records and other information), and the
  1354. relevant provisions of Federal Rule of Criminal Procedure 41.
  1355. Sworn to before me this
  1356. 28th day of February, 2018
  1357. HONO SLEGABRIELW.
  1358. Chief vited States Magistrate J -ge
  1359. them District Of N or
  1360. 02.282018
  1361. United States Attorney's Office
  1362. Southern District of New York
  1363. STEIN
  1364. 46
  1365.  
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  1367. 1 8 MAG
  1368. UNITED STATES DISTRICT COURT
  1369. SOUTHERN DISTRICT OF NEW YORK
  1370. In the Matter of a Warrant for All
  1371. Content and Other Information
  1372. Associated with the Email Account
  1373. at
  1374. Prenuses Controlled by 1 & 1 Internet,
  1375. Inc., USAO Reference No.
  1376. 2018R00127
  1377. 169 6
  1378. TO:
  1379. SEARCH WARRANT AND NON-DISCLOSURE ORDER
  1380. 1 & 1 Internet, Inc. ("Provider")
  1381. United States Attorney's Office for the Southern District of New York and the Federal
  1382. Bureau of Investigation (collectively, the "Investigative Agencies")
  1383. 1. Warrant. Upon an affidavit of Special Agent
  1384. of the United States
  1385. Attorney's Offce for the Southern District of New York, and pursuant to the provisions of the
  1386. Stored Communications Act, 18 U.S.C. 2703(b)(1)(A) and 2703(c)(1)(A), and the relevant
  1387. provisions of Federal Rule of Criminal Procedure 41, the Court hereby finds there is probable
  1388. cause to believe the email account
  1389. maintained at premises controlled by 1
  1390. & 1 Internet, Inc., contains evidence, fruits, and instrumentalities of crime, all as specified in
  1391. Attachment D hereto. Accordingly, the Provider is hereby directed to provide to the Investigative
  1392. Agencies, within 7 days of the date of service of this Warrant and Order, the records specified in
  1393. Section II of Attachment D hereto, for subsequent review by law enforcement personnel as
  1394. authorized in Sections Ill and IV of Attachment D. The Government is required to serve a copy
  1395. of this Warrant and Order on the Provider within 14 days of the date of issuance. The Warrant
  1396. and Order may be served via electronic transmission or any other means through which the
  1397. Provider is capable of accepting service.
  1398.  
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  1400. 2. Non-Disclosure Order. Pursuant to 18 U.S.C. 2705(b), the Court finds that there is
  1401. reason to believe that notification of the existence of this warrant will result in destruction of or
  1402. tampering with evidence or flight from prosecution, or otherwise will seriously jeopardize an
  1403. ongoing investigation. Accordingly, it is hereby ordered that the Provider shall not disclose the
  1404. existence of this Warrant and Order to the listed subscriber or to any other person for a period of
  1405. 180 days from the date of this Order, subject to extension upon application to the Court if
  1406. necessary, except that Provider may disclose this Warrant and Order to an attomey for Provider
  1407. for the purpose of receiving legal advice.
  1408. 3. Sealing. It is further ordered that this Warrant and Order, and the Affidavit upon which
  1409. it was issued, be filed under seal, except that the Government may without further order of this
  1410. Court serve the Warrant and Order on the Provider; provide copies ofthe Affidavit or Warrant and
  1411. Order as need be to personnel assisting the Government in the investigation and prosecution of
  1412. this matter; and disclose these materials as necessary to comply with discovery and disclosure
  1413. obligations in any prosecutions related to this matter.
  1414. Dated: New York, New York
  1415. teC
  1416. Date Issued
  1417. 02.282018
  1418. ID!qrt.m.
  1419. Time Issued
  1420. HO ORABLE GAB
  1421. •efUnited States
  1422. Southern District of New York
  1423. 2
  1424. GOREN$TEIN
  1425. Judge
  1426.  
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  1428. 1.
  1429. Email Search Attachment D
  1430. Subject Account and Execution of Warrant
  1431. This warrant is directed to 1 & 1 Intemet, Inc. (the "Provider"), headquartered at 701 Lee
  1432. Road, Suite 300, Chesterbrook, Pennsylvania 19087, and applies to all content and other
  1433. information within the Provider's possession, custody, or control associated with the email account
  1434. the "Subject Account") for the time period between November 14, 2017
  1435. and the date of this warrant, inclusive.
  1436. A law enforcement officer will serve this warrant by transmitting it via email or another
  1437. appropriate manner to the Provider. The Provider is directed to produce to the law enforcement
  1438. officer an electronic copy of the information specified in Section II below. Upon receipt of the
  1439. production, law enforcement personnel will review the information for items falling within the
  1440. categories specified in Section Ill below.
  1441. II. Information to be Produced by the Provider
  1442. To the extent within the Provider's possession, custody, or control, the Provider is directed
  1443. to produce the following information associated with the Subject Account:
  1444. a. Email content. All emails sent to or from, stored in draft form in, or otherwise
  1445. associated with the Subject Account, including all message content, attachments, and header
  1446. information (specifically including the source and destination addresses associated with each
  1447. email, the date and time at which each email was sent, and the size and length of each email).
  1448. b. Address book information. All address book, contact list, or similar infonnation
  1449. associated with the Subject Account.
  1450. c. Subscriber and payment information. All subscriber and payment information
  1451. regarding the Subject Account, including but not limited to name, username, address, telephone
  1452.  
  1453. ****** Result for Image/Page 50 ******
  1454. number, alternate email addresses, registration IP address, account creation date, account status,
  1455. length of service, types of services utilized, means and source of payment, and payment history.
  1456. d. Transactional records. All transactional records associated with the Subject Account,
  1457. including any IP logs or other records of session times and durations.
  1458. e. Customer correspondence. All correspondence with the subscriber or others associated
  1459. with the Subject Account, including complaints, inquiries, or other contacts with suppolt services
  1460. and records of actions taken.
  1461. f. Preserved or backup records. Any preserved or backup copies of any of the foregoing
  1462. categories of records, whether created in response to a preservation request issued pursuant to 18
  1463. U.S.C. 2703(f) or otherwise.
  1464. Ill. Review of Information by the Government
  1465. Law enforcement personnel (who may include, in addition to law enforcement officers and
  1466. agents, attorneys for the government, attorney support staff, agency personnel assisting the
  1467. government in this investigation, and outside technical experts under government control) are
  1468. authorized to review the records produced by the Provider in order to locate any evidence, fruits,
  1469. and instrumentalities of violations of 18 U.S.C. 371 (conspiracy to commit offense or to defraud
  1470. the United States), 1005 (false bank entries); 1014 (false statements to a financial institution), 1343
  1471. (wire fraud), and 1344 (bank fraud), including the following:
  1472. a. Communications, records, documents, and other files necessary to establish the identity
  1473. of the person(s) who created or used the Subject Account;
  1474. b. Communications, records, documents, and other files involving Sterling National
  1475. Bank, Melrose Credit Union, and/or taxi medallions;
  1476. c. Communications, records, documents, and other files involving a plan, proposal, or
  1477. agreement for Michael D. Cohen and/or entities associated with him to transfer any interest in taxi
  1478. 2
  1479. 02.282018
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