In
SDNY Crypo Currency Case
Reginald Fowler Paused Plea
Now Santander UK Order
Unsealed
By Matthew
Russell Lee
SDNY COURTHOUSE,
Feb 5 – A Arizona based
crypto-currency maven Reginald
Fowler, with multiple accounts
with the HSBC, appeared to
plead guilty on January 15 to
a single count, "operation of
an unlicensed money
transmittal business." He
acknowledged the section of
the law to which he was
pleading guilty to violating:
18 US Code Section 1960. Yes,
he said.
Judge
Carter said, We are here for a
change of plea, and there was
no objection. Judge Carter
read from a plea agreement
that Fowler had signed. All
was going according to plan,
until the issue of $371
million in forfeiture came up.
Now on
February 5, Judge Carter has
"so ordered" the unsealing an
Order about assets in three
accounts at Santander UK PLC.
But as of 10 pm on February 5,
the Order was still not
unsealed on PACER. Watch this
site.
From the full transcript Inner
City Press obtained access to
on February 3:
AUSA Swett: "Your
Honor, we're not in a position
to represent that these
accounts have $371 million,
nor did we ever communicate
that to defense counsel... I
think 15 minutes to discuss
this with defense counsel
might be beneficial."
But when
they returned, Judge Carter
brought up his (his wife's)
JPMorgan Chase possible
conflict of interest (she now
works at Bank of New York).
Fowler's attorney McGovern
said, "Our issue is how much
actual exposure under the
forfeiture order after the
accounts are liquidated Mr.
Fowler is looking at." Hence,
now a trial date. And this
letter from the prosecutors:
"On Thursday, Mr.
Fowler rejected the current
plea offer, and the Government
has formally withdrawn that
offer; thus, the parties
anticipate the case proceeding
to trial as scheduled on April
28, 2020. Although the Court
set a schedule for motions in
limine in advance of trial, a
motion schedule for general
pretrial motions has not been
set; thus, the parties will
confer and submit a joint
letter within the next week
proposing a schedule for the
Court’s consideration."
"Minute Entry for
proceedings held before Judge
Andrew L. Carter, Jr.:
Pretrial Conference as to
(19-Cr-254-01) Reginald Fowler
held on 1/17/2020. Defendant
Reginald Fowler appears with
attorneys James Mc Govern and
Nat Rosenblum. AUSA Jessica
Fender, AUSA Sebastian Swett
and AUSA Samuel Rothschild for
the Government. Joint Status
Report due 1/31/20. Motions in
Limine Due: 4/14/20. Responses
Due: 4/21/20. Voir Dire &
Proposed Jury Instructions
Due: 4/14/20. Final Pre-Trial
Conference 4/27/20 at 12:00
p.m. Jury Selection &
Trial 4/28/20 at 9:30 a.m.
Time excluded from 1/17/20 to
4/28/20 in the interest of
justice. All bail conditions
remain in effect. See
transcript for complete
details. Court Reporter:
Raquel Robles."
Back on May
15 Fowler had entered not
guilty pleas to four felony
counts on in the U.S.
District Court
for the
Southern
District of
New York
courtroom of Judge
Andrew L.
Carter.
While the
indictment,
initially
under seal, refers to
Bank-1, the
forfeiture
allegations
specify two
HSBC Bank
USA Accounts
including
141000147, an
HSBC
Security USA
account and two HSBC
Securities USA
/ Pershing
LLC accounts.
Given
the Justice Department's
history with
HSBC, for
example on the
bank's money
laundering for
drug gangs,
some wonder
why HSBC was
not indicted.
This is a case
Inner City
Press will continue to
follow,
through sentencing
and beyond.
***
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