| After SDNY
Indicted Hwang For Archegos $34B Meltdown
now He Claims US Misconduct
By Matthew
Russell Lee, Patreon Maxwell
Book
SDNY COURTHOUSE,
Jan 27 – In the wake of
the Archegos meltdown, the
other shoe dropped on April
27, when the US Attorney for
the SDNY unsealed and
indictment charging Bill Hwang
Patrick Halligan, Archegos’s
CFO with racketeering
conspiracy, securities fraud,
and wire fraud
offenses.
Inner City
Press went to the SDNY press
conference to ask, What about
Credit Suisse and Nomura and
people in those banks? What
about the massive family
office loophope to the
Investment Advisors Act of
1940? This has come up in the
OneCoin fraud case, on which
the Office used perjured
testimony and now agrees to
delay after delay.
Damian
William referred obliquely to
Hwang doing it in the dark,
but otherwise the issue -
which is addressed by a
pending bill in Congress - did
not come up. Nor did Lisa
Monaco, present in New York
for the presser, address it.
On June 1, newly
assigned District Judge Alvin
K. Hellerstein held a
conference in the case. Inner
City Press attended and live
tweet it here
(and asked defense counsel a
question later, here).
Thread:
Hwang's lawyer
Larry Lustberg predicts robust
motions. Hwang's co-defendant
Halligan's lawyer says this is
like the NBA, sharp elbows.
Predicts omnibus motions
on/against RICO allegations.
Judge
Hellerstein: How about ten
weeks from today, you chart
your motions, consolidated as
much as possible. Aug 9 at 11.
Lustberg: No
problem, judge.
Judge
Hellerstein: Maybe we need a
list and definition of each
alleged misrepresentation.
AUSA: We
expect them to request a bill
of particulars.
Judge: Do it
before the next conference,
and put it on ECF. Maybe on
Aug 9, I'll set the trial
date. Mr Lustberg, when can
you list what you're lacking?
Lustberg: Soon.
Judge: Time
excluded until Aug 9.
Adjourned.
And after,
stand-up here,
short Q&A here.
On July 14, Judge
Hellerstein approved Hwang's
request to be allowed, on
three days' notice to the
Office of Pretrial Services,
to travel throughout the 48
states to "support the poor
and oppressed" via Grace &
Mercy Foundation.
On July 20 the US
Attorney's Office asked to
postpone the conference set
for August 9 until September
8, saying it has been unable
to complete the production of
discovery.
And on September
8, with COVID masks voluntary
in most of SDNY but in place
in this courtroom, this:
"Minute Entry for proceedings
held before Judge Alvin K.
Hellerstein: Pretrial
Conference as to Sung Kook
(Bill) Hwang, Patrick Halligan
held on 9/8/2022. Deft. Sung
Kook Hwang pres. w/attys.
Lawrence Lustberg, Thomas
Valen and Jeffrey Nagel; Deft.
Patrick Halligan pres.
w/attys. Mary Mulligan and Tim
Haggerty; AUSAs Mathew
Podolsky and Andrew Thomas
pres.; Court reporter Sarah
Beiter pres.; Motions to be
filed by 12/2/22; response by
1/12/23; reply 1/27/23; Trial
set for 10/10/23; FPTC set for
10/4/23 at 10:00 a.m; Time is
excluded until 10/10/23; in
the interest of justice."
Jump cut to
January 27, 2023, when
Lustberg submitted another
filing asserting prosecutorial
misconduct, specifically
misrepresentations that Hwang
was a subject, not a target,
of its investigation, and that
the US was open minded about
whether or not to charge
Hwang. This could often be
said or alleged. Watch this
site.
The SDNY press
release: SUNG KOOK (BILL)
HWANG The defendant will
be released today upon his own
signature to $100 million
personal recognizance bond, to
be secured by $5 million in
cash and 2 properties, and
co-signed by two financially
responsible individuals,
including his wife. The
defendant agrees to attest
that he lost his passport and
his wife will surrender her
passport. Travel will be
restricted to the SDNY, EDNY,
District of Connecticut, and
District of New Jersey. Mr.
Hwang will be released today
on his signature, with
remaining conditions to be met
by May
6.
Late on
May 5, Hwang lawyer - who,
full disclosure, Inner City
Press knows - wrote in to seek
to modify the condition about
"the posting of two properties
what would be forfeited should
he violation the conditions of
his release (one of which
would be his primary residence
at 26 Trafalgar Road, Tenafly
NJ)." Other, different
documents were submitted.
On March 18, the
assigned District Judge Andrew
L. Carter convened a
conference in his courtroom in
40 Foley Square. Inner City
Press went - but it was
quickly over. Judge Carter
recused himself, as Inner City
Press first tweeted:
Now Judge Andrew
L. Carter in US v. Hwang /
Archegos case is recusing
himself due to stock in, and
wife worked for,
JPMorgan Chase ,
involved enough in the charged
fraud [song]
Hwang's
lawyer Lawrence Lustberg, who
Inner City Press knows (Press
will not recuse) argues but
Judge Carter says, Not to
me. Adjourned.
Afterward
Inner City Press gave its
business card to Lustberg by
the elevators, then took the
stairs. Reemerging on the 9th
floor to check for cases, Team
Hwang had gotten off there.
Strategizing...
On May 23,
Hwang's case was reassigned to
Judge Alkin K. Hellerstein:
"NOTICE OF CASE REASSIGNMENT
as to Sung Kook (Bill) Hwang,
Patrick Halligan, to Judge
Alvin K. Hellerstein. Judge
Andrew L. Carter, Jr. no
longer assigned to the case."
On May 25, the
first proceeding before Judge
Hellerstein was set, for June
1 at 10 am: "MEMO ENDORSEMENT
as to Sung Kook (Bill) Hwang
on [26] LETTER MOTION
addressed to Judge Alvin K.
Hellerstein from Alex
Rossmiller dated May 24, 2022
re: conference scheduling and
exclusion of time.
ENDORSEMENT: The conference is
set for June 1, 2022 at 10:00
a.m., and time is excluded
until then, in the interest of
justice. SO ORDERED."
Watch this site.
Co-defendant
PATRICK HALLIGAN The
defendant will be released
today upon (i) $1,000,000
personal recognizance bond;
(ii) co-signed by two
financially responsible
persons, one of them being his
wife; (iii) travel restricted
to EDNY and SDNY; (iv) regular
pre-trial supervision; and (v)
surrender of passport (which
has occurred).
Meanwhile
later - after re-up
of book
and talk to NYU Journalism
School, here
and here
- in the SDNY Magistrate a
defendant was detained until
trial, charged as a felon in
possession. We'll have more,
much more, on this.
The case is US v.
Hwang, 22-cr-240 (Hellerstein)
***
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