| Hugh
Austin Charged
in Crypto
Fraud Now Son
Subpoenaed for
Father's Trial
So Delay Bid
by
Matthew Russell Lee, Patreon Book
Substack
SDNY Exclusive,
July 24 –
A man charged
with financial
and
cryptocurrency
fraud, whose
son as already
pleaded
guilty, was
arrested and
presented on
July 5 before
U.S. District
Court for the
Southern
District of
New York
Magistrate
Judge Jennifer
E. Willis.
Inner City
Press was
there, the
only media in
the courtroom.
Thread.
AUSA:
He and his son
victimized 20
people for
over $10
million,
offering
crypto through
other family
members' bank
accounts. He
has a history
of mental
health issues
and oxy use,
living a
nomadic
lifestyle
AUSA:
He serially
opened free 1
month gym
memberships in
variations of
his
name.
Defense:
He has A.D.D.
and used
fentanyl only
once, by
mistake, in
2021. He is
not affluent -
look, he is
here in short
and a T-shirt.
Judge
Willis has
returned to
the bench and
notes that
defendant
didn't flee
after son's
plea. He is
being released
tonight, with
no GPS yet,
with 2 days to
come up with a
co-signer.
Jump
cut to August
7 - the
conditions
still no yet,
Austin
reappeared in
Mag Court.
Inner City
Press went, thread:
OK
- now Eugene
Austin is in
Mag court, in
a track suit.
Conditions of
bail not
met.
Judge
Gorenstein:
why didn't you
seek an
exrension?
Defense
counsel (by
phone) US
wanted this
hearing.
Because of
publicity, no
one will sign.
Judge:
He could be
remanded right
now. Did you
see my email?
When can you
come in
person?
Defense:
Tomorrow
afternoon?
Austin
is sitting at
defense table
in his track
suit.
Judge
comes down off
bench to look
at big View
Sonic computer
monitor, says
Maybe the
email wasn't
sent. Or, it
was in my
order.
Defense
lawyer: I
couldn't open
my email.
Judge: It's an
order on ECF.
Defense: I
want a
modification,
not an
extension.
Judge:
Lot of
mysteries
here. I'm on
the brink of
remanding him,
but I'd like
you to be
present if I
do. Do you
hear me?
Defense: No,
there is an
echo.
Now
judge speaking
softly
directly into
phone.
Defense:
I'm leaving
the country
Thursday at 10
am.
Judge:
Wednesday at
noon. Have the
Marshals
present.
Afterward
Austin said he
left his phone
at home
because he
thought he'd
be remanded
today. So the
non-appearance
(in person)
and non-filing
may have won
him two days -
or more.
On
August 8, the
US opposed
Austin's
motions for
more time,
acknowledging
that a
potential
co-signer had
been served
with a grand
jury subpoena
but adding
that "the
defendant does
not allege
that the
Government
threatened
this
co-signer."
His sister
Margaret
Cherpak
"apparently
has been
unwilling to
post her home
to securte the
defendant's
appearance in
court."
On
August 9
Austin and his
lawyer were in
the Mag court
in person, as
was Inner City
Press. Thread:
OK
- Accused
crypto
fraudster Hugh
Austin, last
here Monday in
a tracksuit,
is back in
SDNY Mag court
in a blue
Oxford cloth
shirt,
untucked.
Defense:
His sister has
no equity in
her Port
Jefferson
house. Austin:
She's working
with lawyers.
Judge:
The money is
not important.
You need two
more
co-signers.
Defense: Give
him two weeks.
AUSA: He can
seek them from
a phone in
jail.
AUSA:
He's reaching
out to
victims.
Judge: I'll
give him, to
find 3
co-signers,
until August
23, 11 am. No
co-signers,
expect remand.
Question:
But can the
Magistrate
Judge on duty
on August 23
be bound by
this?
Apparently
not. When
Austin showed
up at 11 am on
August 23,
Inner City
Press was
there.
Austin's
lawyer said
Austin's
ex-wife had
been about to
sign until her
new husband
got involved.
He was given
until August
25 at 10 am. Thread:
Austin
has not found
the co-signer.
His ex-wife
was going to,
defense says,
until her new
husband got
involved.
Judge: He's
been given
time....
Judge:
If he finds
one, he could
be released.
Defense: Just
a few more
days. Judge:
What will
change?
Defense:
One day we'll
be before a
judge who
won't take any
more. Judge:
This may be
the day. I may
be the judge.
AUSA:
We may
interview a
prospect on
Friday.
Defense: How
about his
former mother
in law, now
that Ms Walker
backed out.
Judge:
I'll give you
to Friday 10
am - satisfy
the bond or
remand, no
hearing
needed.
Next,
after a
continuance in
the interest
of justice,
Austin was
indicted on
October 4, and
the case
assigned to
Judge Jennifer
H. Rearden.
On
October 11 it
was reassigned
to Judge P.
Kevin Castel,
to whom
Austin's
counsel wrote
on November
asked for Hugh
Austin to meet
without
counsel
present with
his son
Brandon who
has pleaded
guilty and is
set to be
sentenced on
February 22,
2024 - by
Judge Castel.
On
December 7,
Judge Castel
approved two
in-person
meetings a
month, outside
the presence
of counsel.
On
July 24
Brandon
Austin's
Federal
Defender asked
to delay his
surrender from
July 30 to
August 8 so
Brandon can
responded to
the
government's
subpoenas "in
connection
with Hugh
Austin's
upcoming
trial."
The
son's case is
US v. Brandon
Austin,
23-cr-199
(Castel)
Watch
this site.
The case is US
v. Austin,
23-cr-508
(Castel)
More
including on
son's case on
Substack here
***
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