In
Miles Guo Trial
Kyle Bass Rep
Cites Bannon
Contract and HK
Dollar Short Call
to Bill Je
by
Matthew Russell Lee, Patreon Substack
SDNY COURTHOUSE,
May 31 – After a circus-like
civil case involving Guo
Wengui in the U.S. District
Court for the Southern
District of New York, which
Inner City Press closely
covered, here,
March 15, 2023 saw the
unsealing of a twelve-count
Indictment of Miles Guo
onvarious wire fraud,
securities fraud, bank fraud,
and money laundering charges.
On May 21, the US Attorney's
Office wrote
in seeking to preclude
fire issues from
the trial: 7 page
letter on
Patreon here.
On May 22, Inner
City Press live tweeted jury
selection, here.
Many
were excused from the jury
pool.
More detail /
some analysis on X for
Subscribers here
& Substack here
On May 23 the
defense wrote in including
"There is no evidence to
support the government’s
sensationalist theory that Mr.
Guo started a fire at the
Sherry Netherland residence.
Letter on Patreon
here
At the end of May
23, Judge Torres told the
remaining jurors that the
trial would start Friday. Thread.
More details on X
for Subscribers here
and Substack here
And it did. Inner
City Press live tweeted the
opening and first two
witnesses, an FBI agent about
the Greenwich search, and a
Dallas based Lamborghini
dealer, thread here.
On May 28 the US
moved for admission of posts
from GNews and GETTR, 5 page
motion on Patreon here
On May 31 a
representative of Kyle Bass'
Hayman Capital Management
testified, thread
Witness Steele
Schottenheimer: The investment
in Hayman's fund, shorting the
Hong Kong dollars, received an
investment that was not what
it appeared. The SEC contacted
us.
AUSA: How do you
remember the day? Steele: It
was my mother's birthday and I
was to cook for her but was
late
AUSA:
Please read this letter.
Steele: Our Hong Kong
opportunities fund has been
contacted by the SEC about
G-coin. We require immediate
information. AUSA: What was
G-TV Media Group? Steele: It
was operated by Miles Kwok
Steele: We
asked for the source of
capital. And if it came from a
public offering. Was any of
the money raised in GTV's
primary offering used for this
investment? Into what banks
were the proceeds deposited?
AUSA: Was there any answer?
Steele: NoAUSA: Any informal
response?
Steele: Kyle and
William Je connected over the
phone. AUSA: What was your
understanding of - Guo's
lawyer: Objection! Hearsay!
Judge: Please approach
[sidebar with white noise
turned up]
[After
sidebar] Judge: You may
answer. Steele: William Je
told Kyle there was a
misunderstanding, that there
may have been some money
borrowed but they wanted to
stay in the fund. AUSA: What
that explanation sufficient?
Steele: No.
AUSA: Was
Hayman contemplating ejecting
them from the HKOF [Hong Kong
Opportunities Fund]? Steele:
Yes. Where is our lawyer's
letter about the $70 million
mandatory withdrawal. The GP
reserved its right to do that,
to return the investor's
money.
Judge: This
August 22, 2020 email from
Kyle Bass to William Je is
only being offered for its
effect. AUSA: What did Mr.
Bass write to Je? Steele: We
have been asking for
clarification [about G-TV]
since July 15... Please
discuss this with Miles and
respond by 8/28
AUSA: How much
money was lost? Steele: $29.6
million. AUSA: Where did the
money go? Steele: A JP Morgan
Chase account... This was a
high risk, potentially high
reward strategy, if the Hong
Kong dollar stayed within the
band. This was meant to be a
hedge
AUSA: No
further questions. Judge:
Cross examination. Guo's
lawyer: Where did you start?
Steele: Legg Mason then with
Kyle to Hayman. AUSA: Hayman
could only taken in funds from
qualified investors? Steele:
Yes. They had to have $5
million in marketable
securities
Steele: I
met Miles one time in Texas.
He came to interview with Kyle
in an airport hanger.Guo's
lawyer: You said Hayman works
in event driven strategies?
Steele: We invest in
securities tied to an event
driven thesis Guo's lawyer: In
the US, Hayman invested based
on subprime lending going
down?
Guo's lawyer: So
this fund was related to the
HK dollars, that it would
break from the US dollar?
Steele: On the weak side. The
HKMA holds US dollars on its
balance sheet. Guo's
lawyer: It can use them to
keep the peg in place. But if
it runs out, the peg breaks?
Judge:
Let's break here.
More detail and
analysis on X for Subscribers
here and Substack here
The case is US v.
Guo, et al., 23-cr-118
(Torres)
***
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