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SDNY
Trial of Hwang For
Archegos $34
Billion Meltdown
Nears with DOJ
Told to Disclose
By Matthew
Russell Lee, Patreon Substack
SDNY COURTHOUSE,
April 11 – 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.
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
Jump cut to
November 14, 2023 when Judge
Hellerstein held an oral
argument on the subpoena
requests. Inner City Press
attended, in mask, and
tweeted, threadette
On January 3,
2024, still mostly masked,
Judge Hellerstein said the
proposed experts are
qualified, that sufficient
notice is the issue. He said
he will follow Judge Jed
Rakoff's decision in US v.
Mrabet, which Inner City Press
also covered. At the end
Judge Hellerstein said, with a
laugh, Don't settle this case,
I want to try it.
On January 8
Hwang's counsel filed a motion
to exclude 16 gigabytes of
trading data they say should
have been produced to them 17
months ago - and email notes
of previous counsel's
communications with the
prosecutors, on Patreon here.
On January 22,
Judge Hellerstein pushed the
trial back to May 6: "ORDER as
to Sung Kook (Bill) Hwang,
Patrick Halligan. The start of
trial in the above-captioned
case is adjourned to May 6,
2024 at 10:00 a.m. The final
pre-trial conference is
adjourned to April 16, 2024 at
2:30 p.m."
In fact, the FPTC
was on April 11. Inner City
Press was there, thread:
OK - now at US v.
Bill Hwang / Archegos final
pre-trial conference, Judge
Hellerstein asking prosecutors
why they didn't do what he
ordered -
AUSA: We expect
Mr. Becker to testify how he
was trained to lie to banks.
How much better notice can we
give? Judge Hellerstein: You
better do a better job. I
don't want this. I can't fight
with you about what I said,
because I don't remember what
I said.
Judge
Hellerstein: I'm trying to
make this trial a little
fairer. AUSA: This is not hide
the ball. We've given them
disclosure earlier than usual.
Judge Hellerstein: You deserve
a gold medal? AUSA: We'll put
it in a letter. Judge: Make it
specific
Defense:
We'd like a date certain for
this... They are alleging
misleading communications in
2020 and 2021 to facilitate
manipulative trading in 2020
and 2021. But whatever came
before is not relevant,
including these supposed
communications to banks
Defense:
They have marked a 2018 credit
memo for the Wells Fargo Bank
- would you like to see it? I
have paper copies... This is
Exhibit B to ECF 168-G.
October 2018, it indicates
Wells conducted due diligence
in May and July 2018
Judge
Hellerstein: I don't know
what's going on. There is no
signature. To whom at Archegos
can it be attributed? AUSA:
This is a business record of
Wells Fargo -
Judge
Hellerstein: This is the kind
of thing you need to disclose.
More details on
Substack here
***
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