By Matthew Russell Lee, Patreon Substack
SDNY COURTHOUSE, July 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 here.
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.
Jump cut to June 15, 2023, when the US - ostensibly for the defense, and trading off another case Inner City Press is covering, about fake passport(s), wrote: " The Government writes regarding the trial schedules in United States v. Hwang, 22 Cr. 240 (AKH), and United States v. Etoty, 20 Cr. 187 (AKH). On May 10, 2023, new counsel for defendant Sung Kook (Bill) Hwang entered appearances in Case Number 22 Cr. 240 (AKH). Hwang’s new counsel also contacted the Government, seeking consent for a trial adjournment, in part to accommodate certain personal scheduling conflicts. While the Government is prepared to proceed with the originally scheduled trial date, in light of discussions with Hwang’s new counsel, the Government writes on behalf of all parties to respectfully request that the beginning of trial in United States v. Hwang be adjourned to February 20, 2024. Trial in United States v. Etoty, 20 Cr. 187 (AKH), is currently scheduled to begin February 21, 2024. However, both to permit additional time to prepare for that trial and to accommodate the length of trial in United States v. Hwang, which the parties currently expect to last approximately two months" - full letter on Patreon here.
Back 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; 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.
On February 7, Judge Hellerstein citing time conflicts on the part of counsel pushed the trial into 2024: "SCHEDULING ORDER as to Sung Kook (Bill) Hwang, Patrick Halligan. A conflict with another trial having arisen on the part of counsel, trial in the above-captioned criminal matter is adjourned from October 10, 2023 to January 9, 2024."
On June 20, it was pushed back again: "SCHEDULING ORDER as to Sung Kook (Bill) Hwang, Patrick Halligan. Trial in the above-captioned criminal matter, by request of all parties, is adjourned from January 9, 2024 to February 20, 2024 at 10:00 a.m., in Courtroom 14D. The Final Pretrial Conference will be held on February 14, 2024 at 2:30 p.m. Time is excluded in the interest of justice from January 9, 2024 to February 20, 2024 pursuant to 18 U.S.C. § 3161. SO ORDERED (Signed by Judge Alvin K. Hellerstein on 6/20/2023)."
On July 27, Hwang wrote in seeking approval of subpoenas to Goldman Sachs, Morgan Stanley, Bank of Montreal, Credit Suisse, UBS, Nomura, MUFG, Mizuho, Macquarie, Jeffries and Deutsche Bank, to show he did not "use his lawfully executed swaps to artificially impact the prices of the underlying stocks." Watch this site.
Back on March 21, 2023 Judge Hellerstein held an hour and a half proceeding in which he denied more than a dozen motions by Team Hwang. Inner City Press was there are live tweeted, thread here:
OK- now Bill Hwang of Archegos arguing for dismissal of criminal fraud case against him.
Hwang's lawyer Lustberg: There was no spoofing here. There were no false statements. AUSA Podolsky cites a 2008 decision by Judge Rakoff sitting by designation on the 2d Circuit, on 10(b)(5).
Judge Hellerstein: I find that fraud is sufficiently alleged.
Halligan's lawyer cites a Judge Patterson decision on RICO Section 1961(1)(b). Judge: After biological weapons?
AUSA: 6 lines below that. And the PSLRA amendments took this right from civil litigants...Mr Hwang wanted to control the market. It was pump and brag
Judge Hellerstein: My ruling is that the indictment is legally sufficient. Defense sputtering about Count 10, citing 2d Circuit Charles Schwab case
Judge Hellerstein: Motion denied. I'll issue a short summary order- until then I reserve the right to change my mind
After that, a motion for a hearing on alleged prosecutorial misconduct was argued - Lustberg said the AUSAs never said when Hwang became a target, not subject, but continued to elicit information right until the indictment, and even after (it was sealed). Denied. Final pre-trial conference is set for January 5, 2024.
On April 7, Halligan's lawyer wrote in contesting the Court's Order that the indictment alleges that Archegos traded in derivative securities "without satisfying disclosure requirement." The argument is that there was no requirement, that Archegos' equity positions did not exceed 5% of any issuer and its swap trading was not subject to any requirement. The prosecution declined to join the application - in fact, on April 12 the US Attorney's Office wrote in that "The Motion Order's brief summary fairly captures one aspect of the alleged scheme.. to the extent the Halligan Letter might be read as seeking some unspecified relief, it should be denied."
More including on Halligan on Substack here. 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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