The lawyers of Reggie Fowler – the accused operator of the notorious shadow bank of the crypto sector Crypto Capital – have filed a motion to resign as Fowler’s lawyer.
According to the motion, James McGovern and Michael Hefter of Hogan Lovells US have been talking since February 26 about pulling out of the ongoing case between the businessman and the US government after Fowler rejected a nine-digit plea deal the previous month.
Crypto Capital has been accused of running unlicensed money transfer services, bank fraud and money laundering on behalf of Colombian drug cartels.
Crypto Exchange Bitfinex and sister company Tether also claim the Panamanian shadow bank lost more than $ 800 million in funds it entrusted to the company as part of a series of enforcement actions against banks used by Crypto Capital worldwide.
Fowler’s attorneys’ motion does not specify the specific reasons for which they would like to resign, despite stating that “professional considerations require termination of representation”.
“The question of Counsel’s resignation has been the subject of discussion with Mr. Fowler since February 26, 2020, and Counsel has informed Mr. Fowler several times since then that there were reasons for Counsel to seek a withdrawal.”
New York regulations state that attorneys can only resign if ordered by the court, provided that the resignation can be made without materially prejudicial to the client’s interests.
Claiming they could withdraw without jeopardizing Fowler’s interests, attorneys state that “limited relevant discovery” has occurred in the case and that the expected trial is more than five months away – leaving plenty of time for new ones Attorneys stays to prepare their defense.
The attorney took reasonable steps to protect Mr. Fowler’s interests by repeatedly informing him that there were reasons for the attorney to withdraw and that the attorney intended to withdraw […] Mr. Fowler has had ample time to find a new lawyer if he so wishes. ”
Fowler was charged with bank fraud and was operating an unlicensed money transfer business on April 30, 2019. The US Attorney’s Office alleged that “hundreds of millions of dollars have flowed into the accounts of Fowler and his employees” under fraudulent pretexts.