- Reginald Fowler’s attorneys cited $ 600,000 in unpaid fees as a reason to pull out of his case.
- The law firm has not received any payments since 2018, other than the initial retention fee of $ 25,000.
- Fowler was charged in April 2019 over his alleged association with the “shadow bank” Crypto Capital.
Last week, lawyers for Reginald Fowler, an Arizona businessman, were indicted by US prosecutors for alleged involvement in one massive “shadow banking” Crypto operation – filed a Request for withdrawal out of the case.
In one supplementary letter In the court released yesterday, the law firm Hogan Lovells finally explained why. It turns out that Fowler owes around $ 600,000 for her services – and has been feeding her empty promises to pay for over two years, the lawyers said.
The case against Fowler
Fowler is the CEO of Global Tradings Solutions LLC, according to the U.S. attorney for the southern borough of New York. This is one of the suspected Shell companies with ties to Crypto Capital – a Panama-based “shadow bank” allegedly responsible for facilitating unregulated transactions valued at hundreds of millions of dollars.
One of Crypto Capital’s clients in particular was Bitfinex – a Hong Kong-based crypto exchange that reportedly hid a shortage of $ 800 million in its reserves. Bitfinex later claimed that Crypto Capital cheated on it.
Prior to being officially charged, Fowler was referred to the Hogan Lovells law firm in October 2018. At their first meeting on November 8, 2018, Fowler reportedly told his prospective attorneys “that he had a letter from [redacted] He stated that he had millions of euros in personal funds in an account since 2015 (long before the accused conspiracy began). “
“From the start we believed that Mr. Fowler was a high net worth individual with substantial wealth that would enable him to pay his statutory assets Invoices with little hardship, ”said Hogan Lovells lawyers, James McGovern and Michael Hefter, in their letter to the court.
However, they said their company saw no further transfers from Fowler beyond the initial withhold payment of $ 25,000 in November 2018. At the same time, the customer assured the company on numerous occasions that they have sufficient assets or other financial means to pay their bills in full.
“Mr. Fowler always believed that he was able to meet his financial obligations to us or was about to finalize a transaction that would enable him to pay his bills,” said the lawyers.
“Our correspondence with Mr. Fowler reflects several promises to honor his contractual obligations and he has repeatedly assured us that at least some amount of his outstanding legal fees are imminent,” they added.
Notwithstanding the promises, Fowler has ultimately “broadly refused” since 2018. The letter even states, “In fact, he owns more than $ 10 million worth of real estate that is unencumbered and at some point in time liquidated or monetized. ” Point in the past two years. “
Since the situation hasn’t changed during that time, the law firm ultimately decided to drop Fowler’s case.
“Despite all of his representations and all of our efforts to get payment, we still haven’t done so Mr. Fowler made us a payment in excess of $ 25,000 in November 2018 to cover agency-related costs [redacted] the business activities of GTS ”, summarized the lawyers.
With the court demanding a “satisfactory reason” for the withdrawal, McGovern, Hefter and Rosenblum eventually decided to send their letter to provide the necessary justification and to get out of the case for good.