White Collar Crime Blues: In SDNY Trial of Neil Phillips Disputed Kamath Chat and Audio with Nomura Privilege in 3500 Material

More including analysis and comparison with Charlie Javice / JPM Chase case below the fold / paywall line here

By Matthew Russell Lee, Patreon Maxwell Book

SDNY COURTROOM, Oct 19 -  In the U.S. District Court for the Southern District of New York on January 5, a detention or bond proceeding was held by Magistrate Judge Sarah Netburn on Neil Phillips, charged with commodities fraud for manipulating the exchange rate of the South African rand and US dollar.

Jump-cut to October 18, 2023: Morgan Stanley's head of FX for the Americas back on that fateful Christmas night was on the stand, calling MS' barrier proprietary. Had he ever met Phillips, at Glenpoint Capital? He said he had...

On October 19 while an expert witness told the jury about delta, letters flew about a chat and audio of Rahul Kamath, with Phillips trying to keep it out. His legal team points to a phrase from the 3500 material, "Ha[ve] not been able to figure out way for Nomura New York employee to authenticate audio without running into privilege issue." The trial continues.

Back in January, Inner City Press was the only media in the Mag Court, and has filed to unseal the names of the bond co-signers of Samuel Bankman-Fried in SDNY. Related Mag Court live-tweeted thread (more on Patreon here) vlog here

  The US Attorney's Office had agreed to a bond package with Phillips, as it had with Bankman-Fried. In Phillips' case it is a $15 million bond with three publicly named co-signers, two of whom are putting up $250,000 cash.

  By contrast, Sam Bankman-Fried tried to keep his two co-signers secret. Inner City Press first opposed.

   The US Attorney's Office is allowing Phillips to fly back to the UK, and leave his UK passport there with Pallas Partners law firm. The co-signers are: Alan Jacobson, Anthony Robertson and Beverly Lynn Jacobson.

The case was re-assigned to Judge Lewis J. Liman who on September 1, 2023 issued an order denying Phillip's motion to dismiss - without prejudice to a Rule 29 motion. On Phillips' Constitutional challenge (lack of fair warning), Judge Liman ruled that can only be assessed with "full factual development at trial."

On September 25 the SDNY prosecutors wrote it to say they are dropping counts 3 and 4, wire fraud, "to avoid protracted Rule 29 litigation," and will only proceed on 1 and 2, commodities fraud.

US v. Phillips court art courtesy of Elizabeth Williams to Inner City Press

Once the trial began, Morgan Stanley's head of FX for the Americas back on that fateful Christmas night was on the stand, calling MS' barrier proprietary. Had he ever met Phillips, at Glenpoint Capital? He said he had...

More including analysis of the wisdom or justice of this prosecution below the fold / paywall (support) line