Reginald Fowler gets six-month reprieve until conviction

The lawyer of the “shadow banker” has achieved in the court of Manhattan a deferral of the final verdict to his client.

On September 13, the Manhattan District Court was to announce the verdict in the case of 63-year-old Reginald Fowler, accused of bank fraud, money laundering and conducting an unlicensed banking business.

With bank fraud alone facing up to 30 years in prison, any judge’s decision would mean Fowler would remain incarcerated for the rest of his life.

However, three days before the date of the guilty verdict, Fowler’s attorney, Ed Sapone, applied to a Manhattan court for a stay of up to six months.

In his address to the judge, lawyer Ed Sapone wrote in the words of the “shadow banker”:

“I understand this is a request for an unusually long delay, but I have a serious medical condition that requires invasive treatment. In addition, a significant amount of information and materials must be obtained from financial institutions, legal entities and individuals located in Europe. The requested delay will provide an opportunity to collect relevant materials and prepare a sentencing proposal for consideration by the court.”

Since the prosecutor’s office did not protest against the delay, Fowler received at least six months of freedom. He is currently in Arizona on bail.

Recall that Reginald Fowler was found guilty in the case of a shadow bank, which was at the center of controversy in a lawsuit against the parent company of the Bitfinex exchange, IFinex, and the issuer of stablecoins Tether. A lawsuit between Bitfinex and Tether, in which IFinex was accused of defrauding customers and using the stablecoin’s dollar reserves to cover $850 million in losses, was settled in February 2021. The companies were ordered to pay $18.5 million in fines and stop trading in New York.