Turns out when all the important people in town know each other and spend all their time passing money back and forth, it doesn't matter how much or if they've stolen any of it because holding any of them accountable short circuits the whole system anyway.
A federal judge on Monday jettisoned a prominent defense attorney and his law firm from the blockbuster fraud case against former First NBC Bank founder Ashton Ryan Jr. and four co-defendants, ruling they failed to reveal a conflict.
The stunning decision by U.S. District Judge Eldon Fallon promises a months-long delay for a trial that was slated to start June 6.
The five defendants face a 49-count indictment charging them in a conspiracy to commit bank fraud and related charges in connection with the epic collapse of First NBC five years ago. The bank’s implosion cost the Federal Deposit Insurance Corp. almost $1 billion — the worst U.S. bank failure since the 2008 financial crisis.
Only last month, Fallon wrote in a 42-page ruling, did prosecutors learn that Michael Magner, who represents former bank executive Robert Calloway, had previously represented Gary Gibbs, a bank borrower who has since pleaded guilty and agreed to testify as a key witness in the case.
The order disqualifies Magner, a former federal prosecutor, and his law firm, Jones Walker, from representing Calloway. Magner declined to comment Monday after the ruling.
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