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Law360 (July 2, 2020, 9:02 PM EDT) -- A New York federal judge on Thursday delayed at least until December the trial of a banker accused of attempting to bribe Trump campaign boss Paul Manafort with $16 million in loans in exchange for a shot at working in the administration.
During a morning conference held by video and telephone, U.S. District Judge Lorna G. Schofield postponed Stephen M. Calk's jury trial to Dec. 1 from its previously planned September date, but said the protocol for when trials will resume is still unsettled as a result of the continuing COVID-19 outbreak and that the date could change again.
Judge Schofield noted that when trials in the Southern District of New York begin again, priority will be given to criminal defendants who are currently jailed. Calk, founder and former CEO of Federal Savings Bank of Chicago, is free on a $5 million personal recognizance bond.
"I'll set a scheduling order but with the understanding that everyone take it with a grain of salt," Judge Schofield said.
The Southern District announced late Thursday that it would begin Phase 2 of reopening on Monday, meaning courthouses will allow members of the public who have official business before the court to enter, although jury trials are still off the table.
"We don't really know when jury trials will commence again. That is very much dependent on the health situation in New York," Judge Schofield said.
The judge said that while many steps are being taken to prepare SDNY courthouses for the reopening of jury trials, "we are not there yet."
Calk was charged in May 2019 with attempting to bribe Manafort, the now-incarcerated former head of Donald Trump's successful presidential campaign, with $16 million in loans to get a top administration post such as ambassador or secretary of the Army.
Calk's lawyers have said their client was an adviser to Trump's campaign and felt called to serve the new administration. The bank's loans to Manafort — who by then had been terminated by the Trump campaign — had nothing whatsoever to do with Calk's desire to serve, they say.
Judge Schofield said it was highly likely that when jury trials restart in SDNY, they will be limited to certrain courtrooms in Manhattan that can accommodate social distrancing among jurors.
"There will only be a limited number of jury trials that can proceed at the same time," she said.
An attorney for Calk, Paul H. Schoeman of Kramer Levin Naftalis & Frankel LLP, made clear that his client wished to go to trial as soon as possible, but deferred to Judge Schofield's judgment on the matter.
Schoeman at one point also noted amid talk about a discovery dispute that the government has put Manafort, former Trump campaign deputy chairman Rick Gates and Trump's son-in-law Jared Kushner on its preliminary witness list, although it has indicated it likely won't call Manafort.
The judge denied some discovery-related bids from the defense over allegedly belated production of documents from the government.
Assistant U.S. Attorney Paul Monteleoni said the government was pushing for a trial in early 2021, noting that with the resurgence of the coronavirus pandemic and associated restrictions, it would be difficult to prepare for a document-intensive case such as this one without having in-person meetings with witnesses.
"We think that early 2021 is significantly preferable to December," Monteleoni said.
Judge Schofield said the arguments were largely academic, given the uncertainty posed by the pandemic.
"We will take the first available date given our place in the queue," Judge Schofield said.
The government is represented by Paul M. Monteleoni, Douglas S. Zolkind and Benet J. Kearney of the U.S. Attorney's Office for the Southern District of New York.
Calk is represented by Paul H. Schoeman and Darren A. LaVerne of Kramer Levin Naftalis & Frankel LLP and Jeremy Margolis and Joseph J. Duffy of Loeb & Loeb LLP.
The case is U.S. v. Calk, case number 1:19-cr-00366, in U.S. District Court for the Southern District of New York.
--Editing by Jill Coffey.
For a reprint of this article, please contact reprints@law360.com.
