• HRB confirms controversial financier will testify if necessary, without subpoena
• Development follows SL’s claims of new evidence linking Wey to bond holdings
• US court asked to allow further discovery on HRB’s beneficial ownership of ISBs
• Allegations draw on FT exposé, lawsuit filings pointing to Wey’s possible interest

Hamilton Reserve Bank (HRB) has revealed that infamous US financier Benjamin Wey will be available for deposition in the ongoing proceedings before the United States District Court for the Southern District of New York against Sri Lanka.

This was informed by HRB in a joint status letter dated 16 July filed by HRB and Sri Lanka, where the former stated that “Benjamin Wey will be available for deposition without a subpoena, to the extent necessary after the Rule 30(b)(6) deposition of Hamilton”. 

This development comes against the backdrop of the position that Sri Lanka has taken up before the US court that new evidence had come to light to suggest that HRB was holding the International Sovereign Bonds (ISBs) on behalf of Wey and/or HRB’s corporate parent, Fintech. 

On that basis, Sri Lanka had sought additional discovery and further briefing before the US District Court for the Southern District of New York.

In a previous joint status letter filed by parties dated 21 January, Sri Lanka had stated: “After the completion of briefing, and while these proceedings were stayed (and/or while motions to stay were pending), new evidence came to light regarding HRB’s purported beneficial ownership of the bonds. This includes a September 2023 Financial Times article titled ‘The mysterious ‘global financier’ suing Sri Lanka,’ as well as filings in a July 2024 lawsuit against HRB.  

“This previously unavailable evidence suggests, among other things, that the bonds may be held on behalf of Benjamin Wey and/or HRB’s corporate parent, Fintech, and underscores the need for additional discovery on these matters.”

Wey is the CEO of New York Global Group, one of Wall Street’s leading private equity firms, with around $ 1 billion worth of assets under management, who has achieved significant success by identifying business opportunities in Asia and as a leading consultant in reverse mergers for Chinese-based companies on the Nasdaq. 

However, notwithstanding his accomplishments, Wey has also been at the centre of several controversies which saw him arrested in 2015 on charges brought by the US Securities and Exchange Commission (SEC). 

The SEC alleged that he had orchestrated reverse merger transactions between client companies and publicly traded shell entities in a manner that enabled him and certain family members to surreptitiously acquire beneficial ownership interests exceeding 5% in the newly listed entities, in contravention of federal securities laws.

However, in 2017, the SEC voluntarily withdrew all charges against Wey, on the ground that “the SEC had relied on evidence that was later suppressed in a parallel criminal proceeding and determined that its ability to rely on the suppressed evidence may also be affected”.

Wey has also attracted widespread ignominy in connection with a highly publicised matter involving allegations of sexual harassment and online bullying brought by a former intern, which resulted in Wey being compelled to pay several million US Dollars.