By Luc Cohen

NEW YORK (Reuters), Archegos Capital Management founder Bill Hwang was able to get a different judge to hear his U.S. fraud case. This happened after his wife had ties to banks and could have been targeted in the collapse of the investment company.

U.S. district judge Andrew Carter told a Manhattan federal Court hearing his wife was a Bank of New York Mellon lawyer (NYSEM:) and used JPMorgan Chase(NYSE:). He said that he would be in a conflict of interest if any of those banks became victims of the alleged fraud.

Archegos had assets of $36 billion. Last year, it collapsed when it was caught on high-leverage trades. Global banks suffered $10 billion losses. According to the prosecution, Hwang told banks that he had lied in an attempt to boost Archegos’ credit line.

Hwang, who was detained last month, pleaded no guilty to 11 charges including fraud, market manipulation, and racketeering. Hwang’s lawyer stated that the case had “no legal or factual basis.”

Andrew Thomas, the Prosecutor of JPMorgan said Thursday that the bank “figures into the story”, although he did not specify if it is considered a victim. Thomas stated that BNY was not a “lossholder” or in any “significant way.”

JPMorgan did not respond to a request for comment. BNY has not yet responded to my request.

The decision of Carter (NYSE:) came in the midst of increased attention from lawmakers and court reform advocates for judicial recusals because they are conflicts. The bill, which requires federal judges in the United States to report more about financial transactions and stock trades, was signed by President Joe Biden.

After the Wall Street Journal revealed that 130 federal judges had failed to withdraw from cases in which stock-owners or relatives were involved, lawmakers introduced legislation.

Carter’s withdrawal was not opposed by Hwang or the prosecutors.