By Pete Brush

Law360, New York (January 29, 2021, 4:42 PM EST) -- A Manhattan federal judge on Friday set a November trial date for a California lawyer and his wife, two years after they were charged with faking a $16 million General Motors settlement. But the couple's lawyers said COVID-19 virus variants could threaten even that far-off date.

At a telephone hearing, U.S. District Judge Paul G. Gardephe set a Nov. 8 date for Christopher Hammatt and his wife Susan Hammatt to appear for a two-week trial on charges of wire fraud, conspiracy and perjury.

"We're just doing the best we can, given all of the uncertainties about the future," Judge Gardephe said after hearing defense concerns that dangerous coronavirus mutations could continue to disrupt court proceedings in the Southern District of New York well into 2021.

The couple is accused of scheming to defraud a litigation finance company out of $75,000 by using a forged GM settlement that was detected in the course of the automaker's bankruptcy. Susan Hammatt is also charged with perjury, and the pair are also charged with an apparently unrelated oil sales scam.

Charges were announced in February 2019, and they entered not guilty pleas in March 2019. They have been engaging in plea talks, although those talks did not appear to have borne fruit Friday.

Susan Hammatt's lawyer, Judith Vargas, told Judge Gardephe that a resolution of the case might still happen before trial.

"We are looking for certain documents that will probably obviate the need for a trial," she said.

With Christopher Hammatt seemingly headed for trial, Judge Gardephe arrived at the November date after Hammatt's counsel, Donald duBoulay, balked at an August trial date suggested by a prosecutor.

duBoulay cited the dangers of potentially hazardous COVID-19 variants and pointed out that his client likely will have to quarantine upon traveling from California to New York to stand trial.

"This is spreading. There are new variants from what I understand," duBoulay said. "I'm all for setting a date, but let's make it realistic."

Vargas echoed that sentiment, expressing concerns about the coronavirus and its variants and suggesting 2021 could end up being a no-go zone.

"There's no rush to try this case but in addition I am really concerned," she said.

News of spreading virus variants has caused the Biden administration to sound the alarm and issue travel restrictions. The true extent of the threat remains unknown.

Currently the Southern District is operating with most in-person operations — including trials — suspended. The suspension is currently set to last until Feb. 12 at the earliest, according to an order signed by Chief U.S. District Judge Colleen McMahon earlier this month.

Asked about the possibility for further suspensions, District Executive Ed Friedland said the Southern District is continuing to assess the threat of a pandemic that has left more than 400,000 Americans dead and disrupted countless lives.

"We monitor the conditions in conjunction with our epidemiologist and then decide when it is safe to resume jury trials," he told Law360 in an email.

A third defendant charged with the Hammatts, California lawyer Joseph M. Hoats, copped to a perjury count in October, telling a magistrate judge he made false statements in a 2017 sworn declaration in GM litigation. Hoats is scheduled to be sentenced on March 1.

Additional requests for comment after the hearing were declined.

Christopher Hammatt is represented by Donald duBoulay.

Susan Hammatt is represented by Judith Vargas of The Law Offices of Judith Vargas.

Hoats is represented by Amy Gallicchio of the Federal Defenders of New York Inc.

The case is U.S. v. Hammatt, case number 1:19-cr-00067, in the U.S. District Court for the Southern District of New York.

--Editing by Adam LoBelia.

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