A trial of former Chattanooga auto dealer Joe Prebul for allegedly defrauding his brother-in-law is still set in Federal Court in New York City for Nov. 16.
A final pre-trial conference is set for Nov. 13.
Prosecutors earlier said there was a possibility of settling the case. However, defense attorneys are seeking to have key evidence thrown out.
The attorneys are asking that criminal charges against him be dismissed on grounds that 10 tape-recorded conversations used by prosecutors are invalid and could not be used in the trial.
Prosecutors have asked that the motion be dismissed, saying the government only plans to use three of the 10 tapes.
Attorneys are both side are awaiting a ruling from Judge William Pauley III on the key issue.
Prebul, 48, of Signal Mountain faces 11 counts of wire fraud and one count of mail fraud. Each of the counts carries a maximum sentence of 20 years in prison and a maximum fine of the greater of $250,000, or twice the gross gain or loss from the offense.
A criminal complaint had been filed against him Feb. 10 in New York after his brother-in-law, Danny Bensusan, went to authorities saying he had been bilked out of millions of dollars. He was indicted on the charges in April.
His Prebul Auto Group filed for bankruptcy, and it has been split up and sold. He recently filed for personal bankruptcy.
Defense attorneys said Prebul was not aware he was being taped on any of the calls with the Bensusans.