Before any of the three prongs, the Hyde Amendment asks a prior question: is the defendant a “prevailing party” at all? The hardest answer to that question is United States v. Chapman, 524 F.3d 1073 (9th Cir. 2008) — which holds that a dismissal entered purely to sanction prosecutorial misconduct, rather than as a judgment on the merits, may not confer prevailing-party status, so a court can deny fees without ever reaching vexatious, frivolous, or bad faith. The Hyde Explorer above answers it at the threshold question, before any prong. (Chapman is Ninth Circuit; here, in the Seventh, it is persuasive, not binding.)
The Eleventh Circuit's Shayganopinion and the Third Circuit's Reyes-Romero both read the Hyde Amendment narrowly. They say the same thing in slightly different words: the statute targets wrongful prosecutions, not wrongs that happen inside otherwise reasonable prosecutions. The Eleventh Circuit put it plainly: “The Hyde Amendment is concerned with wrongful prosecutions, not wrongs that occur during objectively reasonable prosecutions.” United States v. Shaygan, 676 F.3d 1237, 1239 (11th Cir. 2012) (Pryor, J., respecting denial of rehearing en banc); see also United States v. Shaygan, 652 F.3d 1297, 1313–14 (11th Cir. 2011) (panel opinion, same rule as a core holding).
That is the load-bearing obstacle. If a court treats the Broadview Six prosecution as a generally reasonable attempt to charge a federal conspiracy that happened to involve serious misconduct, the Hyde Amendment will likely not reach it. The misconduct will instead feed traditional sanctions, suppression rulings, OPR referrals, and bar complaints. The Fourth Circuit's Bunn decision is the cold version of this principle: a prosecutor who failed to listen to a backup audio recording of grand-jury proceedings before charging was found to be merely negligent, not in bad faith.
The response is on this record. The misconduct here was not inside an otherwise reasonable prosecution. It was the misconduct that obtainedthe indictment. The grand jury returned a no bill at its first session. The same body had to be brought back, with dissenting jurors absent, before an indictment issued on the third session. AUSA Skiba, asked about the first of four grand-jury problems Judge Perry had flagged, conceded on the record that the prosecutor's vouching to the grand jurors was “at a minimum, arguably misconduct.” Transcript p. 31, ll. 10–13. Two of the other problems Perry identified — the excusing of dissenting grand jurors and the substantive ex parte communications — are the more load-bearing ones for the Hyde “wrongful prosecution” standard. That fact pattern separates this record from Shaygan (a probable-cause prosecution with later witness-preparation misconduct) and from Bunn (a charge supported by a court reporter's transcript and the foreman's contemporaneous testimony).
It is still contested. The site's posture: don't oversell it, don't underclaim it. The case is genuinely winnable on these facts and the case is genuinely hard to win. Both are true.