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☆ Everything you need to know about the FTX saga that unfolded today
▼ + stars: | 2022-12-13 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

On Tuesday, Ray testified before the House Financial Services Committee, relaying what he could about the company he took over just four weeks ago. FTX, on the other hand, was “not sophisticated at all.”“This is really old-fashioned embezzlement,” Ray continued. They say he misappropriated FTX customers’ deposits by using those funds to pay expenses and debts of Alameda, his crypto hedge fund. (The SDNY are an aggressive people, but they are not sloppy, and they don’t indict without a solid case.) Several lawyers not involved in the case have told me that the speed of Bankman-Fried’s arrest signals that former FTX employees may be aiding prosecutors.

Federal authorities on Tuesday charged FTX co-founder Sam Bankman-Fried with using what they said was tens of millions of dollars of misappropriated customer funds to make illegal political donations to both Democratic and Republican candidates. He then used those funds to make "large political donations," to make investments and buy "lavish real estate," the SEC complaint alleged. The campaign finance allegations come days after a private watchdog group asked the Federal Election Commission to investigate Bankman-Fried's political contributions. Most of Bankman-Fried's publicly disclosed campaign contributions, which totaled nearly $40 million in the 20222 election cycle, went toward Democrats, FEC records show. "The question is whether regulators, including the SEC, backed off from aggressive investigation of FTX because of this political influence," Painter said.

CNBC's Andrew Ross Sorkin reported that the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Bahamas Attorney General Ryan Pinder said the United States was "likely to request his extradition." "While the United States is pursuing criminal charges against SBF individually, The Bahamas will continue its own regulatory and criminal investigations into the collapse of FTX, with the continued cooperation of its law enforcement and regulatory partners in the United States and elsewhere," the statement said. The Bahamas and the United States have had an extradition treaty in place since the early 20th century, when the Bahamas was still under British control. Legal experts told CNBC that if the federal government pursues wire or bank fraud charges, Bankman-Fried could face life in prison without the possibility of supervised release.

☆ Archegos' Bill Hwang says prosecutor misconduct justifies indictment's dismissal
▼ + stars: | 2022-12-03 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

NEW YORK, Dec 3 (Reuters) - Bill Hwang is seeking the dismissal of his U.S. fraud indictment over the collapse of his once-$36 billion Archegos Capital Management LP, saying prosecutors committed misconduct by sandbagging him when building their case. In a separate filing, Hwang and co-defendant Patrick Halligan, Archegos' former chief financial officer, said their indictment should be dismissed because Archegos' trading activity was "entirely lawful," using methods that are "clearly permitted by the existing regulatory structure." These discussions, the last occurring two days before Hwang's April 27 arrest, "revealed what has now become (as prosecutors doubtless knew it would) his defense strategy," Hwang's lawyers said. Hwang also wants U.S. District Judge Alvin Hellerstein, who oversees the case, to hold a hearing to determine the extent of any taint. The case is U.S. v. Hwang et al, U.S. District Court, Southern District of New York, No.

☆ Justice Department Prosecutors Swamped With Data as Cases Leave Long Digital Trails
▼ + stars: | 2022-11-28 | by ( James Fanelli | Corinne Ramey | ) www.wsj.com time to read: 1 min

U.S. Attorney for the Southern District of New York Damian Williams views the data issue as a crisis. When the U.S. attorney’s office in Manhattan brought securities-fraud charges against executives of cable operator Adelphia Communications Corp. in 2002, its case involved one million pages of evidence. In the office’s recent case against Trevor Milton , the former electric-truck executive who was convicted of fraud charges, prosecutors handed over four times that number to the defense. The numbers are even higher in a pending securities-fraud case stemming from the collapse of Archegos Capital Management LP, where prosecutors already have provided more than seven million pages of evidence to defense attorneys—after asking a court for a six-to-eight week window to produce the material.

☆ FTX remains focus of 'active' investigation, Bahamas attorney general says
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: +3 min

Nov 27 (Reuters) - Collapsed cryptocurrency exchange FTX remains the subject of "an active and ongoing investigation" by Bahamian authorities, Bahamian Attorney General Ryan Pinder said on Sunday, as he praised the Bahamas' regulatory regime and swiftness with which it responded to the crisis. FTX, which had been among the world's largest cryptocurrency exchanges, is headquartered in the Bahamas. In mid-November, the Royal Bahamas Police said that government investigators in the Bahamas were looking at whether any "criminal misconduct occurred." read more"We are in the early stages of an active and ongoing investigation," Pinder said on Sunday, according to prepared remarks for the speech. Bahamas securities regulators had revoked FTX Digital's license and began involuntary liquidation proceedings the day before the U.S. bankruptcy case kicked off.

NEW YORK, Nov 21 (Reuters) - The founder of Infinity Q Capital Management, a New York firm accused of inflating assets by over $1 billion to collect more fees, pleaded guilty on Monday to securities fraud. James Velissaris, 38, of Atlanta, entered his plea before U.S. District Judge Denise Cote in Manhattan, averting a scheduled Nov. 28 trial. Before suspending redemptions in February 2021, the fund reported $1.73 billion of assets. The case is U.S. v. Velissaris, U.S. District Court, Southern District of New York, No. Reporting by Jonathan Stempel and Jody Godoy in New York; Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

☆ Former Trump lawyer Rudy Giuliani will not face criminal charges in Ukraine foreign lobbying case, prosecutors say
▼ + stars: | 2022-11-14 | by ( Dan Mangan | ) www.cnbc.com time to read: +2 min

Former New York City Mayor Rudy Giuliani will not face criminal charges in an investigation into whether he violated U.S. lobbying laws while doing business in Ukraine, federal prosecutors told a judge Monday. The grand jury was examining whether he violated the U.S. Foreign Agents Registration Act, and his attempts to oust Marie Yovanovitch, the American ambassador there. Williams asked the judge in the same letter to terminate the appointment of former federal judge Barbara Jones as a special master, or watchdog, to review documents seized from Giuliani. Giuliani, along with Trump, still faces an ongoing criminal probe by a grand jury in Georgia, which is investigating interference in that state's presidential election in 2020. Giuliani's license to practice law in Washington, D.C., soon after was suspended automatically as a result of the New York suspension.

REUTERS/Maria Alejandra CardonaNEW YORK, Nov 14 (Reuters) - No charges will be brought in a criminal investigation into business dealings in Ukraine by Rudy Giuliani, Donald Trump's former personal lawyer, the top U.S. prosecutor in Manhattan said in a court filing on Monday. In a sign that the investigation was winding down, FBI agents returned the seized electronic devices to Giuliani, his lawyer said in August. Giuliani, 78, also faces a state-level criminal investigation in Georgia over efforts by Trump and his allies to overturn his 2020 election loss to Biden. Giuliani in 2020 urged the state's lawmakers not to certify Biden's victory in Georgia. In August, Giuliani testified before a Fulton County grand jury after a judge ordered him to comply with a subpoena.

After more than 35 years in prison, Mutulu Shakur, Tupac Shakur’s stepfather, will be released on parole on Dec. 16, when he'll spend what are expected to be his final days among family and friends. U.S. Attorney Carlton S. Shier in October approved a motion to release Shakur, an activist and holistic health care advocate, now 72, according to court documents obtained by NBC News. After being released on parole, Shakur will be monitored for up to four months. He was given medical parole, which means he could still be snatched back from us," Muhammad said. Now, Shakur's supporters and family feel the decision to release him represents a bittersweet victory.

NEW YORK, Nov 7 (Reuters) - The United States is seeking the forfeiture of more than $1 billion in Bitcoin stolen from the Silk Road online marketplace, federal prosecutors in Manhattan said on Monday. By the time it was seized, the Bitcoin was worth more than $3 billion. Some of the stolen Bitcoin was found on a computer in a popcorn tin stored in a bathroom closet, IRS special agent Trevor McAleenan said in an affidavit. The U.S. government seized Silk Road in 2013, describing the underground website as a massive illegal drug and money-laundering marketplace. Silk Road creator Ross Ulbricht was convicted in 2015 of seven counts of enabling illegal drug sales via bitcoin.

☆ Feds announce $3.36 billion seizure of bitcoin, the second-largest recovery of crypto so far
▼ + stars: | 2022-11-07 | by ( Paige Tortorelli | ) www.cnbc.com time to read: +3 min

The Department of Justice announced Monday that it seized about $3.36 billion in stolen bitcoin during a previously-unannounced 2021 raid on the residence of James Zhong. It follows the $3.6 billion in allegedly stolen cryptocurrency linked to the 2016 hack of the cryptocurrency exchange, Bitfinex. Silk Road was launched in 2011, but the Federal Bureau of Investigation shut it down in 2013. IRS-CI Special Agent in Charge Tyler Hatcher said Zhong used a "sophisticated scheme" to steal the bitcoin from the Silk Road marketplace. In October 2022, Binance, the world's largest crypto exchange by trading volume, suffered a $570 million hack.

☆ A New York fugitive was vacationing in Disney World after nearly one year on the run. Then an off-duty officer spotted him.
▼ + stars: | 2022-11-04 | by ( Mirna Alsharif | Mirna Alsharif Is A Breaking News Reporter For Nbc News. | ) www.nbcnews.com time to read: +2 min

A New York City fugitive who had been on the run for almost a year was vacationing at Disney World's Animal Kingdom Theme Park when he was spotted by an officer who recognized him, according to court documents. Jeff Andre, a federal officer with the United States Postal Inspection Service, was on vacation Oct. 20 at the Florida theme park when he happened to spot Quashon Burton. Officers approached Burton after he left the Orlando area theme park, where he gave them a false name and resisted arrest. "Perhaps the most concerning factor here is the defendant’s persistent use of false identities and his demonstrated ability to evade law enforcement," wrote United States Attorney Damian Williams. Burton will remain in custody pending trial in the Southern District of New York, according to an order from United States District Judge Lewis A. Kaplan.

Companies Cigna Corp FollowNEW YORK, Oct 17 (Reuters) - U.S. prosecutors in Manhattan said on Monday they have filed a civil lawsuit against Cigna Corp (CI.N) accusing the health insurer of overcharging the government's Medicare Advantage program by making it appear patients were more ill than they actually were. Medicare Advantage is a program in which private insurers provide coverage to patients who opt out of the traditional Medicare program. Cigna this month announced it would expand its Medicare Advantage Plan next year. The two cases are among several Justice Department civil lawsuits against companies participating in Medicare Advantage. Enrollment in Medicare Advantage has doubled since 2013 to about 28.7 million, or approximately 49% of all eligible Medicare beneficiaries, government watchdog MedPac said in July.

Washington, DC CNN —Nikola founder Trevor Milton was convicted Friday by a U.S. jury of fraud in a case alleging he lied to investors about the electric and hydrogen fuel cell company’s technology. The jury found Milton guilty on a count of securities fraud and two counts of wire fraud after deliberating for roughly five hours. Milton was acquitted on another count of securities fraud. He also was accused of defrauding the seller of a Utah ranch, who accepted Nikola stock options as part of the purchase price based on Milton’s claims about the company. Milton, who called the report criticizing Nikola a “hit job,” and “lies,” resigned from his position as Nikola chairman in Sept. 2020.

☆ British businessman charged over helping Russian oligarch evade U.S. sanctions
▼ + stars: | 2022-10-11 | by ( Luc Cohen | Thomson Reuters | Reports On The New York Federal Courts. Previously Worked As A Correspondent In Venezuela | ) www.reuters.com time to read: +3 min

NEW YORK, Oct 11 (Reuters) - British businessman Graham Bonham-Carter was arrested on U.S. charges of conspiring to violate sanctions placed on Russian oligarch Oleg Deripaska, prosecutors said on Tuesday. Bonham-Carter was arrested in the United Kingdom, and federal prosecutors in Manhattan said they will seek his extradition. Prosecutors said Bonham-Carter made payments for U.S. properties owned by Deripaska and tried to move the aluminum magnate's artwork in the United States overseas. A lawyer for Bonham-Carter, who is also charged with wire fraud, did not immediately respond to a request for comment. Prosecutors said Bonham-Carter has worked for entities controlled by Deripaska since around 2003, and managed his residential properties in the United Kingdom and Europe.

She called the "pattern of fraud and deception" used by Trump and the Trump Organization "astounding." 'DISASTERS OF THE WORLD'(L-R) Eric Trump, Donald Trump Jr., and Ivanka Trump and Donald Trump attend the ground breaking of the Trump International Hotel at the Old Post Office Building in Washington, July 2014. Donald Trump Jr tweeted that James was "weaponizing her office to go after her political opponents!" Manhattan District Attorney Alvin Bragg has separately charged the Trump Organization with criminal tax fraud, and is preparing for an Oct. 24 trial. read more"Our criminal investigation concerning former President Donald J. Trump, the Trump Organization, and its leadership is active and ongoing," Bragg said in a statement.

☆ Woman accused of catfishing mystery CEO and threatening to release sexually explicit pics allegedly used 'multiple identities to target wealthy men'
▼ + stars: | 2022-09-02 | by ( Bethany Biron | ) www.businessinsider.com time to read: +3 min

Blackwood allegedly catfished the CEO of a publicly trade company as part of an extortion ploy. She is accused of threatening to release explicit images and conversations in exchange for money. Sakoya Blackwood allegedly "used multiple online identities to target wealthy and high-profile men" starting in March 2022 at least, according to the DOJ and court documents. According to the DOJ, Blackwood "engaged in a campaign of harassment" against the CEO, which involved "sending numerous intimidating and threatening text messages." In addition to the CEO, several other affluent men were part of the catfishing and extortion scheme, the DOJ claimed.

☆ Yoga chain leaders arrested on tax fraud charges, accused of stashing cash from donations in tissue boxes and guitar cases
▼ + stars: | 2022-08-25 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +3 min

The yoga business made over $20 million, funding lavish lifestyles for the three leaders. The DOJ said cash from the yoga studios were collected in tissue boxes and kept in guitar cases. Yoga to the People, which was founded in 2006, had 20 yoga centers around the country, but closed them in 2020 during the COVID-19 pandemic. Two of the three leaders submitted fake tax returns for a loan and even an apartment, according to the government agency. Around the time the yoga studios closed during the pandemic, Gumucio was facing allegations of sexual and psychological abuse to staff members.

☆ Man found guilty of sex trafficking, extortion of daughter's Sarah Lawrence schoolmates
▼ + stars: | 2022-04-07 | by ( Minyvonne Burke | The Associated Press | Minyvonne Burke Is A Senior Breaking News Reporter For Nbc News. | ) www.nbcnews.com time to read: +2 min

A New York man was convicted Wednesday on charges that he moved into his daughter's dorm room at Sarah Lawrence College and abused students at the elite school in a nearly 10-year scheme. Lawrence Ray, 62, was found guilty of extortion, sex trafficking, forced labor, money laundering and other charges. Ray stood with his arms at his sides and faced the Manhattan jury as it returned guilty verdicts on all 15 counts, NBC New York reported. The U.S. attorney for Southern New York, Damian Williams, said Ray "terrorized" and "tortured" the group. After the guilty verdict was read Wednesday, Ray was returned to custody, where he has been since he was arrested in 2020.

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