fraud

Disgraced FTX founder Sam Bankman-Fried could face an additional 40 years in a US prison after prosecutors hit him with four more charges in documents unsealed on Thursday.

The additonal charges include conspiracy to commit bank fraud and conspiracy to operate an unlicensed money transfer business and demands for the forfeiture of assets which include assets held in Binance accounts, $170 million in cash held at Silvergate Bank and more than 55 million shares held in a commission free investing app Robinhood Markets.

Manhattan U.S. Attorney Damian Williams, said in new statements since the new indictments, “We are hard at work and will remain so until justice is done.”

The indictments also claim that Bankman-Fried, and his co-conspirators–Gary Wang and Caroline Ellison– “made over 300 political contributions, totaling tens of millions of dollars, that were unlawful because they were made in the name of a straw donor or paid for with corporate funds.”

“To avoid certain contributions being publicly reported in his name, Bankman-Fried conspired to and did have certain political contributions made in the names of two other FTX executives,” the new filing claims.

Other claims in documents stated that Bankman-Fried created a bogus company called North Dimension, “which had no employees or business operations,” to open a bank account for trading purposes after rejections from another bank. He also created a website for the fake company using monies from his credit card, prosecutors say.

Since being extradicted to the US from the Bahamas where FTX was headquartered, Bankman-Fried remains under house arrest at his parents’ home in California. He has pleaded not guilty to the eight previous charges against him.

Photo credit: Reuters

After former FTX Founder Sam Bankman-Fried signed extradition papers to face criminal charges in the United States, he will be handed over to US Marshalls.

The Bahamas judge Shaka Serville has approved all of the legal requirements for the extradition and was satisfied that Bankman-Fried was not “forced, coerced or threatened” into making the decision.

The 30-year-old  will be handcuffed and placed on board a plane with an escort from the FBI and the United States Marshals Service which have already arrived in the Bahamas. They will then carry him to La Guardia or JFK Airport.

He will either go to the federal detention facility or a Manhattan courtroom in the Southern District of New York. If he is sent to court, there will be an initial hearing and arraignment before a judge and he will enter a plea to the 8 charges against him.

Following a tumultuous week since his arrest in the Bahamas,  he is expected to arrive in the United States on Wednesday evening and will contest allegations that he funneled billions of dollars from his fallen exchange FTX, to his trading fund company, Alameda Research.

“Yes, I do wish to waive my right to such formal extradition proceedings,” he told the court on Wednesday morning.

His defense lawyer Jerone Roberts said his client was “anxious to leave” the Bahamas and requested that the “rule of specialty” be imposed which based on the Bahamas and US extradition treaty, states that a person can only be tried on the charges for which they are extradited.

Photo credit: Reuters

Sam Bankman Fried, former FTX CEO is expected to appear before a judge in the Bahamas on Monday instead, to be extradited to the United States to face 8 criminal charges of fraud and conspiracy, a source close to the matter said.

The fallen billionaire and crypto genius is thinking of willfully deciding to return to the US after he initially petitioned to not waive his rights to be extradited, and was placed in the custody of prison guards at the infamous Bahamas Department of Corrections (Fox Hill Prison) where he sits watching movies and reading news articles about himself as he attempts to adapt to his new life, far removed from his luxurious life in Albany.

It is not known what spurred him to reconsider the extradition fight, but the former ‘crypto darling’ whose extradition hearing was scheduled for February 8, could be sentenced to 115 years in a US prison where prosecutors labeled his dealings at FTX as “one of the biggest financial frauds in US history.”

Michael Zweiback, a Los Angeles-based criminal lawyer who spoke on the matter earlier in the week said after extradition, “he will be placed in handcuffs and put on board a plane with an escort from the US Marshals Service and brought to La Guardia or JFK Airport and brought straight to the SDNY courthouse (the Manhattan federal court).

“He can sign extradition paperwork tomorrow and be there within a week,” he said.

Bankman-Fried and his lawyers attempted to get bail since his arrest last Monday, but were denied and were expected to seek another hearing on January 7 so that he no longer sits in the medical area of the prison where officials say he remains in “good spirits.”

The Washington Post reported that the former billionaire said, “It’s okay, I will deal with it,” when asked by guards how he felt watching news reports about himself splattered around the globe in recent days.

It is unclear if the Bahamas will press charges against Bankman-Fried and attempt to hold him. But its Securities Commission Executive Director Christina Rolle revealed to Commissioner Police Clayton Fernander that it was made aware of possible fraud when his Digital Markets Co-chief Executive Officer Ryan Salame alerted the board about funds being diverted from FTX to Alameda Research, to cover losses.

Billions of dollars are reportedly missing amidst the bankruptcy of the exchange, as customers and investors await the outcome of this big financial scandal.

FTX Founder Sam Bankman-Fried appeared before Chief Magistrate Joyann Ferguson-Pratt on Tuesday to face extradition to the USA where a laundry list of criminal charges awaits him.

The 30-year-old crypto darling appeared dressed in a blue suit and white shirt for the arraignment proceedings, arriving in a SWAT vehicle and shoved through a side door of the courtroom, unshackled.

Reporters were not able to get photos of the disgraced crypto-white knight but his parents Stanford law professors Joseph and Barbara Bankman-Fried were spotted going into the Magistrate’s Court to watch their son be arraigned.

It is possible the 30-year-old could fight the extradition since he did not waive his rights to be extradited to the US to face fraud and conspiracy charges.

“Mr. Bankman-Fried is reviewing the charges with his legal team and considering all of his legal options,” his lawyer, Mark S. Cohen said in a statement.

Bankman-Fried reportedly was permitted to take his medication as he requested and bail was being considered.

Bahamas police arrested Bankman-Fried on Tuesday on request by the US government and 8 criminal charges, among others, await him in a New York court.  The US Securities Commission has also alleged he defrauded investors out of billions of dollars and led them to believe their monies were safe.

Featured Image of Bahamas Court: Keith Gomez

Disgraced crypto darling Sam Bankman-Fried faces 8 criminal counts after his exchange imploded a month ago. As he faces extradition to the US since being arrested in the Bahamas, the Southern District of New York unsealed court documents accusing the billionaire crypto poster boy of conspiracy and fraud.

Here are the charges:

1. Conspiracy to commit wire fraud on customers
2. Wire fraud on customers
3. Conspiracy to commit wire fraud on lenders
4. Wire fraud on lenders
5. Conspiracy to commit commodities fraud
6. Conspiracy to commit securities fraud
7. Conspiracy to commit money laundering
8. Conspiracy to defraud the United States and violate campaign finance laws.

The 30-year-old who lived in the Bahamas where FTX, the 32 billion dollar company was headquartered, is believed to have swindled investors of $1.8 billion and engaged “in a scheme to defraud customers of by misappropriating those customers’ deposits, and using those deposits to pay expenses and debts of Alameda Research,” the indictment stated.

The indictment also said Bankman-Fried gave false and misleading information to lenders about the true financial condition of Alameda, his trading company where the money was funneled to fund his debt and expenses.

The allegations that he violated campaign finance laws hinge on his million-dollar donations to US political groups when he sealed the source and exceeded the permissible amount.

“In or about 2022, Samuel Bankman-Fried, the defendant, and one or more other conspirators agreed to and did make corporate contributes to candidates and committees in the Southern District of New York that were reported in the name of another person,” the indictment said.

These charges are separate from charges filed by the US Securities and Exchange Commission which accuses Bankman-Fried of defrauding investors of $1.8 billion and building “a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

US Securities and Exchange Commission charged FTX founder Sam Bankman-Fried with defrauding investors of billions of dollars.

The US SEC filed a complaint on Tuesday alleging that the failed billionaire promoted FTX as a safe and responsible platform while raising more than $1.8 billion through FTX, but diverted the funds to his trading firm Alameda Research.

SEC Chair Gary Gensler said the crypto genius “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

“FTX operated behind a veneer of legitimacy Mr. Bankman-Fried created by, among other things, touting its best-in-class controls, including a proprietary ‘risk engine,’ and FTX’s adherence to specific investor protection principles and detailed terms of service. But as we allege in our complaint, that veneer wasn’t just thin, it was fraudulent,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement.

This comes after Bankman–Fried was arrested in the Bahamas on Monday evening at the request of the US Government. He is expected to be extradited to the USA to face a litany of fraud charges.

The 30-year-old has been a popular fixture in the media since the implosion of his crypto platform a month ago, apologizing for the ‘accounting errors’ as he claimed he did not commit fraud in one interview with New York Times.

Bankman-Fried is expected to face a judge today in the Bahamas to process his extradition.

US regulators signaled that other charges are pending stating that there are ongoing investigations into “other securities law violations” and into other entities and individuals.

Following Billy McFarland’s recent release from prison for defrauding investors and vendors of millions of dollars, he is back in the Bahamas on a treasure hunt.

McFarland will be followed by producers of a documentary as he shows his adventures in After the Fyre. Cameras will follow him as he pays back vendors the $26 million he defrauded in 2017.

Famed Bahamian caterers featured in the Netflix film The Greatest Party That Never Happened, Maryann and Elvis Rolle were conned out of $50,000 and were never refunded but recouped their losses through GoFundMe donations.

Elvis spoke to the Tribune: “From the time they left the country, I haven’t heard nothing from them. Almost five, six years, whatever time it is, I never heard anything from them.”

McFarland has been teasing his latest adventure on social media where participants must track down one of 99 bottles with a message contained inside.

The video McFarland posted to social media shows participants surprised with a treasure hunt to the Bahamas as they dive into Bahamian waters to retrieve the bottles.

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A post shared by Billy McFarland (@pyrtbilly)

It is not known what part of the Bahamas McFarland has returned to for the latest venture, but Elvis said since McFarland has been released from prison, he should “make sure everybody’s paid and pay this money down before he touches down in this country.”

In April 2017, McFarland along with Ja Rule organized the Fyre Festival, which was originally promoted as a luxurious music event in Exuma, Bahamas. Several celebrities got on board to promote the event including Kendall Jenner and Bella Hadid. But when thousands of concertgoers landed in Exuma, the high-profile music festival was a nightmare.

Concertgoers complained of tents stocked with wet mattresses, being served cold food, and music acts that never showed up.

McFarland served 4 years of the 6 years handed down in his sentencing and issued an apology to investors and vendors for his wrongdoing.

Deputy Prime Minister Peter Turnquest denied claims of a writ filed in the Supreme Court, suggesting that he played a part in defrauding an aviation company.

In an article, Eye Witness News claimed that Turnquest and Sky Bahamas Principal Randy Butler defrauded Alpha Aviation and Advanced Aviation Ltd of nearly $30,000,000.

Though Turnquest is not named as a defendant in the writ, he was reported to be director and manager of Sky Bahamas and Aviation Oversight which was owned by Butler.

The defendants are listed as Randy Butler, Sky Bahamas Airlines and Aviation Oversight Group Ltd.

What does DPM Turnquest say about the allegations?

• Turnquest says he is “aware” of the writ filed in the Supreme Court involving two former business associates.
• He makes it clear that he is not named as a defendant.
• Turnquest says the “several allegations” are “categorically false.”
• He says, “I deny the false claims. I am appalled that my standing as a public servant made calling my name in this dispute between two former business partners worthwhile. There is no room for that kind of misuse of our judicial system in our society. I am confident that the facts will defend my integrity once presented.”

What are the allegations in the court document?

• On December 31st, the defendants caused Alpha to pay a total of $20,680,337.33 to Sky Bahamas.
• As of December 31st, the defendants had dishonestly caused Alpha to pay $3,026,000 to themselves via a company.
• Between February 2008 and July 2016, the defendants caused Alpha to pay to Aviation Oversight by means of 39 fraudulent invoices, to pay to Aviation Oversight, 37 cheques, and to Sky Bahamas two cheques totaling a sum of $3,800,000.
• As of December 31st, the defendants caused Advanced to pay wire transfers totaling $5,916,587.67 to Sky Bahamas.
• It is further alleged that as of December 2017, the defendants had caused Alpha to pay $3,026,000 to themselves via a company controlled by AOG Maintenance Ltd.
• The plaintiffs also claim that between February 2008 and July 2016, the defendants caused Alpha by some 36 fraudulent invoices and book entries to pay away to Aviation Oversight $3,800,000.
• The plaintiffs claim that Turnquest and Butler failed to keep adequate financial accounts documenting the companies’ financial transactions and failed to put in place an adequate financial system.

Featured Image: ZNS

Romance scams are increasing and police are warning people of the fraudsters who are taking advantage of many women looking for love.

Instead, fraudsters are looking for cash.

It happened.

A fraudster pretended to be military personnel stationed overseas and claimed that he needed money sent to his base to have him released.

The imposter used false identities and stolen photos to pretend to be military personnel. He then asked for assistance with funding for various reasons, to which the victim complied.

Police said the woman believed she was in love after engaging in conversations many times via social media.

The woman was scammed out of thousands of dollars by the fraudster.

This case is one of many investigated by the Financial Crime Unit of the Royal Bahamas Police Force.

Police said, “The fraudsters can be very charismatic and convincing in the manner they communicate with the victims and gain their trust. We cannot say at this time how these victims are targeted or chosen.

“However, it would appear that an ideal victim would be someone who is either single, divorced, widowed, or in search of some form of companionship.”

Police said in some instances, persons in these positions are distracted by their desire for happiness and companionship and are unable to recognize that they are being scammed.

In some instances, there were commitments made to marry each other which can further justify to a victim that the fraudsters’ actions are for a worthy cause.

Police said to be cautious when conversing with persons over social media, especially if the other party is not known to you.

You should be very suspicious of anyone who asks you to forward money to them, especially when the destination is a foreign country.

Police said people should report any suspicious online activity so that the matter can be properly investigated.