And now for something completely different...
Posted on 12/13/2022 8:18:15 AM PST by jimwatx
The arrest of Sam Bankman-Fried yesterday was sudden and unexpected in light of Bankman-Fried’s plan to testify before Congress. As a criminal defense attorney, my reaction to the arrest last night remains unchanged: this is the first time that I can recall where prosecutors moved aggressively to stop a defendant from making self-incriminating statements. His testimony would have been entirely admissible and likely devastating at trial.
I previously wrote how Bankman-Fried was doing harm to his case by speaking in the media and to Congress. So why would the Justice Department move to stop the self-inflicted damage? You have a major target who was about to voluntarily testify for hours.
That is ordinarily a dream for prosecutors, but the Justice Department moved quickly to prevent that from happening. At that stage, Bankman-Fried was not charged or in custody. He was not protected by Miranda or other constitutional rules from self-incriminating statements.
Indeed, some of us had already warned that he was causing himself considerable damage in making such statements. This was a defendant with a large legal team facing possible criminal charges who seemed eager to speak about his actions and motivations. Most prosecutors would sit back, make popcorn, and watch this unfold.
The curious move led many to question whether the Biden Administration was eager to prevent questions on Bankman-Fried’s political contributions and associations. He was the second highest donor to Democratic causes in the last election cycle. His mother, a law professor at Stanford also heads a major Democratic campaign fund.
It is also possible that the Justice Department simply wanted to show the public that it was moving aggressively despite his close Democratic ties. It may have secured sufficient evidence (including possible cooperating witnesses) to satisfy the basis for charges and an extradition request. Moreover, the charges are likely to make some Democratic figures uncomfortable as this matter enters the criminal process.
Yet, that still does not explain why the Justice Department would not want to hear a full account from Bankman-Fried before effectively shutting him down as a criminal defendant. This is the first time that I can recall where the prosecutors, rather than defense counsel, moved effectively to muzzle a defendant.
Whatever the motivation, the timing of the charges effectively stopped the windfall of information coming from Bankman-Fried.
Bankman-Fried is accused of diverting customer funds from the start of his cryptocurrency exchange to support his hedge fund, Alameda Research. He is also accused of using his fraudulent practices to fund a lavish lifestyle, buy real estate, make venture investments, and fund Democratic causes. The range of charges includes wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy, and money laundering.
Notably, the eight counts include violating campaign finance laws, a charge that could prove embarrassing for some powerful political interests.
The charges are on top of charges announced earlier Tuesday by the Securities and Exchange Commission, which alleged Bankman-Fried defrauded investors and used proceeds from investors to buy real estate on behalf of himself and family.
The details of those transactions might have been voluntarily disclosed under intense cross examination if the Administration allowed him to appear as a witness. Moreover, Bankman-Fried was already causing himself considerable harm in media interviews.
Bankman-Fried’s parents have left Stanford and are reportedly in the Bahamas with their son. They could themselves face questions. His father, Joseph Bankman, is a tax professor and was a paid employee of his son’s company. His mother reportedly worked with him on some of these massive donations to Democrats.
The parents are reportedly now concerned that the legal costs in the case could “wipe them out.”
Bankman-Fried has admitted that only a few hours of efforts a day might have avoided these losses. It sounds like a “my bad” defense. That will not fly in court and building on that defense might have sealed his fate.
The question is why the Justice Department moved to stop Bankman-Fried as he worked so hard to make the criminal case against himself. He comes across badly in these past interviews like a trophy-laden millennial who believes that he just needs to play to win. It is not quite that easy in a criminal case.
If he testified, Bankman-Fried could not only have made any criminal defense more difficult but he could have potentially tripped the wire for allegedly false or misleading statements under oath. It was a target-rich environment for Congress — and a potential bonanza for prosecutors.
Bankman-Fried was in a dangerous free fall. Despite his legal team, Bankman-Fried seemed to be praying for someone to “stop me before I speak again.” Someone just did.
The Biden Administration’s move seemed to bring a more positive meaning to Ronald Reagan’s “top 9 most terrifying words in the English Language”: “I’m from the government, and I’m here to help.”
And now for something completely different...
biden’s thugs had SBF arrested because of all the news coverage. But since SBF gave big bucks to democrats, biden’s thugs will not put SBF in jail for too long.
He won't hang himself either.
This is too Easy!!
Because multiple High Ranking DOJ officials were a BIG part of the SCAM he pulled...
This move was to protect Waters and silence Mini-Madoff. Can you imagine the hearing? The two of them, in their infinite collective stupidity, would have publicly revealed the entire money laundering scheme including multi-billion dollar benefit of Dem candidates in the 2022 mid-terms, money trafficked through Ukraine via crypto-scam currency, and the entire Ponzi scheme. Mini-Madoff’s attorney must have been popping his heart meds and pooping his pants watching the various media interviews...
There’s $40 million reasons not to testify. But the cash was already spent by democrats.
“That is ordinarily a dream for prosecutors…”
Not when the prosecutors are part of the organized corruption.
“ Whatever the motivation, the timing of the charges effectively stopped
the windfall of information coming from Bankman-Fried.”
But THAT wasn’t the motivation. (Trust us.)
Arkancide
C'mon Jonathan Turkey, SDNY yielded the donations case to SEC as mere 'rule-breakers', rather than criminal payoffs that could have been pursued as RICO at SDNY. But you don't want to say that because you'll make certain people mad.
I'LL SAY IT.
The fix is nearly in, but if SBF bonds out and the GOP Congress renews the invite to speak, maybe even with limited Congressional immunity, under the threat of charging his mother with the same campaign criminal payoffs, it will be a paradigm shifter, a game-changer.
They need to shut him up, he worked for the Democrats.
Corruption.
His parents are also guilty.
Mission Accomplished. The “powers that be” could not let him testify. He is not seasoned enough to pull off the “I can’t remember” and “Not under my purvey” defense.
The kid would spill the beans whether he intended to or not. Then he would conclude by saying, “Was that wrong? Should I have not done that? No one told me that was wrong? I sent money to everyone who asked for it, including you Representative Waters”.
THAT should be the title.
They want to keep him under wraps until he gets his wrist slap.
And, his parents are with him in the Bahamas.
He’s one of them.
I strongly suspect you are right and I wrote Turley’s article yesterday.
This is dumbfounding UNLESS they were afraid of what he would say because of politics. No prosecutor or law enforcement would stop a fraud defendant from talking about his crime under oath prior to arrest. Nobody.
It is blatant. This had nothing to do with “timing”. Any prosecutor worth his salt would have told FBI to NOT arrest him until after his surprise “testimony”.
I would say its unbelievable, but at this point I think the ability of all of us to be shocked at the blatant politics within DOJ is simply numb.
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