Maria T. Vullo (Photo courtesy of the author)
The much-anticipated jury verdict,[1] convicting former FTX CEO Sam Bankman-Fried (SBF) of seven felonies, after less than five hours of deliberations, demonstrates the strength of the prosecution’s case and that juries have no patience for financial fraud. While many reports correctly note that fraud is at the core of the FTX/SBF case, the verdict also sends a clear message that regulatory arbitrage should not be tolerated.
The NYU School of Law Program on Corporate Compliance and Enforcement (PCCE) is following the collapse of FTX and the civil and criminal enforcement actions arising from FTX’s and its founder’s alleged misconduct. In this post, several white collar defense, former federal prosecutors, and cryptocurrency experts, offer their reactions to the verdict in the Sam Bankman-Fried (SBF) trial on November 2, 2023.
Top left to right: William Komaroff, Seetha Ramachandran, David I. Miller, and Ijeoma Okoli
Bottom left to right: Jessica Lonergan, Tarek Helou, Elizabeth Roper, and Chehak Gogia
(Photos courtesy of authors)
Editor’s Note: On October 17, 2023, the NYU Law Program on Corporate Compliance and Enforcement (PCCE) hosted Ian McGinley, the Director of Enforcement for the Commodity Futures Trading Commission (CFTC) to announce updated enforcement guidance to CFTC staff on penalties, monitors, and admissions. Director McGinley’s remarks were followed by a fireside chat and moderated Q&A with questions from the audience, and later by a moderated panel of former CFTC enforcement directors and senior enforcement counsel. The updated staff guidance is available here.
by Ian McGinley
Thank you for that introduction, Professor Arlen. It is an honor to make this announcement as part of NYU’s Program on Corporate Compliance and Enforcement, one of the marquee programs in the world on these topics. I’m also delighted to be back at NYU Law School, my alma mater. As a student, I frequently attended the incredible events in Lipton Hall, often sitting in the back row. So, it’s quite a thrill to move from the nosebleeds to the podium.
Since I joined the CFTC as the Director of Enforcement, I’ve had the pleasure of getting to know a group of people whose reputation preceded it. From outside the CFTC, my observation had always been that the Division—under the leadership of numerous former Directors that are here tonight—worked aggressively to protect the public and ensure the integrity of markets.
The NYU School of Law Program on Corporate Compliance and Enforcement (PCCE) is following the collapse of FTX and the civil and criminal enforcement actions arising from FTX’s and its founder’s alleged misconduct. In this post, several white collar defense attorneys and former prosecutors offer their reactions to the superseding indictment of Sam Bankman-Fried (SBF) obtained on March 27, 2023 by the U.S. Attorney’s Office for the Southern District of New York (SDNY).
Top row from left to right: Rebecca Mermelstein, Mark Racanelli, and Elizabeth Roper
Bottom row from left to right: William Komaroff, Seetha Ramachandran, and Joseph Facciponti (photos courtesy of authors)
Editor’s Note: This post includes the written remarks of Commodity Futures Trading Commissioner Caroline D. Pham, prepared and delivered in connection with the NYU Program on Corporate Compliance and Enforcement’s November 14, 2022 Fall Conference.
“If You See Something, Say Something”
NYU Law Program on Corporate Compliance and Enforcement Fall Conference
“If you see something, say something.” These words were a maxim during the nearly seven-and-a-half years that I worked at a bank. It was something that was drilled into the sales and trading teams on the trading floors and in other lines of business, and it was something that Compliance officers repeated in so many trainings and so many refreshers. When in doubt, if you see something, say something. Escalate to your supervisor, your Compliance officer, your Legal coverage, HR, Ethics Office, the anonymous hotline, or other channels—there was no excuse to not escalate.