Some Final Thoughts On Sam Bankman Fried

 Sam Bankman Fried is now in my sights. When I wrote my Op-Ed a few days ago, I gave a predicted sentence range for Sam of 20-22 years, most probable with a high range of 30 years.

    Yesterday assistant U.S. attorneys who had practiced in U.S. District Judge Kaplan's court were polled on the possible sentences for Sam. The projected sentences ranged from 11.25 years to 25 years.

    When March 28, 2024, comes up, US Marshals will take Sam in chains to court. U.S. District Judge Kaplan will have a most detailed pre-sentence report from the U.S. Probation Service that will include a sentence recommendation based on the Federal Sentencing Guidelines. The U.S. Attorney's Office will submit a sentencing memorandum. It will have a sentence recommendation that is always higher than the probation recommendation. Normally judges side with the probation officer.

    The amount of money is stunning. However, Sam's legal team will say to the judge something like the following:

      "You Honor, the victims in these charges suffered no prejudice." In other words, the missing $8 billion was recovered with bankruptcy lawyers and officials receiving some $1 billion U.S. dollars in fees. Sam will be a man with no prior criminal record. He will have an outstanding academic background, etc.

     After having finished the book, one thing causes me agonizing thoughts. How can a man who was raised by a law professor and given every advantage in life go bad?

   Michael Lewis gives one subtle clue in the book. When talking about Sam's upbringing, he commented that his parents were dazzled by his genius. They let him raise himself.

    What also amazed me was that there was a total lack of checks and balances inside FTX, Alameda Research, the 105 venture capitalists, and lenders of the stature of Morgan Stanley. No one was checking what was going on with billions of dollars.

    Two sayings come to mind here as follows:

"Absolute power corrupts absolutely."

 

"If you want to find out a person's true character, give them power."

      Please reflect on these sayings and the life of Sam Bankman Fried.