According to a new report this week, Stanford Law School professor Joseph Bankman used a “multi-million dollar gift” he received from his son, Sam Bankman-Fried, to pay his son’s expensive legal fees. I’m here.
report from forbes It also claims that this gift to a longtime Stanford University academic was created using funds obtained from Alameda Research, a sister company of Bankman-Friend’s doomed cryptocurrency exchange FTX.
The former billionaire Bankman-Fried claimed in November that he only had $100,000 left in his bank account after the FTX demise, and how he managed the powerful team of lawyers he hired. Questions arose as to whether they could be hired to fight a series of criminal charges, including: Wire fraud, money laundering, securities fraud and bribery.
Bankman-Fried is accused of diverting billions of dollars in FTX client funds to fund risky bets for his hedge fund, Alameda Research. The entrepreneur is said to have used the money to fund an extravagant lifestyle and raise donations for American politicians.
The 31-year-old entrepreneur appeared in federal court in Manhattan and pleaded not guilty to a series of new charges. One of his new indictments alleges that he conspired in his 2021 to bribe Chinese government officials with his $40 million in cryptocurrency. The New York Times reported.
A source close to the 31-year-old entrepreneur told Forbes that his defense spending is likely to rise into the single-digit millions range. reported that his father seemed to have found a way to cover the costs. It’s a “big gift” he received from his son in 2021.
Forbes, citing two sources with operational knowledge of both FTX and Alameda Research, said Bankman-Fried secured a loan of at least $10 million from Alameda Research and received lifetime estate and gift tax exemptions. and transferred the money to Joseph Bankman. Gifts were essentially tax-free, as the exemption covered the taxable maximum amount someone was allowed to give in their lifetime.
Forbes said Bankman, a prominent tax attorney, did not respond to multiple questions about the alleged gift. did not respond. From the New York Post.
The lawsuit against Bankman-Fried, which federal prosecutors have called “one of the greatest financial frauds in American history,” has long been known as a respected member of the Stanford University faculty and a respected legal scholar. He was a big focus on his parents.
After the bankruptcy of FTX and the arrest of Bankman-Fried in November, the once domineering crypto investor returned to his childhood home in the faculty housing on the Stanford University campus. He lives there under his house arrest.
Bankman and his wife, Barbara Freed, rallied to support the eldest of their two sons at all costs. “I intend to dedicate virtually all of my resources to Sam’s defense,” Bankman wrote in an email to executives at a Chicago nonprofit whose bankruptcy cut off donations from FTX.
in December, The Wall Street Journal reported Bankman and Freed “told friends that their son’s legal bills would likely wipe them out financially.”
While Bankman-Fried awaited trial, his parents used their $1.8 million home to secure a $250 million bail package, allowing him to be released with his own approval.
they again, The Kindness of Stamford Friends To protect my son from custody. Stanford Law School Dean Emeritus Larry Kramer signed a bond promising to pay Bankman-Fried $500,000 if he violated his bail conditions, and Stanford senior research scientist Andreas Pepke signed a $200,000 bond. I signed a dollar bond.
Forbes said Bankman Freed was in his strong defense, led by Marc Cohen and Christian Everdell, who were part of the legal team representing Ghislaine, a convicted sex offender and associate of Jeffrey Epstein. Maxwell could not confirm the amount he would be paid, the New York Post said. A source told Forbes that he is taking pro bono advice.
Bankman-Fried’s attorneys also allege that federal prosecutors gave clients access to the 56 million Robinhood shares he purchased in 2022 with funds loaned from Alameda Research, according to Forbes. are doing. At today’s prices, his shares, worth $485 million, were seized in January based on allegations that they were purchased with stolen client funds.
Bankman-Fried’s legal costs aren’t his parents’ only concern. Bankman and Freed’s reputations are jeopardized by their son’s cheating scandal, and they decide to step down from their duties at Stanford University. Bankman is taking a break from teaching at Stanford University this semester, but Freed told the Stanford Daily that he had to decide to retire, but he can still teach classes in the future.
Additionally, the couple had Pay for 24/7 Security around a five-bedroom house while dealing with their own legal matters. Bankman and Fried have received subpoenas seeking personal records of financial assets received from FTX, according to Forbes.
In addition, Bankman has adopted his own white collar criminal lawyerPuck writer William D. Cohan wrote in January as investigators investigated the extent of his involvement with FTX and its demise.
“I’m sure Dad has done it this far with eyeballs,” one person who recently spent time with the family told Cohan.
Reuters reported in January that Bankman was cooperating with prosecutors, but it was unclear what information he provided. He “advised me scrupulously” to his son.
For the time being, at least Bankman and Freed don’t have to worry about their son having to be taken into custody again. He expressed concern that he had violated the terms of his release by contacting .
On Tuesday, Kaplan approved new bail terms for Bankman-Fried. Bankman-Fried is usually confined to his parents’ house and has to wear his GPS monitor on his ankle. According to The New York Times, the new terms would allow him to use only two electronic devices: a laptop with limited internet access and a phone that is not connected to the internet, greatly reducing his internet access. Reduced.
https://www.mercurynews.com/2023/03/31/sam-bankman-fried-using-millions-sent-to-stanford-dad-to-pay-for-lawyers-report/ Sam Bankman-Fried Uses Millions of Dollars Transferred to Father for Lawyer’s Fees: Report