Saturday, September 23, 2023

Bankruptcy estate of FTX sues Barbara Fried, Stanford Law ethics expert, for encouraging son to skirt disclosure rules

 

Very amusing.

We’re law experts, see. This is how you get around the law.

From the story,

FTX sues Sam Bankman-Fried’s parents, aims to claw back some of the $26 million in gifts and property :

The filing characterizes the correspondence as Bankman lobbying his son to “massively increase his own salary.” Within two weeks, the suit claims that Bankman-Fried had collectively gifted his parents $10 million in funds coming from Alameda, and within three months, the couple was deeded the $16.4 million property in The Bahamas.

According to the partially-redacted filing, Bankman-Fried’s parents also “pushed for tens of millions of dollars in political and charitable contributions, including to Stanford University, which were seemingly designed to boost Bankman’s and Fried’s professional and social status.” Fried is also accused of encouraging her son and others within the company to avoid, if not violate, federal campaign finance disclosure rules by “engaging in straw donations or otherwise concealing the FTX Group as the source of the contributions.”

Bankman-Fried’s parents are legal scholars who taught at Stanford Law School. His mother is an expert on ethics, while his father specializes in taxes.