Caroline Ellison, FTX founder’s ex-girlfriend and key witness in his fraud trial, sentenced to two years in prison
Caroline Ellison, former chief executive officer of Alameda Research LLC, exits court in New York, US, on Tuesday, Oct. 10, 2023. (Stephanie Keith/Bloomberg via Getty Images)
(NEW YORK) — Caroline Ellison, a key witness in the conviction of FTX co-founder Sam Bankman-Fried, was sentenced to two years in prison on Tuesday for her role in one of the largest financial frauds in history.
Ellison, 29, a former crypto executive, had pleaded guilty to multiple charges in connection with the federal fraud and conspiracy case involving the crypto trading platform. She cooperated with prosecutors and was a key witness during the trial last year of Bankman-Fried, her former boyfriend.
Ellison — who was the co-chief executive of Alameda Research, Bankman-Fried’s companion hedge fund — testified over three days during the trial, telling the court she committed fraud with her former on-again, off-again boyfriend and at his direction.
Bankman-Fried was ultimately found guilty on all counts for defrauding FTX customers out of $8 billion and sentenced to 25 years in prison.
During Ellison’s sentencing hearing in New York Tuesday afternoon, Judge Lewis Kaplan called her cooperation with the government “very, very substantial” and noted a “fundamental distinction” between Ellison and Bankman-Fried.
“She cooperated and he denied the whole thing,” Kaplan said. “I’ve seen a lot of cooperators in 30 years here. I’ve never seen one quite like Ms. Ellison.”
Still, the judge said even extraordinary cooperation could not be a “get out of jail free card.”
The judge called out another distinction between Ellison and Bankman-Fried.
“You are genuinely remorseful,” Kaplan said. “He’s sorry the gamble he took didn’t work out and he’s really sorry he got caught.”
Before the judge handed down the sentence, Ellison stood at a podium and apologized.
“I want to apologize most of all to the victims,” Ellison said, sniffling through tears. “Not a day goes by when I don’t think about all the people I hurt.”
Ellison said she was “deeply ashamed” by her conduct that enabled what the defense conceded was an “enormous and extraordinary fraud.”
It exposed Ellison to 110 years in prison, but her attorney sought a sentence without prison time.
“She has recovered her moral compass,” defense attorney Anjan Sahni said in court. “Caroline Ellison is a good person who, at 29 years old, can still make a positive impact on the world.”
Prosecutors agreed.
“Caroline Ellison deserves leniency,” Assistant United States Attorney Danielle Sassoon said. “A lenient sentence is also what is just.”
Sassoon noted Ellison consistently told the truth and never shied from her own culpability.
“This was a powerful contrast with Bankman-Fried’s testimony,” Sassoon said.
Ahead of her sentencing, Ellison’s attorneys urged Kaplan to be lenient, arguing Ellison “unflinchingly acknowledged her own wrongdoing, without minimization, blame shifting or self-pity.”
“She time and again proved herself an enormously credible and important cooperating witness” against Bankman-Fried, they added.
Federal prosecutors agreed Ellison provided “extraordinary cooperation that was crucial to the Government’s successful prosecution” of Bankman-Fried.
“Although she did not blow the whistle on any misconduct before FTX’s collapse, she came clean prior to FTX’s declaring bankruptcy to her employees on November 9, 2022,” Sassoon wrote in a letter to the judge. “Ellison approached her cooperation with remarkable candor, remorse, and seriousness.”
Prosecutors declined to make a specific sentencing recommendation in their filing. Defense attorneys suggested a sentence in line with a recommendation from probation officials of time served plus three years supervised release.
“Caroline poses no risk of recidivism and presents no threat to public safety. It would therefore promote respect for the law to grant leniency in recognition of Caroline’s early disclosure of the crimes, her unmitigated acceptance of responsibility for them, and — most importantly — her extensive cooperation with the government,” Sahni wrote in a letter to the judge.
Sahni outlined Ellison’s “complex” relationship with Bankman-Fried that began when the two met at Jane Street Capital in 2015 when she was an intern and he was a junior trader. He said their “on-again-off-again, sometimes-secret relationship” had “warped” her moral compass and led her to take actions “that she knew to be wrong, helping him steal billions.”
During Bankman-Fried’s sentencing hearing in March, Judge Kaplan also ordered that he forfeit $11 billion that the government can use to compensate victims.
The former crypto billionaire has filed an appeal to overturn his conviction.
Two former FTX executives who also pleaded guilty in the case — former director of engineering Nishad Singh and co-founder Gary Wang — are set to be sentenced in October and November, respectively.
(NEW YORK) — When Cory Martin wanted to know how to cover up a grisly crime and dispose of a murder victim’s dismembered body, he turned to television, watching “The First 48” and “Dexter” for tips, according to federal prosecutors.
“The defendant directed Witness-1 to watch the television show Dexter with him in preparation for the murder. In Dexter, a serial killer murders and dismembers his victims, concealing forensic evidence by covering his ‘kill room’ from floor to ceiling with plastic,” prosecutors said.
On Thursday, Martin will be sentenced in Brooklyn federal court for murdering a sex worker, Brandy Odom, as part of a life insurance scam and then cutting up her body for disposal.
He faces a mandatory life sentence.
“It is fitting that that Martin faces a mandatory sentence to spend the rest of his life in prison for this ghastly, cold-blooded crime that was motivated by greed and executed after extensive planning,” United States Attorney Breon Peace said after Martin’s conviction. “Martin saw the victim as a moneymaker, trafficking her for commercial sex, then after killing her with his bare hands, tossing out her slaughtered body parts like trash so he could profit from her death.”
Odom’s mother is expected to address the court prior to sentencing.
Odom’s dismembered body was found in a Canarsie park in 2018, according to authorities. The 26-year-old’s head and naked torso were found among leaves and twigs. Her arms and legs were discovered nearby, officials said.
He was not arrested until November 2020.
Martin, 36, was convicted in March of murder-for-hire and conspiracy to commit murder-for-hire resulting in the death of Odom, as well as wire fraud conspiracy, aggravated identity theft and fraudulent use of identification.
“During the time Odom lived with the defendant, he acted as her pimp and controlled every aspect of her life, using the income from her commercial sex work to pay his bills and finance his lifestyle. The defendant then plotted to profit further off Odom by taking out life insurance policies in her name and murdering her to collect the proceeds,” prosecutors said.
Police said Anderson read several articles about the murder in the months after the killing, including one titled “Search area expands after dismembered body found in Canarsie Park in Brooklyn.”
Adelle Anderson, 32, who was also arrested as part of the crime, already pleaded guilty to murder-for-hire, identity theft and wire fraud. She has yet to be sentenced, according to the U.S. Attorney’s Office for the Eastern District of New York.
(NEW YORK) — Harvey Weinstein was rushed from Rikers Island, where he is being held, to Bellevue Hospital for emergency heart surgery after experiencing chest pains, his representatives told ABC News.
“Mr. Weinstein was rushed to Bellevue Hospital last night due to several medical conditions,” Weinstein representatives Craig Rothfeld and Juda Engelmayer said in a statement. “We can confirm that Mr. Weinstein had a procedure and surgery on his heart today however cannot comment any further than that.”
They continued, “As we have extensively stated before, Mr. Weinstein suffers a plethora of significant health issues that need ongoing treatment. We are grateful to the executive team at the New York City Department of Correction and Rikers Island for acting swiftly in taking him to Bellevue Hospital.”
The emergency comes as Weinstein, 72, is due in court this week in New York, where prosecutors had been presenting evidence to a grand jury as they work to secure a new indictment against Weinstein on sex crimes charges.
Weinstein has denied any wrongdoing and has said his sexual encounters with women were consensual.
Weinstein has appeared in court recently in a wheelchair and has asked to stay in custody at Rikers, where he has been undergoing medical care.
In a shocking move this April, the New York Court of Appeals, in a scathing 4-3 opinion, overturned Weinstein’s conviction on sex crimes against three women, finding the trial judge “erroneously admitted testimony of uncharged, alleged prior sexual acts against persons other than the complainants of the underlying crimes.”
The court said that testimony “served no material non-propensity purpose” and “portrayed defendant in a highly prejudicial light.”
However, the Manhattan district attorney’s office has since presented evidence to a grand jury that could return a new indictment against Weinstein over an alleged sexual assault that occurred sometime in a four-month time period between late 2005 and mid-2006 in a lower Manhattan residential building, according to a transcript of an unannounced court hearing last week.
Prosecutors also indicated during a hearing on Sept. 3 that they were aware of two other potential offenses: a sexual assault in May 2016 in a hotel in Tribeca and a potential sexual assault that occurred at the Tribeca Grand hotel.
This isn’t the first time Weinstein has been rushed to a hospital recently. In July, he was transferred to Bellevue after testing positive for COVID-19 and double pneumonia, according to his Rothfeld.
(NEW YORK) — Hurricane Francine made landfall early Wednesday evening in Louisiana, southwest of New Orleans, as a Category 2 storm, before weakening to a Category 1 hurricane.
Here’s how the news is developing:
Heavy rains, ‘severe thunderstorms’ forecast as Francine weakens
The National Weather Service forecast heavy rains and thunderstorms across the southeast through Thursday as Tropical Storm Francine moves north from Louisiana into southern Mississippi.
The National Hurricane Center said Francine was around 20 miles northwest of New Orleans early Thursday, with maximum sustained winds of 50 mph. The tropical storm was moving northeast toward Mississippi at 14 mph.
Francine is expected to bring between 4 and 8 inches of storm rainfall to areas across southeastern Louisiana, Mississippi, far southern Alabama and the Florida Panhandle through Thursday, the NHC said.
“This rainfall could lead to considerable flash, urban and river flooding,” it added.
The NWS warned of “heavy rain and chances for severe thunderstorms” across the affected areas, as well as tornadoes “potentially impacting parts of Alabama and the Florida Panhandle along a slow-moving warm front.”
“The greatest threat for considerable flash flooding exists across parts of northern and central Alabama,” it added, noting the possibility of up to 10 inches of rain.
The NHC also warned of dangerous storm surges. Water could rise by 4 to 6 feet between the mouth of the Pearl River in Louisiana to Ocean Springs in Mississippi, as well as at Lake Pontchartrain.
Three- to 5-foot surges may occur from Ocean Springs, Mississippi to the state border with Alabama, between Morgan City and the mouth of the Mississippi River in Louisiana and at Lake Maurepas, the NHC said.
419,000 without power after Francine landfall
At least 419,942 people were without power early Thursday following the passage of Tropical Storm Francine, which made landfall as a Category 1 hurricane on Wednesday.
PowerOutage.us reported 392,440 people without power in Louisiana and 27,502 in Mississippi as of the early hours of Thursday morning.
Among those affected were 301,000 customers of the Entergy energy company, the firm said on its website. The most pronounced outages were in Louisiana, with the largest impact in coastal areas around New Orleans where Francine made landfall Wednesday.
Jefferson County (68,189), Orleans County (49,975), Lafourche County (36,701), Ascension County (27,038) and Terrebonne County (25,611) were the worst affected in Louisiana, Entergy said.
Francine weakens to tropical storm
After making landfall as a hurricane, Francine weakened to a tropical storm late Wednesday night.
All Hurricane Watches and Warnings have been canceled, but Tropical Storm Warnings continue for parts of Louisiana, Mississippi and Alabama.
The Flash Flood Warning remains in effect in metro New Orleans while heavy rains remain.
By Thursday morning, Francine will be over central Mississippi with heavy rain, gusty winds, and tornado risk extending into Alabama to the Florida panhandle.
The storm is moving northeast at 16 mph while sustaining maximum winds of 65 mph.
Flash Flood Warning issued for New Orleans
Thunderstorms across Louisiana are producing heavy rain across the state, according to the National Weather Service.
Flash Flood Warnings are in effect for “Northwestern Jefferson Parish, Southwestern Orleans, Northern St. Charles Parish and Southwestern St. John The Baptist Parish” until 11:45 PM local time, the NWS said Wednesday evening.
Between 5 to 7 inches of rain has already fallen in the areas, with an additional 2 to 3 inches expected, according to NWS.
Other areas in Louisiana that may experience flash flooding include Hahnville, Metairie, Avondale, Laplace, Marrero, Reserve, Harvey, Timberlane, Jefferson, Gretna, Harahan, Westwego, St. Rose, Destrehan, Ama, New Sarpy, Norco, Luling and Waggaman.
AT&T and T-Mobile report resolution of 911 outage in New Orleans
AT&T and T-Mobile say the issues customers in New Orleans had reported in reaching 911 services in some storm-impacted areas have been resolved.
Those customers who needed emergency services were told to call the 10-digit number instead — 504 671-3600 — according to the NOLA Ready Emergency Alert System.
Francine continues to bring ‘life-threatening’ storm surge
Francine continues to bring life-threatening storm surges and hurricane conditions to southern Louisiana. Heavy rain and gusty winds will stick around while the Category 1 storm is expected to weaken Wednesday evening.
It’s currently moving southeast of Morgan City with maximum sustained winds of 85 mph.
Metro New Orleans is under a Flash Flood Warning and power went out in Slidell, Louisiana.
Causeway Bridge closes to traffic
The famed Causeway Bridge over Lake Pontchartrain in southeastern Louisiana has been closed to traffic due to “thunderstorms, high winds, crosswinds [and] poor visibility,” Causeway Police said.
Francine weakens to Category 1 storm
Francine has weakened to a Category 1 hurricane post-landfall, but continues to bring life-threatening storm surge and hurricane conditions to southern Louisiana.
A peak gust of 97 mph was reported at a weather station in Dulac.
FEMA on storm dangers
As residents in Louisiana hunker down due to Francine, Keith Turi, the associate administrator for the Federal Emergency Management Association, warned of potential hazards in the wake of the storm.
“What many people don’t know is that some of the most dangerous times are those hours right after the storm passes, when you’ve got high floodwaters or power lines down or even operating a generator, making sure you’re doing that safely and keeping it away from your home,” Turi told ABC News Live’s Kyra Phillips.
Turi said the agency has been coordinating with state and local officials for several days as Francine approached and will be prepared to conduct damage assessments on Thursday.
Francine makes landfall as Category 2 storm
Francine has made landfall as a Category 2 hurricane in southern Louisiana with 100 mph winds.
Landfall was about 30 miles south-southwest of Morgan City, in Terrebonne Parish.
Francine strengthens to Category 2
Francine has strengthened to a Category 2 hurricane with 100 mph winds as its eye approaches the Louisiana coast.
Life-threatening storm surge and hurricane conditions are moving onto shore.
Hurricane Francine’s eyewall is nearing the Louisiana coast, bringing hurricane-force winds close to shore.
Francine is now located 115 miles southwest of New Orleans and is moving northeast at 17 mph.
Some voluntary evacuations were issued in Terrebonne Parish, along the Louisiana coastline southwest of New Orleans, Parish President Jason Bergeron told ABC News.
“We’re starting to get some of the first bands coming through. And so we’re just getting everybody hunkered down and getting people to get to safety,” he said. “We opened our shelter last night and then we issued the curfew at 8 a.m. this morning, going to 8 a.m. tomorrow morning.”
Latest forecast
Tropical storm conditions have reached the Louisiana coastline, and life-threatening storm surge and hurricane-force winds are expected to begin in the next few hours leading up to Hurricane Francine’s landfall.
130PM: These bands will continue through the evening hours and into the overnight. Locally heavy rainfall and tornadoes will be possible inside these bands along with the damaging winds from the hurricane. pic.twitter.com/o8hu1Zng5A
A hurricane watch is in effect in New Orleans, where the worst impacts will be Wednesday afternoon through Wednesday night.
A tornado watch has been issued for parts of Mississippi and Louisiana, including New Orleans.
Storm surge will worsen throughout the day. Up to 10 feet of storm surge is possible in parts of Louisiana; up to 5 feet is possible in the New Orleans area.
Flash flooding is a major threat for Louisiana and Mississippi.
Conditions across Louisiana will start to improve overnight as Francine weakens and moves north into Mississippi.
Francine will rapidly weaken after landfall and become a tropical storm by Thursday, but it’ll still bring heavy rain to the South.
Flash flooding will remain a threat through the end of the week as Francine moves north into Tennessee, Kentucky and Missouri.
The threat for isolated tornadoes will continue through Thursday morning, especially in Alabama and the Florida Panhandle.
-ABC News’ Melissa Griffin
Conditions deteriorating in southern Louisiana
Conditions are deteriorating in southern Louisiana as Hurricane Francine gets closer to landfall.
The storm, located 120 miles southwest of Morgan City, Louisiana, is moving northeast at 13 mph.
Rain bands are moving on shore and the dangerous winds are closing in.
-ABC News’ Melissa Griffin
‘The time to evacuate has now passed’
With hours to go until Hurricane Francine makes landfall in Louisiana, “the time to evacuate has now passed,” Jacques Thibodeau, the director of the Governor’s Office of Homeland Security and Emergency Preparedness, said at a news conference.
“It is now time to go down and hunker down,” he said. “We are no longer in the, ‘Prepare for a hurricane’ — we are now in the, ‘Respond to a hurricane.'”
The White House has approved an emergency declaration for the state. The Louisiana National Guard expects to have 2,400 guardsmen ready for the storm, along with 58 boats, 101 high water vehicles and 61 aircrafts, officials said.
Louisiana Gov. Jeff Landry said he’s been in contact with the Federal Emergency Management Agency and the Army Corps of Engineers, and said he’s fully confident in all state and federal agencies working together before, during and after the hurricane.
Landry also encouraged residents to “take advantage of the power that you have currently and make sure that you charge all of your devices.”
-ABC News’ Alexandra Faul
New Orleans residents should start sheltering in place
Residents in New Orleans should stay off the roads beginning at noon ET and remain sheltered in place until Thursday morning, Mayor LaToya Cantrell said.
“Conditions will worsen throughout the day—stay safe!” she tweeted.
Hurricane Francine is expected to make landfall along the Louisiana coast this evening as a Category 1 storm.
By 11 AM, everyone in New Orleans should stay off the roads and shelter in place until tomorrow morning.
Francine is churning north as a Category 1 hurricane with 90 mph winds.
Landfall is forecast Wednesday afternoon or early evening as a Category 1 hurricane near Houma, Louisiana.
Life-threatening storm surge, flash flooding and hurricane-force winds are bearing down on Louisiana.
The storm surge could reach 10 feet along the Louisiana coast and wind gusts could hit 70 mph in New Orleans.
“Ensure you are in a safe location before the onset of strong winds or possible flooding,” the National Hurricane Center warned.
By Thursday morning, Francine will be bringing rain and gusty winds to Mississippi, and potential tornadoes to Alabama and the Florida Panhandle.
Throughout the day Thursday, the heavy rain and tornado threat will move into northern Alabama, Mississippi and Tennessee. Flash flooding is possible near Memphis and Nashville.
-ABC News’ Max Golembo
Weather warnings for Gulf Coast states
A raft of warnings was issued for cities in Louisiana, Mississippi and Alabama ahead of Hurricane Francine’s expected landfall on Wednesday afternoon.
A hurricane watch was issued for New Orleans, with hurricane warnings for Morgan City and Houma on Louisiana’s Gulf Coast.
Tropical storm warnings are in place further east, covering cities including Biloxi, Mississippi, and Mobile, Alabama.
Storm surge warnings were announced for both Biloxi — where water may rise up to 5 feet — and Mobile, where water levels may rise by up to 4 feet.
Francine is expected to make landfall as either a high-end Category 1 or low-end Category 2 hurricane, with winds between 90 and 100 mph, the National Hurricane Center said. The Category 2 classification begins with winds of 96 mph.
Landfall may bring tornadoes in areas around New Orleans, Biloxi, Mobile and Pensacola, Florida.
Heavy rain may cause flash flooding from New Orleans all the way up to Jackson, Mississippi through to Wednesday night. As the storm moves into Mississippi on Thursday, it is forecast to produce flash flooding and gusty winds.
Francine is expected to stall through Thursday night into Friday morning, bringing heavy rain to Memphis, Nashville and Paducah, Kentucky.
Francine 295 miles from Louisiana coast
Hurricane Francine is expected to make landfall southwest of New Orleans as a Category 1 hurricane on Wednesday afternoon.
As of early Wednesday, Francine was 295 miles southwest of Morgan City, Louisiana, heading northeast at 10 mph.
Data collected by Air Force Reserve Hurricane Hunter aircraft indicated that the storm strengthened in the early hours of Wednesday, with maximum sustained winds close to 85 mph — up from 75 mph on Tuesday night.
New Orleans under Hurricane Watch
Emergency officials in New Orleans, Louisiana, warned residents on Tuesday that they should be prepared to shelter in place as Hurricane Francine approached landfall.
A Tropical Storm Warning and Hurricane Watch were issued for areas along the southern Louisiana coast, including New Orleans. A Flood Watch was also issued in Orleans Parish through Thursday morning, the city said.
Mayor LaToya Cantrell signed an emergency proclamation.
“The storm track has shifted more towards the east, which has the potential to worsen impacts for the city, but the storm remains disorganized,” the city said in a statement.
