Caroline Ellison, key witness in FTX fraud case, set to be sentenced
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 FTX case, is set to be sentenced 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 former FTX CEO Sam 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 that 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.
Ahead of her sentencing in New York Tuesday afternoon, Ellison’s attorneys urged Judge Lewis 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,” prosecutor Danielle Sassoon wrote in a letter to the judge. “Ellison approached her cooperation with remarkable candor, remorse, and seriousness.”
Ellison faces 110 years in prison, according to court filings.
Prosecutors declined to make a specific sentencing recommendation. 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,” defense attorney Anjan 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.”
Bankman-Fried was sentenced in March to 25 years in prison. 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.
Clara McMichael, Sam Sweeney, and Emily Shapiro, ABC News
(ATLANTA) — A Delta jet clipped a smaller plane on a taxiway at Hartsfield-Jackson Atlanta International Airport on Tuesday morning, tearing the tail off the smaller plane, officials said.
Delta Air Lines Flight 295, which was en route to Tokyo, was taxiing for takeoff when its wingtip hit the tail of Endeavor Air Flight 5526, which was headed to Louisiana, knocking the Endeavor plane’s tail off, according to the Federal Aviation Administration and Delta.
The incident unfolded at the intersection of two taxiways around 10:10 a.m., the FAA said.
No one was injured on either plane, according to Delta and the airport.
“There is minimal impact to airport operations,” an airport spokesperson said in a statement.
“Passengers from one of the aircraft are being bussed from the incident to the concourses,” the spokesperson said. “The second aircraft taxied under its own power to a concourse where passengers will deplane at their gate.”
(MEMPHIS, Tenn.) — The judge overseeing the federal trial of three ex-Memphis police officers charged in connection with the January 2023 beating death of Tyre Nichols told the jury on Wednesday to disregard the emotional part of the previous day’s testimony from a former officer who pleaded guilty to charges connected to Nichols’ death.
Judge Mark Norris was referring to Desmond Mills Jr.’s statements on the witness stand Tuesday as he described how he felt when watching the police body camera footage from the night of Nichols’ beating, according to WATN-TV, the ABC affiliate in Memphis covering the case in the courtroom.
“I wish I would’ve stopped the punches. It hurts to watch. It hurts inside so much,” said Desmond Mills Jr., who cried during his testimony, according to WATN. “It felt bad every time the picture is on the screen to know I’m a part of that. I made his child fatherless. I’m sorry. I’m sorry. I know ‘sorry’ won’t bring him back, but I pray his child has everything he needs growing up.”
Justin Smith, Demetrius Haley and Tadarrius Bean were charged on Sept. 12, 2023, with violating Nichols’ civil rights through excessive use of force, unlawful assault, failing to intervene in the assault and failing to render medical aid. These charges carry a maximum penalty of life in prison, according to the U.S. Department of Justice. The officers have pleaded not guilty to all charges.
Mills and Emmitt Martin III, the two other officers who were also charged in this case, have pleaded guilty to some of the federal charges.
Mills pleaded guilty to two of the four counts in the indictment — excessive force and failing to intervene, as well as conspiring to cover up his use of unlawful force, according to the DOJ. The government said it will recommend a maximum penalty of 15 years in prison, based on the terms of Mills’ plea agreement.
Martin pleaded guilty to excessive force and failure to intervene, as well as conspiracy to witness tamper, according to court records. The other two charges will be dropped at sentencing, which has been scheduled for Dec. 5, according to the court records.
“We’re praying for everyone involved,” Ben Crump, the civil rights attorney representing the Nichols’ family, said during a prayer vigil Wednesday morning outside the courthouse when asked for his response regarding Mills’ emotional testimony.
Crump said this trial was one of the most emotional trials he has ever attended, a sentiment shared by Antonio Romanucci, his co-counsel.
“In my career, which is now over 40 years,” Romanucci said, “I have never seen such testimony as I did yesterday — police officer who had such contrition. [Former] Officer Mills, without knowing it, just talked about why we’re here, and that’s for accountability.”
The prosecution told ABC News earlier this month that they will not have any statements until after the trial. The defense attorneys did not immediately respond to ABC News’ request for comment.
Within the courtroom, defense attorneys cross-examined Mills regarding the use of his baton on Nichols, which Mills said on Tuesday he used to hit Nichols three times the night of their encounter, according to WATN.
Mills claimed that he didn’t use the baton to hit Nichols in the head, but admitted that he used it improperly since it’s only meant to be used in self-defense, according to WATN. He said it was the first time he ever used his baton or used excessive force on a suspect.
Mills noted that the use of his baton was not because verbal commands weren’t working on Nichols when asked by the defense, according to WATN.
Mills reiterated his testimony from Tuesday that he was angry and he sprayed himself with pepper spray, and therefore used excessive force on Nichols, according to WATN.
“I was angry because I just [pepper] sprayed myself in the face,” Mills said on Tuesday, according to WATN. “I didn’t give him a chance to give me his hands.”
Mills disagreed with Bean’s attorney when he asked Mills if he was the only one who could intervene to stop the beating, since Mills didn’t have his hands on Nichols that night, according to WATN. The ex-officer claimed that the other officers could have moved Nichols away from the strikes and punches while they held his hands.
Mills admitted to the defense that the reason he changed his statement about what happened that night was because he took a plea deal from prosecutors, according to WATN. He said he lied in earlier statements.
Mills told prosecutors that when he told Lt. Dewayne Smith, his former supervisor, that the arrest was done “by the book,” he only said that to hide what really happened, according to WATN. The ex-officer claimed that there was a mutual understanding that their off-camera conversations would go unreported.
“I needed this job for my wife and kids,” Mills said when the prosecution asked why he was not initially truthful about the encounter. “This job has good insurance. I have children with special needs. I needed this job for my family. I let them down.”
Mills was asked about response to resistance forms from the incident, stating they weren’t accurate and that Nichols, “was not aggressive at all,” according to WATN.
Mills said that Haley asked him if Mills’ body camera captured him during the encounter with Nichols.
“I hope I’m not on there,” Mills said Haley told him.
Body-camera footage shows that Nichols fled after police pulled him over on Jan. 7, 2023, for allegedly driving recklessly, then shocked him with a Taser and pepper-sprayed him.
Officers allegedly then beat Nichols minutes later after tracking him down. After the police encounter, Nichols was transferred to the hospital in critical condition.
“I was going along, either way, [with] the cover-up,” Mills said. “Hoping for the best that Mr. Nichols would survive and this whole thing would blow over.”
Nichols, 29, died in the hospital on Jan. 10, 2023. Footage shows the officers walking around, talking to each other as Nichols was injured and sitting on the ground.
Memphis Police Chief Cerelyn Davis said she has been unable to substantiate that Nichols was driving recklessly. The incident triggered protests and calls for police reform.
After the police encounter, Nichols was transferred to the hospital in critical condition. The medical examiner’s official autopsy report for Nichols showed he “died of brain injuries from blunt force trauma,” the district attorney’s office told Nichols’ family in May 2023.
The five former officers charged in this case were all members of the Memphis Police Department SCORPION unit — a crime suppression unit that was disbanded after Nichols’ death. All of the officers were fired for violating MPD policies.
“As an officer, I respond to scenes where the victim looks like Mr. Nichols [did after he was beaten],” Mills said. “This was the first time I was a part of it.”
