Former FTX executive Caroline Ellison urges leniency ahead of sentencing in crypto fraud case
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(NEW YORK) — Former FTX executive Caroline Ellison said she deserves no prison time for her role in one of the largest financial frauds in history and federal prosecutors seem inclined to agree.
Ellison’s attorneys urged Judge Lewis Kaplan to be lenient when he sentences her Tuesday afternoon, arguing Ellison “unflinchingly acknowledged her own wrongdoing, without minimization, blame shifting or self-pity.” They added, “She time and again proved herself an enormously credible and important cooperating witness” against her on again-off again boyfriend, former FTX CEO Sam Bankman-Fried.
Ellison testified for three days at Bankman-Fried’s trial that ended with a conviction on all seven counts: wire fraud and conspiracy to commit wire fraud on FTX’s customers; wire fraud and conspiracy to commit wire fraud on Alameda Research’s lenders; conspiracy to commit securities fraud on FTX’s investors; conspiracy to commit commodities fraud on FTX’s customers; and conspiracy to commit money laundering.
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.”
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.
“Caroline moved around the globe at his direction, first to Hong Kong and later the Bahamas” while working “long, stressful, Adderall-fueled hours,” Sahni said.
“Caroline was in an on-again-off-again, sometimes-secret relationship with Mr. Bankman-Fried that she understood at the time was fundamentally unequal. Deeply unhappy, Caroline repeatedly considered leaving Alameda, but Mr. Bankman-Fried convinced her to stay, telling her she was essential to the survival of the business, and that he loved her (while also perversely demonstrating that he considered her not good enough to be seen in public with him at high-profile events),” the defense letter said.
Her attorney said it all “warped” her moral compass and led her to take actions “that she knew to be wrong, helping him steal billions.”
Bankman-Fried was sentenced to 25 years in prison in March. He has filed an appeal to overturn his conviction.
(LOS ANGELES) — Lyle and Erik Menendez are currently serving life behind bars for the murders of their parents in the family’s Beverly Hills home. But after more than three decades in prison, a renewed interest in the headline-grabbing trial has the brothers pursuing two tracks to potential freedom.
The Menendez case dates back to August 1989, when Lyle Menendez, then 21, and Erik Menendez, then 18, shot and killed their parents, Jose and Kitty Menendez.
Prosecutors alleged Lyle and Erik Menendez killed their wealthy parents for financial gain, while the defense argued the brothers acted in self-defense after enduring years of sexual abuse by their father.
Their first trials — which captured the nation’s attention with cameras in the courtroom — ended in mistrials.
In 1996, at the end of a second trial — in which the judge barred much of the sex abuse evidence — Lyle and Erik Menendez were convicted of first-degree murder and sentenced to two consecutive life prison terms without the possibility of parole.
The sensational case gained new attention this fall with the release of the Netflix drama “Monsters: The Lyle and Erik Menendez Story” and the Netflix documentary “The Menendez Brothers.”
The brothers currently have two potential paths to their release before the Los Angeles County District Attorney’s Office.
Resentencing
One track involves a review of their sentence based on factors including rehabilitation, which Los Angeles County District Attorney George Gascón is evaluating.
Gascón said he plans to make his resentencing decision this month. If Gascón recommends resentencing, his recommendation will go to a judge to decide whether the brothers will be released, receive a lesser sentence or get a new trial.
Gascón told ABC News in October any recommendation for resentencing would take into account the decades the brothers already served and their behavior in prison.
Mark Geragos, the Menendez brothers’ lawyer, called Erik and Lyle model prisoners who worked tirelessly to reform themselves with no expectation they’d be released.
“Given the totality of the circumstances, I don’t think that they deserve to be in prison until they die,” Gascón told ABC News.
Gascón said since he’s been in office, they have resentenced over 300 people, of which four have reoffended.
The other track concerns the brothers’ petition filed last year for a review of new evidence not presented at the original trial. Through the habeas corpus petition, the court could reverse the conviction or reopen proceedings.
Gascón said his office is evaluating allegations from a member of the boy band Menudo who said he was molested by Jose Menendez, and a letter Erik Menendez wrote to a cousin eight months before the murders detailing his alleged abuse.
Erik Menendez’s cousin testified about the alleged abuse at trial, but Erik Menendez’s letter — which would have corroborated the cousin’s testimony — wasn’t unearthed until several years ago, according to Geragos.
“The combination of those two we believe provide more than ample basis to set aside the result of the second trial,” Geragos said at a press briefing earlier this month.
Geragos said the district attorney could either oppose the habeas and decide to litigate it, or “they could concede the habeas and say, give them a new trial.”
“I’m hoping that sometime before Thanksgiving, which is when the next response is due, that the DA will either concede the habeas or join us in asking for resentencing,” Geragos said.
The next court date in the case is scheduled for Nov. 26, Gascón said.
Family calls for release
Nearly two dozen relatives have urged the district attorney to recommend the brothers be resentenced and released.
Lyle and Erik Menendez “were failed by the very people who should have protected them — by their parents, by the system, by society at large,” Kitty Menendez’s sister, Joan Andersen VanderMolen, said at a news conference on Wednesday.
“Their actions, while tragic, were the desperate response of two boys trying to survive the unspeakable cruelty of their father,” she said of the murders. “As their aunt, I had no idea of the extent of the abuse they suffered.”
Behind bars, the siblings “persevered,” Anamaria Baralt, niece of Jose Menendez, said. “They have sought to better themselves and serve as a support and inspiration for survivors all over the world. Their continued incarceration serves no rehabilitative purpose.”
(NEW YORK) — Two Russian military aircraft were detected Wednesday operating in the international airspace off of Alaska, NORAD said.
The aircraft were operating in airspace known as the Air Defense Identification Zone, or ADIZ, that stretches 150 miles from the coastline, an area where aircraft are asked to identify themselves.
“The Russian aircraft remained in international airspace and did not enter American or Canadian sovereign airspace,” NORAD said. “This Russian activity in the Alaska ADIZ occurs regularly and is not seen as a threat.”
The U.S. does not appear to have launched intercepting aircraft, with NORAD saying in a press release that the Russian aircraft were “detected and tracked.”
United States and Canadian fighter jets in July intercepted four Russian and Chinese bombers flying in international airspace near Alaska, officials said at the time.
NORAD did not identify what type of Russian aircraft were involved in Thursday’s incident.
An ABC News graphic shows the latest weather conditions and warnings in the wake of Helene, on Monday, Sept. 30, 2024. — ABC News
(NEW YORK) — The storm surge, wind damage and inland flooding from Hurricane Helene have been catastrophic, flooding neighborhoods, stranding residents, destroying homes and toppling trees in Florida, Georgia, South Carolina, North Carolina, Virginia and Tennessee.
Dozens have been killed.
Helene, which made landfall in Florida’s Big Bend region Thursday night as a massive Category 4 hurricane, was the strongest hurricane to make landfall in the Big Bend on record.
Here’s how the news is developing:
Helene remnants move into mid-Atlantic
After dumping more than 30 inches of rain on North Carolina and producing the biggest local flood in recorded history, the remnants of Helene are forecast to move on Monday into the mid-Atlantic.
As southeastern United States worked to clean up from Helene, some of its remnants are moving into Mid-Atlantic today with heavy rain forecast for West Virginia, Virginia and Maryland.
There is an elevated flood threat on Monday in Virginia and West Virginia, where the already saturated ground could get additional 1 to 2 inches of rain, which could produce flash flooding.
-ABC News’ Max Golembo
Harris planning visit to communities impacted by Helene
Vice President Kamala Harris intends to communities impacted by Hurricane Helene “as soon as it is possible without disrupting emergency response operations,” according to a White House official.
Harris, who was briefed by FEMA on the federal response to the hurricane, reached out to Florida Gov. Ron DeSantis and Georgia Gov. Brian Kemp.
At a rally in Las Vegas on Sunday, Harris addressed those who were impacted by the hurricane by sending her “thoughts and prayers” and thanking first responders.
“I know that everyone here sends their thoughts and prayers for folks who have been so devastated in Florida, in Georgia, the Carolinas and other impacted states. And we know that so many have been impacted. Some have died, but I want to thank everyone for doing everything you can to think about them,” Harris said. “Send them your thoughts and your prayers. I want to thank the first responders who have done so much. I stand with these communities for as long as it takes to make sure that they are able to recover and rebuild.”
-ABC News’ Gabriella Abdul-Hakim, Fritz Farrow and Will McDuffie
Gov. DeSantis says power restored to all but 111K in Florida
Florida Gov. Ron DeSantis shared a major update on power restoration progress in the state on Sunday.
DeSantis said a post on X that most customers who lost power after Hurricane Helene made landfall in Florida’s Big Bend area last week, have had their electricity restored.
The governor said power was back for 2.3 million customers, and 99% of the state has power.
He added that power remains out for 111,000 customers.
Biden intends to visit hurricane zone this week
President Joe Biden spent his Sunday evening receiving briefings on the damage from Hurricane Helene, and speaking to local officials from the impacted areas.
In a statement, the White House said Biden intends to travel to the impacted areas this week, “as soon as it will not disrupt emergency operations.”
Additionally, Biden spoke by phone Sunday with Georgia Gov. Brian Kemp, North Carolina Gov. Roy Cooper, Valdosta, Georgia, Mayor Scott Matheson and Taylor County, Florida, emergency management director John Louk, according to the White House.
The president also reached out to additional officials across North Carolina, Tennessee, Florida and South Carolina.
“In each conversation, the President received updates on response and recovery efforts, and he shared how the Biden-Administration will continue providing support to impacted communities – for as long as it takes,” the White House said in the statement.
-ABC News’ Sarah Kolinovsky
Trump to visit Valdosta, Georgia
Former President Donald Trump is scheduled to visit Valdosta, Georgia, on Monday to receive a briefing on the damage caused by Hurricane Helene, help distribute supplies and deliver remarks, his campaign said.
President Joe Biden said Sunday that the photographs showing Hurricane Helene’s damage are “stunning.”
When asked by reporters about his message to the victims, Biden said, “It’s tragic.”
“My FEMA advisor is on the ground in Florida right now. … We’re working hard,” Biden said.
Asked by ABC News if there are more resources the federal government could be providing, Biden responded, “No, we’ve given them. We have pre-planned a significant amount, even though they didn’t ask for it yet — hadn’t asked for it yet.”
-ABC News’ Michelle Stoddart
25 dead in South Carolina
Hurricane Helene’s impact on South Carolina has been “devastating,” and the storm has claimed the lives of 25 people in the state, Gov. Henry McMaster said Sunday.
“We don’t want to lose any more,” McMaster said.
Nearly 1.3 million customers lost power in South Carolina at Helene’s peak. As of Sunday afternoon, more than 800,000 customers remain in the dark.
The governor emphasized that power companies are working around the clock to restore electricity. Thousands of workers are on the ground, but downed trees tangled in power lines are delaying efforts, he said.
-ABC News’ Jason Volack
FEMA sending more search and rescue teams to North Carolina
FEMA Director Deanne Criswell said the agency is sending more search and rescue teams to western North Carolina, where residents are facing “historic” flooding from Hurricane Helene.
“I don’t know that anybody could be fully prepared for the amount of flooding and landslides that they are experiencing right now. But we have had teams in there for several days. We’re sending more search and rescue teams in there,” Criswell told CBS’ Face the Nation.
Gov. Roy Cooper described Hurricane Helene’s damage in western North Carolina as “catastrophic.”
“This unprecedented storm dropped from 10 to 29 inches of rain across the mountains, leading to life-threatening floods and landslides,” he said Sunday.
Water systems have been impacted and some roads have washed away, hampering the ability for officials to set up food and water distribution sites.
“We have sent bottled water in, but we also have the Army Corps of Engineers that’s getting ready to start assessments today to see what we can do to help get those water systems back online quickly,” Criswell said.
“We’re also moving in satellite communications, Starlink satellites, into the area to help facilitate the lack of communication that part of the state is experiencing,” Criswell added.
