POSTER CHILD OF SECURITIES FRAUD THE SAM BANKMAN-FRIED LITIGATION AND ITS AFTERMATH PART II

This is the second part of the article on the fall of the digital Robin Hood, Sam Bankman- Fried. Included in this part are the defense arguments, sentencing, and the civil litigation fallouts that emerged from the trial, including the liability of celebrities and advertisers in endorsing products and services.

Rosario (Roy) Girasa

FEDERAL INDICTMENT Defense Arguments The defense arguments were typical of those raised by senior executives when charged with violations of law, namely, “I didn’t know because I left it to my underlings to manage the company” (notwithstanding they received many millions in salary and benefits); “I acted in good faith to benefit the company and shareholders”; and other related arguments. Their successful use at trials led to provisions in both the Sarbanes-Oxley Act (Congress, 2002) and the Dodd-Frank Act (United States Congress, 2010 Jul 21) which imposed mandatory personal knowledge requirements upon CEOs, CFOs, and other comparable persons holding major positions in public companies. The Acts mandated that the said senior corporate officials to both sign sworn statements that they have personally assured the accuracy of audit numbers and that…

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The European Business Review (Digital) - 1 Issue, March/April 2025

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