Second Circuit to Hear Bankman-Fried's Appeal Today That Argues He was "Presumed Guilty"

SBF to Argue He Was ‘Presumed Guilty’ After FTX in Trial Appeal

Everybody was out to get Sam Bankman-Fried after the collapse of his cryptocurrency exchange in 2022. At least that’s what his lawyers will tell an appeals court Tuesday as the FTX co-founder seeks to reverse his fraud conviction and 25-year prison sentence.

Bankman-Fried’s lawyers claim he was wrongly convicted in a rush to judgment by the press, prosecutors, the team that took over FTX in the wake of its stunning implosion, and, critically, US District Judge Lewis Kaplan. […]

In their appeals briefs, Bankman-Fried’s lawyers focused on Kaplan, 80, who has been a federal court judge since 1994. They accused the judge of “repeatedly putting a thumb on the scale to help the government and thwart the defense.” They’re asking for a new trial with a different judge.

Wall Street Intensifies Scrutiny of Fraud After Spate of Loan Losses

A string of alleged frauds by corporate borrowers is spurring a reckoning across Wall Street, sending bankers and investors scrambling to prevent future blowups.

Lenders are increasing due diligence and demanding a longer history of financial data from companies. Some are inserting conditions that permit them to do more frequent checkups before agreeing to make loans. A group of the biggest names in banking, investment management and accounting have formed a task force that will take a deeper look at the nature of the problem and how to protect investors.

The frauds that have emerged so far, which involve small to midsize companies in sectors such as autos and telecommunications, haven’t sparked widespread trouble in the market or economy. But they have generated fallout for both regional banks and Wall Street giants such as JPMorgan Chase and BlackRock, and the string of revelations has made it harder to dismiss any one case as an isolated event.

First Brands Sues Founder for Allegedly Pilfering Firm Funds

First Brands Group sued founder Patrick James for allegedly misappropriating hundreds of millions of dollars from the US automotive supplier which collapsed into bankruptcy in September.

Lawyers for the company — now run by restructuring consultants at Alvarez & Marsal — alleged that James borrowed funds on fraudulent terms, only then to “routinely and regularly” divert cash for himself and his family, according to a Southern District of Texas filing dated Nov. 3. More than $700 million was funneled from First Brands directly to James and his affiliated entities from 2018 to 2025, they claimed.

The $30 Million Lawyer: GCs Take on New Duties to Up Their Pay

The best paid legal executives at the biggest public companies increasingly have something in common, even beyond total compensation that can top $30 million: They wear many hats.

Alphabet Inc.’s J. Kent Walker Jr., president of global affairs and longtime architect of the Google corporate parent’s legal and regulatory strategies, at $30.2 million tops a list of corporate lawyers led by “hybrid” executives with duties that go beyond a traditional chief legal officer or general counsel, a Bloomberg Law analysis of the S&P 500 found.

Walker is followed by Broadcom Inc.’s Mark Brazeal, chief legal and corporate affairs officer ($29 million); Apple Inc.’s general counsel Katherine Adams, who has responsibility for the technology giant’s global security and privacy teams ($27.2 million); and Amazon. com Inc.’s David Zapolsky, chief global affairs and legal officer ($25.7 million).

SEC Scrutiny Awaits Chinese, Foreign Companies Operating in US

As foreign-based issuers, their auditors, and other gatekeepers evaluate the latest SEC developments, they should prepare for scrutiny and potential rule changes. This includes examining disclosures, internal controls, and risk management to ensure disclosures are accurate, consistent, and substantiated with supporting documentation.

Issuers should prepare for greater scrutiny by gatekeepers such as auditors, accountants, and underwriters when seeking to access the US capital markets in response to renewed focus on the gatekeepers’ roles in working with foreign companies.

The gatekeepers particularly will be looking for indications of fraud, insider trading, rapid changes in stock price and accounting, disclosure, and/or controls issues. Gatekeepers such as auditors and underwriters of foreign issuers should continue to follow robust internal processes to mitigate the risk of this enhanced scrutiny.