The Ongoing Misadventures of George Santos.

Last December, The New York Times reported on a newly elected republican member of the House of Representatives from Long Island named George Santos. At first, it looked as if Santos would be a breath of fresh air to the Republican party; he was part Brazilian and was in a same-sex relationship, two factors that might bring in new voters outside the traditional republican base of mostly white voters. However, it was apparent Santos was not all he seemed. According to an article from The Washington Post, Santos, on his campaign website, claimed he went to New York University and worked at Goldman Sachs. However, journalists digging into his background found that neither institution had any record of Santos having worked at Goldman or attended NYU. Santos also found himself in a spot of bother with the Brazilian authorities; according to The Post, Santos allegedly stole a checkbook and then used it fraudulently. The Brazilian police couldn’t catch him but were alerted to his whereabouts once he was elected.

As time passed, more allegations about Santos began to emerge. In February of this year, an article in Politico stated that Santos set up a GoFundMe for a veteran named Richard Osthoff, whose service dog needed surgery that would cost $3,000. After helping raise the 3K, Osthoff alleges that Santos closed down the GoFundMe and made off with the money. Then, in May of this year, Santos was charged by the federal government with 13 counts of wire fraud, money laundering, stealing public funds, and lying on public disclosure forms. On Tuesday, it was revealed by the New York Times that Santos is facing further counts of wire fraud, aggravated identity theft, access device fraud, and making false statements to the Federal Election Commission, as well as possibly obstructing the FEC’s investigation. Who knows how this plays out, but I have a feeling that George may have some serious explaining to do with the feds.

SBF Colleague Admits Fraud.

Yesterday in the trial of Sam Bankman-Fried, Gary Wang, the co-founder of FTX, admitted that SBF had directed him to commit financial crimes. According to an article in The San Jose Mercury, Wang’s testimony will detail the acts of fraud both he and SBF committed while running FTX. Wang stated that he committed wire, securities, and commodities fraud at FTX while having a stake in Alameda Research, the hedge fund that SBF’s girlfriend ran. According to a report in US News, Wang is the first of a trio of former high-ranking executives that will testify against SBF. The trial continues.

Bankman-Fried’s Fraud Trial Gets Underway.

The trial of disgraced former FTX CEO Sam Bankman-Fried started today in New York City. SBF is accused of fraud and conspiracy to commit fraud. According to a report by CNN, prosecutors claim that SBF stole billions of dollars in customer deposits at FTX to cover enormous losses at Alameda Research, a crypto-driven hedge fund run by his then-girlfriend Caroline Ellison, who pleaded guilty to similar offenses in December of last year. Before its infamous collapse, FTX had developed a well-known reputation by featuring celebrity endorsers such as Tom Brady in Super Bowl commercials. According to an article in Politico, SBF’s trial could have significant ramifications on future legislation regarding the regulation of the industry. Michael Lewis will be smiling somewhere as his book on SBF comes out today; nothing beats a bit of free publicity.

Head of China Life Insurance Sentenced to Death on Corruption Charges.

The former Chairman of China’s most prominent life insurance firm Wang Bin today was sentenced to death with a two year reprieve after being found guilty on corruption charges. This is the latest conviction of a well-known figure in China’s financial services industry, as President Xi clamps down on corruption. According to a report from CNN, Mr. Wang had taken $44 million in bribes and had stashed $7 million away in a bank account in Hong Kong. It is unclear who could have bribed Mr. Wang; it could be anyone within the Chinese business community or someone from abroad. According to a report in the Independent, when Wang was arrested in 2022, China’s anti-corruption body stated he failed to institute policies within his company that would mitigate financial risks. Likely, this will not be the last time a prominent figure in the Chinese financial industry will be charged with corruption.

Ukraine’s ongoing crusade against Corruption.

This week, the Ukrainian government under President Zelensky has been making further efforts to eradicate societal Corruption in Ukraine. Several outlets, including Reuters, have reported that a delegation of Ukrainian officials has met with Jake Sullivan, the U.S. national security advisor, about improving anti-corruption efforts. Along with that is a report from the BBC that Ihor Kolomoisky, a well-known Ukrainian oligarch, is to be held in custody for two months on fraud and money laundering charges. Arguably, the most critical corruption story to come out of Ukraine is that President Zelensky has fired his defense minister, Oleskii Reznikov, because of allegations of Corruption. A report by the Washington Post suggests that Rustem Umerov, the former head of the State Property Fund of Ukraine, will take over. While there is a long way to go, it is clear that the Ukrainian government is making strides in stamping out governmental malfeasance.

Bongo Deposed in Gabon.

This week, the president of Gabon, Ali Bongo, was deposed in a military-led coup. According to an article from the BBC, the military stepped in after Bongo had been announced as the recent election winner. Bongo had been in power for nine years after taking over from his father, who had been in power since the 1960s. Gabon has had a long history of corruption primarily due to its numerous natural resources, such as oil, being exploited by the Bongo family. According to the Washington Post, Gabon is the seventh country in Africa that has experienced a military coup in the last two years. Another report by the BBC suggests that Brice Nguema is an unlikely coup leader because he is reported to have close links to the Bongos. I fear Gabon will go the way of Niger and Mali, where the military coups have not led to meaningful change but more political instability.

Guatemala Plagued by Continuing Instability.

Last week, I wrote a piece on Bernardo Arevalo, the newly elected president of Guatemala, and his Anti-Corruption credentials. Since then, there have been several worrying developments about how effectively Guatemala can fight corruption and the future of its democracy. On Monday, Guatemalan prosecutors arrested Claudia Gonzalez, a representative of Guatemala’s anti-corruption commission, better known as CICIG. According to a report by the AP, Gonzalez was arrested on charges of abuse of authority by a public servant, even though, at the time, she was not officially a government member. According to another report by Yahoo, at the time of her arrest, Gonzalez had been acting as a representative for the numerous other Anti-Corruption officials arrested by the Guatemalan government.

On top of this, despite the official certification of Arevalo as the new president, there remain doubts about his ability to take office. According to a report by Al-Jazeera, the outgoing president of Guatemala, Alejandro Giammattei, has assured Arevalo and his campaign that there will be a smooth transition of power. Despite this, Guatemala’s electoral registry has suspended Arevalo’s party Movimento Semilla (the seed Movement). There are still fears that Guatemala’s political establishment, which is notoriously corrupt, will try and find some way to impede Arevalo’s ascension to the presidency. One has to hope that democracy will prevail and that Arevalo can take power.

Anti-Corruption Crusader Wins Guatemala Election.

On Sunday, in the Guatemalan presidential election, a candidate named Bernardo Arevalo ran on an anti-corruption platform. According to an article in the New York Times, Arevalo, the leader of the Movimento Semilla (Seed Movement), is a sociologist and won 58 percent of the vote. In comparison, his opponent Sandra Torres received 37 percent. Despite being a democracy, Guatemala has been plagued by political scandals and societal corruption for years. According to another piece in The Times 2019, Guatemala had a pioneering anti-corruption body backed by the UN called the International Commission against Impunity in Guatemala, which was shut down due to the efforts of high-ranking officials such as businessmen and politicians who were charged with corruption, but still had enough institutional power prevent prosecutors and other officials favorable to anti-corruption steps from staying in office. Despite the current positivity in Guatemala, an article from the AP suggests that corrupt judges and government officials could try and stop the certification, thus throwing the country back into turmoil. It would be a massive boost for Latin America and the USA if Arevalo could take power and stop the endemic corruption that plagues Latin America.

Ecuador Anti-Corruption Presidential Candidate Assassinated.

Last week Ecuadorian presidential candidate Fernando Villavicencio was assassinated while leaving a campaign event in Quito. According to a report by Reuters, Villavicencio was formerly an investigative journalist who focused on exposing corruption and stated that he was not afraid of being targeted by criminal gangs. Violence against politicians in Ecuador is not new. According to a report by the AP from July 23rd, the mayor of Manta, Ecuador’s third largest city, Agustin Intriago, was assassinated by what authorities believe to be organized crime elements.

According to an article by El Pais, both Mexican and Colombian drug cartels have made inroads into Ecuadorian society and have been trafficking drugs, as well as conducting other criminal enterprises. The killing of Villavicencio is concerning for two reasons. First, it hindered ongoing anti-corruption efforts, scaring people into silence and emboldening transnational criminal organizations. Secondly, it adds to the overall feeling of political and social instability in Ecuador.

Ukrainian Military Officers Fired Over Bribery Allegations.

Last Week President Zelenskyy fired officials who led Ukraine’s military recruitment drive over bribery allegations. Under Zelenskyy’s leadership, Ukraine has started to crack down on corruption, partially to improve its prospects of joining the EU and NATO. According to a BBC article, Zelenskyy announced that 30 people would face bribery allegations, including all the regional heads of the military conscription effort. The charges allege that these officials took bribes in cash and cryptocurrency and aided non-disabled men to leave the country. Current Ukrainian law states that all men over 18 able to fight up to 60 can be conscripted. It is admirable to see Zelenskyy clamp down on corruption after years of unchecked greed by other Ukrainian leaders.