Today, representative George Santos has announced that he will not run for re-election after an ethics report ruled that Santos was involved in criminal schemes with the goal of personal financial enrichment. According to an article in the Washington Post, Santos has railed against the report, calling it a “disgusting politicized smear.” According to a report in the Guardian, the ethics committee found a clear pattern of behavior of fraud that emerged during Santos’s time in the house and that he should be removed one way or another. In recent weeks & months, the calls for Santos to be removed came from both sides of the aisle, with some Republicans publicly admitting that he had gone. Even though Santos will not run again for re-election, he still faces many legal issues.
Category: Corruption
Eric Adams and Turkish Money in New York Politics.
Last week, Eric Adams, the mayor of New York City, got himself embroiled in a fundraising scandal. According to an article in Reuters, Adams’s chief campaign fundraiser, Brianna Suggs, had her home searched by FBI agents on November 2nd due to Adams’ possible involvement in a scheme to funnel foreign money from a Turkish donor to his mayoral campaign. On top of that, according to a report in the New York Times, Adams allegedly pressured the New York Fire Department (NYFD) to sign off on the Turkish government’s new consular building despite safety concerns. A follow-up article in the Times stated that Adams had cultivated close ties to the Turkish business community in New York. Many people this time of year are looking forward to turkey and all of the fixings; however, for Adams, the fixings surrounding Turkey could be bribery and corruption, not stuffing and mashed potatoes.
Trump Fraud Trial Update.
A few days ago, Donald Trump testified in his fraud trial in New York City. By all accounts, Trump made a spectacle of the proceedings and lashed out at everyone from the judge to the New York State Attorney General Letitia James. According to a report in the Washington Post, Trump, instead of mounting any credible defense, used the proceeding to try and score political points to bolster his election credentials. The Post article states that Trump may be using this trial as a dry run for his conduct in his upcoming criminal trials. The trial continues.
Portugal PM Costa Resigns After Corruption Probe.
Today, the prime minister of Portugal, Antonio Costa, resigned due to his role in corruption allegations. According to an article in Reuters, Costa’s chief of staff, Vitor Escaria, was detained by police, and the minister for infrastructure, Joao Galamba, was named the prime suspect. According to an article in Politico, the allegation centers on large-scale infrastructure projects involving the extraction of lithium in the north of the country, as well as a project focused on the development of green hydrogen technology. The socialist government under Costa has been committed to green energy ventures. Despite this, the projects have been dogged by allegations of environmental damage and the poor quality of lithium extracted. This is a significant blow for the socialist party as they were re-elected last year, and Costa was expected to stay in power for a while longer.
SBF found Guilty in Fraud Trial.
After a two-week trial, Sam Bankman-Fried, better known as SBF, has been found guilty of fraud, money laundering, and conspiracy. Bankman-Fried was the former CEO of FTX and was heavily involved in the effective altruism movement. According to an article in Yahoo, SBF claimed numerous times that he had nothing to do with the alleged $8 billion fraud. However, it became apparent that his co-defendants, such as former girlfriend Caroline Ellison, testified that SBF directly told Ellison to move money from FTX accounts to prop up Alameda, a failing cryptocurrency hedge fund closely linked to FTX and run by Ellison. According to CBS, SBF also used some of the stolen money to buy expensive real estate and fund political campaigns and charitable projects.
The big question is what comes next for both SBF and the crypto industry, at least. According to an article by NASDAQ, SBF will very likely spend the rest of his life in prison, which will hopefully set an example to anyone else thinking about enriching themselves through crypto. As for the FTX users affected by the scam, they should be able to recoup at least 90 percent of their losses after a bankruptcy settlement agreed last December. SBF may also have to pay his victim restitution at his sentencing. What happened to FTX will hopefully encourage governments and other financial entities to tighten the regulations around cryptocurrency and ensure that something on this scale never happens again.
Panama Removed from FATF Gray List.
Last week, Panama was from the Financial Action Task Force (FATF) Gray List. FATF is an Inter-governmental organization that monitors corruption worldwide. According to an article in the US News, the Panamanian government has made enough reforms to the financial sector that the country can be taken off the list. This will, according to the article, open the door to more international investment. While this is undeniably a good sign, one has to hope that the type of people who want to put money in Panama are doing it for the right reasons.
Former Albanian PM Ensnared in Corruption Probe.
The former Prime Minister of Albania, Sali Berisha, was recently charged with corruption offenses. According to a Reuters article, Berisha hopes to steer the privatization of land once owned by a local football club, FK Partizani, in such a way that it would benefit a company owned by his son-in-law. According to a report from the AP, Berisha believes these charges are politically motivated by the current PM, Edi Rama. Berisha has a checkered history involving corruption; according to ABC News, in 2021, Berisha was banned from entering the US due to numerous allegations of corruption during their tenure as PM from 2005 to 2013. It is unclear how this will play out, but I would assume that Berisha may well be facing a stretch behind bars.
Menendez Pleads Not Guilty to Federal Corruption Charges.
Yesterday, according to an article on NBC Bay Area, Robert Menendez was back in a federal courtroom in New York City after the indictment was rewritten to add a charge. Menendez pleaded not guilty to being a foreign agent for the government of Egypt. According to an article on CBS.com, Menendez’s wife and Wael Hama, an Egyptian-American businessmen, pleaded not guilty last week, while Menendez was allowed to delay his arraignment due to his senate commitments. Due to these allegations, Menendez has stepped down from chairing the powerful Senate Foreign Relations Committee. The trial continues.
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.