What Will Be the Verdict for Caroline Ellison Tomorrow

CoinWorld.com reports:
Caroline Ellison, former CEO of Alameda Research, will be sentenced tomorrow by the Manhattan Federal Court. Ellison had previously pleaded guilty to conspiring with her ex-girlfriend and former boss, Sam Bankman Fried (SBF), to defraud FTX clients. Bankman Fried was sentenced to 25 years in prison in April.
The 29-year-old Ellison has pleaded guilty to two counts of conspiracy to commit wire fraud, each carrying a maximum sentence of 20 years; two counts of wire fraud, each carrying a maximum sentence of 20 years; one count of conspiracy to commit money laundering, with a maximum sentence of 20 years; one count of conspiracy to commit commodities fraud, with a maximum sentence of five years; and one count of conspiracy to commit securities fraud, with a maximum sentence of five years.
Despite the seriousness of her crimes and the staggering maximum sentences, practical sentencing guidelines and her extensive cooperation with authorities mean that Ellison may not actually serve time in prison. Her cooperation with authorities, including testifying against FTX founder SBF in last year’s trial, helped prosecutors determine that he committed seven counts of fraud.
Caroline Ellison’s sentencing recommendations indicate a widespread consensus for leniency in tomorrow’s judgment.
Defense recommendation:
Clearly, Ellison’s legal team is requesting a noncustodial sentence. Specifically, they are asking for three years of “supervised release” without imprisonment.
In tomorrow’s sentencing, her lawyers will argue that her swift, thorough, and essentially unredacted cooperation with U.S. authorities in the FTX and Alameda Research collapse warrants a lenient judgment.
Probation Department recommendation:
The Probation Department recommends a period of incarceration followed by three years of supervised release, citing Ellison’s “extraordinary cooperation” with the government and her lack of prior criminal record.
Prosecutors’ recommendation:
The job of U.S. prosecutors is to pursue fair punishment as a deterrent to crime and to prevent future criminal behavior. While a review of public sources does not indicate their specific recommendation for Ellison’s sentencing tomorrow, federal prosecutors have acknowledged Ellison’s “exceptional cooperation” and described her cooperation as “significant” and “commendable.”
Read more:
Caroline Ellison brings us the financial scandal we’ve all been waiting for.
Ultimately, Judge Lewis Kaplan has the authority to determine the punishment for Ellison’s admitted crimes. While Ellison cooperated with authorities, she committed numerous offenses against the American people and played a key role in one of the largest and most valuable fraud schemes in U.S. history.
While the outcome may include a short-term imprisonment, supervised release, or probation, legal experts unanimously predict that she will receive a sentence far lower than her former boss’s 25 years.
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