Caroline Ellison sentenced in FTX fraud case

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and why Caroline Ellison learned her fate for her role in the FTX fraud case.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we'll be watching on the street today.

00:05Housing is in focus on Wall Street as investors keep an eye on falling interest rates. Mortgage applications for the week ended September 20th

00:13jumped 11% according to the Mortgage Bankers Association.

00:16The mortgage rate on a traditional 30-year fixed loan fell to 6.13%.

00:22Meanwhile, new home sales dropped 4.7% in August according to data from the Commerce Department,

00:28but are up nearly 10% from a year ago. The median sales price dropped to

00:36$420,600. And KB Home posted mixed quarterly results. Earnings missed forecast, but sales beat analysts' targets.

00:44In other news, Caroline Ellison, the ex-girlfriend of infamous FTX founder Sam Beckman Freed,

00:50whose testimony helped put him behind bars, is going to jail herself.

00:55Ellison was sentenced to two years in prison in order to forfeit $11 billion

01:00for her role in the massive fraud that brought down the cryptocurrency exchange, once worth $32 billion.

01:07The judge had stern words for Ellison, telling her that her cooperation in the case

01:12could not be used as a, quote, get-out-of-jail-free card.

01:15He told her, quote, there's no way you're ever going to do something like this again, I am persuaded.

01:20But here's the thing, this was, if not the very greatest financial fraud ever perpetrated in this country or anywhere else close to it.

01:29Ellison ran Alameda Research, an arm of Beckman Freed's crypto empire, and helped him steal $8 billion in customer money.

01:36She pled guilty to seven felony counts of fraud and conspiracy, which carried a maximum prison term of 110 years.

01:44She'll be allowed to stay out on bail until she reports to prison in early November.

01:50For his role, Beckman Freed is currently serving a 25-year sentence.

01:55That'll do it for your daily briefing from the New York Stock Exchange. I'm Conway Gittens with The Street.

Category

Transcript

Recommended