[HN Gopher] Caroline Ellison sentenced to 2 years in prison
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       Caroline Ellison sentenced to 2 years in prison
        
       Author : gniting
       Score  : 79 points
       Date   : 2024-09-24 20:53 UTC (2 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | beaglesss wrote:
       | [flagged]
        
         | dang wrote:
         | You've repeatedly been deleting and reposting this flagged
         | comment. That's not a legit way to get around the moderation
         | system here (which includes user flags). We ban accounts that
         | do this, so please don't do it any more.
        
       | gjsman-1000 wrote:
       | How many of us here could steal 8 billion, do orgies at work, and
       | escape with 2 years of prison?
       | 
       | If the justice department was doing their job, and justice is
       | blind... all of us?
        
         | akavi wrote:
         | Chances increase dramatically if we cooperate in testifying
         | against the perceived "mastermind", as Ms. Ellison did.
        
         | kayodelycaon wrote:
         | It's called a plea deal. She helped out the investigation and
         | got other people convicted. She probably would have gotten no
         | sentence at all if the crime hadn't been so bad.
         | 
         | The Judge "believed Ms. Ellison was genuinely remorseful and
         | that her cooperation had been substantial."
         | 
         | The remorseful bit is a very important component here. She
         | didn't commit the crime with the intention of gaming the system
         | later to get away with it.
         | 
         | Personally, I'm okay with this. It's a huge incentive for
         | others involved in a criminal enterprise to do the same thing
         | in the future. It's worth letting one person off lightly to
         | guarantee you get everyone else.
        
         | Implicated wrote:
         | Just out of curiosity, what do the orgies have to do with
         | prison time? Are orgies at work illegal?
        
           | gjsman-1000 wrote:
           | Not necessarily illegal from what I understand; but it easily
           | could contribute to a lawsuit for a hostile work environment,
           | could anger investors, and could _maybe_ cause a lawsuit for
           | allowing the executives to be irresponsibly vulnerable to
           | blackmail or rape allegations.
           | 
           | Besides professionalism, it's just plain stupid. What happens
           | if a participant claims they were pressured into it for the
           | sake of a promotion, or for the sake of not being fired, or
           | for the sake of not losing their visa? The result would be a
           | disaster. This is also so predictable, that _maybe_ an
           | investor could claim legal negligence.
        
           | shrubble wrote:
           | It speaks to the level of seriousness with which they
           | approached their fiduciary duties, would be my view.
        
             | s1artibartfast wrote:
             | Does it mean they are more or less serious? what exactly
             | are the connections?
        
           | Lerc wrote:
           | Is there any evidence to say that they happened? The only
           | thing I have seen is extrapolation from comments made online
           | about polyamory. Is there a source citing specific events at
           | specific locations?
        
           | JSDevOps wrote:
           | I think the comment was hyperbole
        
         | linotype wrote:
         | Not to mention when she gets out of prison she'll be rich. Who
         | knows how much crypto she has stored away.
        
           | bryanlarsen wrote:
           | I'm fairly confident that she would have been required to
           | surrender all of her crypto as part of the plea deal. If she
           | didn't, it's perjury and she gets to go back to jail.
        
           | lancesells wrote:
           | I think I read she owes $11B as part of her conviction.
        
         | cortesoft wrote:
         | Not me. I would not serve two years in prison for any amount of
         | money. That is insane.
        
         | wepple wrote:
         | Nit: _have_ orgies
        
           | s1artibartfast wrote:
           | You can do them too, haha
        
       | MisterBastahrd wrote:
       | Proof once again that justice at its highest levels in the US is
       | to punish the poor and middle class and slap the rich on their
       | wrists. There are people who have stolen food to eat who have
       | gotten harsher punishments.
        
         | jdminhbg wrote:
         | > There are people who have stolen food to eat who have gotten
         | harsher punishments.
         | 
         | Are there?
        
           | PlunderBunny wrote:
           | https://www.latimes.com/archives/la-
           | xpm-1995-03-03-me-38444-...
        
             | jdminhbg wrote:
             | > He and a friend, prosecutors would contend, somewhat
             | intoxicated and possibly playing a game of "truth or dare,"
             | approached four youngsters dining on an extra-large
             | pepperoni pizza.
             | 
             | Not defending three strikes laws from thirty years ago
             | which have since been repealed anyway, but this was not
             | someone "stealing to eat."
        
           | kayodelycaon wrote:
           | You can get life in prison for three non-violent convictions
           | of selling LSD.
           | https://en.wikipedia.org/wiki/Timothy_L._Tyler
        
         | bilbo0s wrote:
         | To be fair, poverty builds character. So applying our "Tough On
         | (the poor who commit) Crime" logic:
         | 
         | if even poverty was unable to prevent that person from stealing
         | food when hungry then they are clearly irredeemable.
         | 
         | /s
        
         | onemoresoop wrote:
         | Yes, but you have to keep in mind that she made a deal to get
         | this lighter sentence, she was a star witness and testified
         | against Sam Bankman-Fried. Deals aren't necessarily for rich or
         | poor, it's just a way for prosecution to accomplish their
         | mission. She didn't get away scot-free, two years isn't the
         | lightest sentence possible. Though she probably did have a good
         | lawyer poor people could never afford...
         | 
         | And keep in mind that she wasn't the mastermind, she was just
         | dumb and easily manipulated...
        
           | hilux wrote:
           | Dumb? All these people, ONCE THEY'RE CAUGHT, want us to
           | believe that they're dumb.
           | 
           | Her parents are both MIT Professors. She was on the US
           | team(!) for the International Linguistic Olympiad. She won
           | all sorts of academic contests before getting a Math degree
           | from Stanford.
           | 
           | She was CEO of Alameda Research.
           | 
           | And now we're supposed to believe she was a "dumb" naive
           | waif, manipulated and preyed upon by SBF, that evil
           | manipulative shark?!
        
       | rich_sasha wrote:
       | I have no skin in the game, and can't judge the sincerity of her
       | remorse, but 2 years seems astonishingly low, given she was a
       | senior executive of a multi-billion dollar fraud.
       | 
       | Almost makes it worth having a go at one.
        
         | killingtime74 wrote:
         | It's because she assisted the prosecution so got a big discount
        
         | Simon_ORourke wrote:
         | It does indeed, if you could squirrel away a few million from
         | nosey prosecutors, do your two years and come out "clean" the
         | other side (assuming it's a federal rap with no possibility of
         | remission for his behavior).
        
         | eschulz wrote:
         | I believe at one point Jimmy Zhong mentioned something about
         | how living like a billionaire for nine years was worth the one
         | year prison sentence he received. I guess the key is to stay
         | away from violence, and then once it's up admit you were wrong
         | and state that you are committed to reform (or whatever your
         | lawyers tell you to say).
         | 
         | https://en.wikipedia.org/wiki/Jimmy_Zhong
        
           | bragr wrote:
           | >living like a billionaire for nine years was worth the one
           | year prison sentence he received
           | 
           | He's only been out for a little bit. Give it 10 years and ask
           | him how being a broke felon is. Especially with a fraud
           | conviction which will preclude him from employment even more.
        
             | hilux wrote:
             | That guy will never be "broke."
        
           | Aunche wrote:
           | The Bitcoin was only worth $620,000 at the time though, and
           | he only was able to do so because he stumbled upon a bug in
           | the Silk Road, so it wasn't premeditated. That's very
           | different from knowingly gambling with billions of dollars
           | from your customer's money like Ellison or SBF.
        
         | intuitionist wrote:
         | Yeah, if you can find one where there's a more senior exec with
         | more culpability who you can flip on. And once you've found
         | that, you might as well become a whistleblower instead, which
         | has considerable upside and much lower downside.
        
         | zombiwoof wrote:
         | Exactly, what nobody is talking about is she is only remorseful
         | because she got CAUGHT
        
         | cortesoft wrote:
         | Seriously? There is no amount of money I would be willing to
         | serve two years in prison for.
         | 
         | She has no money, can't get a job, and is going to be IN PRISON
         | for two years.
         | 
         | I never understand people who seem to think any amount of jail
         | time is trivial. I wouldn't serve 30 days in jail for a billion
         | dollars.
        
           | quesera wrote:
           | > _I never understand people who seem to think any amount of
           | jail time is trivial._
           | 
           | There's "jail" (colloquial for generic/television "prison"
           | and all the real and fictional horrors that evokes), and then
           | there's "minimum security womens' prison". These are
           | qualitatively different things, and Ms Ellison is headed for
           | the latter.
           | 
           | > _I wouldn't serve 30 days in jail for a billion dollars._
           | 
           | Interesting. I suspect that for a _lot_ less than that, most
           | people would even consider serving 30 days in a supermax. Or
           | solitary confinement.
           | 
           | We have a few regular posters here on HN who have spent much
           | more than 30 days in some version of "prison". I am not one
           | of them, so my thoughts are of little value, but I would be
           | very curious to hear theirs.
        
           | bigstrat2003 wrote:
           | Nobody said that jail time is trivial. I take it very
           | seriously, but you're going way overboard in saying you would
           | refuse $1 billion to spend 30 days in jail. That is such a
           | large amount of money that you are set for the rest of your
           | life, never have to worry about any needs again. 30 days of
           | pure concentrated misery is something a lot of people would
           | be willing to pay for that kind of reward.
        
           | MichaelNolan wrote:
           | > I wouldn't serve 30 days in jail for a billion dollars.
           | 
           | Prison isn't that bad. Especially a federal minimum security
           | woman's prison. It's basically like a summer camp, but with
           | nothing fun to do.
        
             | balls187 wrote:
             | Never been, but I suspect GP's comments has to do with the
             | stigma and limitations once you are a convicted felon.
        
               | mikestew wrote:
               | In the context of GP's quoting, you'd be a convicted
               | felon, sure. But you'd also be a billionaire, and which
               | point I'd not be terribly concerned about "stigma".
        
           | jlarocco wrote:
           | > I wouldn't serve 30 days in jail for a billion dollars.
           | 
           | I certainly would. $1 billion is well into "never work again"
           | territory, and lots of people spend much more time in jail
           | than that, have far fewer resources waiting for them, and
           | turn out just fine.
        
           | wepple wrote:
           | > I wouldn't serve 30 days in jail for a billion dollars.
           | 
           | You'd rather spend 50 years _totally free_ in your cubicle?
        
           | mikestew wrote:
           | I served 30-ish days in jail for a lot less than that. Not
           | that I had a lot of choice in the matter.
        
           | mozman wrote:
           | Corporate america is like a prison. Only you have the
           | illusion of choice.
        
       | Magi604 wrote:
       | Light sentence compared to Sam. Probably threw him hard under the
       | bus for some leniency.
        
         | jdminhbg wrote:
         | No probably about it, this is explicitly the deal made with
         | prosecutors.
        
         | xenadu02 wrote:
         | First to squeal gets the deal.
         | 
         | The more they need an insider's testimony to make the case,
         | find the money, and/or track the goods the better the deal can
         | be.
        
         | cortesoft wrote:
         | You are probably right, based on the quote in this very article
         | where the judge says that is exactly the reason.
         | 
         | Not sure why you added 'probably'
        
         | user90131313 wrote:
         | yeah nothing compared to Sam trabucco
        
       | draw_down wrote:
       | It's amazing, one guy did everything completely by himself.
        
       | throwup238 wrote:
       | Regardless of the sentence, there's only one federal prison for
       | women above low security so she's probably going to end up
       | somewhere cushy with no fences and work release.
       | 
       | SBF on the other hand...
       | https://old.reddit.com/r/wallstreetbets/comments/1av88z5/fir...
        
         | alwaysrunning wrote:
         | I don't think the Feds do work release, they have their own
         | industries that you can slave away at for $0.17/hr. But you are
         | right she will go to a camp since she is non-violent and only
         | has 2 years. It's a points system and assuming she hasn't
         | committed any crimes prior then her points will be low enough
         | to go to a camp.
        
           | kristianp wrote:
           | What's a "camp"? Is it not a prison? Non-US person here.
        
             | stackskipton wrote:
             | It's a prison but it's generally much more open. Prisoners
             | sleep in open air dorms, there are minimal to no fences,
             | there are generally good education and recreation programs
             | and vast majority of people are white collar criminals, the
             | violence is much much lower.
        
               | cdchn wrote:
               | It probably doesn't apply as much to white collar
               | criminals but I wonder if she would be considered a
               | snitch by her fellow inmates.
        
               | throwup238 wrote:
               | The no snitching rule applies mostly to someone who is
               | already in prison and consequences depend on the security
               | level. No one's going to kill a snitch in minimum
               | security, worst case scenario is that they'll be outcasts
               | and get into a fight occasionally.
               | 
               | The majority of prisoners are in prison because of a plea
               | deal, not a jury verdict, so they often have to snitch on
               | their accomplices as part of the plea deal (with _severe_
               | consequences for lying and omissions). In practice the
               | traditional prisoner's dilemma usually plays out with
               | everyone snitching on each other and everyone getting a
               | deal because the prosecutor doesn't want to waste time
               | and money on a trial.
        
             | gjsman-1000 wrote:
             | It's a prison, just what you might call a "minimum security
             | prison." Like, you might take out the garbage outside the
             | prison with no supervision.
        
             | trescenzi wrote:
             | I believe it's being used as a colloquial play on "summer
             | camp" to describe the prison as not that bad.
        
               | NovemberWhiskey wrote:
               | This is actually a term used by the BOP to describe
               | minimum security institutions:
               | 
               | "Minimum security institutions, also known as Federal
               | Prison Camps (FPCs), have dormitory housing, a relatively
               | low staff-to-inmate ratio, and limited or no perimeter
               | fencing. These institutions are work- and program-
               | oriented."
               | 
               | https://www.bop.gov/about/facilities/federal_prisons.jsp
        
             | throwup238 wrote:
             | Federal minimum security prisons don't have fences
             | surrounding the prison so the only thing keeping prisoners
             | from "escaping" is the extra five years that'd be added to
             | their sentence. They have far fewer guards and the
             | prisoners live in dormitory style quarters so it's far more
             | like adult summer camp than prison (commonly referred to as
             | "Club Fed"). Instead of having services on site they'll
             | often drive the prisoners to a local dentist or doctor,
             | etc.
             | 
             | As they get closer to release or if their sentences are
             | short enough, prisoners can even get work release which
             | allows them to leave the prison during the day to work at a
             | regular job. (I think the GP is confusing work release and
             | parole - the Federal system does have work release)
        
             | bryanrasmussen wrote:
             | If you're in Western Europe a minimum security federal
             | facility is probably closer to your understanding of a
             | prison than an American's understanding. Hence Americans
             | describe it as a camp, whereas if you looked at it you
             | might say hey, that's a prison.
        
             | zrobotics wrote:
             | The sibling comments are incorrect, the minimum security
             | prisons are called 'Federal Prison Camps", the colloquial
             | name is 'Club Fed'. There aren't a ton of these facilities,
             | so I can see why other people thought that the camp
             | phrasing wasn't literal. Think military camp rather than
             | summer camp.
             | 
             | https://en.wikipedia.org/wiki/List_of_United_States_federal
             | _...
        
           | voisin wrote:
           | Do prisoners have to work?
        
             | CSMastermind wrote:
             | In almost every case the prisoner is doing it voluntarily.
             | 
             | There are actually fewer prison jobs than prisoners willing
             | to work. So in nearly every case being able to have a job
             | while in prison is actually a privilege for the prisoners.
             | One that can be taken away if they get in trouble.
             | 
             | There's a lot of reform we should make with relation to
             | prison jobs including raising wages and introducing
             | relevant skills.
             | 
             | But criticisms of it being slave labor are misleading.
             | 
             | Forced labor is legal in the US and there are isolated
             | cases of it happening but you're talking about a fraction
             | of a percent of all prisoners.
        
         | ciabattabread wrote:
         | > Ms. Ellison is set to report to a minimum security prison in
         | the Boston area by around Nov. 7, almost exactly two years
         | after FTX collapsed.
         | 
         | So it's Danbury, CT.
        
           | NovemberWhiskey wrote:
           | Danbury is only "in the Boston area" by the most generous of
           | measures. Hell, Danbury's probably closer to _Philadelphia_
           | than Boston.
        
         | barbazoo wrote:
         | That photo hit me hard. I'd have so many regrets.
        
         | mozman wrote:
         | Men have it far harder than women do in many respects. Gender
         | does matter. Men are not equal.
        
       | neonate wrote:
       | https://archive.ph/M4P6k
        
       | lolinder wrote:
       | Since the same comment is getting posted over and over about the
       | light sentence, I'm raising this quote here for visibility:
       | 
       | > Prosecutors did not recommend a specific sentence for Ms.
       | Ellison, but they filed a memo to Judge Kaplan praising her
       | "exemplary" cooperation with the government. Her lawyers
       | requested that she serve no prison time.
       | 
       | > "I have seen a lot of cooperators. I have never seen one like
       | Ms. Ellison," Judge Kaplan said before announcing the sentence.
       | "What she said on the stand was very incriminating of herself,
       | and she pulled no punches about it."
       | 
       | > Judge Kaplan said the difference between Ms. Ellison and Mr.
       | Bankman-Fried was that "she cooperated and he denied the whole
       | thing."
       | 
       | We knew her sentence would be light back during SBF's trial
       | because she was a key witness in that case. The prosecutors
       | traded her sentence for his.
        
         | golergka wrote:
         | Makes sense. This precedent creates the incentives for
         | criminals to cooperate in the future.
        
         | shmatt wrote:
         | So all diddy needs to do is get on the stand and describe every
         | single party of his and he'll get a slap on the wrist?
         | 
         | While there should be more incentives to cooperate, like the
         | type of prison, allowed visits, etc. claiming someone should
         | serve less time because they described so much of their own
         | crimes is kind of silly
        
           | rexreed wrote:
           | You only get a reduced sentence if you cooperate in the
           | prosecution against someone else the government / prosecutor
           | is just as or more interested in. That wouldn't be the case
           | with the diddle.
        
           | pessimizer wrote:
           | We want to bribe criminals to betray each other. The people
           | who they are betraying could do anything up to killing them
           | to prevent this, and we have to compete with that.
           | 
           | The world gets zero benefit to imprisoning this woman
           | indefinitely, it in fact costs money, and if the government
           | had to prove their case against her without her cooperation,
           | it would just cost even more money. Not letting a fully-
           | cooperating sucker like her off is the _opposite_ of a
           | deterrent to crime. It 's telling low-level people who are
           | involved in crimes that it's better to keep quiet. We want to
           | encourage them to betray. I hope when she gets out she
           | becomes a celebrity, and it encourages other young people to
           | decide to whistleblow or turn snitch on the scammy companies
           | they work for.
        
           | miki123211 wrote:
           | She didn't just describe her own crimes, although I'm sure
           | that played a part.
           | 
           | She also described _somebody else 's_ crimes, and did that in
           | a way which helped the government with sentencing the "real
           | villain."
        
           | AlbertCory wrote:
           | In the real world, a prosecutor can only nail a higher-up
           | with the cooperation of the people lower down. Those people
           | only cooperate if they get a lighter sentence. It's too bad,
           | but that's how it is and it plays out every day in criminal
           | courts.
           | 
           | As for Diddy: a real, disinterested DOJ would say, "oh, you
           | can testify against <people more famous than you>? Well, we
           | might be able to cut you a deal."
           | 
           | Of course, if the DOJ is not interested in prosecuting those
           | people, then no deal. If they think Diddy is _already_
           | important enough and they can 't let him slide, then no deal,
           | or at least, a medium-stiff sentence.
           | 
           | Finally, two years in prison is not a picnic. See if you want
           | to do it.
        
       | farceSpherule wrote:
       | Where do they find these grifters?
        
       | huitzitziltzin wrote:
       | Game theory works.
        
       | wmf wrote:
       | FTX executives have collectively gotten 35 years in prison (with
       | more to go). Maybe this will help people in this thread see that
       | there is a big picture.
        
         | nebula8804 wrote:
         | >Maybe this will help people in this thread see that there is a
         | big picture.
         | 
         | Don't steal money from or offend the rich/elite and you will be
         | all right?
         | 
         | Both SBF and Martin Shkreli have learned that.
        
         | arduanika wrote:
         | There are enough wildly different conspiracy theories around
         | these events that I genuinely have no inkling of a clue what
         | you mean. Which big picture are we supposed to see, and what's
         | the relation to 35 years?
        
           | wmf wrote:
           | People keep saying there's not enough punishment but they're
           | not seeing that somebody is being punished; it's just not
           | Caroline.
        
         | mozman wrote:
         | She should have gotten the same as Sam.
        
       | FooBarBizBazz wrote:
       | Two years in prison relaxing and reading books?
       | 
       | A lot of us have blown more years of our lives, in worse
       | environments, to hang on for four-year vesting schedules.
        
       | RadiozRadioz wrote:
       | My brain skipped the Caroline part and I totally believed it
        
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