Another political cover-up at Biden’s DOJ

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Sam Bankman-Fried 122222
FTX founder Sam Bankman-Fried leaves court following his extradition to the United States, Thursday, Dec. 22, 2022, in New York. Yuki Iwamura/AP

Another political cover-up at Biden’s DOJ

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A Biden Department of Justice so recently caught trying to sweep crimes committed by the president’s son under the rug should not sidestep politically embarrassing prosecutions.

But that is what happened on the Friday before New Year’s when DOJ lawyers informed a federal judge they would not continue prosecuting convicted fraudster Sam Bankman-Fried of conspiring to fund millions of dollars in political donations to the Democratic Party and its candidates.

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In December 2022, a federal grand jury returned indictments on several counts against Democratic megadonor and Massachusetts Institute of Technology graduate Bankman-Fried. In addition to conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering, Bankman-Fried was also charged with conspiracy to defraud the Federal Election Commission and commit campaign finance violations.

During extradition proceedings, the Bahamas rejected the campaign finance charges against Bankman-Fried, and his defense attorney then filed a motion in federal court to remove them from the indictment since international law bars prosecution for crimes not approved of by countries that agree to extradite a suspect.

Prosecutors went forward with the prosecution of the other charges, and Bankman-Fried was convicted on all counts in November. A new trial was scheduled to begin this March on the campaign finance charges, but in a letter dated Dec. 29, the Friday before New Year’s Day, President Joe Biden’s DOJ announced it was dropping the second trial.

DOJ officials said there is a “strong public interest in prompt resolution of this matter” that would be undermined by waiting until March for a new trial. The agency said a second trial would not change Bankman-Fried’s punishment because U.S. sentencing guidelines allow judges to consider all conduct and evidence of the campaign finance charge was presented at the first trial.

What is the “strong public interest” in seeing Bankman-Fried sentenced so soon? He is already locked up in the Metropolitan Detention Center and will be behind bars whenever a new trial ended. No more money will appear that could make his victims whole. There is no rush.

A public airing of Bankman-Fried’s campaign violations could shame more politicians and their fundraising arms into returning donations from Bankman-Fried and his co-conspirators. Bankman-Fried gave $22 million to Democrats in 2022 alone. All that money should be returned to the people he defrauded. It is alleged that Bankman-Fried laundered another $100 million in client funds mostly to Democratic candidates and entities.

The public should be allowed to see who benefited from Bankman-Fried’s conspiracy.

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Punishing Bankman-Fried for his crimes and making his victims whole are not the only interests at stake. As Coinbase Chief Legal Officer Paul Grewal said after the DOJ announced it was dropping the final count, “The public interest in public airing of charges almost always matters. Campaign finance charges are at the very top of this list. What politicians and others knew what and when are critical questions that deserve answers.”

The Biden DOJ decision to drop campaign finance conspiracy charges looks like an effort to minimize prosecutions that would shame Democrats. It is indefensible.

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