4 ms·

Silicon Valley Bank vice president sentenced to 15 months in prison

83 points by AndrewKemendo 3y ago

jxf 3y ago
Woefully lacking on details. The immediate question is whether this falsification has anything to do with the SVB collapse or if it was just an isolated attempt at profiteering.
- dgelks 3y ago
  Agree regarding the details - I'm guessing unrelated given the indictment was over a year before the collapse "On Jan. 13, 2022, a federal grand jury indicted Gad"
- ksherlock 3y ago
  "On Jan. 13, 2022, a federal grand jury indicted Gad, charging him with three counts of tampering with documents, three counts of tampering, six counts of identity theft and one count of criminal contempt, according to the United States Attorney’s Office. The 36-year-old pleaded guilty to all charges without a plea agreement." The SVB bank collapse was in March 2023 -- over a year later -- so this would be a completely unrelated matter.
- cowsandmilk 3y ago
  The falsified documents have nothing to do with SVB or the insider training. They were character letters to try to reduce his sentence on the insider trading charges. Frankly, the submitted article is misleading. https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid...
- YourGrace 3y ago
  The justice.gov article has more insights than the news article. From what I can tell, he initially got off on probation for insider trading instead of prison due to 12 letters of references vouching for his character, and he altered/falsified 6 of them. Seems like isolated attempt at profiteering, but I also wonder if this helped contribute to the collapse as well. [1] https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents#:~:text=SAN%20JOSE%E2%80%93%20Former%20Silicon%20Valley,announced%20U.S.%20Attorney%20Stephanie%20M https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid....
YourGrace 3y ago
I wonder how much profit the VP made during his tenure and as part of the insider trading. It seems like the cost of that benefit is $11,300 ($10K fine + $1.3K special assessment) and 15 months in prison which I assume will be a "nicer" prison. White collar crime seems to pay well, and the consequences don't seem too harsh. Edit: the $11.3K and 15 months is for falsifying documents. I don't know if he had a separate fine for the insider trading.
- neom 3y ago
  https://www.bfhelaw.com/blog/2021/03/surprising-facts-about-prison-for-white-collar-criminals/ https://www.bfhelaw.com/blog/2021/03/surprising-facts-about-... There is no such thing as an ‘easy’ prison It really grinds my gears people perpetuate this. Federal prison is federal prison.
  - JimtheCoder 3y ago
    The reference you provided looks like generic SEO content...not really something to build your case with...
  - inamberclad 3y ago
    Federal prison is still held to much higher standards when compared to county jails, especially those run by for profit corporations.
  - boomboomsubban 3y ago
    >There is no such thing as an ‘easy’ prison According to a law firm's blog/advertisement. It may be true, but they are trying to get you to hire them to keep you out of prison.
  - ElongatedMusket 3y ago
    You aren't tortured or starved. You aren't physically or psychologically abused. The food is hot and you are fed enough calories to not be hungry. You are given jobs to keep your mind busy, can shower, groom, and buy goodies with your work earnings. If I had like 50 million stashed away and had to live like this for about 2 years in prison, then I could get out and enjoy my millions, sounds good to me... sign me up. White collar criminal judgments for corporations, high rolling individuals and politicians is a joke compared to the average joe.
steve_mcdougall 3y ago
[dead]
jey 3y ago
This is old news from Feb 6 2023, well before the collapse of SVB. While it could potentially reflect on the company culture and be relevant to SVB's recent troubles, it's not at all clear why KRON4 decided to present this as breaking news. Primary source: https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid...
deleted 3y ago
[deleted]

83 points by AndrewKemendo 3y ago

jxf 3y ago

Woefully lacking on details. The immediate question is whether this falsification has anything to do with the SVB collapse or if it was just an isolated attempt at profiteering.

dgelks 3y ago
Agree regarding the details - I'm guessing unrelated given the indictment was over a year before the collapse "On Jan. 13, 2022, a federal grand jury indicted Gad"
ksherlock 3y ago
"On Jan. 13, 2022, a federal grand jury indicted Gad, charging him with three counts of tampering with documents, three counts of tampering, six counts of identity theft and one count of criminal contempt, according to the United States Attorney’s Office. The 36-year-old pleaded guilty to all charges without a plea agreement." The SVB bank collapse was in March 2023 -- over a year later -- so this would be a completely unrelated matter.
cowsandmilk 3y ago
The falsified documents have nothing to do with SVB or the insider training. They were character letters to try to reduce his sentence on the insider trading charges. Frankly, the submitted article is misleading. https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid...
YourGrace 3y ago
The justice.gov article has more insights than the news article. From what I can tell, he initially got off on probation for insider trading instead of prison due to 12 letters of references vouching for his character, and he altered/falsified 6 of them. Seems like isolated attempt at profiteering, but I also wonder if this helped contribute to the collapse as well. [1] https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents#:~:text=SAN%20JOSE%E2%80%93%20Former%20Silicon%20Valley,announced%20U.S.%20Attorney%20Stephanie%20M https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid....

YourGrace 3y ago

I wonder how much profit the VP made during his tenure and as part of the insider trading. It seems like the cost of that benefit is $11,300 ($10K fine + $1.3K special assessment) and 15 months in prison which I assume will be a "nicer" prison. White collar crime seems to pay well, and the consequences don't seem too harsh. Edit: the $11.3K and 15 months is for falsifying documents. I don't know if he had a separate fine for the insider trading.

neom 3y ago
https://www.bfhelaw.com/blog/2021/03/surprising-facts-about-prison-for-white-collar-criminals/ https://www.bfhelaw.com/blog/2021/03/surprising-facts-about-... There is no such thing as an ‘easy’ prison It really grinds my gears people perpetuate this. Federal prison is federal prison.
- JimtheCoder 3y ago
  The reference you provided looks like generic SEO content...not really something to build your case with...
- inamberclad 3y ago
  Federal prison is still held to much higher standards when compared to county jails, especially those run by for profit corporations.
- boomboomsubban 3y ago
  >There is no such thing as an ‘easy’ prison According to a law firm's blog/advertisement. It may be true, but they are trying to get you to hire them to keep you out of prison.
- ElongatedMusket 3y ago
  You aren't tortured or starved. You aren't physically or psychologically abused. The food is hot and you are fed enough calories to not be hungry. You are given jobs to keep your mind busy, can shower, groom, and buy goodies with your work earnings. If I had like 50 million stashed away and had to live like this for about 2 years in prison, then I could get out and enjoy my millions, sounds good to me... sign me up. White collar criminal judgments for corporations, high rolling individuals and politicians is a joke compared to the average joe.

steve_mcdougall 3y ago

[dead]

jey 3y ago

This is old news from Feb 6 2023, well before the collapse of SVB. While it could potentially reflect on the company culture and be relevant to SVB's recent troubles, it's not at all clear why KRON4 decided to present this as breaking news. Primary source: https://www.justice.gov/usao-ndca/pr/former-bank-vice-president-sentenced-fifteen-months-prison-after-falsifying-documents https://www.justice.gov/usao-ndca/pr/former-bank-vice-presid...

deleted 3y ago

[deleted]