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Silicon Valley Bank vice president sentenced to 15 months in prison

83 points| AndrewKemendo | 2 years ago |kron4.com | reply

16 comments

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[+] YourGrace|2 years ago|reply
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.

[+] jxf|2 years ago|reply
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.
[+] YourGrace|2 years ago|reply
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-presid....

[+] dgelks|2 years ago|reply
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|2 years ago|reply
"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.