Verdict . News

Legal News

•Bankman-Fried claims newly discovered evidence proves FTX had sufficient assets to repay all customer deposits

Manhattan federal court

Bankman-Fried Seeks New Trial in FTX Case, Claims Solvency Evidence

Convicted cryptocurrency mogul Sam Bankman-Fried has requested a new federal trial, claiming newly discovered evidence shows FTX was solvent and could have repaid all customers despite prosecutors' allegations of an $8 billion fraud. His mother filed the self-represented motion in Manhattan federal court.

•He argues the company faced a liquidity crisis from a bank run, not actual insolvency as prosecutors claimed

Eleventh Circuit Court of Appeals

11th Circuit Denies Plea Withdrawal in $6M Money Laundering Case

The U.S. Court of Appeals for the Eleventh Circuit affirmed a district court's denial of Malachi Mullings's request to withdraw his guilty plea in a money laundering case involving millions of dollars from an African fraud scheme. Mullings had argued his attorney coerced him into pleading guilty.

•Eleventh Circuit affirmed denial of guilty plea withdrawal in money laundering case

•Defendant claimed attorney coercion but court found insufficient grounds for withdrawal

Fourth Judicial District Court

Colorado Funeral Home Owner Gets 40-Year Sentence for Body Neglect

A Colorado Springs judge sentenced a former funeral home owner to 40 years in prison for leaving 189 bodies to decompose in a warehouse while collecting fees from families for cremations and burials that never occurred. The shocking case involved nearly 200 victims whose families received fake ashes instead of proper funeral services.

•Jon Hallford received a 40-year state prison sentence, adding to his previous 20-year federal sentence for wire fraud

•The couple operated the scheme from September 2019 to October 2023, collecting $130,000 while storing bodies in deteriorating conditions

Ninth Circuit Court of Appeals

9th Circuit Affirms Dismissal of Securities Suit Against Comerica

The Ninth Circuit Court of Appeals affirmed a district court's dismissal of a securities class action lawsuit brought by Nova Scotia Health Employees' Pension Plan against Comerica Incorporated and its executives. The court ruled without oral argument in a memorandum opinion filed February 6, 2026.

•Ninth Circuit affirmed dismissal of securities class action against Comerica Incorporated and executives Curtis C. Farmer and James J. Herzog

•Nova Scotia Health Employees' Pension Plan and David Ramos alleged violations of Securities Exchange Act Sections 10(b) and 20(a)

Fourth Circuit Court of Appeals

4th Circuit Vacates Identity Theft Conviction in McDonald Fraud Case

The Fourth Circuit Court of Appeals vacated Jennifer McDonald's aggravated identity theft conviction while affirming her 30 fraud-related convictions. The court ruled the identity theft did not occur 'during and in relation to' predicate offenses under Supreme Court precedent.

•Fourth Circuit vacated aggravated identity theft conviction but affirmed 30 fraud-related convictions

•Court applied Supreme Court's Dubin v. United States precedent requiring identity theft occur 'during and in relation to' predicate offenses

Fourth Circuit Court of Appeals

4th Circuit Affirms Wire Fraud Conviction in Heggins Case

The Fourth Circuit Court of Appeals affirmed Daniel Frank Heggins' conviction for aiding and abetting wire fraud, upholding his 24-month prison sentence and $6,029 restitution order. The unpublished per curiam decision rejected Heggins' appeal challenging both his conviction and restitution requirements.

•Fourth Circuit unanimously affirmed Heggins' wire fraud conviction and 24-month sentence

•Court rejected challenges to conviction and $6,029 restitution order to settlement company

Sixth Circuit Court of Appeals

6th Circuit Affirms Drug Conspiracy Sentences for Tennessee Defendants

The U.S. Court of Appeals for the Sixth Circuit affirmed the sentences of Mason Shelton and Tyler Richard Seaberg, who pleaded guilty to conspiracy to distribute marijuana and conspiracy to commit money laundering. Both defendants unsuccessfully challenged their sentences as procedurally and substantively unreasonable.

•Sixth Circuit affirmed sentences for marijuana and money laundering conspiracy charges against two Tennessee defendants

•DEA investigation in summer 2023 led to charges after confidential informant arranged drug purchase discussions

Fifth Circuit Court of Appeals

5th Circuit Affirms $300K Judgment in Business Partnership Fraud Case

The Fifth Circuit Court of Appeals affirmed a nearly $300,000 non-dischargeable judgment against Michele DiBassie in a bankruptcy fraud case brought by her former business partner Christopher Reeves. The court rejected DiBassie's arguments challenging Reeves' standing and contract interpretation.

•Fifth Circuit affirmed $299,980.98 non-dischargeable judgment against Michele DiBassie in bankruptcy fraud case

•Court rejected DiBassie's challenges to Christopher Reeves' standing to bring embezzlement claims

Regulatory

U.S. District Court for the Southern District of Texas

CFTC Orders Texas Trader to Pay $14M for Information Theft, Kickbacks

The Commodity Futures Trading Commission secured a $14.2 million settlement against Houston resident Matthew Clark for misappropriating confidential information and participating in illegal kickback schemes that defrauded his employer. The consent order permanently bans Clark from trading and CFTC registration.

•Matthew Clark must pay $14.2 million total: $7.7 million in restitution and $6.5 million in disgorgement

•Clark permanently banned from trading and CFTC registration for kickback schemes and information misappropriation