00:00:04.000What drives a man to steal billions of dollars?
00:00:08.000We talk about that, and then I said goodbye to an amazing football coach, a patriot, someone who I communicated with regularly, but I never had a chance to meet.
00:01:02.000We will not embrace the ideas that have destroyed countries, destroyed lives, and we are going to fight for freedom on campuses across the country.
00:01:13.000Brought to you by the Loan Experts I Trust, Andrew and Todd at Sierra Pacific Mortgage at andrewandTodd.com.
00:01:22.000Last evening, Sam Bankman Freed has been officially indicted by the United States government, by the Department of Justice.
00:01:31.000Interestingly, right on the cusp, before he would have to testify in front of Congress and answer a lot of questions about exactly where did all this money go?
00:01:42.000Well, look, for over a month, millions of crypto investors around the world were very worried that Sam Bankman Freed would somehow pull off one of the greatest criminal Houdini acts in history.
00:01:57.000Now, Sam Bankman-Freed's crypto exchange called FTX collapsed about a month ago.
00:02:04.000It collapsed because of a crypto blog called Coinbase that noticed an irregularity in their reporting.
00:02:15.000From what I understand, though, one of the selling points or one of the characteristics of crypto technology is that there is an open ledger so people can go through it and they can see are your books actually balanced?
00:03:06.000So this morning, the Security Exchange Commission and the Department of Justice revealed they had brought charges against SPF for securities fraud.
00:03:19.000It was a website where people could transfer their own money in and use it to buy or sell cryptocurrencies.
00:03:26.000The variety of cryptocurrencies available on the platform and the options you had for investing made FTX very popular with crypto investors.
00:03:36.000Well over 1 million people used FTX as a pseudo crypto bank.
00:03:44.000But according to the Security Exchange Commission, SPF treated FTX and its users as a piggy bank for his own financial ventures.
00:03:53.000Instead of holding users' funds on the platform, SPF secretly transferred many of those funds to his own private crypto hedge fund named Alameda Research.
00:04:20.000And notice just how he dresses, his appearance, his hair, his voice, almost acting as if he's an innocent teenager in one of the great heists in human history.
00:04:32.000Play cut 44 of him testifying about consumer advocates.
00:04:46.000Most of the traders on our platform know a lot more about these contracts than many of the people in this room, including many of the people in this room who are condescendingly talking to them about what they do and don't know and should and shouldn't be offered.
00:04:58.000Anyway, I just had to get off my chest a little bit.
00:05:02.000And I think it's to some points about consumer choice here.
00:05:05.000His seventh grade voice, the unkept hair, the sloppy appearance.
00:05:29.000The complaint from the indictment alleges that Bankman Freed used commingled FTX consumer funds, customer funds, I'm sorry, at Alameda to make undisclosed venture investments, lavish real estate purchases, and large political donations.
00:05:45.000Now, the real estate purchases interest me because here is SBF going around saying, my net worth is $100,000.
00:05:54.000And I remember a couple of weeks ago, I mentioned, I said, there's no way that's true.
00:05:58.000I said, I guarantee you, he purchased land all over the world as a way to harbor cash and a way to evade detection of his actual net worth.
00:06:12.000Cut 49, Sam Bankman Freed talking to the New York Times saying he didn't knowingly commingle any funds.
00:06:29.000I was frankly surprised by how big Alameda's position was, which points to another failure of oversight on my part, but I wasn't trying to commingle funds.
00:06:40.000So he claims he wasn't trying to commingle funds.
00:06:44.000So all of this word gamesmanship and maneuvering worked perfectly as long as the crypto market was going up.
00:06:55.000But as soon as the market cooled off and people got a little bit crypto wary, SBF started to take massive losses, which then he had to increasingly take desperate measures to cover up.
00:07:07.000When you start to engage in a cycle of fraud and treachery and deception and sin, it requires more fraud, treachery, and deception to cover it up.
00:07:19.000Said differently in a biblical context, sin does not operate in a silo.
00:07:25.000If you lie about something, you likely are going to have to lie about the lie to cover up the lie.
00:07:29.000And you're probably lying about something that you did that you shouldn't have been doing in the first place.
00:07:33.000And instead of not doing that thing, then you have to lie about that thing, then you have to lie about it.
00:07:37.000And you go deeper and deeper and deeper into a place where you are no longer free.
00:07:45.000One of SBF's tactics was that he took $8 billion that Alameda owed to FDX and he hid it in an ordinary customer's account he called the Weird Korean account.
00:07:57.000By doing this, he was able to hide the huge hole that he opened in his balance sheet.
00:08:02.000Overall, the amount secretly moved between FTX and Alameda appears to be in the range of $10 billion.
00:08:13.000Other analysts say that it was upwards of $2 billion of client funds are not accounted for in any way, shape, or form.
00:08:23.000Combined with the massive losses created by FTX's actual collapse, the total loss from SBF schemes exceed $20 billion.
00:08:35.000Now, the details of this financial fraud are actually a lot less interesting, in my opinion, than the psychological and moral details.
00:08:46.000And that's what I want to focus a little bit of our time on today.
00:08:50.000Because people are going to be talking about the hyper-technical nature.
00:08:53.000Well, wire fraud and securities fraud and campaign finance.
00:08:59.000There is a pattern that is emerging here.
00:09:02.000Pattern that is manifesting in people like Yoel Roth, in Vagaya, whatever her name is, from Twitter, in the Egerwall fella who used to run Twitter, to Sam Bankman-Fried.
00:09:16.000There is an attitude, an immorality, a sneakiness that is combined in a hyper-technological, advanced, yet secular society that is just beginning to cause widespread damage, chaos, and suffering for people.
00:09:39.000And Sam Bankman-Fried, now indicted, will have to answer for just some of those crimes.
00:09:44.000But I believe it's actually much worse than what he'll ever be held accountable for.
00:09:49.000I believe the immorality of this punk kid is something that needs to be examined and exposed.
00:10:06.000Pre-born is a wonderful ministry doing just that with the help of people just like you by offering free ultrasound sessions to pregnant women and girls who might otherwise choose to end their pregnancies.
00:10:19.000We know that pregnant girls and women who can see their babies on ultrasound are far more likely to choose life.
00:10:26.000Your gift today can save baby lives right now for such $28 can give a mother who is abortion-minded the chance to see the truth of the baby that is growing inside her.
00:10:37.000$140 can do this for five girls and women.
00:10:41.000A $15,000 gift will provide an ultrasound machine that will save lives for years to come.
00:10:49.000This Christmas season, it's important to not just receive, but to give.
00:12:28.000He speaks with certain language and diction and word selection that is quasi-sociopathic.
00:12:40.000Now, the details of the financial fraud, again, are not as interesting as the psychological part of this because I think Bankman Freed is an example of some of the worst excesses that came post-China virus.
00:12:54.000Now, remember, after the China virus and the creation of trillions of dollars out of thin air, those trillions of dollars had to find a home.
00:13:05.000And for many people, they found a home in very risky, unproven crypto markets.
00:13:18.000He presented himself as a moral leader in crypto and in business.
00:13:22.000He also touted himself as a follower of what he called effective altruism.
00:13:29.000This is part of how he was able to justify to himself and to others the treachery, the deceit, the fraud, and the theft.
00:13:43.000You see, in Silicon Valley, it's a very secular environment.
00:13:49.000Now, of course, he wasn't in Silicon Valley, but he was in the Bahamas, but he was basically part of the Silicon Valley Valley culture.
00:13:56.000So let's just call it techie culture, for lack of a better term.
00:13:59.000In techie culture, it's a very secular world.
00:14:02.000So you have to all of a sudden come up with all of these new age, some would say pagan or secular, atheistic, materialistic, humanistic moral codes to live by.
00:14:17.000So for example, Google used to have an actually pretty good moral code if you're going good by the materialistic, humanistic standard, which was do no evil.
00:14:52.000In fact, he joked to Vox's Kelsey Piper and said, quote, this dumb game we woke Westerners play, where we say all the right things, or he said, shibboleths.
00:15:09.000You have to, and this is something we've said for some time, we've diagnosed this, that how many people in charge of companies, how many people that are saying all the right things, they don't mean a word of it.
00:15:20.000Basically, it's go pay your tribute, go say the prayer, the woke prayer.
00:15:26.000America's systemically racist and white cisgendered heterosexual men are to blame.
00:15:31.000And through giving part of my income, my wealth, my time, my treasure, I will be able to empower the wokies so I can remain rich and powerful and untouched by the regime.
00:15:53.000And so one of the ways that SBFs got away with this for so long is that he made massive donations to politicians, in particular, Democrat candidates.
00:16:07.000And this is where this story gets very interesting.
00:16:11.000And why this story is only going to gain momentum and expose more fraudsters.
00:16:22.000Our friends at Hillsdale College wish you and yours a happy and blessed Christmas and healthy and prosperous new year.
00:16:30.000Since Hillsdale's founding in 1844, it has taught its students by precept and example the teachings and practices of the Christian faith.
00:16:38.000College continues this mission in its classroom and nationwide through its educational outreach efforts by ensuring both Christian and conservative values remain at the core of Hillsdale College.
00:16:50.000So this Christmas season, my friends at Hillsdale want to thank you for your kindness towards the college.
00:16:55.000They have prepared a special video featuring their sacred music choir singing O Little Town of Bethlehem in their beautiful Christ chapel at the heart of campus.
00:17:04.000When you visit hillsdale.edu slash Christmas, you can see and hear the choir and view many other free resources to help you celebrate the season.
00:17:12.000Please take a moment right now to go to hillsdale.edu slash Christmas and hear the Hillsdale College Choir.
00:17:23.000So Sam Bankman Freed was scheduled to testify, I believe today, and then he gets indicted.
00:17:30.000Well, the new Republican Congress needs to make a pledge that whether Sam Bankman Freed is in handcuffs or in shackles or has to zoom in from Rikers, Sam Bankman Freed is going to testify because there are a lot of questions we have.
00:17:44.000What is the relationship between Sam Bankman Freed and Maxine Waters?
00:17:49.000Sam Bankman Freed, let's play the news report of him being arrested yesterday.
00:17:55.000Andrew Sam Bankman Freed has now been arrested and Bahamian authorities are now waiting for an extradition request from the U.S. Attorney for the Southern District of New York.
00:18:05.000The arrest comes just hours before SBF was set to appear before Congress.
00:18:09.000Of course, that will no longer happen.
00:18:11.000The New York Times says the charges include wire fraud and bank fraud, which means SBF could be looking at life in prison.
00:18:18.000Now, the people who have benefited from this, Joe Manchin, Patty Murray, Padilla, Booker, Murkowski, Durbin, play Cut 34.
00:18:27.000It'll be interesting to watch the lawmakers who received contributions in this year, 2022.
00:18:36.000There's so many, I won't even be able to put them all up on the screen.
00:18:39.000So you have to imagine as he sits in the hot seat, many of them are as well.
00:18:44.000Some, by the way, have already said that any funds they receive from him or the company, they will be donated to charity.
00:18:50.000Some people say this should be some sort of victims' fund going back to those who lost, in some cases, their entire life savings.
00:18:57.000Now, when Madoff stole the money that he stole, which was considerable, some people actually were contacted afterwards and had to pay back, pay it back.
00:19:09.000There's going to be some sort of a victims fund.
00:19:11.000In fact, one of our team members here, he lost a bunch of money.
00:19:20.000I don't know if he's out 500 or 1,000, but he's out some serious money.
00:19:24.000So SBF stole money from regular everyday people, used it to then buy real estate, donate to Democrat candidates, all under the guise of effective altruism.
00:19:39.000Now, this sort of thing makes you wonder what kind of punishment is fitting for people or someone like SBF.
00:19:47.000Elizabeth Holmes got 11 years for her scam at Theranos.
00:19:52.000Now, in some ways, what SBF did is a lot more depraved than even some murders, some murders, not all murders, but some murders.
00:20:04.000There are horrible crimes that are simply one-off crimes of passion.
00:20:10.000But what SBF did here required telling lies to countless people every single day.
00:21:52.000I want to say that I'm pleased that the committee's efforts have pushed enforcement agencies across the country to take greater action against bad actors who misuse customers' funds.
00:22:04.000I also applaud the SEC for authorizing separate charges relating to Mr. Bankman-Fried, and I look forward to additional actions to hold him accountable and make customers more whole again.
00:22:19.000We talked at length about treachery yesterday.
00:22:23.000And Dante, in his analysis of the hierarchy of sins, considered that the worst possible sin was treachery.
00:22:31.000The second worst sin for Dante was fraud.
00:22:34.000Yes, according to the Divine Comedy and his analysis, and you could agree or disagree on this, but there is some rational and there's a tremendous rational and logical basis for this, that committing deliberate fraud was actually worse than violence.
00:23:44.000Some people got wiped out totally by Madoff.
00:23:48.000Some people were, they took a hit and were just fine.
00:23:51.000The vast majority of the victims that Sam Bankman Freed stole from were young, late 20 and early 30s-somethings that were just trying to get started in life.
00:24:06.000That were trying to build a family, that were already up to their eyes in student loan debt.
00:24:11.000They were unable to get out of consumer debt or credit card debt.
00:24:47.000How concerned are you about criminal liability at this point?
00:24:51.000So I don't think that, I mean, obviously, I don't personally think that I have, you know, but I think the real answer is that's not, it sounds weird to say, but I think the real answer is that's not what I'm focusing on.
00:25:08.000Like right now, I mean, look, I've had a bad month.
00:25:13.000This has not been a fun, but that's not what matters here.
00:25:21.000I'm not a believer in the death penalty.
00:25:24.000But if I was, and if I did believe in the death penalty, SBF should get it.
00:25:30.000Criminals like SBF or Bernie Madoff should get penalties on par with the worst murderers and traitors.
00:25:38.000SBF should never see the outside of a cell again.
00:25:41.000He needs to tell very clearly everything he knows, become a compliant whistleblower.
00:25:48.000And it makes you think in December of 2020, what if this fraud would have been unraveled nine months ago?
00:25:56.000How many tens of millions of dollars that were put into this midterm cycle through stolen accounts that otherwise would not be there?
00:26:06.000Sam Bankman Freed is the worst of a secular Silicon Valley, but you now have a little window into the attitude and the lack of morality from Yoel Roth to Bankman Freed, people that have far too much power that never should have been in those positions, so smug, so arrogant, so deceitful, and then immediately play the victim.
00:26:36.000This is just the beginning of us finding out the depth and the interconnectedness of one of the great financial frauds of a generation.
00:26:50.000Look, offers for free iPhones are usually and typically too good to be true.
00:26:55.000Just like freedom itself, nothing is free.
00:26:57.000Mobile phone companies not only lock you into long-term contracts, but they also build the price of the phone into your bill with hidden fees.
00:27:04.000With Patriot Mobile, they can show you how to get the same iPhone interest-free and without the games with no contract.
00:27:10.000Patriot Mobile is America's only Christian conservative wireless provider.
00:27:14.000They offer nationwide coverage on the best 4G and 5G networks because they use the same towers as the major carriers.
00:27:21.000So you get the same great service while supporting a company that's fighting to preserve your God-given rights and freedoms.
00:27:26.000Patriot Mobile also offers a performance guarantee.
00:27:29.000If you're not happy with your coverage, you can switch to either of the three major carriers that they provide for free.
00:27:34.000Go to patriotmobile.com/slash Charlie.
00:27:45.000Go to patriotmobile.com/slash Charlie or call their 100% U.S.-based customer support team at 972 Patriot.
00:27:53.000Get free activation today with the offer code Charlie.
00:27:56.000That is patriotmobile.com/slash Charlie.
00:27:59.000If you're fed up with woke companies that don't care about your values or your country, support a company that does patriotmobile.com/slash Charlie, patriotmobile.com/slash Charlie.
00:28:12.000I remember the first time I watched Mike Leach.
00:28:17.000I'm a big college football fan, and he was the coach of the Texas Tech Raiders.
00:28:24.000It's one of the best Red Raiders, thanks.
00:28:27.000One of the best football teams ever assembled.
00:29:33.000You know, we've always had freedom of speech, always had the right to protest, and I think that should be respected as long as it's in an orderly fashion.
00:29:43.000You know, I respect their opinion, and I'm certainly not going to hide from my opinion.
00:29:47.000And I shouldn't be asked to, evidently, if I am asked to.
00:29:51.000I live in a different country than we were all told that we grew up in.
00:31:20.000Well, I thought you said you wanted the strawberry shortcake.
00:31:23.000And it's just going to go back and forth.
00:31:25.000There's no answer you can give that is going to be satisfactory or correct.
00:31:29.000And if you successfully please a few of them, the others will still be, oh, well, I just don't feel like he's that interested.
00:31:36.000Yeah, okay, so you need to work late, go in the back room and read a lot of books.
00:31:41.000You have to go take the groomsmen out so you make sure that they march in just right and they know exactly, you know, these swell outfits that you picked out or whatever, however you're doing it.
00:31:53.000And in the end, you'll wish you eloped.
00:31:56.000But nevertheless, you need to find excuses that they'll buy to be as far out of harm's way as you possibly can.
00:32:10.000But take comfort in knowing that once the ceremony's over, that life will get progressively better from there, even though there's some adjustment.
00:32:50.000And I'm getting emotional just seeing that.
00:32:52.000Anyway, he was a special guy, and I'm sorry I never actually had a chance to meet him.
00:32:58.000And as a college football devotee, he was a legend, coach of the year twice, always had undersized kids that were under-recruited and got them to overperform.
00:33:09.000And Mike Leach would text me all the time asking me about all sorts of different topics and stuff.