Replies to post #205235 on DD Support Board and Research Team

[shajandr]

https://www.cnbc.com/2022/11/17/ftx-filing-reveals-slipshod-accounting-freewheeling-expenses-perks.html

Definitely watch the embedded video!

Binance decided FTX was beyond saving after two-hour review of company‘s balance sheet

Why would it take two hours to review this (yes, this was the balance sheet!):



Seriously! This was FTX balance sheet provided to Binance, the new CEO/receiver, and the bankruptcy trustee. This is it in its entirety.

[bar1080]

Former Enron lawyer (who is new FTX CEO) say's he's never seen such a mess!

[BullNBear52]

Payroll taxes (Medicare and SS) are paid into trust fund accounts. Above all other taxes those must be paid and accounted for.

One only has to follow the latest trial related to the Trump Org to understand the company was defrauding the payroll tax trust funds.

https://www.nbcnews.com/politics/donald-trump/former-trump-org-cfo-testifies-trump-kids-gave-raise-finding-tax-schem-rcna57919

What many companies can do which is what happened above is they will award bonuses to pay for the perks (they finally figured out that they were in hot water) or gross up a bonus to pay for all the taxes involved. In the latter case which is perfectly legal a $200K bonus becomes a check the company writes for several thousand more. Which is perfectly legal. The company ends up paying all the taxes (payroll tax and wh on behalf of the employee.)

In civil trials like the current one the case is pretty much open and shut since the taxes on the benefits weren't paid. Write the check and don't forget the P&I.