Today's top story is that "FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for fraud tied to the collapse of his digital exchange." That, from The Wall Street Journal.
Last year a jury found Bankman-Fried guilty of wanton avarice, exceptional stupidity and a pronounced inclination to fleece both investors and lenders, which he did to the extraordinary tune of billions of dollars.
In executing "justice," federal Judge Lewis Kaplan fined Bankman-Fried more than $11 billion and imposed an unusually long prison sentence of 25 years. "It’s not a trivial risk at all," said the judge, that if Bankman-Fried were anywhere but behind bars, he'd soon be ripping off others.
To my mind, the incarceration aspect of this case — and thousands much like it — reflects neither justice nor even common sense.
Imprisonment should be reserved for protecting society from the physically violent. Bankman-Fried inflicted immense harm on his marks, yet the harm was financial, not bodily. In that the fraudster joined countless other white-collar criminals.
The oddity or just plain imbecility of incarcerating these crooks is that from behind bars they'll go on inflicting financial harm, though not on their individual victims. They'll do it to every member of society.
According to the 2021 Federal Register, in FY 2021 taxpayers were shelling out $43,836 every year on each of these locked-up, physically harmless malefactors. Taxpayers are housing, feeding and providing medical and dental care to white-collar wrongdoers in state prisons as well.
Does this make any sense? Is it logical to burn taxpayers for the transgressions of nonviolent criminals? Ah but there's the deterrence factor, some say. If that were true, nonviolent criminality would have ceased in the same year that state and federal prisons were constructed.
OK but what about retribution? — the satisfaction society presumably derives from confining some jackass in a state's 9 x 12 concrete guestroom. The peculiarity there is that the very Americans who claim this is a Christian nation are also the ones most favorable to the harshest forms of revenge.
Judge Kaplan noted that if Bankman-Fried were at liberty, he'd likely continue his financially nefarious ways. And Judge Kaplan is probably right. Well then seize his passport for heaven's sake and guarantee he can't leave the country.
What to do with the scofflaw, then, while he's stuck in the U.S., unable to wield his wily ways anywhere else? What to do with him and those thousands of other nonviolent white-collar criminals?
What they prize most is money — and lots of it. That's self-evident; it's the reason they risked everything.
So I'd say the sensible alternative to imprisonment — which fails to deter (Q.E.D.) and racks up a large social bill — is to instead confine these deplorables to minimum-wage jobs for a duration equal to whatever prison sentence would otherwise be imposed.
That naturally would be in addition to confiscating whatever assets they managed to pilfer from the rightful owners. Order Bankman-Fried to flip hamburgers for the next 25 years (or the reduced time he'll almost assuredly get after appealing).
At the end of his eight-hour shift he'll then go to the sparse, lowest-rent apartment he found rather than his $30 million Caribbean penthouse.
That's not retribution. It's justice. It's not society providing him with three squares a day, the now-standard situation in which even non-victims are harmed financially.
And alone, in his apartment, he won't need to fail at fending off five raping gorillas — an additional, wholly unwarranted and never-ordered punishment that comes with every prison sentence.
As for deterrence, there appears to be little to none in the specter of prison. The lure of embezzled riches or plunder overcomes the fear of confinement. Thus flipping hamburgers or cleaning bathrooms for five or 10 years would be at least as effective in deterring white-collar crime.
In fact I'd argue a bit more effectiveness, in that embezzlers and fleecers like Bankman-Fried would be cleaning bathrooms in full public view. What could be more humiliating to a former billionaire?
Is there some other reasoning — sound, irrefutable reasoning — behind society and the legal system's urge to lock up nonviolent criminals? If so, I'd sure like to know what it is.