Thread by @BaldingsWorld

Since Journos keep writing puff pieces about SBF parents let me give the examples of how they are individually at enormous legal risk just based upon known and acknowledged details. I'm going to focus on one transaction: the condos in the Bahamas 1/n

Scenario #1: The condos are in their names and the company paid for the condos directly. This creates two specific problems for them: a) they could very easily need portrayed legally as insiders which given the problems creates all kinds of problems b) they would have to 2/n

Report this as income leaving then with a $30-40m tax bill. If they received compensation to pay for the tax bill from the company this compounds problem #1. If they don't have the cash to pay the tax bill that creates a whole other problem. Depending on when they received 3/n

The real estate (i.e. they already filled taxes when the real estate was received) this could create criminal tax problems if they failed to recognize the real estate in the year it was received. If the real estate was received this year but the tax bill hasn't been 4/n

Accounted for, (i.e. they owe taxes on real estate they now own) they are still on the hook for the tax payment but the assets are likely enjoined and they have no way to access cash needed to satisfy the tax bill.5/n

Scenario #2: Real estate was paid for by son. They are separated at least currently from being considered insider but so the other tax issues remain. 6/n

Scenario #3: Depending on when specifically the real estate was purchased the bankruptcy trustee, depending on some different issues, will likely seek to clawback the funds and real estate. Depending on the issues like how exactly it was structured and funneled (as covered) 7/n

Creates a whole secondary layer of problems and resulting tax issues. I have no idea what the tax implications would be if the real estate is clawed back. 8/n

I should emphasize these are just the easy to spot legal issues SBF parents face. I'm sure they gave many many more as this is from just one transaction we know about. Have fun kids