The federal government is prosecuting former CFO Nevin Shetty for allegedly committing fraud by investing $35 million of company funds in a cryptocurrency venture, HighTower Treasury. Prosecutors argue that this investment breached Fabric's conservative investment policies and that Shetty failed to disclose his ownership interest. However, many analysts are debating whether this prosecution risks criminalizing poor business judgment rather than actual fraud, potentially stifling innovation and undermining executive decision-making autonomy in corporate management, especially when investments made in good faith lead to losses.
The core issue at stake: should business executives be held criminally liable for investment decisions that, while poor, do not necessarily indicate criminal intent?
The prosecution argues that Shetty's undisclosed ownership stake and the decision to invest in cryptocurrencies violated both trust and policy, but critics question if this is fraud.
Collection
[
|
...
]