Posted on 02/17/2009 2:25:03 PM PST by SeekAndFind
Hoping to halt what it called "a fraud of shocking magnitude that has spread its tentacles throughout the world," the Securities and Exchange Commission charged billionaire R. Allen Stanford and other executives at his massive financial services company, Stanford Financial Group, with operating a multibillion-dollar fraudulent investment scheme.
In a complaint filed early Tuesday in U.S. District Court in Dallas, the SEC alleged Antigua-based Stanford International Bank (SIB) fabricated investment returns in order to market and sell high-yielding certificates of deposits.
The complaint charged SIB with selling approximately $8 billion of CDs to investors by promising improbable and unsubstantiated interest rates.
The bank falsely claimed it was able to pay high interest rates because of its unique investment strategy, which allowed it to achieve double-digit returns on its investments for the past 15 years, according to the complaint.
Earlier Tuesday federal agents raided Stanford Financial Group's offices in Houston. A sign hanging outside the office reads: "Now under management of a receiver."
The SEC says it has frozen Stanford's assets. He had no comment.
Also charged by the SEC: James Davis, SIB's chief financial officer, and Laura Pendergest-Holt, chief investment officer of SIB and its parent company, Stanford Financial Group.
In a statement posted on the SEC's Web site, Linda Chatman Thomsen, director of the regulator's Division of Enforcement, said "we are moving quickly and decisively in this enforcement action to stop this fraudulent conduct and preserve assets for investors."
According to the SEC complaint, Stanford and the officers of his company lied to CD purchasers by leading them to believe the bank re-invested their deposits primarily in liquid financial instruments, monitored those funds with a team of 20-plus analysts and subjected the portfolio to yearly audits by Antiguan regulators.
(Excerpt) Read more at forbes.com ...
It should be noted, but won’t be in the media, that R Allen Stanford is a big-time Democratic Party (and Obama) contributor.
Madoff Lite
He must of tried to hone in on their turf. The SEC was created to keep *undesirables* out of Wall street.
Obama’s Fault
bookmark bump
The SEC finds God now that Madoff made them look like idiots
Relative of mine in Houston worked for Stanford. Fortunately he was fired a year or so ago == and went to AIG. Anyway, they’re watching Houston TV showing Stanford employees getting perp walked out of the place while helicopters circle overhead.
Drama, but where’s the money? The SEC is better at theatre than at keeping our money safe. Just like Obama, the president from central casting.
It should be noted the amounts to boths parties has already been posted.http://www.freerepublic.com/focus/f-news/2187748/posts
The tide’s going out - we’re seeing who’s got a swim suit on and who doesn’t...
The site I looked at says that in 2008 Rangel got $27,300; New York Congressman G. Meeks $4,600, Obama $9,200. The RNCC got $25,000 and two Texas republicans $2,300 each.
“If you can make it in New York you can make it anywhere....”
Do I see a touch of affirmative action on the part of Mr. R. Allen Stanford?
http://www.campaignmoney.com/political/contributions/r-stanford.asp?cycle=08
Yeah, he’s sort of the Teflon kid. He’s not in the AIG division that had legal problems but faces the larger problem of what to do when and if AIG finds a buyer that wants to bring in its own staff.
BTW, lots of people who work for financial services firms never get near the money. I did PR for a bank, which meant writing speeches, press releases, putting out the employee magazine.
Stanford is a big time RAT donor.
Aahh, the old snooty "lawyer" thing. As in B. Hussein Obama.
I’d vote for the death penalty.
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