Posted on 02/03/2020 2:40:53 PM PST by ransomnote
The former chief of Antigua’s Financial Services Regulatory Commission (FSRC) has pleaded guilty for his role in connection with the Stanford International Bank (SIB) Ponzi scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement.
Leroy King, 74, of Dickerson Bay, Antigua, was the last remaining defendant in the SIB scheme. Today, he pleaded guilty to one count of conspiracy to obstruct justice and one count of obstruction of justice for his role in obstructing the Securities and Exchange Commission (SEC) investigation into SIB. He was extradited to the United States in November 2019.
King is a dual citizen of the United States and Antigua. Beginning in approximately 2002, he served as the administrator and CEO of the FSRC, an agency of the Antiguan government. As part of his duties, he was responsible for Antigua’s regulatory oversight of Stanford International Bank Limited’s (SIBL) investment portfolio, including the review of SIBL financial reports and the response to requests by foreign regulators, including the SEC, for information and documents about SIBL’s operations.
In or about 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBL’s purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SEC’s investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
Over the course of the conspiracy, Stanford’s cash payments to King totaled approximately $520,963.87. Stanford also provided King tickets to both Super Bowl XXXVIII in Houston, Texas (2004) and Super Bowl XL in Detroit, Michigan (2006). Stanford also provided King with repeated flights on private jets Stanford or SFG entities owned.
King later denied the SEC’s request for help, and he wrote that the FSRC “had no authority to act in the manner requested and would itself be in breach of law if it were to accede to your request.” In reality, the FSRC did have this authority and failed to exercise such because of the payments and other benefits Stanford gave to King.
A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison.
U.S. District Judge David Hittner of the Southern District of Texas accepted the plea today and set sentencing for April 24.
The FBI’s Houston Field Office, IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case. Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas are prosecuting the case.
The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
“... the wheels of Justice grind slowly...”
Without seeing this guys role in the massive fraud, and the sentence, I’ll hold off on the next part.
“... but exceedingly fine.”
In the early part of this century we did some work for someone who had business dealings with Allen Stanford. And I remember when this thing blew up how said acquaintance was both surprised and thankful that he was spared being involved in any of the deals.
Big RIP-OFF. I guess Stanford just didn’t have the right friends in high places. (wink)
Jon Corzine just laughs...
Circa 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG) and made official inquiries with the FSRC regarding the value and content of SIBLs purported investments. From 2005 through February 2009, Stanford, James Davis, King and others conspired to obstruct the SECs investigation of SFG, SIBL and their related entities. From at least 2003 through February 2009, Stanford made regular secret corrupt payments of thousands of dollars in cash and gifts to King in order to obtain his assistance in hiding the truth about SFG and SIBL from the SEC and other regulatory agencies.
inquirer.com/philly
Accused hedge thief Stanford was Biden family partner: report by Joseph N. DiStefano
"A fund of hedge funds run by two members of U.S. Vice President Joe Biden's family was marketed exclusively by firms controlled by Texas financier Allen Stanford, charged by regulators with an $8 billion fraud, the Wall Street Journal said." Reuters summary via NYT here.
"The $50 million fund was jointly branded between the Bidens' Paradigm Global Advisors LLC and a Stanford Financial Group entity, and was known as the Paradigm Stanford Capital Management Core Alternative Fund, the paper said. Stanford-related companies marketed the fund to investors and also invested about $2.7 million of their own money in the fund," which the Bidens offered to "turn over" to a court-appointed receiver handling Stanford's assets for his alleged victims.
"Paradigm Global Advisors is owned through a holding company by the vice president's son, Hunter, and Joe Biden's brother, James, according to the paper. Paradigm's attorney, Marc LoPresti, who represents Hunter Biden and James Biden, as well as Paradigm... told the paper the Bidens never met or communicated with Stanford."
Posted: February 24, 2009 - 10:32 AM
Wow, stop, you’re killing me!
I knew Stanford has a billion-dollar-level fraud going. I didn’t know that some of the Bidens had been part of the portfolio, if even a minor one.
Of course they offered to give back money when caught. Doesn’t everyone?
Stanford went to jail....the Bidens got off scot-free.
Stanford stole billions. In this particular instance, I don't think the Bidens stole more than a couple of million, if that.
Stanford promoted them... maybe for the connection or the presumed protection. But that doesn't mean that they were part of a Ponzi scheme.
More likely, they ran some sort of investment fund where they didn't care if it did anything other than break even or not lose too much money. The take is in the investment management fees. If you're not paying attention, or closet indexing, and you're charging "active" fees, you are borderline stealing. And that's what the Bidens do. They are extra "middle-men" inserted into all sorts of processes.
In China, Hunter and Heinz have almost nothing to do with the management of the 2 Billion dollar Rosemont Seneca fund. The Chinese make all the investment decisions. The management fee paid to Rosemont Seneca is influence buying (Keinz/Biden), or at least, speculative influence insurance.
I think the Biden Fund's relation to Stanford was of this nature. They were peripheral to his scam.
And Hillary bill Obama Kerry biden Pelosi Nadler shitt schumer and blumnethal walk free
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