Here comes the American Bulger Dept. of Justice (run from Fort Hill and Chicago).
Posted on 02/18/2009 1:53:55 AM PST by Liz
FEDS SAY HOUSTON BANKER OPERATED $8B SCAM
Texan Sir R. Allen Stanford ran a "massive, ongoing fraud," scamming $8 billion by luring investors with unrealistically high returns on offshore bank CDs and mutual funds......and lied about his Madoff investments....... The SEC appointed a receiver to take control of Stanford Financial Group.....58-year-old Stanford's holds citizenship in the US and Antigua, the first American to be knighted by the West Indies island.... his Antigua bank----Stanford International Bank Ltd....touted "a unique investment strategy" purporting to produce double-digit returns ..........
(Excerpt) Read more at nypost.com ...
"Pure as the driven snow.......no candidate even comes close."
Offshore banker-—Stanford——donated $861,000 to Dem political causes and candidates, including: $500,000 to the Democratic Senatorial Campaign Committee, President Barack Obama, Sen. Chuck Schumer and US Rep. Charlie Rangel; $3,000 to Sen. Chris Dodd, (D-Conn.), chairman of the Senate Banking Committee.
bookmark bump!
If the guy was a heavy contributor to Republicans, we’d never hear the end of it. MSNBC’sKeith Obamamann would have broken 100 windows over it.
“Offshore banker-—Stanford——donated $861,000 to Dem political causes and candidates, including: $500,000 to the Democratic Senatorial Campaign Committee, President Barack Obama, Sen. Chuck Schumer and US Rep. Charlie Rangel; $3,000 to Sen. Chris Dodd, (D-Conn.), chairman of the Senate Banking Committee.”
This can’t be true. We have been told for decades that only greedy republicans do things like this.
I got an email last night from a younger relative who watched Hannity with Gingrich last night. Apparently Newt nailed the rich elite crooks as the ones begging for TARP and other bailouts.
Interesting that he especially gave money to those who oversee Banking.
Don’t kid yourself. This guy plays both sides of the fence. Here’s his contribution per party in the following years:
Year Total Democrats Republicans
2008 $3,171,897 $1,123,119 $1,662,023
2006 $1,489,076 $377,977 $728,348
2004 $1,855,466 $600,434 $1,049,477
2002 $2,584,610 $335,696 $269,230
2000 $3,238,289 $242,985 $1,256,271
Stanford gave an additional $100,000 to the Bush Inaugural Committee
And look at who he personally hosted on his island:
“Stanford’s business is headquartered on the Caribbean island of Antigua. In the last decade, Stanford and his companies have spent more than $7 million on lobbyists and campaign contributions in efforts to loosen regulation of offshore banks.
Among the top recipients: Senator Bill Nelson (D-Fla.), Congressman Pete Sessions (R-Texas), Sen. John McCain (R-Ariz.), Senator Chris Dodd (D-Conn.) and Senator John Cornyn (R-Texas), one of the members who took a trip to Antigua where he was entertained by Stanford.”
http://abcnews.go.com/Blotter/WallStreet/story?id=6903014&page=1
Yes, Dems and Republicans. Like I said, he’s an equal opportunity political exploitation artist.
U.S. Accuses Texas Financial Firm of ‘Massive’ Fraud
..... Ms. Pendergest-Holt said in testimony to the S.E.C. that she could not account for the assets, asserting that Mr. Stanford and Mr. Davis were the only ones with access to the bank’s assets. In the complaint, the S.E.C. called “improbable, if not impossible” claims by the offshore bank that it paid “significantly” higher returns on its CDs because of the high quality of its investments. The S.E.C. accused the bank and its affiliates of falsely stating in marketing materials that client funds were placed in liquid financial instruments, when in fact they were invested in private equity funds and real estate. On Nov. 28, Stanford International Bank quoted a rate of 5.375 percent on a $100,000 three-year CD, compared with rates of less than 3.2 percent at American banks. The bank recently has offered rates of more than 10 percent on five-year CDs, the filing stated. In the complaint, filed in Federal District Court in Dallas, the S.E.C. accused Mr. Stanford and two associates — James M. Davis, a director and chief financial officer of Stanford Group and the Antigua-based bank affiliate, and Laura Pendergest-Holt, the chief investment officer of both organizations — with misrepresenting the safety and liquidity of the uninsured CDs.
In its complaint, the S.E.C. said it could not account for the $8 billion in assets that were housed in the Antigua bank after issuing subpoenas for bank records and to various witnesses. Most witnesses, including Mr. Stanford, Mr. Davis, and the Antigua-based bank’s president, failed to appear to testify nor did they produce documents shedding light on the assets.
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Ah, mini-Madoff in all its glory, except this one was blatantly obvious, as Madoff played it much smarter and really didn't claim outstanding returns on the type of investment he was peddling, only the incredibly "stable" ones.
Billionaire Stanford’s Firm Said to Face U.S. Probe - February 12, 2009
“That type of return ignores the business cycle,” said L. Burke Files, principal of Financial Examinations & Evaluations Inc., a Tempe, Arizona-based financial investigation firm. “His returns fall outside the bell curve of probability.” ‘Routine Exam’ The visits by Finra and the SEC were part of a “routine exam,” said Brian Bertsch, a spokesman for Stanford. Finra spokesman Herb Perone said the agency doesn’t confirm or deny investigations. Kevin Edmundson, an SEC investigator in Ft. Worth, Texas, said, “I can’t even confirm the existence of the investigation.” The agency issued subpoenas last July to at least two former Stanford employees. .....
The agencies are investigating Stanford’s sales of certificates of deposit issued by its Antigua-based affiliate, Stanford International Bank Ltd., according to the former employees. The agency has asked former employees about the bank’s stated returns on investment, between 10.3 and 15.1 percent every year from 1995 until last year, according to documents and annual reports on the bank’s Web site. SIB has $8.5 billion in assets and 30,000 clients, according to the site.
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So, some at SEC and FINRA understood and knew what "bell curve of probability" and returns commensurate with "business cycle" was, even before Madoff blow up last December.
Stanford Blames ‘Former Disgruntled’ Workers in Probe - February 13, 2009
Finra has asked former employees about the bank’s stated returns on investment, the people said. .....
“Please do not get discouraged by what you read in the press,” Allen Stanford wrote in the letter. “We are hard at work delivering on our commitment to you.”
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On Antigua, Frustrated Stanford Account Holders Gather
One depositor who said she invested hundreds of thousands of dollars in certificates of deposit via Stanford's representative office in Bogotá, Colombia, met with a senior Stanford International Bank official Tuesday to discuss her request to withdraw her money. The bank provided a Lincoln Town Car to escort the woman and her daughter early Tuesday and she left reassured that she would receive her money, minus an early-withdrawal penalty, on Thursday. "I feel like a huge weight of worry has been lifted," the depositor said after her meeting. Just a couple hours later, however, the woman rushed back to Stanford after hearing of the SEC's charges. She demanded her money immediately, threatening to remain at the offices until they gave her the funds. After meeting with several Stanford officials, the depositor left the bank and said she would remain on the island through the rest of the week to see that the bank made the promised money transfer. "I don't know what do, I am at their mercy," she said. Across the street, a flood of account-holders arrived at the Stanford-controlled Bank of Antigua after word of the SEC action -- alleging an $8 billion fraud -- was broadcast on Antiguan radio in the early afternoon.
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And trickle-down collateral damage:
At the Stanford International Bank, a handful of customers were ushered into separate private banking rooms inside the handsome offices adorned with dark wood paneling and oil paintings. The bank is housed in a landscaped complex just outside Antigua's international airport.
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Stanford Financial's Big Play In Sports
The sports world is reeling today after the SEC accused Robert Allen Stanford of the Stanford Financial Group of massive fraud. Stanford made huge investments in the sports sponsorship world, so much so that the London Times recently named Stanford the 65th most powerful person in the business of British sports.
the public will never know though....
Post 4 - He looks like a Supreme. (and I refer to the singing group, not the justices)
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