Stanford is about to find out high-risk business to finance high-style living does have consequences.
Stanford's $8B scam could ensnare high-profile athletes who were represented by Teddy Forstmann's management firm IMG...........IMG quietly agreed to steer clients looking for investment advice to Stanford Financial Group, potentially exposing them to millions of dollars in losses resulting from the financial firm's alleged fraud.
According to three sources with knowledge of the situation, IMG and Stanford have a quid-pro-quo agreement under which Stanford Financial pays IMG a low-to mid-seven-figure consulting fee in exchange for IMG advising its clients - which include golfers Tiger Woods, Arnold Palmer, David Toms, Sergio Garcia and others - to have their money managed by Stanford.
The backroom bargaining has exposed IMG to charges of double-dealing, and is raising questions about where the firm's allegiances lay: with Stanford Financial or its athlete clients.
"It's certainly a conflict of interest," said one source. "IMG is trading on its athletes' names to make money for themselves and then turning around and telling them to invest money with Stanford."
IMG's deal with Stanford Financial involved the management firm advising the now-tarnished financial firm on where to spend sponsorship money, particularly related to golf tournaments. Stanford's alleged fraud could cost IMG north of $10 million in fees, as well as any clients who got burned in the scandal. .....
Stanford also held talks about a consulting deal with sports-marketing firm Octagon, during which it inquired about a "financial management deal" (Excerpt) Read more at nypost.com ...by Peter Lauria and Kaja Whitehouse
1. He was somewhat "untouchable" due to his "bipolar" political connections and his dual citizenship.
2. Ponzi scheme was not their primary concern even if they knew about it at the time (FINRA and SEC only started their investigation early last year), and by keeping him on the loose they could follow the drug money to more direct targets.
In other words, he may have been worth more to them "alive" than "dead".
Stanford Wielded Jets, Junkets and Cricket to Woo Clients The 58-year-old head of Stanford Group Co., who grew up in Mexia, Texas and graduated from Baylor University, began using the title “Sir” in 2006 after being knighted by the leaders of Antigua & Barbuda, his adoptive country. The banker began building a fortune by investing in Texan real estate following the 1980s savings-and-loan crisis, according to his company’s Web site. February 19, 2009 - R. Allen Stanford, accused by federal regulators of a “massive, ongoing fraud” at his Houston investment firm, cultivated his image by shuttling politicians in corporate jets and spending money on cricket, polo and golf.
.....
Stanford Burns Latin Americans Seeking Shelter From Currencies February 19, 2009 - ..... Venezuelans may have had as much as $3 billion invested with Stanford, who the U.S. charged with running an $8 billion fraud, according to the South American country’s banking regulator. .....