Allen Stanford and others indicted in the US

June 20, 2009

Yesterday, the SEC finally charged Allen Stanford for his role in the supposed Ponzi scheme and he surrundered to the authorities in the afternoon. The SEC also charged others in the case including the financial regulator of Antigua where Stanford Intrenational bank was based.

You can read the full complaint to the Court here.

The SEC named as defendants Allen Stanford, James Davis who was the CFO of the Stanford Group, Laura Pendergest-Holt who was the Chief Investment Office of the Group, Gilberto Lopez and Mark Kuhrt, Chief accountant and global Comptroller for the Group and Leroy King, the Head of Antigua’s financial regulator.

The SEC accuses Stanford of fraud in the sale of the CD’s and the description which was made of their investment philosohpy. He is also accused of using the money from the deposits for his personal use.

Including a foreign regulator in the indictment was quite surprising and unusual. The SEC accuses King of receiving bribes and perks from Stanford in exchange for obstructing the SEC’s investigations and not auditing the books of Stanford International Bank. He is even accused of sending the SEC a letter dictated by Stanford.

The SEC also charges that Stanford’s mutual fund program was fraudulent, with funds picked after the fact to tout the program’s retuns.

It took a few months but the SEC finally went after Stanford who is now in jail, but the proceedings are certain to be long and drawn out with charges and countercharges.

Stay tuned…

7 Responses to “Allen Stanford and others indicted in the US”

  1. Pellucid Says:

    “Must have been some really BAAAAD Music to get indicted and thrown in jail.”

    Ever hear an Antiguan band? Worse than the CD’s Jail’s too good for ’em!

  2. moctavio Says:

    Stanford sold CD’s from his Antigua bank, Stanford International Bank to investors in the US via his investment advisors who also sold legitimate investments. But the CD’s was where the commissions were and where the revenues were for the US based Stanford Financial Group.

  3. FC Says:

    “Stanford was selling some sort of CDs in the US”

    Must have been some really BAAAAD Music to get indicted and thrown in jail.

  4. Megalops Says:

    Stanford was selling some sort of CDs in the US, and had several capital merkets related companies in “mainland.” His cos. were “regulated” by the SEC, in other words, were not regulated for all practical purposes.

  5. vdpsc Says:

    Agree on Madoff not Stanford. His bank was based outside of US jurisdiction by design. His was not an FDIC institution.

  6. Megalops Says:

    I was glad to hear that this bandit is going to be indicted. So was I when Berney was sent to jail.

    The missing pieces here are the negligent and incompetent US government officials who were supposed to “regulate” Stanford, Madoff and all the “Investment Banks”, as well as the subsidized Mortgage Origination businesses (Freddie and Fannie):
    – The SEC has no responsibilities?
    – The FED has no responsibilities?
    – How about the Credit Rating agencies?
    – Anyone at the US Congress?
    – Freddie and Fannie?

    Now US Govt politicians, after having destroyed the “rule of law” with their actions, are coming up with a new “Regulatory frame” so their is more bureaucracy making sure that the old one do its job.

    Can it be more pathetic? I don’t know who are more pathetic, Venezuelans, Cubans, Iranians or American politicians.

    I want to become a US politician: Full authority without any responsibility whatsoever.

  7. HalfEmpty Says:

    Not just in jail. In the slammer with no bail. He was adjudged a flight risk. (orly!)


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