SEC busts Galleria tenant...

[Ed Mahmoud]

Not sure why...


Now I do...



SEC charges Stanford with 'massive' fraud


I work in the Black Cube of Death...

[HURAKAN]

US tycoon charged over $8bn fraud

Texan billionaire and cricket promoter Sir Allen Stanford has been charged over a $8bn (£5.6bn) investment fraud, US financial regulators say.

The Securities and Exchange Commission said the financier had orchestrated "a fraudulent, multi-billion dollar investment scheme".

The SEC said the fraud was "based on false promises and fabricated historical return data".

English cricket bosses have pulled out of sponsorship talks with Sir Allen.

The charges against Sir Allen, three of his companies and two executives of those companies followed a raid by US marshals on the Houston, Texas, offices of Stanford Financial Group.

“ We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world ”
Rose Romero, SEC

A US judge has frozen the assets of Sir Allen and the other defendants as well as those of the Stanford Group, its Antigua-based subsidiary Stanford International Bank (SIB) and another subsidiary, investment advisor Stanford Capital Management.

A receiver has been appointed to "preserve assets for investors", the SEC said.

'Close circle'

Sir Allen last year promoted the Stanford cricket series which saw a West Indian all-star team - the Stanford Superstars - beat an England team for a $20m prize.

The England and Wales Cricket Board (ECB) suspended sponsorship negotiations with him following the fraud charges.

The ECB has a five-year deal to play games against the Stanford Superstars.

The SEC said that the Stanford International Bank - the largest in the Caribbean - sold approximately $8bn worth of certificates of deposit to investors, promising "improbable and unsubstantiated high interest rates".

The bank was "operated by a close circle of Stanford's family and friends", the SEC said in a statement.

"We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world," said Rose Romero of the SEC.

The SEC began investigating Stanford Group last year and intensified their probe following the arrest of US financier Bernard Madoff in December over an alleged $50bn (£35bn) investment fraud.

In the wake of that scandal, SIB falsely told its investors it had no exposure to the funds involved in the alleged Madoff fraud.

The Stanford Group lists its worth as more than $40bn. Antigua and Barbuda granted Sir Allen citizenship about 10 years ago and knighted him in 2006.

Forbes magazine lists him as the world's 605th richest man, with assets of $2.2bn.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/w ... 895505.stm

[vbhoutex]

US Marshalls raided the Stanford Financial Groups offices here in Houston today. I don't know it it was their US headquarters but their name is on the building.

[MGC]

When will this greed end? Some people have been so consumed with greed that it is starting to cost them their freedom. I'm convinced that the economy is headed for a depression, the economic news just keep getting bad. I doubt the monies Congress is spending will do the trick. It will only prolong the inevitable implosion that will occur....MGC

[CajunMama]

http://www.storm2k.org/phpbb2/viewtopic.php?f=6&t=104712

[Meso]

This better not dampen the prospect of the cricket tournaments he organizes

[Stephanie]

When will this greed end? Some people have been so consumed with greed that it is starting to cost them their freedom. I'm convinced that the economy is headed for a depression, the economic news just keep getting bad. I doubt the monies Congress is spending will do the trick. It will only prolong the inevitable implosion that will occur....MGC

There's always a cause and effect - sometimes it takes a very long time to see what the effect is and we're lulled into a false sense of security. Unfortunately, there were red flags and people warning about the housing market, etc. but a deaf ear was turned - good times were a rolling!

HOPEFULLY, we will start seeing people actually pay for their greed and dishonesty instead of getting a slap on the hand. I do believe that we are having a major wake up call and the old way of doing business is past. I hope that this will also mean that people will have to become more responsible for their actions and only buy what they can afford.

[Ptarmigan]

Here is a coverage on the Stanford scandal.
http://www.chron.com/business/stanford/

It gets worse and some say this could be just as bad as the Madoff Ponzi Scheme.

[Stephanie]

Here is a coverage on the Stanford scandal.
http://www.chron.com/business/stanford/

It gets worse and some say this could be just as bad as the Madoff Ponzi Scheme.

It probably is and I'm sure that this is probably going to be the tip of the iceberg of scams and thefts. Only this time, I believe that the rip-off artists will be paying and the public won't be just looking the other way. I do fear that if things get much worse and there are more and more of these snake oil salesmen being strung up, a mob mentality may set in.

[HURAKAN]

Stanford bank in Antigua seized

Caribbean regulators have taken over the Bank of Antigua, owned by the Stanford group, amid fraud accusations.

The move comes after governments elsewhere, including in Peru, Venezuela, and Ecuador, suspended operations at banks owned by the group.

Sir Allen Stanford stands accused by US financial authorities of involvement in an $8bn (£5.6bn) investment fraud. He was served civil papers on Thursday.

The billionaire had been the single biggest private investor in Antigua.

The Securities and Exchange Commission (SEC) has accused Sir Allen of an alleged fraud "of shocking magnitude".

However, he is not in custody and has not been charged with any criminal violations.

Authorities in the US claim that Sir Allen attracted clients by promising unrealistic returns on investments.

Customer accounts held by Stanford Financial Group were frozen until legal claims could be resolved, Reuters news agency reported the company's receiver as saying on Friday.

"For the foreseeable future, customers cannot use their accounts to make payments because transfers out of these accounts are frozen until the receiver is able to verify there are no legal or equitable claims against those accounts," said Ralph Janvey, a Dallas lawyer responsible for recovering Stanford assets.

Earlier in the day, the England and Wales Cricket Board (ECB) ended all contractual links with the billionaire.

The ECB had signed a multi-million dollar deal with the Texan to stage a series of Twenty20 cricket games and tournaments both in the Caribbean and in England.

The England team will not take part in any future Stanford Super Series matches, and the Stanford-sponsored Quadrangular Twenty20 games planned for England in 2009 will not now take place.

'Unusual withdrawal'

The Eastern Caribbean Central Bank says it took control of the Bank of Antigua to prevent a run on the bank after the SEC filed civil fraud charges against Sir Allen in the US. The bank was not named in the SEC's complaint.

The central bank said it had taken the step after "an unusual and substantial withdrawal of funds".

The move by Antigua regulators is aimed at maintaining stability and reassuring customers, correspondents say.

Antigua's Financial Services Regulatory Commission has named a British firm, Vantis Business Recovery Services, as a receiver of Stanford International Bank and Stanford Trust Company, the Associated Press reports.

In 2006 Sir Allen was knighted by Antigua and holds Antiguan citizenship.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/b ... 902667.stm

[Ptarmigan]

It probably is and I'm sure that this is probably going to be the tip of the iceberg of scams and thefts. Only this time, I believe that the rip-off artists will be paying and the public won't be just looking the other way. I do fear that if things get much worse and there are more and more of these snake oil salesmen being strung up, a mob mentality may set in.

I have a feeling that another Ponzi scheme will be exposed and it will be much larger than Madoff.

[gtalum]

What has the SEC been doing for the last 8 years?

[Stephanie]

What has the SEC been doing for the last 8 years?

...or longer. Lord only knows.

[vbhoutex]

What has the SEC been doing for the last 8 years?

Enriching themselves. They certainly haven't been doing their job.

[somethingfunny]

What has the SEC been doing for the last 8 years?

Enriching themselves. They certainly haven't been doing their job.

Perhaps if Madoff, Stanford, et. al. can't come up with the money to repay their victims, the federal government/SEC could be held liable for the remainder in a lawsuit?

[vbhoutex]

What has the SEC been doing for the last 8 years?

Enriching themselves. They certainly haven't been doing their job.

Perhaps if Madoff, Stanford, et. al. can't come up with the money to repay their victims, the federal government/SEC could be held liable for the remainder in a lawsuit?

I'd like to see someone try it, because from some of the things I have read and heard on the news concerning this it is pretty obvious that the SEC was at a minimum turning their backs when they had been given concrete information that Madoff was pulling a Ponzi scheme. I don't see why it would be any different with Stanford. Fortunately, our family hasn't been hit "directly" by any of this and shouldn't be, but if you get down to it something this massive effects all of us.

[Dionne]

Stanford manages more than 4500 accounts for Mississippians to the tune of $391,000,000. It is unknown if any of the money will be recovered.

There is a federal prison cell waiting. He can go play with Bernie Ebbers (WorldCom).....he was the last big shot that robbed us.

[Frank2]

Oh - tycoon - on first reading the subject I thought it was about $8 Billion in fraud TYPHOON damage...

LOL

[Stephanie]

What has the SEC been doing for the last 8 years?

Enriching themselves. They certainly haven't been doing their job.

Perhaps if Madoff, Stanford, et. al. can't come up with the money to repay their victims, the federal government/SEC could be held liable for the remainder in a lawsuit?

Which would still mean that the taxpayers would have to foot the bill. I agree someone needs to pay and be held accountable. I think a MAJOR shakeup is due in the SEC.

As far as Madoff, Standford and all of the others that probably will be snuffed out, their investment homes, cars, jets, etc. should all be taken if they can't come up with the money and divided amongst those affected by their schemes.

However, the people that invested with those snakes are just as bad as those that bought homes they really couldn't afford, etc. People have to start realizing that they can't get something for nothing, that they need to acknowledge their own responsibility in keeping on top of their investments and spending habits. We've lived the good life for too long without having to pay the consequences. Now, Mr. Consequence is knocking on the door.

[george_r_1961]

When people like this are convicted instead of being sent to a cushy camp for a few years they should be sent to a maximum security facility for a very long time.

Lets start treating them like the dangerous criminals they are.