Texas financier charged with 'massive' fraud

[rafterman]

Ha ha ha

Bet you can't beat Madoff.

Texas financier charged with 'massive' fraud
STEPHEN BERNARD
13:08 EST Tuesday, Feb 17, 2009

NEW YORK — U.S. federal regulators on Tuesday charged Texas financier R. Allen Stanford and three of his companies with a “massive” fraud that centred around high-interest-rate certificates of deposit.

In a complaint filed in federal court in Dallas, the Securities and Exchange Commission alleged Mr. Stanford orchestrated a fraudulent investment scheme centred on an $8-billion CD program that promised “improbable and unsubstantiated high interest rates.”

Mr. Stanford's assets, along with those of the three companies, were frozen. Mr. Stanford's companies include Antigua-based Stanford International Bank and broker-dealer Stanford Group Co. and investment adviser Stanford Capital Management, which are both based in Houston.

The bank's chief financial officer, James Davis, and Stanford Financial Group's chief investment officer, Laura Pendergest-Holt, were also charged in the complaint.

Alfredo Perez, a spokesman for the U.S. Marshal's Service in Houston, confirmed that agents raided Mr. Stanford's office in Houston Tuesday morning, but he did not have any other immediate comment.

The SEC alleged Mr. Stanford and his businesses misrepresented the safety of the deposits, claiming the bank reinvested client funds in liquid financial instruments to help return profits on investments sharply higher than average rates on similar products.

The SEC is co-operating with the Financial Industry Regulatory Authority, the U.S. brokerage industry's self-policing body, as part of the ongoing investigation.

 

[jwmorrice]

Ha ha ha

Bet you can't beat Madoff.

According to this story, they actually lost $400K to Bernie.
http://www.nytimes.com/2009/02/18/business/18stanford.html?_r=1&hp

jwm

 

[Rockslinger]

According to this story, they actually lost $400K to Bernie.

Oh my goodness, what is the world coming to? One fraudster ripping off another fraudster.

These guys better be careful. Apparently, Madoff took money from the Russian mob and Stanford took money from the Mexican drug cartel. Rumour is that the Russian mob has already taken a contract on Madoff.

 

[danmand]

These guys better be careful. Apparently, Madoff took money from the Russian mob and Stanford took money from the Mexican drug cartel. Rumour is that the Russian mob has already taken a contract on Madoff.

Maybe there is justice in this world afterall.

 

[Rockslinger]

Maybe there is justice in this world afterall.

It is one thing to screw widows and orphans but don't mess with the Russian mob or the Mexican drug cartel if you value your life. Madoff and Stanford might be a lot safer sitting in jail with Conrad Black and O.J. than walking the streets.

Years ago, one of our clients screwed someone in Arizona and our client's lawyer was found dead one morning next to his car in an indoor parking garage (the kind that holds 500 cars).