Stanford arrested and charged with fraud

[malaise]

http://content-wi.cricinfo.com/ci/content/current/story/391239.html
<snip>
Antigua-based billionaire Allen Stanford has been arrested and charged with fraud by US authorities. The Securities and Exchange Commission said that they were "alleging a fraud of shocking magnitude".

The ECB reacted to the news with a statement saying it and the West Indies board had "suspended negotiations with Stanford and his financial corporation concerning a new sponsorship deal".

Linda Chatman Thomsen, director of the SEC's division of enforcement, said: "As we allege in our complaint, Stanford and the close circle of family and friends with whom he runs his businesses perpetrated a massive fraud based on false promises and fabricated historical return data to prey on investors. We are moving quickly and decisively in this enforcement action to stop this fraudulent conduct and preserve assets for investors."

A US district judge granted the SEC's request to impose a temporary restraining order on the Stanford operations and to freeze the defendants' assets, and appoint a receiver to marshal those assets.

[aquart]

1. But I can't tell from the article if he's actually in custody.

[malaise]

2. Not sure - still digging

http://news.bbc.co.uk/2/hi/americas/7895505.stm
<snip>
The charges against Sir Allen, three of his companies and two executives of those companies followed a raid by US marshalls 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.

[malaise]

3. From CNN

http://edition.cnn.com/2009/CRIME/02/17/sec.stanford/index.html
<snip>
Rose Romero, Regional Director of the SEC's Fort Worth Regional Office in Texas, said, "We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world."

Stanford allegedly fabricated historical return data to prey on investors. The SEC says the investigation is on-going.

Reuters.com reports three of Stanford's companies are involved in the SEC probe including Texas-based Stanford Group Co, Antigua-based Stanford International Bank and investment adviser Stanford Capital Management.
-----------------------------
From day one I knew this could not be real.

[aquart]

8. Still can't tell where Stanford is.

[malaise]

14. Well he owns a large fleet of aircraft and helicopters

so I'm betting if he is not arrested and returned to the US, he will disappear like Ken Lay.

[aquart]

16. Just leave me the client list.

So I can decide whether to laugh or to cry.

[malaise]

19. Wish I had that list

This is major news in the Caribbean.

By the way the Antiguan government has just called elections tonight - for March 12. The current Prime Minister knows this will sink the opposition since they have been the major Stanford link for over a decade.

[DCKit]

4. Nah, he'll be sharing digs with Bernie Madoff before you know it....

then they'll both end up living with Ken lay.

[rvablue]

5. Ahhh, I see....I'm not the only one then

who has had that suspicion.

[malaise]

7. I've been asking about him on this board

for years.

[aquart]

9. No. No, you're not the only one.

Not one person has ever said they saw they corpse. Did they release autopsy results? Sudden death before a prison sentence? Wouldn't you want to cut him open to check for cause?

[malaise]

6. Possibly

although he probably stole too much from the Texas boys.

[Kurovski]

10. K&r. (nt)

[malaise]

11. Looks like he lost some money to good old Bernie

http://www.nytimes.com/2009/02/18/business/18stanford.html?_r=2&hp
<snip>
Oddly enough, even the Stanford operation was touched by Mr. Madoff. Despite the fact the Antigua-bank assured investors in a report in December 2008 that it had no “direct or indirect” exposure Mr. Madoff’s funds, the bank suffered an estimated $400,000 in losses, apparently through investments in so-called feeder funds.

[joeunderdog]

12. I'll bet this is the guy Markopoulos gave to the SEC.

He said he had another fish to fry. I guess they took him seriously this time. Who knew? :shrug:

[malaise]

13. Good spot

Could be.

[aquart]

18. Maybe, but someone else is getting credit.

<http://seekingalpha.com/article/119681-what-s-going-on-at-stanford-international-bank>

Alex Dalmady.

[malaise]

21. I've been following his big article for a while

but he may just be one part of the whistle blowing.
Word is they've been digging for some time and his piece is recent.
It's lots of fun on Antigua radio tonight.

[leftstreet]

15. Another one bites the dust?

Maybe?

:shrug:

[malaise]

20. Well he's disappeared

http://www.portfolio.com/views/blogs/market-movers/2009/02/17/stanford-the-manhunt-begins
Want some fun - listen to this discussion from Antigua

http://www.live365.com/cgi-bin/mini.cgi?membername=observerradio&site=pro&tm=2093

[spanone]

17. they arrest these criminals...but where the hell is the money?

stashed i suspect