Stanford's CIO arrested by the FBI

[malaise]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOBv3BE3Jyic&refer=home
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Laura Pendergest-Holt, the chief investment officer of Stanford Financial Group, was arrested by the FBI and charged with obstructing an investigation into an alleged $8 billion financial fraud, according to the Justice Department.

Pendergest-Holt, 35, was arrested today at Stanford’s Houston headquarters, the FBI said, and is scheduled to appear tomorrow before a U.S. magistrate judge, according to a department statement.

The Securities and Exchange Commission sued Pendergest- Holt, Stanford Chairman R. Allen Stanford, and Stanford Chief Financial Officer James M. Davis on Feb. 17, accusing them of misleading investors about $8 billion in certificates of deposit in Antigua-based Stanford International Bank. The FBI is investigating, along with the Internal Revenue Service and Postal Inspection Service.

A criminal complaint charging Pendergest-Holt alleges that she made misrepresentations to the SEC to obstruct its investigation, according to the Justice Department. The complaint is based on a finding of probable cause by a magistrate judge, and Pendergest-Holt has not been indicted by a grand jury, according to the statement.