Sir Allan Stanford Charged with Fraud

Reports are surfacing that Robert Allan Stanford has been charged with fraud. Here is a quote from the BBC

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

It goes further to say that other persons have also been arrested.

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

Three of Sir Allen’s companies have been charged as well as several executives of the companies.

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

Allen Stanford recently hosted a 20/20 cricket competition that paid each member of the winning team US $1 Million dollars. Now we appears that what we had was a No Ball ie. an illigetimate ball. 

Here is some information from the SEC press release

According to the SEC’s complaint, the defendants have misrepresented to CD purchasers that their deposits are safe, falsely claiming that the bank re-invests client funds primarily in “liquid” financial instruments (the portfolio); monitors the portfolio through a team of 20-plus analysts; and is subject to yearly audits by Antiguan regulators.

Source:

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25 Responses

  1. You have got to be kidding me !

  2. No way!! Holy smokes!

  3. Hope those cricketers did not leave their winnings at Stanford’s bank

  4. This guy has ball’s he paid them US $1 Million dollars only to have it reinvested back with in his scheme and defraud them. So i guess those cricketers are left out in the old to collet + Classic 007 move. i

  5. cold *correction.

  6. Chris Gayle and the other cricketers will have to give back his 1 Million USD if Stanford was operating a scam! I hope they have not spent it yet!

    • I don’t think the boys will have to give back any money, they earn it by playing the game.

  7. http://www.nytimes.com/2009/02/18/business/18stanford.html?_r=1&hp

    “The S.E.C. accused the bank and its affiliates of falsely stating in marketing materials that client funds were placed in liquid financial instruments, when in fact they were invested in private equity funds and real estate. On Nov. 28, Stanford International Bank quoted a rate of 5.375 percent on a $100,000 three-year C.D., compared with rates of less than 3.2 percent at American banks. The bank recently has offered rates of more than 10 percent on five-year C.D.’s, the filing stated.”

    ———–
    this con is over 5.32% per annum on a 3 year instrument.
    DS’s con was on10% per month
    everytime i contrast DS with these other crooks i relise, that he was able to do what he did because we r–s fool!!
    its laughable now that people actually (some still do) claimed that olint’s stated returns were real.
    hahahahaaaa!

  8. And he Bowls and it’s a Six ……………………………………………..

  9. Notice how these scammers like to sponsor thing like 20/20… Jazz Festival, Premier League. LOL.

    This is frequently a major clue. Trying to build good will… Of course all our smart investors never listened to anything, For most of them this was the 1st time they heard about investing much less FX trading.

    These investors reminded me of my teenager… Think they know every everything and will not listen to the voice of experience. I frankly used to think of these guys as kids… In fact I recall on the old train that someone accused me of treating investors like they were kids 🙂

    But is only pickney suppose to see something new and start tell big man who doing investing long time that him don’t know what him a chat seh and me as young bud know it all. Like pickney who don’t listen and hard ears, dem was bound to feel it. Nothing much investor can hope for in terms of recovery, like pickney dem just learn a hard lesson. Maybe next time dem will remember what Daddy Nocotec tell dem 🙂

  10. And I bet there are still people out there who believe DS was trading.
    People don’t be idiots – if everyone is out there saying that there is no way these cats (madoff, stanford) could be making 10% a year steadily then what makes you think his almighty DS could do this each month.

  11. heard recently that there is a list of all the olint investors, can someone tell me where tofind it?

  12. Stanford auditing firm was a one man accounting firm located above a fish and chip shop in London.

    Interesting

  13. Pearlman, Madoff all over again. What is the name of Olint’s auditing firm?

  14. :0

  15. FBI seeks to identify victims of alleged fraudulent scheme
    (They should look at Olint/WW also).

    HOUSTON, Texas — The United States’ Federal Bureau of Investigation (FBI) says it is seeking information from Caribbean, as well as other investors in the Stanford Financial Group (SFG), which is accused of perpetrating a multi-billion dollar international fraud scheme

    http://www.jamaicaobserver.com/tools/breakingnews/bnm.asp?bn=544

  16. Strange that 65% of the persons who invested with Stanford have received their money back. The balance is being investigated for potential money laundering.

    Is this evidence of a Ponzi scheme? I dont believe so!

    When all is said and done, no matter what the court rules, he is ruined because of the undue haste of the Feds.

    Comments?

  17. Not sure if you guys have seen this ABC interview with Stanford. Olint 2?? I wonder.

    http://abcnews.go.com/Blotter/WallStreet/story?id=7270405

  18. RedP

    Hold the faith….faith and hope are powerful forces.

    MK

  19. The US has indicted an Antiguan governmental official called King .King took 100,000 dollars for lying about the Stanford books. The FBI seems to think that Creary’s conduct is similar to King’s conduct. Please keep this secret from Jay and Nocotec! They might get upset and abusive!

  20. Stanford’s indictment has been sealed.Stanford and Smith are close associates.
    Our local Jamaican tycoon may very well find himself in trouble soon.How much did he pay for Belonger status ? It could soon come crashing down.I hear Chris is trying to get out.

  21. @Edd good tip on the Antiguan regulator … very interesting…

    Not seeing yet how King behaviour is in the same league as Creary.

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