Top Antiguan Regulator indicted in Stanford Saga

In a release issued by the the SEC, on June 19, 2009, announces that two accountants who produced bogus financial statements and an Antiguan regulator who took bribes to look the other way have been charged.

Charged are Mark Kuhrt and Gilberto Lopez, accountants for Stanford-affiliated companies who allegedly fabricated financial statements to give investors the false illusion that their investments were solid, safe and secure.

The SEC also charged Leroy King, the administrator and chief executive officer of Antigua’s Financial Services Regulatory Commission (FSRC), for accepting thousands of dollars per month in bribes to ignore the Stanford Ponzi scheme and supply Stanford himself with confidential information about the SEC’s investigation. King obstructed the SEC’s case since 2005, when its investigation into Stanford began.

A report from the New York times carries an interview with the attorney general of Antigua and Barbuda, Justin Simon where he states that he would condsider a request for extradition of Mr. King. He apparently went on further to state the following about Mr. King.

“This concerns me greatly because it reflects adversely on the commission,” Mr. Simon said, referring to the island nation’s Financial Services Regulatory Commission, which regulates the local banking system. But he added that “I think I am satisfied” that Mr. King “hid things” from the commission’s directors “and got involved in a personal relationship with Stanford.”

The bribes alledly amount to more than US $100,000 to bascially conduct fake audits and mislead U.S. investigators.

The indictment alleges that King showed Stanford the SEC’s inquiries and once responded to the agency with material prepared by Stanford. King, a dual citizen of Antigua and Barbuda and the U.S., has been suspended from his post. The U.S. is seeking his extradition from Antigua.

Questions for Regulators in the TCI

This indictment should be of interest to  certain Forex club investors as questions must be raised on how a businessman that left Jamaica because of a run in with the Jamaica FSC, refused in St. Kitts,  could have two companies registered with the TCI conducting the same questionable business. On the other hand to paraphrase  a quote attributed to the Premier of the TCI at the Jamaica’s loss was TCI gain.