Tuesday, February 17, 2009

Stanford arrested and charged with massive fraud


It has been reported that 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 Sir Allen Stanford and his financial corporation concerning a new sponsorship deal".

Earlier today the SEC accused Stanford, the head of the Stanford Financial Group, of fraud in the sale of about US$8 billion of high-yielding certificates of deposit held in the firm's bank in Antigua. James M. Davis, a director and chief financial officer of Stanford Group, was also arrested

The SEC said it could not account for the US$8 billion in assets that were housed in the Antigua bank after issuing subpoenas for bank records and to various witnesses. Most of those subpoenaed, including Davis and Stanford, failed to testify or produce documents relating to the assets.

The SEC went on to describe claims by the bank that it paid "significantly" higher returns on its CDs because of the high quality of its investments as "improbable, if not impossible". It is believed that Stanford and Davis's assets have been frozen pending further investigations and that their passports have been confiscated.

The SEC's investigation into Stanford Financial Group comes at a time it is under considerable pressure inside the USA for its inaction regarding the multi-billion Bernard L. Madoff case.

Rise and fall

Feb 25: Stanford reveals his plan for a $20 million Twenty20 match which he calls the “OK Corral” of cricket.
June 11: Stanford signs a five-year $100m deal with the ECB. He lands his helicopter at Lord’s before having his photograph taken with a chest of dollar bills.
Oct 27: The Stanford Super Series gets off to a bad start when he sits the pregnant wife of England wicketkeeper Matt Prior on his knee. Stanford issues apology to the team.
Oct 28: A party for England and the Superstars is cancelled as Stanford avoids a public meeting with Kevin Pietersen’s team.
Oct 29: ECB announce a review of the Stanford deal, three days before the $20m match takes place.
Nov 1: England are thrashed by 10 wickets as the Stanford Superstars team, led by Chris Gayle, become dollar millionaires.
Dec 17: Stanford sacks his board of legends, which included Sir Viv Richards and Sir Garfield Sobers, and closes his office in Antigua. His deal with the ECB looks dead.
Feb 11: Announces the end of his $20m match after one year but confirms the Stanford Quadrangular will take place at Lord’s in May.
Feb 17: Securites and Exchange Commission charge Sir Allen Stanford and three associates with alleged fraud 'of shocking magnitude'.

2 comments:

Ivo Serentha and Friends said...

Greetings from Italy,good luck

Marlo

Green Tea said...

Thank you very much to you Marlo.
GreenTea