Securities and Exchange Commission (“SEC”) recently announced that $14.2 million has been secured
for the benefit of victims of R. Allen Stanford’s alleged multi-billion dollar
Ponzi scheme. The money was secured through the sale of certain business interests
of Mr. Stanford in the Republic of Panama. The money is expected to be
available to the
receivership estate this summer and will aid in paying back victims of the fraud.
In early 2009, the SEC filed a complaint against Mr. Stanford alleging
he operated an $8 billion, worldwide Ponzi scheme through his companies,
the Antiguan-based Stanford International Bank (SIB), Houston based broker-dealer
and investment adviser, Stanford Group Company (SGC) and investment adviser,
Stanford Capital Management.
The scheme was perpetrated through a network of SGC financial advisers.
These advisers sold roughly $8 billion of “certificates of deposit”
in SIB to investors. The investments were sold as safe and offering high
rates of return.
Allen Stanford is facing twenty-one federal criminal charges in Houston,
Texas for his involvement in the scheme. He has pleaded not guilty to
all charges and has been held without bail as a flight risk since his