Houston, TX – 50,000 Customers Affected By $8 Billion Fraud; Scammer Stanford Missing

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    Police from various agencies wait in the lobby of the Stanford Financial Group building in the Galleria. Federal marshals and other investigators were in both buildings, which were shut down.Houston, TX – Texas financier R. Allen Stanford is accused of cheating 50,000 customers out of $8 billion dollars but despite raids Tuesday of his financial empire in Houston, Memphis, and Tupelo, Miss., federal authorities say they do not know the current whereabouts of the CEO.

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    The Securities Exchange Commission alleges Stanford ran a fraud [reported by VIN News] promising investors impossible returns, much like Bernard Madoff’s $50 billion alleged Ponzi scheme.

    Investigators Tuesday shut down and froze the assets of three of the companies Stanford controls and they say the case could grow to be as big as the Madoff scandal. Like Madoff’s clients, Stanford’s investors are in shock.

    “Initially we put our money in this institution and in a CD because we were nervous about the markets and thought it was a safe place,” said investor Brett Zagone. “I’m so upset right now I can’t even talk about it.”

    But in addition to angry clients, Stanford, like Madoff, has many friends in Washington.

    Stanford’s business is headquartered on the Caribbean island of Antigua. In the last decade, Stanford and his companies have spent more than $7 million on lobbyists and campaign contributions in efforts to loosen regulation of offshore banks.

    Among the top recipients: Senator Bill Nelson (D-Fla.), Congressman Pete Sessions (R-Texas), Sen. John McCain (R-Ariz.), Senator Chris Dodd (D-Conn.) and Senator John Cornyn (R-Texas), one of the members who took a trip to Antigua where he was entertained by Stanford.

    Senator Will Return Campaign Contributions from Stanford

    Sen. Nelson said late Tuesday that he would return money received by Stanford. “I will give to charity any campaign contributions from him or his employees,” Nelson said through his spokesman.

    Some say the investigation into Stanford should include an examination of his relationships with members of Congress.

    “Surely there has to be a part of the investigation to look at what was done in Congress and whether the money that was spent to lobby and make political contributions played any role in all of this,” said Sheila Krumholz of the Center for Responsive Politics.

    Once again, this could be another case of the SEC asleep at the switch. Allegations of fraud and possible drug money laundering have been made against Stanford in the past ten years, but the SEC took action only after two former employees filed a lawsuit in civil court.

    Sen Cornyn’s office has said the trip “was strictly a fact-finding trip,” and at the time, “there was nothing untoward or unseemly” about Stanford Financial.


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    8 Comments
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    yogi bear
    yogi bear
    15 years ago

    can the SEC find first base at yankee stadium?

    esq
    esq
    15 years ago

    At least the ganevis was from both siddes of the aisle here. I am an extreme conservative and would have liked nothing more than to see a list of democratic senators here – but the truth is that they are all crooks. You just have to go with a crook who also espouses your poitical views.

    Anonymous
    Anonymous
    15 years ago

    At least they caught on before it reached 50 Billion

    financial analyst
    financial analyst
    15 years ago

    HE IS NOT A PONZI. However, he did mention in his financial statements that the his offshore bank is insured by the local govt (like the fdic) which was not true. So he got arrested for lying……….

    gem
    gem
    15 years ago

    It seems Mr. John Cornyn has some explaining to do. He claims a fact finding trip LOL

    ladsisp
    ladsisp
    14 years ago

    This zoom airline does southwest airlines fly to mexico is focused on Information on turkish airlines erfahrungen And singapore airlines ticket booking .