Billionaire financier Stanford surrenders to FBI

Friday, June 19, 2009, AM | Leave Comment

Washingtonpost.com reported today that billionaire financier R. Allen Stanford surrendered to FBI Thursday afternoon right outside his girlfriend’s house.

The report says he was under investigation by the Feds for sometime. Stanford is scheduled to appear in federal court in Richmond, VA this morning.

The Stanford Group Co. sold $8 billion of certificates of deposit in Stanford International Bank. The company’s network of financial advisers told clients their money would be placed primarily in easily sold financial instruments monitored by more than 20 analysts and audited by Antiguan regulators, according to the SEC lawsuit.

Instead the “vast majority” of the portfolio was managed by Stanford and James M. Davis, the company’s chief financial officer, who invested much of it in private equity and real estate, according to the regulatory agency. Davis, who was named in the SEC suit, is cooperating with prosecutors, his attorney, David Finn, said in April.

Stanford has given campaign contributions to some of the nation’s top lawmakers. A Stanford Group political action committee contributed more than $100,000 to various causes last year.

Moral of the story
First Madoff was at fault that the general public, it seems, had never heard of before he was arrested. Now Stanford. Who the heck is this guy anyway? I am one of the general public. How come I never heard of him.

Read the last statement carefully and think about it.

Stanford has given campaign contributions to some of the nation’s top lawmakers. A Stanford Group political action committee contributed more than $100,000 to various causes last year.

Does that statement create problems? I know it does in my mind. How come the crooks – oops the alleged crooks – are contributing money to our political system?

How many more Madoffs, Stanford and … are out there. Let’s see who is going to fill the dots. Any scheme – I think Wikipedia calls it Ponzi scheme – like that we don’t know about does not mean it doesn’t exist.

Read the news on washington.com in full: Billionaire Financier Stanford Surrenders to FBI.

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