U.S. charges Stanford with massive Ponzi scheme
Fri Feb 27, 2009 8:38pm EST
By Anna Driver
HOUSTON (Reuters) – U.S. securities regulators on Friday accused Texas billionaire Allen Stanford, his college roommate and three of their companies of carrying out a “massive Ponzi scheme” over at least a decade and misappropriating at least $1.6 billion of investors’ money.
Meanwhile, a Houston judge ruled on Friday that Laura Pendergest-Holt, the only person arrested in the $8 billion Allen Stanford fraud investigation, could walk free after she posted a $300,000 bond.
In an amended complaint filed in a federal court in Dallas, the Securities and Exchange Commission increased its civil charges against Stanford to include a Ponzi scheme where early investors are paid with the money of new clients.
Along with his former Baylor University roommate James Davis, the 58-year-old golf, cricket and polo promoter “misappropriated billions of dollars of investor funds and falsified” financial statements issued by Antigua-based Stanford International Bank, the SEC charged. …
It was the second high-profile alleged Ponzi scheme revealed by U.S. regulators, after charges that Wall Street veteran Bernard Madoff carried out a $50 billion fraud that allegedly involved a giant Ponzi scheme.
So, it seems to be Stanfraud at Stanford’s.
Also on this: Criminal Ponzi Scheme Shockingly Run by Christians.
See also here.
US Christian Right financial scandal: here.