Wednesday, February 18, 2009
SEC Charges Texas Financier With $8 Billion "Massive Ongoing Fraud"
Robert Allen Stanford, 58, of Houston, Texas and the billionaire chairman of Stanford Group Company, has been charged by the Securities & Exchange Commission in a civil suit, of defrauding investors about the level of risk and liquidity associated with as much as $8 billion in certificate of deposit investments. Two executives of the company, James Davis, CFO and Laura Pendergest-Holt, chief investment officer, have been charged along with Stanford. Stanford Group operates out of Houston and Antigua, where Stanford's offshore banking operation is located. In addition to Stanford Group, Stanford International Bank, Ltd. of Antigua and Stanford Capital Management, LLC, were named in the complaint. Stanford has not yet been detained and his whereabouts are not known at this point.
Read the SEC's complaint here.