U.S. Accuses R. Allen Stanford of $8 Billion Fraud
Posted on February 17, 2009Federal agents have reportedly entered the Houston office of the Stanford Financial Group. The company is being investigated by the feds for fraud.
The New York Times says the company has been accused of a "a massive ongoing fraud." According to the SEC, Mr. Stanford and three of his companies "claimed to have received double-digit returns on investments for the past 15 years, but the returns were 'improbable' and unsubstantiated.'"About 15 people, some wearing jackets identifying them as U.S. marshals, entered the lobby of Stanford's office in the Houston Galleria area, the eyewitness said.
Houston-based Stanford Financial Group, which says it oversees more than $50 billion of assets, is being investigated by U.S. regulators, according to a person familiar with the matter.
The New York Times reported that U.S. securities regulators had accused three top Stanford executives, including Robert Allen Stanford, of fraud.
The Houston Chronicle has a detailed report on the fraud allegations and the firm here. Linda Chatman Thomsen, director of the SEC's division of enforcement, said in a statement, "As we allege in our complaint, Stanford and the close circle of family and friends with whom he runs his businesses perpetrated a massive fraud based on false promises and fabricated historical return data to prey on investors."