Skip to main content

Billionaire Stanford given 110-year jail term over $7bn fraud


A general view of Stanford International Bank on the Caribbean island of Antigua. The bank's founder Allen Stanford has been jailed for 110 years for perpetrating a $7 billion fraud.

Image: Gareth Copley/PA Archive

FORMER TEXAN BILLIONAIRE financier Allen Stanford has been sentenced to 110 years in jail after being convicted of perpetrating a Ponzi scheme worth some $7 billion (€5.5 billion).

A court in Texas was told the 62-year-old had siphoned off around $2 billion in funds deposited by clients, who had been told his investments were safer and more profitable than US government-insured accounts.

The US Securities and Exchange Commission claimed that his Stanford Financial Group had presented hypothetical projections as legitimate past records when trying to secure clients’ investments, misappropriating their funds and falsifying the group’s financial records to cover this up.
Investigators could not find 92 per cent of the $8 billion the bank claimed to command in assets and cash reserves.

“This is one of the most egregious frauds ever presented to a trial jury in federal court,” Judge David Hittner said in handing down the sentence.

Stanford had been convicted in March, and has spent the past three years in jail after being deemed a flight risk. He will likely never taste freedom again.

The sentence will bring some satisfaction – but likely little financial relief – to some 30,000 investors from more than 100 countries who were burned by bogus investments with Stanford’s group.
“This was not a bloodless financial crime carried out on paper,” Angie Shaw, director and founder of the Stanford Victims Coalition, said at the sentencing hearing. “It was and is an inconceivably heinous crime and it has taken a staggering toll on the victims.”

‘Scoundrel’

Jaime Escalona, who represents victims from Latin America, told Stanford he “took advantage of the trust that is placed in US companies and caused losses that prevented families from being able to pay for medical and basic living expenses.”

“You are a dirty, rotten scoundrel,” Escalona added.

In a tearful speech, Stanford showed no remorse and blamed the collapse of his empire on the “Gestapo tactics” of overzealous prosecutors and insisted that his investments would have eventually paid dividends, KHOU news reported.

“I’m not a thief,” Stanford, who did not testify at the trial, told the judge. “I am and will always be at peace with the way I conducted myself.”

A dual citizen of the United States and Antigua and Barbuda, Stanford was known for his largesse, especially on the two paradise islands.

He received a knighthood in 2006 from Antigua, where he was the largest employer, but that knighthood was revoked in 2010 after suspicions of his illicit dealings first came to light.

Stanford rose to global prominence by creating and funding the the Stanford 20/20 cricket tournament between West Indian nations, as well as a ‘Stanford Super Series’ with a total prize fund of $20 million, where the players on the winning team took person prizes of $1 million each.

Both competitions folded after 2008, however, when queries arose about how Stamford was funding the ventures.

Additional reporting by AFP.



Popular posts from this blog

COViSAL protesta acuerdo con Hunton y Williams LLP por $34 millones de dólares, de los cuales $8,5 millones son para abogados.

COViSAL
Por Restitutio

Traducción al español de la versión original en inglés
20 de septiembre, 2017
Secretaría del Tribunal United States District Court Northern District of Texas 1100 Commerce Street Dallas, Texas 75242
ATN: Cámara delHonorable David Godbey
SEC Acción Civil: 3:09-CV-0298-N
Honorable Juez:
Le escribimos para expresar nuestra objeción y protesta sobre los acuerdos del Administrador Judicial, el Comité Oficial de Inversionistas de Stanford y otros, relacionados con el caso Stanford. Estos acuerdos generan millones de dólares en honorarios para los abogados y centavos para las familias afectadas. En esta instancia protestamos enfáticamente el acuerdo propuesto con Hunton y Williams LLP por $34 millones de dólares, de los cuales $8,5 millones son para honorarios de abogados.
Durante los últimos 8 años los ahorristas de Stanford han recibido menos del uno por ciento de sus pérdidas de las distribuciones anunciadas y han tenido que esperar casi un año por cada distribución. Al mismo t…

COViSAL Estatus caso Stanford a Diciembre 2018

COViSAL
For Restitution
___________________________________
23 de diciembre, 2017
Estimados amigos:
Anexo un resumen del estatus del caso Stanford en USA y en Antigua.
ADMINISTRACION JUDICIAL DEL STANFORD FINANCIAL GROUP, U.S.A. (Liderada por el síndico Ralph Janvey, su abogado líder Kevin Sadler, su agente de distribución Gilardi & Co., y los abogados del comité oficial de inversionistas)
1.Recuperaciones - $407,8 millones (al 30 de abril, 2017)
2.Honorarios profesionales y gastos - $195,8 millones (al 30 de abril 2017)
3.Distribuciones a depositantes - $94,2 millones 
Hasta la fecha hemos tenido cuatro distribuciones oficiales:
a) Primera distribución interina de $55 millones (de dinero en efectivo disponible en el patrimonio) fue aprobada el 30 de mayo, 2013; 16 listas de pagos fueron publicadas desde el 20 de agosto 2013 hasta el 27 de abril 2017. A la fecha han distribuido $41,2 millones del total y todavía hay depositantes por recibir su pago de esta distribución. 
b) Segunda distribuci…

COViSAL protests the proposed settlement with Hunton & Williams LLP for $34 million, of which $8.5 million is for attorney’s fees.

COViSAL
For Restitution
___________________________
September 20, 2017
Clerk of the Court United States District Court Northern District of Texas 1100 Commerce Street Dallas, Texas 75242
ATTN: Chambers of the Honorable David Godbey
SEC Civil Action: 3:09-CV-0298-N
Your Honor,
We write to you in order to express our objection and protest the settlements by the U.S. Receiver, the Official Stanford Investors Committee, and others related to Stanford’s case. These settlements generate millions of dollars in fees for attorneys and only pennies for the families affected. In this instance we strongly protest the proposed settlement with Hunton & Williams LLP for $34 million, of which $8.5 million is for attorney’s fees.
During the past 8 years Stanford’s depositors have received less than one percent of losses from announced distributions while being subject to a waiting period of almost a year per distribution.  At the same time, they have to endure a lack of response to inquiries they make to the r…