![]() ![]() SIB reported identical returns of 15.71 pct in 19, which the SEC called “improbable” and suspicious. It gave no more details, and a Stanford spokesman did not return calls seeking comment. “These assurances are false.”Īmong several misrepresentations, the SEC said, “Perhaps most alarming is that SIB has exposure to losses from the Madoff fraud scheme, despite the bank’s public assurances to the contrary.” “Recently, as the market absorbed the news of Bernard Madoff’s massive Ponzi scheme, SIB has attempted to calm its own investors by claiming the bank has no “direct or indirect” exposure to Madoff’s scheme,” the SEC said. ![]() Stanford also falsely told at least one customer earlier this month that he could not withdraw a multimillion dollar certificate of deposit because the SEC had frozen the account. The SEC outlined the Madoff link in its charges against Stanford that also said the firm had sought to remove nearly $200 million from its accounts in recent weeks. Stanford’s investment companies were exposed to losses from the alleged Ponzi scheme run by Madoff, and falsely reassured investors otherwise, the SEC charged. The move came as investors, politicians and regulators focus on the returns promised and provided by investment firms, following an alleged $50 billion fraud by Wall Street investment manager Bernard Madoff. The SEC said it was seeking to freeze assets of the company and appoint a receiver “to take possession and control of defendants’ assets for the protection of defendants’ victims.” ![]() Stanford Financial said it remained open for business, but was “under the management of a receiver,” according to a sign taped to the door of the firm’s Houston office.Īccording to the 25-page SEC complaint, Stanford International Bank (SIB) sold $8 billion in CDs “by promising high return rates that exceed those available through true certificates of deposits offered by traditional banks.” marshals, entered the lobby of Stanford’s office in the Houston Galleria area, a Reuters eyewitness said. Securities and Exchange Commission accused the cricket-loving Stanford and two other top executives at Stanford Financial Group of fraudulently selling $8 billion in high-yield certificates of deposit.Ībout 15 federal agents, some wearing jackets identifying them as U.S. In a complaint filed in federal court in Dallas, the U.S. authorities charged Texas billionaire Allen Stanford and three of his companies with “massive ongoing fraud” on Tuesday as federal agents swooped in on Stanford’s U.S. HOUSTON/ST JOHN’S, Antigua, Feb 17 (Reuters) - U.S. * Cricket sponsorship negotiations suspended (Adds investor comment) * SEC seeks to freeze assets and appoint receiver * Federal agents swoop on Stanford’s U.S. * Allen Stanford charged with massive fraud (Corrects name to Stanford International Bank from Stanford Investment Bank in paragraph 5) ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |