Friday, February 20, 2009

Robert Allen Stanford May Have Discovered That There Is No Way to Hide From the SEC

Even if your rich, you can run but you will be found. I always had the impression that Robert Allen Stanford was a decent guy. Perhaps he still is, but lately, I have had my doubts. Federal agents found financier Robert Allen Stanford and served him with papers accusing him and three of his companies of investment fraud. Keep in mind, that Stanford, who was located in Fredericksburg, Virginia, has not been charged with any crime. He was not taken into custody. But the Securities and Exchange Commission believes Stanford was behind "a fraud of shocking magnitude." But to date, the FBI has only served him a copy of an SEC complaint.

Nevertheless, with the present administration in power, one may anticipate that a criminal investigation of some sort will in fact take place. Targets rarely escape scrutiny. And ever since Forbes magazine ranked him No. 205 in its "400 Richest Americans" article, a big bullseye has been on Stanford's chest.

Stanford will have to address the SEC's accusation that he used a network of financial advisers to sell about $8 billion of "certificates of deposit" to investors. Allegations against Stanford and his companies has caused mass withdrawals of funds in Stanford banks in Antigua and in Venezuela. In Venezuela the government apparently took over the local subsidiary after it recorded "extraordinary" withdrawals.

The SEC complaint also named James Davis, SIB's chief financial officer; Laura Pendergest-Holt, chief investment officer of Stanford Financial Group; and investment adviser Stanford Capital Management.

Keep in mind, they all may be completely innocent. In fact, Stanford and Davis and the others deserve the benefit of the doubt. But in times of rocky financial markets, one suspects that this administration will be quick to pull the trigger on any questionable practices.


Anonymous said...

Innocent unless otherwise proven, right?


Anonymous said...

Some baseball players are complaining that they deon't have access to their cash because their business manager was investing with Stanford and now the assets are frozen.

John B. Brookstone said...

Hey, this is where I keep most of my investments. Am I at risk of losing money now that he has been arrested? I have been earning some really nice rates on their CDs in a Carribean Bank, 20% or more, so hope that wasn't a mistake. Does anyone know a good attorney?

Anonymous said...

To the fake J.B.,

Any investment that is too good to be true, probably is...

For any one concerned with their investments, seek the advice of a lawyer, an accountant, investment broker and a priest. Then, bend over, grab your ankles and expect the worse.