Regulators Were Told of Stanford Fraud, Investors Say

The New York Times reports today that investors who lost their savings in certificates of deposit issued by the Antiguan bank of R. Allen Stanford told a Congressional panel Monday that federal regulators had ignored warnings as early as 2003 that the bank’s finances were questionable.

The S.E.C. has been criticized for not acting quickly enough to halt Mr. Stanford’s fraud. The agency’s internal watchdog said last month that the agency’s efforts to pursue Mr. Stanford were hampered by a lack of cooperation by the Texas billionaire and the head of Antigua’s financial regulator.

Regulators Were Told of Stanford Fraud, Investors Say

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FBI investing Stanford case

At Forbes, they report that the FBI is asking anyone who invested in the Stanford Financial Group to contact the police. The FBI is asking for names addresses and phone numbers. For more, read this article at Forbes.

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Mini-Madoff is No Madoff at All

According to The Business Insider, Allen Stanford, the Texas billionaire charged Tuesday in an $8 billion fraud by the SEC, apparently lied to his clients about losing any money with Bernie Madoff; however, Allen Stanford did not do a "ponzi" scheme like Madoff. Further, the SEC accuses Stanford's company, Stanford Financial, of misrepresenting the performance and safety of its "CDs" by claiming that the money was invested in safe, liquid securities, while in actuality the money has been invested in in illiquid private equity and real estate ventures. So it looks like individuals and corporations who held their money with Stanford may not see the worst of the hedge fund blow-ups; but they'll still lose money.

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