The next Madoff ? Stanford now charged with $8bn fraud

Texan billionaire Sir Allen Stanford and three of his companies have been charged over a $8bn investment fraud, US officials say.


news.bbc.co.uk...


For additional reading I saw this over the weekend:

www.huffingtonpost.com...

One of many to come..The Great Collapse of `09 is upon us...

The SEC are quoted as saying "We are alleging a fraud of shocking magnitude"

I wonder does anyone know what people or companies have exposure with Stanford and his business ?

Originally posted by ukWolf
The SEC are quoted as saying "We are alleging a fraud of shocking magnitude"

I wonder does anyone know what people or companies have exposure with Stanford and his business ?

I was going to ask the same question.

Does anyone know which companies/persons/governments might have exposure to this fraud?

I'm not surprised. They are all corrupted.

The whole system is corrupt. There's no good, decent, people at the top trying to help the people. It's all about money and power for them.

"The downfall of civilization is greed and power."

Rich folk need to stop falling for ponzi schemes.

I think that these stories have the ability to completely destabilize the system.

This is a very good story, in the long-term, as if the Feds continue to prosecute the criminals in all of this, it will wake people up to the fact that this entire "crisis" is a sham. Something that has been perpetrated by powers at the VERY TOP.
However, with any crisis, the Gov. is going to create a patsy to take the fall. I just hope that this isn't designed to incite chaos in the streets. Because that is where this is headed.

If enough people can see through this, it will cause their house of cards to crumble. TPTB are playing a very risky game here.

Originally posted by ukWolf
I wonder does anyone know what people or companies have exposure with Stanford and his business ?

Stanford ran an offshore bank in Antigua and was its largest employer. He also sponsored a cricket club and tournament with a $2,000,000 prize.

All that was disbannded earlier this year.

His bank controls $50billion, not just the 8 reported.

I have looked across several sites but it seems a little early for individuals and business to be putting there hands up to being in this one as well as the Madoff scheme.

All that I've come across are details of his contacts and connections

tpmmuckraker.talkingpointsmemo.com...

tpmmuckraker.talkingpointsmemo.com...

I'm sure over the coming days and weeks all will become a little clearer at least.

I would think deleveraging will collapse/reveal most ponzi scheme's.......lets see who is "swimming naked"....and let's see who is invested with these scammers

[edit on 17-2-2009 by cpdaman]

Well, I've read the SEC documents...

Stanford is accused, among other things, of touting higher-than-actual percentages of return on investments, instruments of which were sold as "certificates of deposit" but didn't meet the SEC definition of "CD", and of misrepresenting where some investor funds were "going" (into illiquid assets, such as real estate, rather than liquid assets.)

Stanford Group hasn't failed/folded....but, their assets have been frozen, including offshore assets which the judge has ordered transferred to the US immediately..."frozen assets" is a scary term for anyone with $$ invested in SG, said $$ now totally inacessible...equally scary for the average-joe Stanford employees who are suddenly unemployed.

Maybe it's book-cooking & subterfuge a la Madoff...
Maybe someone ticked off the wrong person...
Maybe SG's investment strategy is legit, complete with returns that other US banks/investment firms could never, WOULD never match/beat...

Time will tell...
Ezzi

**Edited multiple times due to stupidity on my part**


[edit on 17-2-2009 by ezziboo]

[edit on 17-2-2009 by ezziboo]

[edit on 17-2-2009 by ezziboo]

[edit on 17-2-2009 by ezziboo]

Stanford can't be found and we can expect to see more stories like this it seems;

The scam is the second major fraud to hit America in three months after Bernard Madoff confessed that his $50 billion investment firm was “just one big lie”. It is a devastating blow to the Obama Administration, which is trying to persuade investors to trust their savings to American institutions.

The FBI is convinced that the two huge frauds are just the tip of the iceberg. John Pistole, the Deputy Director of the FBI, told politicians on Capitol Hill last week that the agency was investigating 530 corporate fraud cases, including 38 directly related to the current economic crisis.

www.timesonline.co.uk...


I'm still waitng to hear / read just who the biggest losers are from this one.