Tuesday, March 6, 2012

Allen Stanford Guilty Of Fraud

Disgraced financier and cricket backer Allen Stanford has been found guilty of running a $7bn fraud.

A court in Texas convicted the 61-year-old of 13 of the 14 charges relating to a so-called Ponzi scheme.

The charges against Stanford - who rose from owning a gym in Texas to become a knighted billionaire - include bribing a bank regulator in that country, money laundering and obstructing an investigation by the US Securities and Exchange Commission (SEC).

He faces up to 20 years in prison for the most serious charges but could be imprisoned for much longer if a judge orders his sentences be served consecutively.

Up to 30,000 investors from more than 100 countries put money into bogus investments with Stanford International Bank in Antigua, according to prosecutors.

Investigators were unable to find 92% of the $8bn the bank said it had in assets and cash reserves.

Defense attorneys tried to shift the blame for the fraud to former chief financial officer James Davis.

They also insisted that the bulk of the money lost by investors was due to mismanagement by court-appointed receivers after the US government seized the bank. Read More