R. Allen Stanford Spent Millions On Lobbying Congress, Campaign Contributions

Over the last ten years, R. Allen Stanford -- the Texas billionaire charged by the SEC today with "massive fraud" -- and his companies have spent at least $5 million on lobbying expenditures and campaign contributions to a bipartisan group of congressional leaders.

The heavy political spending comes despite Stanford's history of run-ins with federal regulators dating back at least to 1999, when he caught the attention of the State Department for his role in tightening the already-secretive banking laws of the Caribbean island nation of Antigua.

As the Clinton administration began vigorously investigating money laundering cases in 1999, Stanford hired a respected lobbying firm, Verner Liipfert, Bernard, McPherson & Hand. And starting in February 2000, Stanford Financial Group, "which had never made a federal campaign contribution before -- started pouring money into Republican and Democratic party committee," according to Public Citizen.

Stanford aimed most of his contributions at Congressional leaders, giving $95,000 to the 527 groups of then-Senate Majority Leader Tom Daschle, then-House Democratic Caucus Chairman Martin Frost, and then-Senate Minority Leader Trent Lott ($5,000).

According to Public Citizen:

In doing so, Stanford became the single largest contributor between July 1, 2000 and June 30, 2001 to the 527 groups of Daschle and Frost...

Stanford gave an additional $100,000 to the Bush Inaugural Committee - as the new administration prepared its own money laundering strategy. More stringent controls were not proposed. Instead, the Treasury Department went to work watering down reporting requirements that are considered burdensome by many (including Stanford) in the financial services industry.61 In August, Treasury changed its tax shelter regulations to allow corporations to avoid some reporting requirements in an attempt to "ease tax administration."

Though tough anti-money-laundering legislation overwhelmingly sailed through the House Banking Committee in 2000, it had difficulty getting to another vote as powerful GOP lawmakers -- then-House Majority Leader Dick Armey, then-House Majority Whip Tom DeLay and then-Senate Banking Committee chair Phil Gramm stymied its future.

DeLay was among the largest recipients of Stanford's largesse. And "DeLay's committees paid for flights on Stanford's jets at least 16 times since 2003, including on Oct. 20, the day the former House majority leader was booked in a Houston courthouse on money-laundering charges," according to Bloomberg News.

Stanford Financial or its employees also contributed to the legal defense funds of three lawmakers tarnished by ethics allegations -- DeLay, Democratic Senator Robert Torricelli, Republican Bob Ney.

In recent years, Stanford has been especially active. In the 2008 election cycle, Stanford Financial Group's PAC contributed to a bipartisan group of lawmakers including Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, current White House chief of staff Rahm Emanuel, Senate Majority Whip Dick Durbin and House Ways & Means Committee chairman Charles Rangel.

And in 2008, Stanford Financial paid $2.2 million to lobbyists James K. Conzelman and Lionel C. Johnson, which is more than the firm spent in the previous six years combined. Lobbying disclosure forms from last year state that the lobbyists met with members of Congress to discuss "general financial issues that might affect Stanford FInancial Group."

Comments

[mauibob]

I get a kick out of how the article points out contributions to both parties as though it was equal. This from another article HuffPO didn't seem to want to let you know about.

"Over the last decade, Stanford has spent more than $7 million on lobbyists and campaign contributions to Washington politics in both parties, although the vast majority of the money has gone to Democrats."

http://abcnews.go.com/Blotter/story?id=6907429&page=1

[mauibob]

And heres another scandal for the party of transparency

"Lawmakers are starting to shed thousands of dollars they received from a now-defunct D.C. lobby firm under federal investigation, in what some are calling potentially the biggest congressional flap since the Jack Abramoff scandal."

http://www.abcnews.go.com/Blotter/story?id=6896477&page=1

[greatlakesgirl]

That is why the courts suppeoned Cheney, Bush and others in the administration "not to destroy anything'.;

[AN2009]

I'm not surprised. Democrats can be just as crooked as the Republicans.

[hdohighdesertobserver]

Who the hell would have guessed?

A billionaire from the American South making big donations to the GOP and he turns out to be a crook.

[mauibob]

78% of his donations went to Democrats, including hosting a major event at last years DNC convention where he was praised by Clinton and hugged by Pelosi.

http://abcnews.go.com/Blotter/story?id=6907429&page=1

[FrozenNorthObserver]

I'm sure glad the US is downwind of us because the stench of the state sponsered and approved rot and corruption is overpowering. The weight of it has crushed your country and the new govt it seems is totally vested in maintaining the staus quo by employing the exact same class that let it all happen. What a sad sad joke.

[indi1216]

we need term limits for all legislature, as the longer they are in the job, the more likely they get corrupted.

[arspar183]

term limits make fo ra lazy electorate...why bother voting, so and so will be termed out of office at next election......

[Ciganka]

Respected Lobbying Firm? Isn't that a contradiction in terms?

[spinns17]

time we the people take back our country.and we need to put more fbi agents out there ,to catch more of these bums

[johnnygoodwud]

term limits,,,,­,,,,,,,thr­ow them all out, and lets start fresh.

[ranch111]

Hey America! Feel like you've been duped yet? Need more evidence? Go back to you beer, TV and shopping.

[philopatris]

If you're interested in research, don't miss the comments of Dutton Peabody and others on clusterstock.com, which are referencing and giving links to a rich network of Stanford associates and also shell companies, like Elandia and TranSwitch, lurking on the pink sheets.
FT Alphaville is catching up fast, but the associates and shell companies are outed there (of course only conjecturally, but from public financial documents).
And TPM Muckraker has a list of congressional passengers on the 7-plane private jet fleet of Air Stanford in recent years, referencing Cornyn, DeLay, and especially Oxley, till recently the Republican chairman of House Financial Services--the investigating committee responsible!--and his chief of staff Conzelmann. They "investigated" conditions in Antigua luxury resorts frequently.

[Crystalmoon47]

Appreciate the information! :-) I will definitely check it out!

[tomterif]

Yeah, well, OK... but while you're "checking that out", Crystalmoon, to try to somehow arrive at your and Philopatris' DESIRED political conclusion [that this guy Stanford somehow exemplified "Republican greed and corruption"], see if you'll be up to the really DAUNTING challenge, in this case, for you to "try to be able to work your way around the facts", after you discover that Stanford's political contributions to Democrats outspent his political contributions to Republicans FOUR TO ONE !, and you'll find the names of "all the Dem biggies" on the very top of his contributions list : Reid, Durbin, Charlie Rangel... [I'm ALMOST sure I saw Chris Dodd at the very top of his list, in another article I saw somewhere else, but I'll have to doublecheck that... and no, I'm not confusing that with Dodd's Countrywide, or Fannie Mae / Freddie Mac messes, which we all know about...]

[Crystalmoon47]

http://www.washingtonpost.com/wp-dyn/content/blog/2005/12/15/BL2005121500936.html

Bush KNEW!

[philopatris]

Of course he knew. He and Laura know Stanford also:
http://www.businessinsider.com/sec-was-told-to-back-off-stanford-in-2006-2009-2
http://www.businessinsider.com/allen-stanford-friend-of-dubya-2009-2
When you're a mustached rich success story from Baylor and Mexia TX (which is a short drive from Crawford) you get automatic interest from W.

[atlantajoe]

and if you are a democrat you get more campaign cash from him.

[DreaminBig]

We simply must have reform. There should not be ANYONE allowed to contribute this type of money to anyone in Congress. It creates severe conflict of interest. The only thing members of Congress should be interested in is the best interests of the people that they represent. This will never happen as long as we allow lobby groups to influence our lawmakers. FIGHT FOR REFORM!!! Term limits included please!!!

[SammyD]

sigh.....when will the American people realize that both parties are crooks? Not until it's too late.

[Ciganka]

I have been watching both parties for more than a decade. The talk is quite different, but the actions are the same. In fact, I feel worse as a democrat, we are really lied to....

[Chavez08]

The Limbaugh cheerleaders posting here are right, - this was all caused by Rangel and Dodd. It had nothing to do with Reagan destroying all the checks and balances on Capitalism or Dubya ignoring SEC warnings for the full 8 years. This was a carefully orchestrated, ingenius plan devised by two Democrats who were in the minority while the regulations were removed.

Boy!! - Dodd and Rangel are SA-LICK!!

[notconfindtweenhatnboots]

Limbaugh needs to learn that when you point a finger at the other guy (right or wrong), you still have three fingers pointing back at yourself...

[JulieSA]

TIME mag:

“This is, of course, the same Chris Dodd who was Chairman of the Senate Banking Committee beginning in 2007, when the banks began their meltdown. He was the one who received the most campaign cash of any senator from Fannie Mae and Freddie Mac, two companies that he defended against increased regulation that might have actually tempered some of the disaster that has followed. He was the one who spent a huge chunk of 2007 not in the Senate, but on the campaign trail, carrying out a lackluster presidential effort funded largely by the banking and insurance industries. … His top contributor was Citibank. His fourth largest contributor was the now-collapsed firm, AIG, a major purveyor of the complex derivatives that helped cause the crisis. He was also the one who in 2007 went before the U.S. Chamber of Commerce to praise the ‘history of solid regulation’ in the U.S. capital markets. ‘Win or lose, (people) invest with a high degree of confidence that American balance sheets are accurate, that investment products like securities and derivatives are properly valued, and that the markets are well-policed against those who would commit negligent, deceptive or fraudulent acts,’ he said.”

[JulieSA]

Who said that Rangel and Dodd were the only cause of the finance problem? I look back over the thread and I don't see that anywhere. Who mentioned Rush Limbaugh, besides you?

[Fremon]

Rush is solidifying his base of idiots. Anyone who can barely think should recognize the stupidity of the Rangel /Dodd nexus as sole cause. As mama use to say "a little knowledge is a dangerous thing", How right she was.

[metalpipe]

As I've said before, and I hope their are millions of others who agree, I will donate in the next elections to nearly anyone running against both Repubs AND the Dems who have proven themselves unworthy of public office.

Note to all politicians who read this; WE ARE WATCHING

[atlantajoe]

what check or balance did reagan ignore that caused banks to loan money to people that could not afford it. I bought a house when reagan was in office and the app was very lengthy. As far as the 8 years of Bush ignoring SEC warnings, why didn't Clinton's SEC go after Madoff, they were warned but did nothing. And I see you did not mention Barney Frank who just a few weeks before Fannie went down said that Fannie was in good shape moving forward and would be a good investment. Rangel is a tax cheat.

[JulieSA]

"Emplo yer: Stan ford Fina ncial Group
older results
$26,050 was given by people who identified their employer as "Sta nford Fina ncial Gr oup".
$3,600 from 2 people to Re publicans
$22,450 from 6 people to Dem oc rats"

http://fun drace.huff­ingtonpost­.com/neigh­bors.php?t­ype=emp&em­ployer=Sta­nford+Fina­ncial+Grou­p

Stanfo rd and most of his empl oyees who donated supp orted Oba ma for presi dent.

[Chavez08]

Who were the politicians who removed the checks and balances on these guys?

Did the SEC warn anyone in the past 8 years? If so, who? What did they do about these warnings?

I'll wait for your answer.

[youpeoplearefunny]

Clinton

[JulieSA]

"Employer: Stanford Financial Group
older results
$26,050 was given by people who identified their employer as "Stanford Financial Group".
$3,600 from 2 people to Republicans
$22,450 from 6 people to Democrats"

http://fundrace.huffingtonpost.com/neighbors.php?type=emp&employer=Stanford+Financial+Group

Stanford and most of his employees who donated supported Obama for president.

[Chavez08]

Who were the politicians who removed the checks and balances on these guys?

Did the SEC warn anyone in the past 8 years? If so, who? What did they do about these warnings?

I'll wait for your answer.