Seven Shocking Allen Stanford SEC Allegations

Federal regulators charged R. Allen Stanford and three of his companies with a "massive" fraud. According to the Securities and Exchange Commission's complaint, filed in federal court in Dallas, Stanford International Bank sold about $8 billion of so-called certificates of deposit to investors by promising "improbable and unsubstantiated high interest rates."

There are a number of surprising revelations buried in the complaint. We highlight seven of the most shocking below:

1. Stanford posted identical returns two years in a row, in 1995 and 1996, indicating the fraud has been going on for at least 13 years.

2. Stanford and CFO James Davis have "wholly failed" to cooperate with the SEC investigation.

3. There was no army of analysts combing through Stanford's multi-billion-dollar portfolio. Rather, the only research conducted on companies in which he was investing came from Stanford himself, and CFO James Davis.

4. Stanford told at least one client that the SEC was freezing CDs, a blatant impossibility.

5. Stanford lost money from the Madoff ponzi scheme, "despite the bank's public assurances to the contrary." One analyst puts the loss at $400,000.

6. Despite repeated calls from the SEC to Stanford's Antigua-based accounting firm, the accountants never answered their phones.

7. And as if the SEC couldn't put it any clearer, Stanford's public statements about its investments "are false."

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Read the entire SEC complaint below.

Stanford Complaint - Get more Business Documents

The Huffington Post intends to dig deeper into this story, and we need your help. If you have invested with Stanford or know about the bank's business practices, we want to hear from you. Email us at [e-mail].

If you have invested with Stanford, let us know about your returns on investment. Have you tried to get your money back and been rebuffed? What have you been told about the bank's portfolio? How long have you been invested with him?

If you know Stanford personally, tell us about him.

Email your insights to [e-mail]

Comments

[twokidsonecat]

I saw a brief piece on the news within the past 6 months that was talking about GWB new property in South America.

Imagine the "missing" they'd find if they checked there.

[CaptainHowdy]

Madoff, Stanford... just the tip of the iceberg my friends, tip of the iceberg. You know, the one that we're f***ing sailing into!

LOL!

[instagladiator]

Shouldn't you be bailing these guys out too?

[Wiserone]

He might have gone to the Isle of Man. Another good place for that Texan to hide the dough. Actually, I think he is hiding out with GW. It's the biggest amount of money GW will get because we all know he has no money-making speaking gigs scheduled since leaving office. And, Karl Rove, has been busy still spewing on Rightie news stations so he hasn't had much time to help GW construct a sentence for his book.

[nivek]

hiding out with GW, or Ken Lay

[CaptainHowdy]

Osama Bin Laden... nobody will find him then.

[merger]

Did I read that correctly--Anitgua based accting firm. Now folks if you are on the up and up do you have an Anitgua based accting firm? Investors, please, please take active control and participation with your own money. Be a pest, be inquisitive, be critical, be investigative, be a nuisance, and don't ever be completely trusting of anyone. If they act offended, act put out, or tell you to not worry without answering your questions directly--there is something wrong. These people are working for you and you pay them, so don't be intimidated or afraid to ask lots of probing questions.

[kid5rivers2]

It's an offshore company, incorporated and based in Antigua. Ergo?

[merger]

Of course, it is which is warning sign number one of a potentially dangerous investing situation. As an investor, I would personally never invest with an offshore company, nor would I an invest with a company who wasn't willing to offer full disclosure to the federal govt. i don't like paying taxes all that much either, but i would rather pay them than get shammed by an offshore company that hides from the US govt. and lose everything. I would never invest with a private investment firm period let alone one that operates offshore.

[Pellucid]

Antigua has branch offices of PWC and KPMG less than five miles away from SIB.

Stanford's auditor was (he died a month or so ago) a 74 year old sole practitioner in St Johns.

Since his death, apparently the account has been taken over by his son or daughter (I've seen both in various accounts) Who operates out of a building he or she shares with a taxi company and a unisex hair salon.

[Djl130]

Stanford is at large - he is missing - he is not in jail. I know people who just left my firm to go work for Stanford - the whole outfit is culty - ooky. The way they marketed and sold the CDs was uncomfortably like money laundering.

[sloreader]

Time for an "@$$H@lE" alert across the land. Let's see this guy on America's Most Wanted next weekend and don't forget to report him to the FBI and Interpol forthwith. This guy has the motive and the means to flee and hideout.

[richardmcnoggin]

He is hiding in Pelosi's office....

[voltage356]

Great, now the SEC can round up the rest of them. He is not the only one now.

[voltage356]

Oh, finally the SEC went back to work now i see. I wonder what put a fire under their butts.

[jukesgrrl]

Maybe a president who knew how to say the word "regulate"?

[PrincessAnnie]

It's refreshing to have a President who is happy enough with his own abundance that he does not feel the need to attain more by selling out the American people to get it.

[instagladiator]

No, a president who understands what the word "regulate" actually means.

[RJII]

its the end of the world. the rich are getting caught and prosecuted.

[sloreader]

That'll be the day.

[not going2take it]

I realize that me words (the idea) is nothing new,
particularly original or perhaps even possible.

But simply saying this, writing it made me feel empowered
and somehow a little better about this mess.

I think that the more we speak - collectively on this,
it sparks or fuels thought (hopefully) and can
bring about change.

Folks - we can do something about this . . .
we simply have to act in unison on
our collective outrage

[not going2take it]

Comment from that chuckle head from Minnesota,
*we're running out of rich people*

Yes as many of the corrupt are getting caught or
are MIA as they are in grave fears of getting caught
for the behaviors that have undermined the health
of global political/­financial/­economic systems.

Time for the working (or once working) tax paying middle class
to live off of the backs of the rich for a change . . . it's time to
take back some of our stolen wealth from these clowns.

Time for a .m.a.s.s.i.v.e. .r.o.u.n.d.u.p.

[PrincessAnnie]

No, the stupid ones are getting caught and prosecuted. If all the rich (and dishonest) people were getting caught and prosecuted, we would be treated to perp walks on a daily basis.

[MNValley]

And no National Debt and a Balanced Budget...

[instagladiator]

Wait a minute! I think I read, the other day, that some dingbat said that you were "running out of millionaires" or something?

[max08]

Stanford is NO WHERE NEAR the crime that Madoff committed. Why is Stanford in jail and Madoff isn't?

[JoeBlough]

Madoff is too big to jail.

[RJII]

lmao.

[duze]

Why? Everyone else is, and most have done a lot less.

[outofhere]

He's in his PH because he probably can't be protected in jail what with the Coliumbians and Russians after is a$$.

[nuclearmonkeys]

Because the ways the laws are structured in this regard are simply stu.pid

They can't jail madoff.

[TXfemmom]

When a defendant being out of jail would put them in a position where they could do further harm, by being able to contact people and move money around, which he can, undoubtedly, find a way to do so by being out on bail, then they should be in jail, period.

[jeffp26]

Having been in the business, I am stunned he would be stupid enough to report exactly the same results, to the 2nd decimal point, in two consecutive years.

But then again, Isn't that what Jack Welch did at GE for a decade????? Is any of this sinking in yet?!?!?!?

[1liberalconspirator]

Right there with you...I can't believe that Madoff made it so long with those consistent returns-you think he would have mixed it up a bit.

A lot more is going to come out in the near future...

[duze]

There is no way in hell Madoff pulled this off alone? If the SEC had done their job, we would know by now just how many individuals were/are involved in this scam. The entire Administrative staff at the SEC should be fired and charged with conspiracy. Someone has got to put the American people's interests first and foremost.

[Dave27]

Yes, Jack Welch, the criminal. Yet, he is lauded by Wall St.

[sixpm]

Perhaps he guessed they were just getting filed, with no-one actually reading them.

[PrincessAnnie]

He guessed correctly...for 13 years.