Posted by: tristar3research | February 18, 2009

Stanford Scam: There goes the Antigua neighborhood

Hmmn, double moles at FINRA in the Stanford case? And it has become clear there was a SEC “hotline” to tell the regulator to back off…   A February 2005 speech by then director of the SEC Office of Compliance Inspections and Examinations (OCIE) Lori A. Richards before an industry conference appears to back up Lynch’s statement.  An August 2007 report by the nonpartisan investigative arm of the legislative branch, the Government Accountability Office (GAO), criticized the design of the hotline.

Having been to Antigua recently, it was kind of hard to figure out how the beautiful airport, fantastic business centre and luxurious cricket grounds could be afforded. Like the Madoff case, according to the New York Times,  there were prior SEC fines but NO investigation and political influence peddling. TPM reports that some politicians have decided to “give back” the money- kinda like closing the barn door after the horse bolts. The WSJ reported:

There Goes the Neighboorhood !

There Goes the Neighborhood !

Depositors from as far away as Colombia have begun arriving in the island nation of Antigua, seeking to withdraw their money from an offshore bank under investigation by U.S. state and federal authorities. Stanford International Bank Ltd. and related firms controlled by Texas businessman R. Allen Stanford have fallen under scrutiny by the Federal Bureau of Investigation, the Securities and Exchange Commission and other regulatory bodies, according to people familiar with the matter.  Authorities are examining the group”s marketing practices, which include offering certificates of deposit with unusually high interest rates, as well as a mutual-fund product sold by Stanford Trust Co., a person familiar with the matter says.  On its Web site, Stanford says the product, known as Stanford Allocation Strategies, aims to “reduce volatility throughout the investment cycle.” Investigators are looking at whether Stanford provided false historical return data that bolstered its performance, this person said.

Now ABC says that Stanford is under investigation by the FBI for money launding for the Mexican drug cartels that are turning our border into a running gun battle. And, lookee, no one did any due diligence here either...

Allen Stanford, the Texan billionaire who hasn’t been seen since he was accused of an $8 billion fraud earlier this week, used a tiny accounting firm with offices above a hair salon in North London to audit his financial empire, according to media reports.

The firm — CAS Hewlett & Co. — was the auditor for Stanford International Bank and was run by Charlesworth Hewlett until his death last month. Of three addresses registered in London, residents at two had no knowledge of Hewlett and the third was a one-room office previously used by the accountant, the Financial Times reported.
The firm’s Antiguan office, meanwhile, is run out of just two rooms, with an old typewriter and an eight-year-old telephone directory on the reception desk, the FT had separately reported. Stanford and three of his companies, including SIB, have been charged with fraud by the Securities and Exchange Commission. The regulator said SIB sold around $8 billion of certificates of deposit to investors by promising “improbable and unsubstantiated” high interest rates. See archived story.
His daughter, Celia, is nowhere to be found, according to Accountancy Age. No evidence of who called off the FINRA investigation either…


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