Feds seen entering Stanford Financial

Discussion in 'Wall St. News' started by S2007S, Feb 17, 2009.

  1. S2007S


    Feds seen entering Stanford Financial office
    Firm being probed for paying high yields even as markets have slid

    Feb. 17:
    updated 21 minutes ago

    Federal agents with the U.S. Marshals Service entered the Houston office of Stanford Financial Group on Tuesday, according to a Reuters eyewitness on the scene.

    About 15 people, some wearing jackets identifying them as U.S. marshals, entered the lobby of Stanford's office in the Houston Galleria area, the eyewitness said.

    The Houston office of the U.S. Marshals Service had no immediate comment. A Stanford spokesman was not immediately available to comment.

    The U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority and state regulators in Florida and Texas are investigating Stanford, which has 30,000 clients in 131 countries with $8.5 billion in assets.

    They are examining the bank's ability to pay high yields on certificates of deposit that it says are invested mainly in stocks, real estate, hedge funds and precious metals, many of which have lost value in recent months.

    The FBI's Houston office has also joined the investigation of the company owned by Texas billionaire Robert Allen Stanford, according to the Wall Street Journal.

    The New York Times reported Tuesday that the SEC accused Stanford — plus two top executives and some affiliates — of fraud.

    The paper said the SEC filed a complaint in Dallas federal court asserting that Stanford and two associates with misrepresenting the safety and liquidity of about $8 billion of high-yielding CDs held in the firm's bank in Antigua.

    The complaint names James M. Davis, a director and chief financial officer of Stanford Group and the Antigua-based bank affiliate, and Laura Pendergest-Holt, the chief investment officer of both organizations, the New York Times said.
  2. They were just the FBI's cricket team there for the cricket invitational tournament. Jeez, get your facts straight. Those boxes they're carrying out are their trophies, not documents.
  3. shocking, and he looked like such a nice man.
  4. LOL

    Hey I just realized this is the company that pays for Eagles on the PGA tour, and gives the money to St. Jude.

    Charities are taken huge hits here. So they use Kids w/cancer to shake money from investors. What scum.
  5. AK100


    This is what gets me about Madorff with his charity money under management.

    Surely if he had lines of people wanting to get in he could have said yes to them and turned the charity money away, or at least put them in contact with (good) legit money managers.
  6. I get the impression that Bernie thought he had invented a new way to make money on Wall St. and he could keep the scam going indefinitely. He wasn't the typical take the money and run con man. Without the market collapse, it would be business as usual for Madoff and Stanford. The important question is, who's next?
  7. When Elgindy went to jail, someone said, "I hope he's sorry for what he did to us."

    You cannot, people of logical thought and honest intentions, cannot possible fathom what goes through minds of uber criminals. You just can't. So don't bother. That's why we have jails.
  8. Hate to say it, but only two kinds of folk give money to charity.

    Bleeding hearts and crooks.

    lol, which are you, if any.