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Stanford Was a Drug Informant: Report

Fraudster was likely shielded from SEC in 2006 for his trouble

By Jason Farago,  Newser Staff

Posted May 11, 2009 7:34 AM CDT
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(Newser) – Allen Stanford may have received earlier protection from the SEC by working as a drug trade informant, a BBC investigation has found. The accused fraudster’s bank paid $3.1 million to the DEA a decade ago as a middleman for a Mexican drug lord, and in 2006 an SEC investigation into potential Ponzi operations was dropped, allegedly at the request of another government agency.

The BBC says it has "strong evidence" that Stanford was a confidential agent for the DEA as early as 1999, turning over details of money laundering from clients in Colombia, Mexico, Venezuela, and Ecuador. While the SEC has now brought civil charges against Stanford and frozen the assets of his Antigua-based bank, he still has not been charged with any criminal wrongdoing. The DEA refused to comment.

R. Allen Stanford is photographed in the office of attorney Dick DeGuerin, unseen, on Monday April 20, 2009 in Houston.
R. Allen Stanford is photographed in the office of attorney Dick DeGuerin, unseen, on Monday April 20, 2009 in Houston.   (AP Photo/Houston Chronicle, Mayra Beltran)
Sir R. Allen Stanford poses for photos at the Lords Cricket Ground in London.
Sir R. Allen Stanford poses for photos at the Lords Cricket Ground in London.   (AP Photo/Lefteris Pitarakis, File)
The Logo of Stanford Group (Suisse) AG, the only European branch of the Stanford Group, is seen in Zurich, Switzerland, Thursday, Feb. 19, 2009.
The Logo of Stanford Group (Suisse) AG, the only European branch of the Stanford Group, is seen in Zurich, Switzerland, Thursday, Feb. 19, 2009.   (AP Photo/Keystone/Alessandro Della Bella)
R. Allen Stanford is photographed in the office of attorney Dick DeGuerin on Monday April 20, 2009 in Houston.
R. Allen Stanford is photographed in the office of attorney Dick DeGuerin on Monday April 20, 2009 in Houston.   (AP Photo/Houston Chronicle, Mayra Beltran)
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COMMENTS
Showing 1 of 1 comment
Observer
May 11, 2009 12:54 PM CDT
Our guys are just as dirty as their guys. And where does this money end up? I'd bet there a lot of rich ex-DEA guys prowling around the nicer beaches of the world.

Allen Stanford, the drug trade middleman
Business Insider

Stanford still denies all wrongdoing
Independent (UK)

 
fraud • drugs • DEA • SEC • Drug Enforcement Administration • drug trade • Ponzi scheme • bank fraud • Robert Allen Stanford • Securities and Exchange Commission

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