Obama Gives Stanford Money to Charity

Alleged fraudster turns himself in after grand jury hands down criminal charges

(NEWSER) - Sir Robert Allen Stanford turned himself in to authorities soon after criminal charges were filed against him yesterday, the BBC reports. The billionaire financier is now in FBI custody, according to his lawyer. Stanford, whose firm Stanford Financial was shut down by authorities earlier this year, already faces civil charges over what the SEC described as a "fraud of shocking magnitude." More»

Former employee warned agency, others of 'Ponzi scheme'

(NEWSER) - A former employee of Sir Allen Stanford warned the SEC in 2003 of an “illegal Ponzi scheme” involving his firms, but regulators brushed off the allegations, the Financial Times reports. The whistleblower also told another regulatory body that one of Stanford’s companies was “engaged in a Ponzi scheme to defraud its clients,” but regulators didn’t come down on the alleged $8 billion fraud until last week. More»

'It appears to be a Ponzi scheme,' investigator says

(NEWSER) - Investigators rummaging around Allen Stanford's Antiguan bank have confirmed media reports that $8 billion is missing, the Times of London reports. “The $8 billion you hear about in the media isn’t there,” one official told customers outside the Stanford International Bank. "It appears to be a Ponzi scheme.” More»

Mexican drug lord laundered money there

(NEWSER) - R. Allen Stanford is an institution in Antigua—so much so that some residents call the Caribbean island “Stanford Land”—and now the country is reeling from the SEC fraud case against him. The country has seized Stanford’s bank, but it’s still facing questions about its cozy relationship with the billionaire. When the government created a new regulatory authority, for example, it tapped Sir Allen to run it. More»

(NEWSER) - Two New York Yankees—Johnny Damon and Xavier Nady— have had their finances frozen by the SEC in connection with the Stanford fraud scandal, Fox Sports reports. Both players kept their money in Stanford banks, and the SEC says they should have access to it in a few days. But “I can't pay bills right now," said Damon, who had to tell a personal trainer to hold tight. “Hopefully all this stuff gets resolved.” More»