Feds: Stanford Ran Massive Ponzi Scheme

R. Allen Stanford 'mentally impaired,' judge decides

(NEWSER) - Jailed Texas billionaire R. Allen Stanford is mentally impaired and incompetent to stand trial, a federal judge ruled yesterday. Psychiatrists testified that Stanford, who is accused of masterminding a $7 billion Ponzi scheme, is suffering from a major depressive disorder, an addiction to anti-anxiety medication, and a brain injury he suffered in a jail fight. More»

Probe of alleged Ponzi scheme nabs chief investment officer

(NEWSER) - A federal grand jury in Houston yesterday handed up the first criminal indictment in Stanford Financial Group's alleged Ponzi scheme, reports the Houston Chronicle. Chief investment officer Laura Pendergest-Holt, 35, faces two counts of obstruction. She and boss Allen Stanford already face accusations in a civil suit by the SEC. She is currently free on a $300,000 bond on another obstruction charge related to the SEC case. More»

(NEWSER) - Laura Pendergest-Holt, the chief investment officer for disgraced financier Robert Allen Stanford’s firm, is being held on $300,000 bail, the Houston Chronicle reports. Her family is attempting to come up with the $30,000 cash necessary to free her. Holt spent last night in prison after being accused of lying to the Securities and Exchange Commission. Her lawyer was irate about the arrest. She “even flew here to cooperate,” he said. More»

Minor fines levied for violations that should have been red flags

(NEWSER) - Years of SEC probes into the Stanford Group's finances resulted in wrist-slaps for violations that experts believe should have been huge red flags for investigators, the New York Times reports. The firm, suspected of engaging in an $8 billion fraud, paid out just $60,000 in the past 2 years to settle three separate claims of securities violations. More»

$8B scammer's island junkets helped push anti-tax agenda

(NEWSER) - Billionaire R. Allen Stanford has spent millions of dollars in attempting to enlist high-powered Washington officials in his anti-tax efforts, reports the Wall Street Journal. Stanford’s investment companies spent over $5 million on lobbying, $2 million on campaign contributions, and thousands more on flying members of Congress to the Caribbean, where Stanford lives. Many of the legislators do have longstanding interests in the region and have reimbursed him. More»