Stanford 'Fraud Scheme Sealed With Blood Oath'

(NEWSER) - Alleged billionaire fraudster Robert Allen Stanford and six of his associates were indicted today on charges that they ran a $7 billion Ponzi scheme, the AP reports. Stanford turned himself in to authorities yesterday. “A fair jury will find him not guilty of any criminal wrongdoing,” Stanford’s lawyer said. He argues that any missing money is the result of the negative impact of the investigation. More»

Fraudster was likely shielded from SEC in 2006 for his trouble

(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. 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»

Account holders line up to withdraw money, despite assurances from PM

(NEWSER) - The SEC's allegations of fraud against R. Allen Stanford prompted concern on the tiny Caribbean island of Antigua, the base of the financier's bank. Despite reassurances from the prime minister, customers lined up at both branches of the Bank of Antigua to make withdrawals yesterday. Some seemed to emerge with money; others responded angrily when the main branch closed at 3pm, as normal. 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»