Robert Allen Stanford

Texas billionaire financier Robert Allen Stanford is under investigation by the U.S. Securities and Exchange Commission (SEC) for what the agency says is a "massive ongoing fraud."

In March 2009 it came to light that because of conflicts over jurisdiction of the assets in this case (between Antigua and the U.S.), some investors were unable to get information regarding their investments. Many accounts have been frozen, only later to be unfrozen, then frozen again by another agency. According to a New York Times report, a government agency called off an investigation into the Stanford scheme in 2006. In light of this allegation, Representative Dennis Kucinich has filed a request demanding the SEC release the information regarding the identity of the agency calling off the investigation.FOX Business: Stanford Investors Fight ... (April 1, 2009)

On March 17, 2009, IRS commissioner Douglas Shulman announced that investors who lost funds under the watch of Robert Allen Stanford would be able to file for theft losses deductions on their tax return. Filing losses under the classification of theft is likely to earn higher deductions compared to investors who file losses under capitol losses.Bloomberg: IRS Says Madoff Victims Can Claim Theft Losses

On Tuesday, February 17, 2009, the SEC charged Stanford and three of his companies with fraud "for orchestrating a fraudulent, multi-billion dollar investment scheme centering on an $8 billion CD program."SEC.gov: SEC Charges R. Allen Stanford, Stanford International Bank... The New York Times: Texas Financial Firm Is Accused by U.S. of $8 Billion Fraud

According to an SEC complaint filed in Dallas, Texas, Antiguan-based Stanford International Bank "has sold approximately $8 billion of so-called 'certificates of deposit' to investors by promising improbable and unsubstantiated high interest rates." In addition, the SEC complaint said the bank "misled investors about exposure to Bernard Madoff's alleged Ponzi scheme."SEC.gov: SEC Charges R. Allen Stanford, Stanford International Bank... Bloomberg.com: Allen Stanford Accused of 'Massive, Ongoing' Fraud (February 17, 2009)

On February 18, 2009, ABC News reported that authorities were investigating the possibility that Stanford may have been involved in laundering money for a violent Mexican drug cartel.ABC News: Accused Financier Under Federal Drug Investigation (February 18, 2009)

A firm controlled by Stanford marketed a fund managed by Vice President Joe Biden's sons Hunter and James. The $50 million fund in question was jointly branded between the Bidens’ Paradigm Global Advisors and a Stanford Financial Group entity.The New York Times: Stanford Said to Market Fund Run By Bidens (February 24, 2009)

"As we allege in our complaint, Stanford and the close circle of family and friends with whom he runs his businesses perpetrated a massive fraud based on false promises and fabricated historical return data to prey on investors. We are moving quickly and decisively in this enforcement action to stop this fraudulent conduct and preserve assets for investors."—Linda Chatman Thomsen, Director of the SEC's Division of EnforcementSEC.gov: SEC Charges R. Allen Stanford, Stanford International Bank...