James McCallum posts an interesting blog entry that claims links between Stanford and South American money laundering cartels, and details what it would mean for tax payers.
From the article:
The allegations that surfaced suggesting that Sanford (sic) Financial may be linked to money laundering for Latin American drug cartels through The Bank of Antigua and related banking enterprises in Venezuela and Ecuador is sure to usher in a new era of aggressive enforcement initiatives by regulators. The practice of selling worthless CDs to retail investors that promised high rates of interest is the tip of the spear in a sophisticated money laundering scheme.
ABC News’ story gives more information about the alleged connection:
…the SEC’s fraud charges may be the least of Stanford’s worries. Federal authorities tell ABC News that the FBI and others have been investigating whether Stanford was involved in laundering drug money for Mexico’s notorious Gulf Cartel.
Authorities tell ABC News that as part of the investigation, which has been ongoing since last year, Mexican authorities detained one of Stanford’s private planes. According to officials, checks found inside the plane were believed to be connected to the Gulf cartel, reputed to be Mexico’s most violent gang. Authorities say Stanford could potentially face criminal charges of money laundering and bribery of foreign officials.