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New York (HedgeCo.Net) – R. Allen Stanford’s fate may be up in the air with a looming trial and the accusations of a major Ponzi scheme, but that didn’t stop him from opening up to ABC News cameras outside of a Houston restaurant.
In a short-lived but candid interview, Stanford went from aggressive to tearful while he denied the accusations being brought forth by the SEC.
When asked why he has being targeted, Stanford confidentially replied, “I think the government failed in their oversight, and I am the maverick, rich Texan they can put the moose head on the wall.”
Stanford was charged by the Securities and Exchange Commission on February 17 after allegedly orchestrating an $8 billion fraud centered around a CD program. His companies, which include Antigua-based Stanford International Bank, Stanford Group Company and Stanford Capital Management, were also named in the 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," said the original complaint by the SEC.
“If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” Stanford asked. “I will die and go to hell if it’s a Ponzi scheme.”
The Texas billionaire, who has been knighted and dubbed “Sir Allen” in the Caribbean, says he expects to be indicted by a grand jury in a few weeks.
When asked if he lived frugally, Stanford replied, “I’ve always lived frugally. I flew around in a private jet and I had a boat, but I always lived frugally.”
Julie Scuderi Senior Editor for HedgeCo.Net Email: julie@hedgeco.net
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Reuters – Two employees of Allen Stanford’s financial business, which U.S. regulators have accused of massive fraud, held advisory roles at a watchdog group overseeing U.S. broker-dealers aimed at preventing abuses.
Lena Stinson, director of global compliance at Stanford Financial Group, served on the membership committee of the Financial Industry Regulatory Authority, or FINRA, which describes itself as the largest independent regulator of U.S. securities firms.
Frederick Fram, the chief operating officer of Stanford Group Holdings, served on the FINRA continuing education content committee, "where he participates in creating material for the Regulatory Element continuing education program," according to a biography on Stanford’s website.
The Stanford executives resigned from their posts last week at FINRA’s request, Brendan Intindola, a FINRA spokesman, said.
Stanford Group Co is a member of FINRA. Calls to Stanford’s Houston offices were not answered.
The firm referred all press inquiries to the U.S. Securities and Exchange Commission, which last week accused the Texas billionaire and two of his associates of a "massive ongoing fraud" related to the sale of $8 billion in certificates of deposit.
MSNBC – On the streets of Antigua, Texas billionaire Allen Stanford is a controversial figure. Some embrace him while others deride him as a modern-day colonialist.
But nearly all say they fear a U.S. investigation into the tycoon’s financial empire and Antigua-based offshore bank could damage the Caribbean island where Stanford is a household name, its biggest private employer and powerful business force.
"He’s providing jobs. He’s good for the economy. If he’s in trouble, that’s bad for us all," said George Green, manager of Cool Down Cafe, a hole-in-the-wall restaurant on a narrow street in St. John, the island’s capital.
Green’s comment was echoed across the twin-island nation of Antigua and Barbuda on Monday as news spread of a deepening probe into Stanford’s $50 billion Houston-based investment operation, Stanford Group Co, and its Antigua-based affiliate, Stanford International Bank.
