Texas Investment Adviser Named in Billion Dollar Fraud
By BJ Austin, KERA News
Dallas, TX – A Dallas federal judge has frozen the assets of a Texas financier who is accused of swindling clients out of BILLIONS. KERA's BJ Austin reports.
The complaint filed in Dallas federal court charges Robert Allen Stanford, and two of his employees, with orchestrating an 8 billion dollar scam involving bogus high-interest-rate Certificates of Deposit. It also alleges a separate 1 billion dollar mutual fund scheme.
An official with the Securities and Exchange Commission's regional office says some of the investors affected are in North Texas so the complaint was filed here. Stanford owns the Stanford International Bank of Antigua, and two other financial companies based in Houston.
Investigators say his clients were intentionally misled about how their money was being invested; who was auditing the books; and whether there were losses in the Bernie Madoff 50 billion dollar ponzi scheme. There were, at least 400 thousand.
The Securities and Exchange Commission moved quickly to shut down the operation when it learned about two weeks ago that the company was telling investors they could not redeem their C-D's because of an "SEC moratorium." Not true. One local SEC official calls it "a fraud of shocking magnitude."