Not only did the SEC and other regulatory agencies ignore warnings as early as 2003 that Allen Stanford was running a Ponzi scheme, their primary reason why they couldn’t investigate him was bogus. They said the money was offshore and thus hard to trace. But apparently virtually no money went to Antigua. Instead it stayed in the US and Canada.
Worse, the SEC apparently knew something was wrong by 2005. And still did nothing. Over two dozen Stanford employees were fired for not selling CDs they thought were deceptive, their cases went to arbitration and got nowhere.
Testimony by Leyla Wydler, she also told the SEC in 2003 it was a Ponzi scheme
SGC’s claim and my counter claim were resolved in front of an NASD arbitration panel. SGC wanted me to reimburse the unforgiven portion of the signing bonus. I claimed wrongful termination and under the whistleblower act, requested the NASD to investigate my allegations.
The arbitrators were indifferent about my allegations and the award was given in favor of Stanford. They ordered me to repay the note. No due diligence was done on their part to prove my allegations were unfounded. Had they done so, they would have requested at least portfolio appraisals verified by a reputable third party, to prove me wrong.
It is difficult to see how such studied indifference by regulators to multiple complaints could be due solely to incompetence.