Tag Archive | "Allen Stanford"

Allen Stanford gets 110 years. Who did he anger?

Allen Stanford was unquestionably guilty of fraud in the billions of dollars. But he was never allowed bail, got put into the general population in Texas prison while awaiting trial where he was beaten senseless, had something close to a nervous breakdown, then got addicted to prescribed drugs while in prison. In short, his treatment was vastly harsher that financial fraudsters usually get and seem designed to break him psychologically.

Bernie Madoff was allowed to stay in penthouse luxury while awaiting trial. Allen Stanford got beaten badly in prison while awaiting trial and then pictures of him lying on a stretcher with a battered face were released to the press. WTF?

He must have really pissed someone off.

A possible clue.

“Whether I’m a scapegoat or whether I just became the thing used to deflect, I don’t know,” said Stanford.

Maybe he was laundering drug money and the money disappeared?

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Allen Stanford ruled incompetent to stand trial

Jailed alleged Ponzi schemer Allen Stanford had been deemed incompetent to stand trial due to possible brain damage due to being severely beaten by another inmate and then subsequent addiction to anti-anxiety meds. The judge specifically said this does not mean he can be released on bail.

Unlike all other Ponzi schemers, Stanford was refused bail and incarcerated in Texas under what seems deliberately harsh conditions. If he was laundering drug cartel money, as some suspect, then there could be powerful forces who don’t want him saying anything in court, forces that could easily order him beaten up while in jail.

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SEC suspected Allen Stanford was a fraud for years, did nothing

The report by the SEC’s inspector general says SEC examiners concluded four times between 1997 and 2004 that Mr. Stanford’s businesses were fraudulent, but each time decided not to go further. It singles out the former head of the SEC’s enforcement office in Fort Worth, Texas, accusing him of repeatedly quashing Stanford probes and then trying to represent Mr. Stanford as a lawyer in private practice.

The SEC was asleep about Madoff too. But saying that may be too charitable. Twice is not coincidence. It’s deliberate, seems to me.

If this happened in another country, we’d just assume the regulatory agency was a joke and corrupt, right?

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Financial crime news

(Meant to post this earlier. It’s a little old)

Madoff sons assets frozen. What took so long?

7 charged in Galleon insider trading case agree to assist investigators. Rajaratnam must be getting a teensy bit nervous by now

Settlements reached
in Dreier liquidation case. “”an under-appreciated evil of substantial frauds like those of Marc Dreier is how they pit their victims against one another,” said a judge.

Allen Stanford’s daughter must give up $1.3 million condo. He paid for it from personal account. He is being treated way harsher than Madoff, Dreier, and others were. Why?

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Feds investigate Allen Stanford ties to lawmakers

What did he get from politicians he and his staff gave millions to?

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Allen Stanford is nearing a nervous breakdown, says psychiatrist

Unlike Bernie Madoff and Marc Dreier who stayed freed on bail while awaiting trial, financier Allen Stanford has confined to the general prison population, denied access to the internet, and has limited phone access. He has lost 40 pounds, was assaulted so severely that he lost feeling on the right side of his face and can’t read from his right eye. Plus they put him in solitary for two months “for his own protection.”

A psychiatrist says he’s on the verge of a nervous breakdown, has several serious medical ailments, and under his current conditions can not properly prepare for trial.

They are asking the judge to free him on bail, something is only seems reasonable. Instead of trying to deliberately destroy him, which certainly seems like what is happening.

It’s been rumored Stanford was laundering drug money and had past investigations into him derailed by DEA because he was an informant. If any of that is true, then things get deeply murky and treacherous with all sorts of hidden cross-currents and agendas.

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Allen Stanford. They’re trying to break him. Why?

Allen Stanford when first arrested

Allen Stanford after several months in prison (Reuters photo)

Look, I have little sympathy for Allen Stanford and think he’s no doubt guilty of a multi-billion dollar Ponzi scheme. But while Bernie Madoff stayed in a penthouse awaiting trial, Stanford has been put into the general prison population, got mauled in a fight, looks much worse, his health is suffering, and his family is not allowed to visit.

This harsh treatment seems both unusual and quite deliberate. I wonder why they’re doing it.

Posted in News

Allen Stanford. His health has deteriorated after five months in prison

allen stanford perp walk

Stanford is awaiting trial and has not been convicted. Yet he was in a holding cell with eight others with no air conditioning in 100 degree heat for months, then got mauled in a fight, is in solitary now, and a few days ago was staring blankly and spitting blood into a cup while in court.

“They’re doing their best to break him,” [Stanford’s lawyer] said. “That’s the thing you thought they did in other countries. Now, we find out they do it here.”

He’s 6’6″, was in superb condition when he went into prison, could bench-press major weight, and was a black belt. (Sure, a prison fight is way different from sparring in a dojo, but still…) Yet five months later he appears to be a physical and mental wreck.

My personal belief is Stanford is probably guilty of multi-billion dollar fraud. The reality is that US prisons routinely are this bad to everyone in them. Maybe he’s being singled out for even worse treatment either by the guards or, hmmm, it’s been whispered he was laundering drug money, and the cartels certainly have their tentacles inside prisons too.

Winston Churchill said people should go to prison as punishment, not for punishment. I agree.

Posted in News

Stanford’s chief of security was a top DEA agent

Tom Raffanello was head of the DEA Miami office and led investigations against Noriega and the Medellin cartel. Then he went to work for Allen Stanford. Now he’s being indicted for ordering evidence to be shredded.

The comments at Clusterstock are illuminating.

Henry Blodget said:

There does seem to be quite a connection here. Combine this with the SEC’s mysterious abandonment of the investigation against him, and there are a lot of questions still to be answered.

Estoque said:

It’s something about that Stanford guy – would you buy a used car from him? There was a report that he was laundering the money of a big drug cartel, but no more about that now.

horace manoor said:

it’s not true that nobody’s looking over what federal agents do — they’re supposed to help the elite of washington & wall street rob the citizenry blind & they’re doing an outstanding job

Joe Dirt said:

I liked how this guy operated. Ex DEA scum bag, blood oaths. Is anyone working on a movie?

hisgirlfriday said:

Why is this surprising?

Before Manuel Noriega was a target of the DEA he was on the CIA payroll. I bet Stanford was as well.

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And the difference between high finance and organized crime is?


Blood oaths and bribery. Allen Stanford’s top aide in plea deal

James Davis has admitted to helping run Allen Stanford’s Ponzi scheme. Among the revelations, “fictitious investment reports”, bribery, and a “blood oath ceremony” among the participants.

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