Stanford Group Co., a Houston investment company with assets of $8.4 billion, is being investigated because, surprise, they claim to have made returns of 10-15% on CDs since 1995.
“That type of return ignores the business cycle,” said L. Burke Files, principal of Financial Examinations & Evaluations Inc., a Tempe, Arizona-based financial investigation firm. “His returns fall outside the bell curve of probability.”
Sound familiar? And why would supposedly sophisticated investors believe they could get a 15% return on certificates of deposit?