“It’s great having pals like you, George.” Allen Stanford and Dubya, from the always wonderful and snarky ClusterStock.
U.S. regulators accused R. Allen Stanford of running a “massive, ongoing fraud” while selling about $8 billion in certificates of deposit
His investment company had claimed returns between 10% and 15% a year since 1995 by investing in CDs, and for unfathomable reasons many supposedly savvy investors believed it.
Half the grisly fun in watching Stanford fall was their haughty, arrogant comments about how all this kerfuffle was due to a “disgruntled employee.” Right.
“We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world,” Rose Romero, director of the SEC’s Fort Worth office, said today in a statement.
Their website says they have assets of $51 billion under management or advisement. Given that much of that was probably fictitious and that any client who can withdraw money now is, Stanford will be smoking rubble shortly.