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?

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.

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?

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?