"Stanford and Madoff have more in common than you think
“Sir” R. Allen Stanford, the Texas billionaire recently charged with fraud by the SEC, has more in common with Bernie Madoff than you think. Sure, they’re both under SEC fraud investigations, but what you probably don’t know is that both men liked to invest in an alternative asset class of sorts - Politicians.
The now famous ponzi-king Bernard Madoff amassed a fortune while running his investment scam and he enjoyed playing politics with some of the money. He and his wife, Ruth, have given $238,200 to federal candidates. His company, Madoff Securities gave about $400,000 in federal campaign contributions. Bernie’s favorite congress people, judging by contributions, included Oregon Senator Ron Wyden (D), and NY Senator Chuck Schumer (D).
Sir R. Allen Stanford (Yes, he actually was knighted) was recently charged by the SEC with fraud and multiple violations of U.S. securities laws for alleged “massive ongoing fraud” involving $8 billion in certificates of deposits. Mr. Stanton is a billionaire who, like Mr. Madoff, made investments in politicians.
The Stanford Financial Group has given $2.4 million to candidates in both parties since 2000. Stanford and his wife Susan have coughed up almost another million dollars of their own money, giving 2/3 of the money to democrats. Stanford’s company spent another $5 million lobbying congress since 1999. The image below graphs the lobbying money spent over the years, notice the bulk of the money was spent last year in 2008 (Source: OpenSecrets.org).
In 2004, Stanford personally gave $25,000 to the Republican National Committee, $25,000 to the Democratic Senatorial Campaign Committee in 2005, and then switched back to Republican in 2008 giving $28,500 to the National Republican Congressional Committee.
Mr. Stanford’s favorite congress members, as judged by campaign contributions, are:
Sen. Bill Nelson (D-Fla)
Rep. Pete Sessions (R-Texas)
Sen. John McCain (R-Ariz)
Sen. Christopher J. Dodd (D-Conn)
Sen. John Cornyn (R-Texas)
Sen. Charles E. Schumer (D-NY)
Rep. Charlie A. Gonzalez (D-Texas)
"Stanford accused of 'massive' fraud" by Bloomberg News | February 18, 2009
WASHINGTON - US regulators accused R. Allen Stanford of running a "massive, ongoing fraud" through his Houston-based Stanford Group Co. while selling about $8 billion in certificates issued by an affiliated bank in Antigua.
Stanford International Bank touted "improbable, if not impossible" returns, the Securities and Exchange Commission said yesterday in a complaint against Stanford, firms he controls, and two colleagues. A federal court in Dallas agreed to freeze assets and appoint a receiver to account for investor money. Stanford spokesman Brian Bertsch referred questions to the regulator.
The SEC has been investigating Stanford Group since at least last summer over sales of the certificates. The inquiry intensified after the December arrest of New York money manager Bernard Madoff, who allegedly confessed to masterminding a $50 billion fraud in which early investors were paid with money from later participants.
Stanford Group, selling the certificates through a network of financial advisers, told clients their funds would be placed mainly in easily sellable financial instruments, monitored by more than 20 analysts and audited by regulators on the Caribbean nation of Antigua, the SEC said.
Instead, the "vast majority" of the portfolio was managed by Allen Stanford and the Antigua subsidiary's chief financial officer, James Davis, according to the regulator. A "substantial" part of the portfolio was invested in private equity and real estate.
Stanford and Davis didn't appear for testimony or provide any documents in response to SEC subpoenas in the past several weeks as investigators tried to account for the $8 billion in investor money, the agency said.
Attorneys for Stanford and Davis couldn't be located for comment.
Lawyers couldn't be located? You're kidding, right?
--more--"
Not again!
Also see: Stanford under federal drug investigation
The Hard-Working Mexican Immigrant
Madoff, Mossad and the AmeriKan MSM
Ever notice there is one group always left out of the organized crime discussion -- and they just happen to be responsible for most of it!
Update:
"Depositors find Stanford funds frozen" by Globe staff and wire services | February 19, 2009
ST. JOHN'S, Antigua - Panicky depositors were turned away from Stanford International Bank and some of its Latin American affiliates yesterday, unable to withdraw their money after US regulators accused Texas financier R. Allen Stanford of perpetrating an $8 billion fraud against his companies' investors.
Assets at the bank's headquarters have been frozen pending an investigation by Antiguan banking regulators. Banking regulators are scrambling to contain the damage after US Securities and Exchange Commission filed civil fraud charges against the billionaire on Tuesday.
Translation: they are scrambling to COVER IT UP!
Massachusetts Secretary of State William F. Galvin's office said it is examining whether any Massachusetts residents were hurt in the $8 billion CD scandal orchestrated by the Houston-based Stanford Group Co. The firm has a small office on Federal Street in downtown Boston.
Galvin's office has not received any complaints about Stanford, according to a spokesman. A call placed to the firm's Boston office was not returned yesterday. Stanford, 58, has a personal fortune of $2.2 billion, according to Forbes magazine. His whereabouts were not known.
