R. Allen Stanford’s Ponzi Scheme
Does it seem like the case of Robert Allen Stanford was absent from news coverage? It seems that way to me. I mean, he’s no Bernard Madoff, but he ripped off investors for $8 Billion.
Robert Allen Stanford is no less a fraudster than Bernie Madoff or anyone else. Though his particular Ponzi pilfered funds through bogus certificate of deposit instruments as opposed to fictitious securities trades, Stanford was quite masterful for a time in eluding suspicion about his investment activities.
The typical modus operandi of most fraudsters is to project an image of greatness which is promulgated by their “pillar of the community” image visa vie involvement in non profit activities, significant donations to charity, and the perpetuation of the “good” their doing in their community and the world. Truth is, most of these guys are narcissists.
In 2007 Stanford was listed as the 239th richest American. He’s allegedly a distant relative of the founder of Stanford University. The guy has been knighted and carry’s a “Sir” title in front of his name.
Seriously though, his fraud was real. It was costly, and it hurt a lot of unsuspecting investors. Specifically his fraud circled around certificate of deposits which offered significant returns, far above most conventional CD instruments, and were not insured by the FDIC. He channeled these fraudulent CD’s through his banking operations in Antigua. The bill for is damage tops $8 Billion.
In addition to his fraudulent certificates of deposit, there have been allegations that Stanford’s bank and capital management business laundered money for less-than-legal “export” company’s largely based in South America. If that is indeed accurate then Stanford has way more than the SEC to worry about.
My question is, how did no one get to this guy, or Madoff, or anyone of these other fraudsters sooner? As in the case with Madoff there were allegations made previously about Stanford dubious activities.
There were lawsuits filed which alleged that his operations were indeed a “ponzi” scheme, way before the term became a regular part of our vernacular when talking about the economy. As far back as 2003 Stanford was even accused of bribing to Antiguan Ministry officials with over $400,000.
Anything I Missed?
And now I’d like to hear from you:
Do you believe you could be fooled by an investment scheme like Stanford’s? Do you think his case didn’t received the proper coverage in the mainstream media?
Or maybe you have a question.
Either way, let me know by leaving a comment below right now.