BizJournals Portfolio
Home >   Business Views, Opinions and Blogs >   Business Blogs >   Market Movers >  

Stanford The Sec Moves

Market Movers

by Felix Salmon
Main
Taxing Falling Carbon Emissions   Highlights of the SEC Complaint Against Stanford

Recent Blog Posts

Links

Feb 17 2009 11:59am EDT

Stanford: The SEC Moves

The SEC has frozen all the assets of Allen Stanford and his companies, as well as those of his CFO and CIO. I think you can guess why:

The SEC's complaint, filed in federal court in Dallas, alleges that the defendants have committed an $8 billion fraud... The complaint alleges that acting through a network of SGC financial advisers, SIB has sold approximately $8 billion of so-called "certificates of deposit" to investors by promising improbable and unsubstantiated high interest rates, supposedly earned through its unique investment strategy, which has purportedly allowed the bank to achieve double-digit returns on its investments over the past 15 years. According to the Complaint, the defendants have misrepresented to CD purchasers that their deposits are safe.

More from the complaint when I get it, but this is clearly the end of the Stanford financial empire.

Update: The complaint is here.

Update 2: The official SEC press release (rather than the litigation release) is here.

. □

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.


Connect With Portfolio.com
Like Portfolio on Facebook

Come on, like us—you know you want to.

Follow Portfolio on Twitter

Follow us and if you're an innovative entrepreneur, we'll return the favor.

The Mix

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow