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February 17th, 2009
03:43 PM ET

Financier charged with $9.2 billion fraud

Julianne Pepitone
CNNMoney.com

The Securities and Exchange Commission said Tuesday that it has charged financier Robert Allen Stanford and three of his companies with orchestrating a $9.2 billion investment and sales fraud.

The SEC's complaint alleges that the fraud centered on a CD program in which Stanford International Bank promised "improbable and unsubstantiated high interest rates."

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soundoff (12 Responses)
  1. Al Tibbs

    The first photo I spotted was one with our beloved Nancy Pelosi with Robert Allen Stanford, the I further read about his cozy relationship with Texas senator. It appears Mr. Stanford was very gererous in the halls of congress. Why does this not surprise me?

    It is beginning to appear that this entire country is nothing more than one giant Ponzi scheme. And our elected officials seem to be all collecting campaign contributions from the crooks. Where does that leave our democracy? Did we learn anything from the fall of the Roman empire?

    February 18, 2009 at 4:38 am |
  2. lorraine

    i think he should go to jail just like the rest of these money gubber should and give all these poeple back there money like the tax payer would if we did it on the job are anywhere our they should flck him.

    February 18, 2009 at 2:05 am |
  3. Dennis

    Put it in Canadian Banks Annie Kate seeing as most American ones aren't capitalized enough with all the toxic assets they hold.

    February 18, 2009 at 1:25 am |
  4. Carsten

    The real shame is nobody sill spend a day in jail or give back any of the stolen money.
    Is this what you call a market economy lie cheat and steal while the regulators stand idly by.
    Just like they did with the Mortgage pushers, Tech Stocks, Enron and the list goes on.
    Who pays the bill? Those who have the least to spare.

    February 18, 2009 at 12:10 am |
  5. Philoan Tran - Houston

    I am from Houston and know the office of Stanford Financial Group in the Galleria and am not surprised at all. I bet that if you go to the Houston Club (across the street from Stanford Financial Group), you can find alot of dirt on Stanford because that is where all of the investment bankers, stock brokers and financial people hang out. The list of investors who had been victimized will probably even more interesting with all of the who's who's.

    February 17, 2009 at 10:20 pm |
  6. Jim M

    Well, the Soviets finally realized that the Marxist/Communist form of economics was dead.

    It may be time for some of America's extreme laissez faire economic proponents to admit that their extreme conservative form of economics is also dead.

    Government can legislate all of the econoimic "security" controls it wants, if there isn't an ethical foundation to the business structure and if the executive branch wants to pick and choose what it enforces our economy will never be safe.

    February 17, 2009 at 9:35 pm |
  7. Ron Bishop

    I continue to be amazed that the elephant in the room receives so little camera time. I'm referring to credit derivatives, of course.

    If you and your team want to perform a real public service, unravel some of the mystery surrounding these "low-risk, high-reward" insurance policies and how investment managers were hoodwinked into buying policies collectively "worth" more than 5 times the world's total wealth.

    Go ahead, let people in on the dark secrets that really keep bankers up at night.

    February 17, 2009 at 9:11 pm |
  8. Annie Kate

    Is there anyone in the financial markets who is not fronting a fraudulent scheme? It sounds like there is hardly anyone out there a person can trust anymore. I'm wondering where to put my money to keep it safe – a little interest would be nice but right now I just want to protect the principal.

    February 17, 2009 at 8:19 pm |
  9. HM

    No more money for West Indies cricket? Sad.

    February 17, 2009 at 6:45 pm |
  10. Luis

    Im surprised with the S.E.C.

    wow. They finally did something.

    Can they now ban naked short selling. Please.

    I want to thank the media for spreading the rumors of bank nationalizations, the financial keep taking hits day after day, and all the media could do is add more fear to the markets and their futures.

    If I were in charge of the S.E.C. i would investigate the media for spreading false rumors. Start with CNN.

    February 17, 2009 at 6:13 pm |
  11. wardell Katrina Survivor

    All of a sudden , now we get someone by the SEC, what a joke. After all the money is gone, what happened to GEORGE, cooking the books.

    February 17, 2009 at 5:51 pm |
  12. Vickie MO.

    Imagine that! Companies should be "checked-out" from time to time! It's not like the government can't get into their business!

    February 17, 2009 at 4:19 pm |