Allen Stanford’s house of cards: How TD banked the 2nd-largest Ponzi scheme in U.S. history

Allen Stanford’s con was epic. He was responsible for the second biggest Ponzi scheme in U.S. history outdone only by Bernie Madoff.

With a silver tongue and endless charisma, the brash Texan built a multi-billion dollar bank on the island of Antigua. By the late 2000s Stanford Financial Group had grown into an empire with over 21,000 clients throughout the U.S. and South America.

When it collapsed in 2009, over $7 billion in investments disappeared in what one U.S. judge would call “one of the most egregious criminal frauds ever presented to a trial jury in federal court.”

To pull off that massive scam, Stanford needed help and he found it in the most unlikely of places – the Toronto Dominion Bank in Canada………………….

Read the Entire Article here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



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TD missed ‘warning signs’ about notorious fraudster, lawsuit alleges

Allen Stanford, the Texas-born ex-billionaire responsible for one of the world’s largest Ponzi schemes, is serving a 110-year sentence in a Florida prison. But outside those walls, other legal battles over his massive fraud are still being waged and involve one of Canada’s largest financial institutions: Toronto-Dominion Bank.

Mr. Stanford, now 65, was once known as Sir Allen, after he was knighted in his adopted home of Antigua and Barbuda, before his title was revoked. He was supposed to be running what appeared to be a staggeringly successful private offshore bank. But in fact, he and a small group at the top of his organization were looting his Stanford International Bank Ltd., using some new investors’ money to pay returns to previous ones and living large on much of the rest.

His empire came crashing down in 2009, when his bank was exposed as a massive fraud that cost his 21,000 investors at least $5.5-billion (U.S.). But until then, he enjoyed a lifestyle worthy of a Bond villain, acquiring his own small Caribbean island for $63-million, a fleet of private jets and helicopters, and a handful of luxurious mansions that included a 57-room “castle” in South Florida, complete with a moat…………………

Read the Entire Article here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



You Can’t Run a Ponzi Scheme Without a Bank: TD Bank Facing Two Canadian Trials Stemming from its Role in the Stanford Fraud

The New York Times once wrote that “You can’t run a Ponzi scheme without a bank … Banks are in a unique position to notice what is going on before the money is all gone.”[1] The Toronto-Dominion Bank (TD Bank) may now be wishing that it had heeded this warning. JPMorgan Chase probably does.

From the early 1990s until 2009, TD Bank was the primary provider of correspondent banking services to Stanford International Bank Limited (SIB), an Antiguan off-shore bank that sold certifications of deposit to thousands of investors around the world. Throughout that same period, Allen Stanford (Stanford), SIB’s chairman, perpetrated an $8 billion Ponzi scheme against SIB and its creditors. The scheme was the second largest of its kind, trailing only the scheme perpetrated by Bernie Madoff (Madoff). While Madoff was sentenced to 150 years in prison for his misdeeds, Stanford received a 110 year sentence and his scheme has given rise to litigation around the globe to recover funds for SIB’s creditors.

Read the Entire Article here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



Two Respected Law Firms Fight Claims That They Aided Ponzi Schemer

Robert Allen Stanford, once one of the richest men in America, is today a federal inmate serving a 110-year sentence. His crimes? Running a massive Ponzi scheme that stole over billions of dollars from thousands of unsuspecting investors. How this once bankrupt gym owner could pull off such a heinous crime is a great topic for a future story. This post examines the battle to hold Stanford’s former lawyers responsible for his losses.

As fraud recovery lawyers, we are often called upon to seek alternative sources of funds for victims. Fraudsters often are uncollectible, especially when serving 110-year prison terms. Often, however, banks and lawyers can be held responsible for monies lost by investors; especially when their actions (or inactions) helped facilitate the crime.

Seeking third party recovery is especially important in the Stanford case. The court’s receiver charged with gathering and liquidating Stanford’s assets found that Stanford spent much of the stolen funds. In just three years, Stanford spent over $100 million on private aircraft. In another instance he spent $12 million to lengthen his yacht by just 6 feet!

Investors have seen little money despite the thought that some $7 billion passed through Stanford’s hands and that of the entities he controlled. That puts pressure on efforts to collect from banks, audit firms and lawyers. Two law firms that have been sued are Greenberg Traurig and Hunton & Williams LLP. Both firms are giants in the legal industry and have very deep pockets. Greenberg Traurig has approximately 1900 lawyers and is headquartered in Miami. Hunton & Williams is a Richmond based firm with 800 lawyers.

Both firms were sued in 2012. Stanford’s victims claim that the law firms helped perpetrate the fraud. For a Ponzi scheme so massive and so sophisticated, it is clear that Stanford didn’t act alone, but are the lawyers responsible?

At the heart of the investors claims is attorney Carlos Loumiet. He served as counsel for the Stanford Financial Group of companies from 1988 until 2009. For thirteen of those years he was a partner at Greenberg Traurig. In 2001, Loumiet left and went to work at Hunton & Williams. Stanford remained his client there.

Read the Entire Article here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



‘No monies are available’, liquidator tells former SDC workers

Displaced Stanford employees picketed the offices of Grant Thornton on Thursday, December 11, 2014. (OBSERVER media photo)

Displaced Stanford employees picketed the offices of Grant Thornton on Thursday, December 11, 2014. (OBSERVER media photo)

Joint Liquidator for Stanford Development Company (SDC) Ltd, Marcus Wide has told former workers of the fallen R allen Stanford empire that demonstrations will not change the fact that “no monies are available” to pay outstanding severance.

His response came a day after ex-employees staged yet another protest outside the local Grant Thornton Office on Tuesday.

In an email to OBSERVER media, Wide said there is still no money to pay the employees’ claims.

He said the liquidators have continued talks with prospective buyers for Stanford’s properties with the hope of making a sale; however, those discussions have not borne fruit.

“So far we have not been able to get offers at what we consider to be fair value. We cannot force buyers, with the money to pay, and willing to pay proper prices, to come forward,” Wide wrote.

“We have been overly optimistic with respect to sales prospects in the past and find it difficult to make any predictions on timing,” he added.

Wide also told the former workers that the local Grant Thornton office is not involved with the Joint Liquidation of SDC.

He said the process involved himself and another liquidator, Hordley Forbes.

“The process of winding up Stanford Development Company Ltd is distinct from the process of winding up Stanford International Bank, as the creditors of each and their assets are different and cannot be intermingled,” Wide noted.

The former employees of the disgraced financier have agitated for years for the monies due to them.

Read more here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/