The non-US victims of the R Allen Stanford fiasco are perturbed that the Securities and Exchange Commission (SEC) was au fait with the alleged fraud since 1997.
It is against this backdrop that the coalition has consequently insisted that the commission should take responsibility for the fallout.
The group, Coalicion Victimas De Stanford America Latina, in a statement on EIN Presswire, accused the SEC of being inept, negligent and complicit in its investigation of the Stanford Case.
Leader of the coalition, Jaime R Escalona said: “For the majority of the non-US victims that represent more than 84 per cent of the total depositors that believed in America’s ethical standards and the efficiency of its regulatory authorities, the Inspector General’s Report of the SEC, published on April 16, 2010, is shameful and devastating.
“Since 1997, the office of the SEC in Fort Worth knew that R Allen Stanford was presumably running a pyramidal fraud,” the coalition leader added.
Questioning this perceived incompetence on the part of the regulatory body, Escalona rhetorically asked if it’s not considered inept when a crime is being committed and there is no action on the part of the authorities.
The news site added that the SEC’s inspector general said that the “examiners of the SEC in Fort Worth could never convince the SEC’s Enforcement Division to open an investigation that could have stopped the sale of CDs (Certificate Deposits) in time, and in consequence could have prevented this social catastrophe.”
According to the news item, the inspector general said the chief of enforcement at the time, Spencer Barasch, adamantly refused to investigate Stanford and even closed inquiries that other officials had started.
Responding to reports that Barasch, after leaving the SEC in 2005, tried three times to be Stanford’s legal representative before the SEC and was actually able to represent him during three months in 2006, Escalona queried the implications of Barasch’s move.
“How much did this complicity cost the victims?” he asked. “Why did the SEC not have the valor to stop the immoral behaviour of this government official?”
It is reported that the Stanford Case was a “difficult” one, which warranted a lengthy investigation. Apparently, the directors of the SEC’s Forth Worth office were evaluated on the number of cases that they were investigating and they were aware that they were under scrutiny.
Consequently, “novel or complex” cases were closed, notwithstanding the consequences.
As is expected, this did not go down well with Escalona, who deduced that discrimination may have played a role in the actions, or lack thereof, by the SEC.
“The saddest thing was to learn that the SEC did not give priority to the Stanford Case because in addition to being a complex case and difficult to investigate, the majority of the investors were foreigners,” he posited. “… Is this a case of negligence or discrimination?”
Dear All
Here we go again. The poor Venezuelans, Mexicans, and the South American Republics.
YES, all these poor people that invested ALL their money laundered, tax evaded fortunes. Mind you, the monies were laundered through their American Banks in the USA. Then the monies were legally wire transfered from US BANKS which are regulated by the different federal banking agencies to Stanford International Bank in Antigua. Think about it.
QUESTION
Do you know the Island which presently LAUNDERS BILLIONS, BILLONS and BILLIONS of US DOLLARS everyday?????
ANSWER
The Island of Manhattan (NEW YORK CITY). The village name is WALL STREET.
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Prophet, Usually I smite those who take my name in vain, but you live in Antigua, so I can’t punish you more.
But PLEASE, stop singing! All of you! We do hear you up here and you have no idea how annoying it sounds!
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In order:
Tell Me: Because Antigua is trying to renegotiate the settlement up. I doubt that anyone would do that, but Antigua is trying. Good Luck.
LOL: the official you refer to was a low level functionary in Fort Worth Texas regional office, not a National Level SEC official. Leroy King was the top official of the FSRC, and he directly interfered with the SEC investigation (which is why he’s about to be extradited to stand trial) Get a grip on the scale involved here. US$ 7 billion may be a big deal in Antigua (seven times the annual GDP at last check), but that’s about 2 or three days GDP of a major American city.
Your 4 billion figure would be appropriate if Antigua had actually gotten a 3 billion dollar judgement. Unfortunately, the judgement was 21 million, which Antigua refuses to accept since they think it’s too low.
Prophet: No one expects Antigua to come up with 7 billion, not in a million years. What is expected is that it sell Stanford’s lands to the highest bidder, repay the “loans” and co-operate in the investigation. To date Antigua has done NOTHING.
MOSES: The contributions you refer to were “petty cash” in the overall campaigns (do you have any idea at all how much it costs to be elected to national office in the US?). Stanford was entitled to a swift trial under US law and HIS LAWYERS requested a delay to prepare his case. The US Government wanted to go to trial later THIS year, but Stanford’s attorneys have delayed that. Oh, and Madoff never had a trial. he pleaded guilty and was sentenced.
I ask again: If Antiguan Banks are the responsibility of the US SEC, how should they execute that responsibility? Should they take over the FSRC? Establish a US customs point to make sure no cash or negotiable instruments enter Antigua without US clearance, simply assume customs duties in Antigua? Where would you draw the line?
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Whoever control what goes out on this blog the wrath of the lord is going to fall upon you for not putting out my comment
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funny that the same Stanford tried to bribe the Obama administration in the same way and he sent him back his “donation” lol Maybe you THINK all he did was the dinner, handshake and picture thing, but i believe it goes alot deeper than we all believe and WHEN the truth comes out, we will all see the real crap that existed!! Trust me people, this is NOT what we believe is a straight up case here. If the SEC had such a solid case on Stanford, he would already be on trial as Madoff had. Some serious hand greasing and money passing is yet to show up and someone in a VERY high place will fall. The Antigua part of this whole scam is as you say “small potatoes”. IF it happens as i say, i change my name to MOSES!!! lol
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@ Ghost of Robert Vesco America have all the money in the world to do whatever they want to, where do you expect a poor 108 square miles Island like Antigua will get 7 billion dollars to give you’ll, we do not have a money tree here you know, America print their own money, the laws that you rich countries passed ruined our offshore sector the was doing well, and you’ll claim to be intelligent and well educated people yet you’ll ruin the whole world economes, people are reluctant to travel on vations because of the lack of funds, and those who travel do not spend as before, so our chief industry tourism is suffering.
You guys are the ones that ruined everything so stop being a cry baby and seek some havenly wisdom on how to take this World out of the mess you’ll have us in, maybe God will remove the vail from you’ll eyes and show you’ll his plans, and when he does please do not bewildered.
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Ghost of Robert Vesco if I am not mistaken, the SEC are accused of not investigating because key persons who later became stanford’s lawyer kept closing the investigations. One should always report the facts. Also I came by 4 Billion based on the fact that Interest would have been accumulated by now. Does the fact that this person worked for an arm of the US government make the entire US government complacent and guilty? If King makes the whole government guilty by the fact that he worked for the regulatory arm of government and took bribes, would not that same principle apply to employees of the US SEC as well?? The fact is that many first world states and their citizens are always willing to pin the term banana republic or terrorist state on third world countries that are doing the same thing that first world states are doing. The fact of the matter is that many persons (in both first and third world states) treasure their money more than values, truth heck even more than their own children. Touch their money and you, your family, your friends, neighbours, anyone who ever passed you on the street and said hello, must die. If your big brother took a stick and hit an innocent dog then my big brother took a stick and hit the same innocent dog which one of our big brother is in the right?
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@Ghost of Robert Vesco could you tell me why America is not awarding Antigua the 21 million you mentioned?
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The Donations to US campaigns (all documented BTW) couldn’t get anyone anywhere in the US legislative system. We’re talking Stanford here, not Exxon or Microsoft! The US did try to investigate SIB, but the FSRC (which was a wholly owned subsidiary of SIB), interfered with the investigation. What was the SEC supposed to do, come down and take over Grenada style”?
As for Bush (I do agree with the idiot part), again, Stanford was small potatoes. All Stanford did was finance a fund-raising dinner, and in return all he got was a handshake, a picture and a letter., small potatoes, we’re not talking Haliburton. It takes BIG money to get favours out of the Bush family. Just ask the Sauds and Bin Ladens.
Also, had I lost money, I’d be tilting at the same windmills as the Latin American investors, since the US DOES have 7 billion, and if SIB were an American bank, every account would have been insured by the FDIC or SIPC, which is what they want. (over 200 banks in the US have gone down in the last two years, and any investor who kept his account below US$250,000 didn’t lose a penny) I don’t see that happening since SIB was an Antiguan bank.
The question I have for you is: If the US had the responsibility of regulating SIB, what powers should the US have to come down to Antigua and regulate, audit and control Antiguan banks going forward??
lol: more like rotflmao! Antigua was awarded 21 million, not 4 billion (they only sued for 3.somthing billion, ridiculous as that was!)
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LOL @ lol – you hit the nail RIGHT on the proverbial head my friend!! at least someone had the sense and nuts to mention that!!
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Ghost of Robert Vesco there is a very simple solution to the matter. What the US should do is take the 4 Billion dollars that they owe Antigua due to the WTO ruling and pay off the Stanford victims. That should teach that lil Antigua a lesson that they should ALWAYS honor all international agreements that they sign on to!
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“Ghost of Robert Vesco” you are obviously a very hard nut to crack!! maybe you need to ask your then president G.W Bush why the hell the SEC was not allowed.. as quoted ““Since 1997, the office of the SEC in Fort Worth knew that R Allen Stanford was presumably running a pyramidal fraud,” to investigate fully the fact that Stanford was indeed running whatever it is that he was. The truth is that maybe the President was in on the scheme himself?? Why is it that as soon as the NEW president comes into office he decides to investigate and set the SEC dogs on Stanford? I worked for the Internet Gaming market and the only reason that the US wanted to ban said was due to the fact that they were unable to recoup taxation from the winnings of the players. DO NOT come to us with any BS. There is absolutely NO COUNTRY in the world more currupt that the United States of America!!! The only country in the world who had an idiot for President, sending BILLIONS of dollars to fight the DUMBEST war in the world costing EVERYONE….WORLDWIDE….monies. The only reason you want the SEC to find the money is obviously that YOU….or your rich friends lost money to the “ponzi scheme” that Stanford was smart enough to dupe the thieving citizens of the US, who thought it good to hide your money from the IRS for use later in life when you are old and gray. Sorry!! it did not work! Live with it! Stanford will use his “get out of jail free” card that Bush gave to him when the time is right!!
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Ghost of Robert Vesco… You mentioned purchasing a small third world government. How come you did not mention purchasing of key persons in the SEC and purchasing of the American Government as well??
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I’m sure Stanford has some stashed away somewhere (Switzerland is a pretty good bet), what I said was neither the US or Antiguan receivers can find it. That’s why Stanford is considered a “flight risk” and being held in jail pending his trial. My point was after making bad investments and squandering it, there’s nowhere close to US$7 billion, THAT, I’d bet the farm on!
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Ghost of Robert Vesco do you seriously believe that the money is all gone? You are so gullible. You better check Switzerland! You would still rather believe Stanford than Antigua.
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Because the types of gambling (poker, blackjack, etc.), and the lack of financial control and oversight is a “Welcome Mat” to fraud, money laundering and terrorism funding.
So what does this have to do with SIB? Again, even other Stanford investors who steered clear of the SIB CD’s got their assets back. Only the Antiguan part of the operation was involved in the fraud, yet these Latin American investors are going for the “deep pockets” of the US instead of the true culprits.
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@ Ghost of Robert Vesco I have being to Casinoes in the USA, there is off track betting in the US, I also being to online sites where you can play the US Lottery, so how comes Internet gaming is such a demon that the US Government hate.
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Last I checked, US law only applies in the US. As for “Americans should have all the money in the world”, perhaps you’ve heard of jobs moving to Mexico and India and the capital flight to China?
Now remind me what any of this has to do with SIB? Are you implying that breaking US law in the US (internet gambling) or theft (SIB) are the only ways Antigua can advance itself? I don’t believe that, I hope you don’t either.
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@Ghost of Robert Vesco, Maybe if the USA Government was not so selfish and believe that only America and Americans should have all the money in the world, and not preventing small states from rising to the top with all the laws they pass to hinder us, Antigua would have being able to do the same as the US did.
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Wadadliwatch: The only reason the SEC is being blamed is that Stanford located his sales offices in the US, giving his Antiguan bank a first world veneer. The entire point of the above article is that the Latin American investors THOUGHT they were investing in a US institution since the physical office where they handed over their money was in the US.
As for the money being “locked down”, what money are you referring to? Vantis, who have possession of all the SIB records, and Janvey, the US receiver, who is employing some of the best investigators and forensic accountants on the planet, both agree that there’s only about 5 cents on the dollar left. Between bad investments, money lousing businesses (Sticky Wicket, The Sun, etc.), 20/20 cricket tournaments, ridiculous spending on office infrastructure and high living, (not to mention the purchase of a small third world government,) it’s all gone.
As far as having trouble withdrawing money, there were problems before the SEC filed suit (remember, the SEC has no power to restrict money in an Antiguan bank) the lack of capital came to light when Alex Dalmady published “Duck Tales” in Venezuela (where the plurality of the Stanford investors were located.) this caused the initial run, and forced the SEC’s hand to shut down the US part of Stanford’s operation.
It should be noted that Stanford also operated a legitimate brokerage operation which sold stocks, bonds and precious metals. All of those investors have had 100% of their assets returned. It is only the SIB (Antigua) CD holders who were defrauded.
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Reality check
So now dear readers you have another entity to point the finger at – the SEC. The SEC’s motivation is to eradicate “Offshore Banks” of which Allen Staford’s SIB is only one of many. The SEC’s motivation is to reign in these entities which are a haven for Americans wishing to avoid paying taxes to the IRS in the USA.
The Antigua governments, past and present, have allowed SIB to exist in plain sight for many years at their convenience. The bank was located right inside airport lands for the convenience of investors to debark from their planes with briefcases full of money and deposit the money at the SIB and then get back on their planes without hardly getting their shoes scuffed.
While I will not argue the legality of these off-shore banks, they were physically located in foreign lands and out of the jurisdiction of the U.S. This bank is not covered by the Federal Deposit Insurance Corporation (FDIC).
It has yet to be proven in a court of law that Stanford was operating a “Ponzi Scheme”. The many investors do not have access to their money in the SIB because it has been locked down by the SEC. I do not recall anyone complaining of not being able to withdraw money from that bank until the action of the U.S. government.
Look at all those wall street corporations who were trading junk surities that brought the financial world down. The losses were in the hundred of billions yet the US government shored them up with untold billions some of which went to corporate bigwigs in bonuses while Stanfords empire which was small fish in comparison remains in jail
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The Madoff investors are being compensated up to five hundred thousand US dollars per account, what insurance does Antigua provide?
The Madoff affair has been fully investigated, and both a full report and televised congressional hearings on the SEC’s role were held. Will we ever see the report on the FSRC?
Madoff’s scheme was perpetrated entirely within the US. The SEC isn’t trying to shift blame for their negligence to another country. Antigua has done nothing for the SIB investors other than deny responsibility and attempt to steal the remaining assets.
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@ Ghost of Robert Vesco, I hope it is the same sentiment you have for Madoff Wall Street and the USA
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Exactly, Avid Reader!
The core of the problem is that the US SEC under the Bush administration allowed unscrupulous people (like Sir Allen Stanford, Antiguan citizen and Knight) to operate as a US entity. The SEC needs to have their feet held to the fire and answer: What made you accept this rouge nation so-called bank into the first world, and more importantly, what are you doing now to ensure that Antiguan “investments” are never again sold in the civilized world?
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Finally these people are getting to the core of the problem.
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I agree COAST. The SEC should have known that Antigua has a decades long history of corruption and criminal activity. For the SEC to allow an Antiguan institution to sell their phony financial securities in the US is an unpardonable lapse of judgment. Hopefully this will be the end of Antigua’s so-called “offshore banking” racket.
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At least the leader of the coalition, Escalona, points some/majority of blame to the SEC. This Commission has failed these investors for many years in investigating Standford and his ponzi scheme. Where is the transperancy and accountability on the part of the SEC? It seems to me that they want all/most of the blame on Antigua, on the part of their negligence!
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the fault shoud also lye with ALP government for aalowing stanford to aperate in antigua for so log under suspicious circumstances.they turned an eye backward,they basically gave him the country and said do whatever you want no one can or will stop you.
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Finally someone is seeing the real people who are at fault: The SEC
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