• Ponzi Schemer Allen Stanford Gets Sentenced to 110 Years

    Author : December 22, 2015

    Texas billionaire Allen Stanford was sentenced on to 110 years in prison. Stanford was convicted on multiple counts of fraud, conspiracy and obstruction in what is believed to be the largest Ponzi scheme since Madoff. After initial business success during the early 1980s, Stanford became the chairman of the Stanford Financial Group. At its height, the international financial services company had 50 s in multiple countries and managed $8.5 billion in assets. However, the Stanford Financial Group began to draw suspicion from the SEC for its consistently above-market returns from CDs. In response, Stanford assured his clients that his CDs were as safe, if not safer than U.S. government insured accounts. Federal Agents disagreed and raided the s of Stanford Financial. Stanford was arrested in June and charged with multiple counts of fraud and related crimes. Federal agents froze all of Stanford’s personal and corporate assets and placed his company in receivership. The SEC described Stanford’s operation as a “massive Ponzi scheme.” Stanford was charged with fraud, conspiracy and obstruction of justice. These charges include seven counts of wire fraud and ten counts of mail fraud for Stanford’s participation in the Ponzi Scheme, one count of conspiracy to obstruct an investigation by the SEC, one count of obstructing an investigation by the SEC and conspiracy to commit money laundering. Stanford was found guilty on all charges but one count of wire fraud. At sentencing, prosecutors asked for as much as 230 years in prison but instead Stanford was sentenced to 110 years, slightly short of Bernie Madoff’s sentence of 150 years. All in all, Stanford allegedly defrauded investors of around $8 billion.

Leave a Reply

Your email address will not be published. Required fields are marked *