Wednesday, 27 August 2014
Last updated 3 hours ago
May 31 2011 | 9:20am ET
Victims of the alleged $10.7 billion R. Allen Stanford Ponzi scheme have sued his auditors, accusing BDO USA of ignoring signs that Stanford was running an illegal hedge fund.
Stanford Financial Group investors filed suit against BDO USA and its parent in Dallas federal court last week. The lawsuit alleges that BDO continued recommending Stanford International Bank's certificates of deposit despite evidence that they were hedge fund shares "disguised as CDs."
"Despite the pervasive fraud that infected Stanford Financial Group's operations, BDO repeatedly issued unqualified audit opinions on its Stanford client's annual financial statements," the suit alleges. Stanford was arrested almost two years ago; he has pleaded not guilty and is scheduled to stand trial in September.
"BDO's cozy relationship with the Stanford Financial Group was steeped in conflicts of interest and required ongoing deception and duplicitous manipulation of the facts to enable the Ponzi scheme to grow exponentially for over a decade," the complaint complains. "The result is the loss of thousands of investors' life savings" in a hedge fund "illegally disguising itself as a bank."
BDO denies the allegations.
"The fact that this complaint was not filed until now—years after the Stanford fraud came to light and after many other investor complaints were filed—reflects a transparent understanding that the allegations lack merit," spokesman Jerry Walsh said.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...