Stanford's Swiss Money To Go To Victims

Mar 11 2014 | 8:13am ET

Swiss authorities have fined Ponzi schemer R. Allen Stanford's operations in the country, with pledges to use the proceeds to help his victims.

Switzerland's Office of the Attorney General said it had fined Stanford Group one million Swiss francs (US$1.1 million), following a five-year-long investigation. The firm must also pay between six million and nine million francs in compensatory claims.

Stanford was arrested in 2009, the year Switzerland opened its probe, and convicted of fraud in 2012. He is currently serving a 110-year prison sentence. The Swiss fine is for aggravated money laundering, the Attorney General said, adding that the five-year-old asset freeze on Stanford Group's money has been lifted, with the 200 million francs contained therein turned over to the country's regulator.

That additional money will also go to victims once the bankruptcy proceedings at Stanford International Bank are completed.

Switzerland's move follows a U.S. Supreme Court ruling that will allow Stanford investors to sue the fraudster's service providers.

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