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.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.