Fund Of Funds Manager Accused Of $8 Billion Fraud

Feb 18 2009 | 1:03am ET

The Securities and Exchange Commission has charged a Texas financier and fund of hedge funds manager with defrauding investors of $8 billion.

The SEC yesterday raided the offices of R. Allen Stanford’s business and froze the assets of three of his companies. He is accused of promising big returns in investments he said were certificates of deposit, lying about their historical performance and safety.

Stanford’s whereabouts are unknown. In addition to his Houston base, he is an Antiguan knight and has a home in the U.S. Virgin Islands.

The SEC’s civil complaint, filed in Dallas federal court, also names James Davis, chief financial officer of Stanford Intenational Bank, and Laura Pendergest-Holt, chief investment officer of Stanford Financial Group.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...