{"id":4720,"date":"2009-02-19T16:16:03","date_gmt":"2009-02-19T16:16:03","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2009\/02\/multibilliondollar_stanford_se"},"modified":"2022-03-30T12:37:02","modified_gmt":"2022-03-30T17:37:02","slug":"multibilliondollar-stanford-se","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/multibilliondollar-stanford-se\/","title":{"rendered":"Multibillion-Dollar Stanford Securities Fraud Scam Has Investors Contacting Houston Stockbroker Fraud Lawyers for Help"},"content":{"rendered":"

The Securities and Exchange Commission is charging Robert Allen Stanford and three of his companies for their alleged involvement in a multibillion dollar investment fraud scheme<\/a>. His companies that are named in the complaint include Stanford International Bank (SIB), Stanford Group Company (SGC), which is a Houston-based investment adviser and broker dealer, and Stanford Capital Management, which is based in Antigua. The SEC is asking for emergency relief for the investors that have been victimized by the alleged scheme.<\/p>\n

The SEC complaint, filed in Dallas, Texas accuses Stanford and friends and family that he works with of orchestrating the investor scam. The SEC claims that SIB used SGC financial advisers to sell some $8 billion worth of “certificates of deposit” to investors with the promise they would receive high interest rates that were, in fact, unsubstantiated and improbable. The SEC says the defendants misrepresented these CD’s when they told investors that they were safe.<\/p>\n

The SEC complaint also contends that another scam involving $1.2 billion in sales of Stanford Allocation Strategy (SAS), which is a proprietary mutual fund wrap program, involved the use of materially bogus historical performance information that helped SGC to grow the SAS program from under $10 million in 2004 to over $1 billion. In 2007 and 2008 , SGC earned fees of about $25 million as a result. The program’s bogus performance was used to bring in registered investment advisers with substantial books of business. These advisers were then provided with substantial incentives to transfer client assets to SIB’s CD program.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities and Exchange Commission is charging Robert Allen Stanford and three of his companies for their alleged involvement in a multibillion dollar investment fraud scheme. His companies that are named in the complaint include Stanford International Bank (SIB), Stanford Group Company (SGC), which is a Houston-based investment adviser and broker dealer, and Stanford Capital […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3738,3888,3750],"tags":[],"class_list":["post-4720","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-investor-fraud","category-stanford-group-co","category-texas-securities-fraud"],"yoast_head":"\nMultibillion-Dollar Stanford Securities Fraud Scam Has Investors Contacting Houston Stockbroker Fraud Lawyers for Help — Investor Lawyers Blog — February 19, 2009<\/title>\n<meta name=\"description\" content=\"The Securities and Exchange Commission is charging Robert Allen Stanford and three of his 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