Billionaire Stanford to Appear in Federal Court
Texas billionaire R. Allen Stanford, chairman of the troubled Stanford Financial Group, is set to appear in federal court Friday on fraud charges after surrendering to FBI agents in Virginia the day before, officials said.
At least five individuals, including Stanford, have been arrested following a sweeping federal indictment over an alleged $8 billion Ponzi scheme, CNBC had learned. Stanford and the others are expected to appear before federal magistrates in three states Friday.
The Justice Department has scheduled a news conference at noon ET in Washington, and the Director of Enforcement for the Securities and Exchange Commission, Robert Khuzami, is also expected to attend. Sources tell CNBC that in addition to the new criminal charges, the SEC is to lodge new civil charges.
Late word has the SEC alleging that the CEO of Antigua’s financial regulatory body, LeRoy King, facilitated Stanford in the ponzi scheme.
Stanford, who built a small real estate business into a global banking empire and became one of America’s richest men, is in federal custody in Virginia. He was arrested within hours of his indictment Thursday in what authorities have called a “massive” $8 billion Ponzi scheme.
But did you know that Stanford was a business associate of Vice President Biden’s Family?
Stanford had links to fund run by Bidens: report
(Reuters) – A fund of hedge funds run by two members of Vice President Joe Biden’s family was marketed exclusively by firms controlled by Texas financier Allen Stanford, charged by regulators with an $8 billion fraud, the Wall Street Journal said.
The $50 million fund was jointly branded between the Bidens’ Paradigm Global Advisors LLC and a Stanford Financial Group entity, and was known as the Paradigm Stanford Capital Management Core Alternative Fund, the paper said.
Stanford-related companies marketed the fund to investors and also invested about $2.7 million of their own money in the fund, the paper said, citing a lawyer for Paradigm.
Paradigm Global Advisors is owned through a holding company by the vice president’s son, Hunter, and Joe Biden’s brother, James, according to the paper. http://www.reuters.com/article/joeBiden/idUSBNG36866620090224
DO YOU THNK THE PROBLEM IS THE SEC DIDN’T HAVE THE AUTHORITY TO PREVENT THIS CRIMINAL CONDUCT OR DO YOU BELIEVE THE SEC GAVE STANFORD A PASS BECAUSE OF HIS CONNECTION TO NOW VICE PRESIDENT AND THEN SENATOR BIDEN’S FAMILY?