R. Allen Stanford Receives 110-Year Sentence for $7 Billion Investment Fraud
Robert Allen Stanford (“Stanford”), founder of Stanford Financial Group and former Chairman of the Board of Antigua-based Stanford International Bank (“SIB”), was sentenced yesterday to a prison term of 110 years, plus forfeiture of $5.9 billion. More than 300 victims’ letters were received by the court prior to the sentencing.
Stanford was convicted by a Houston federal jury in March for orchestrating a $7 billion investment fraud involving bogus certificates of deposit issued by SIB. The jury found him guilty of 13 out of 14 counts against him, including conspiracy to commit wire and mail fraud, wire fraud, mail fraud, conspiracy to commit money laundering and obstruction of a Securities and Exchange Commission (“SEC”) investigation.
In 2008, Forbes magazine ranked Stanford number 205 on its list of the richest Americans with a net worth of $2.2 billion. Yet, Stanford was declared indigent and given a tax-payer funded defense because, after the SEC instituted legal action against Stanford, all of his assets were frozen by court order.
During the trial, the jury was told that Stanford wasted investor money on failing businesses, yachts, cricket tournaments and other personal luxuries. Prosecutors also said he secretly borrowed as much as $2 billion from his bank and sought to build an island resort for billionaires.
In 2009, a receiver was appointed to marshal and liquidate Stanford’s holdings to repay investors. The receiver sold Stanford’s businesses, boats, six airplanes and stakes in a boutique hotel and golf course.
Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.