Many innocent people trusted the Government of United States and its regulatory institutions.
They invested with a brokerage that was regulated by the SEC, and whose brokers were members of FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation). The SEC and FINRA allowed such a Brokerage Firm to operate in USA.
After almost two years there is no yet a solution but many news related with the negligence of SEC and FINRA, the internal corruption in the SEC and the “institutional influences” from US-government agency which allowed Allen Stanford to build his Ponzi scheme.
It is quite evident that the SEC and FINRA are responsible for prosecuting fraud and wrongdoing.
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Feds probe banker Allen Stanford's ties to Congress
The Ponzi scheme was able to continue for so long due to “institutional influences” within the SEC.
As Feds Closed In, Stanford Boosted Efforts To Buy Influence...
"John Cornyn: In November 2004, right after the election, Texas Sen. John Cornyn traveled to Antigua on Stanford's. The purpose of the trip, which cost over $7,000? To investigate the financial industry. Too bad he didn't seem to notice anything."
Senator Bill Nelson from Florida received $6,100 from Allen Stanford.
Stanford got approval to create the first company of its kind in Miami: a foreign trust office that could bypass regulators
Florida's top financial regulator and several lawmakers want an investigation of the state's agreement with banker Allen Stanford to operate a Miami office -- with no government scrutiny.
The ties between indicted banker Allen Stanford and members of Congress -- including millions in contributions and weekends in five-star Caribbean resorts -- are now the subject of a sweeping federal investigation.
One of Congress' most powerful members, Pete Sessions sent an Email to Allen Stanford on Feb. 17.
``I love you and believe in you,'' said the e-mail sent ``If you want my ear/voice -- e-mail,'' it said, signed ``Pete.''
The Democratic Senatorial Campaign Committee received $950,000 from Allen Stanford and his affiliated companies.
The National Republican Congressional Committee follows with $238,500 from Allen Stanford and his affiliated companies.
The Democratic Congressional Campaign Committee received $202,000 from Allen Stanford and his affiliated companies.
The Republican National Committee got $128,500 from Allen Stanford and his affiliated companies.
The National Republican Senatorial Committee took $83,345 from Allen Stanford and his affiliated companies.
It is clear the Ponzi scheme was able to continue for so long due to “institutional influences”
Click here to read the complete list of US-politicians who received money from Allen Stanford.
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(Washington, D.C.) - U.S. Sen. David Vitter today reacted to the report released by the Inspector General of the Securities and Exchange Commission that revealed the agency was aware of fraud committed by Texas financier Allen Stanford and did not pursue an investigation.
"The depth of the failure at the SEC in the Stanford investigation is unbelievable,” said Vitter. “There were four examinations in 1997, 1998, 2002, and 2004, and in each case examiners concluded that Stanford's CDs were likely a Ponzi scheme. Yet the SEC did absolutely nothing while Stanford fleeced investors for roughly $8 billion. What is clear from the report is that the debt the SEC owes the Stanford victims is enormous."
In August of 2009 Vitter hosted a U.S. Senate Banking Committee field hearing on the Stanford case in Baton Rouge. At that time, it was determined that the original IG report was insufficient, which led Vitter, along with Sen. Richard Shelby, to request a more complete report from the SEC on the investigation. Vitter will meet with David Kotz, inspector general of the SEC and author of the report, later this week.
Vitter serves on the U.S. Senate Committee on Banking, Housing and Urban Affairs and has been actively working on this issue to help bring relief to the victims of this scheme.
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SEC's corruption allowed Stanford's fraud.
The Securities and Exchange Commission knew that Allen Stanford was involved in a Ponzi scheme as far back as 1997, according to a report released Friday by SEC Inspector General David Kotz.
The 159-page report said the scheme was able to continue for so long due to “institutional influences” within the SEC, and the agency’s desire to chase after slam-dunk cases.
"In the Madoff case, we saw the Commission's depth of incompetency, now, in the Stanford case, we see that not only is the SEC incompetent, it is also appears to be corrupt,"
Read more here...
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DOJ Halted SEC's Investigation Into Stanford Financial
“For over a decade, the US government, including the DOJ (Department of Justice), the Treasury and the SEC had solid evidence of Robert Allen Stanford’s alleged criminal activities and investors were never warned. Whether Robert Allen Stanford is guilty or not, the reality is that our entire life’s savings is lost and these victims relied on information from the US government agencies when making the decision to invest with Stanford Group.
These agencies did not disclose critical information that would have prevented us from losing our life’s savings.”
“The entire world is watching how the American judicial and financial regulatory system will handle the debilitating losses of victims of massive fraud like the Stanford case. These victims have been denied help by the US government and are now facing a long road to an extremely limited recovery.“
Read more here.
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Memorable phrases to never forget
The 159-page of SEC Inspector General David Kotz's report said the scheme was able to continue for so long due to "institutional influences" within the SEC, and the agency's desire to chase after slam-dunk cases.
“The depth of the failure at the SEC in the Stanford investigation is unbelievable,” said U.S. Sen. David Vitter, R-La.
“The one thing that is clear from the inspector general David Kotz's report is that the debt the SEC owes the Stanford victims is enormous,” said U.S. Sen. David Vitter.
Rose Romero (director of the SEC's Fort Worth regional office): "we did not think there were any American investors so it really did not concern us".
“I urge the SEC to act swiftly in correcting these wrongs, so these families whose retirement and savings were stolen as a result of greed and government failure can begin rebuilding their lives,” U.S. Rep. Charlie Melancon said.
“Keep an eye on these people [Stanford] because it looks like a Ponzi scheme to me, and some day it’s going to blow up,” said a retiring assistant district administrator for the Fort Worth examination program in 1997 to the branch chief.
Simon, the Florida banking director who approved the agreement, says he should have banned the office from handling money.
Art Simon, now admits he made a mistake.
Several lawyers said much of the responsibility rests with Simon. ”In this case, he was responsible for having an effective system of enforcement,” said Jeffrey Sonn, a Fort Lauderdale securities attorney. “The state didn’t do the kind of reviews it needed to do.”
“As God is my witness,” Stanford said, “there is no Ponzi scheme, there was no intentional fraud.”
The company "had far more assets, solid assets, cash and other assets that could cover all our liabilities worldwide."
``I love you and believe in you,'' said the e-mail sent ``If you want my ear/voice -- e-mail,'' it said, signed ``Pete Sessions.''
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