Statement Regarding DoJ Meeting Next Week

Dear Members,

The Joint Liquidators have posted responses to communications from Ms Shaw and Mr. Escalona on their website at sibliquidation.com.   These are quite lengthy and we thought it might be useful to summarise a couple of the key points, and add some comments of our own before we go to Washington DC to represent Stanford International Victims Group at the "summit" meeting between DoJ, the victims groups, the Receiver parties, and the Joint Liquidators and their Creditor Committee.

From where we sit it appears that Ms. Shaw and Mr. Escalona have joined forces to encourage the DoJ and Receiver parties to block the JL's actions to get an early release of the SIB frozen funds - preferring the "all American" solution, no matter what the cost or delay.  The DoJ intervention to freeze funds, took place at a time when the funds were not at risk as they were going to go to one of the Court appointees. In so doing they have only caused several years delay in these funds becoming available to support recovery actions and distributions to depositors without adding any value or certainty.  The JL's have been trying to get these funds released since their appointment over a year ago as they were in a position to flow the bulk of them through to depositors promptly, and use some part of them to generate further recoveries which could also have been distributed by now.  (The JL's did not press forward with their claims process as early as they might have had there been the prospect of distribution to save money in the early going.)

There is no doubt that DoJ was continually aware of Ms. Shaw and Mr. Escalona, and hearing from no other victims were able to assume these were the only victim voices. Were it not for the JL's we would not have been included in this summit, as DoJ say they were not aware of the Stanford International Victims Group, nor its site which we believe properly posts all victims views in an effort to be genuinely representative. In that context we note Ms Shaw did not post the JL's response to her open letter, and as best we can tell neither has Mr.  Escalona posted the multiple responses by the JL's to his open communications.  We are concerned that he has mostly served to "re-victimise" the victims by asking for more money on a continuing basis.

Mr. Escalona also continues to make legal pronouncements on the JL's procedures and policies.  He is not a lawyer licensed to practice any where that we can determine, and certainly not in Antigua.  We are told he has not answered the JL's on this point when they asked him directly if he was a lawyer.  He demonstrates a continuing lack of knowledge of the laws of Antigua, and binding rules implemented under those laws, and the simply has no experience with, or understanding of, the intricacies of international insolvency proceedings. Unfortunately it appears he is simply wrong on many of his pronouncements, yet to depositors who rely on him for information, his is only voice heard, which creates problems and costs for the JL's as they go about their business.  

We invite you to look at the backgrounds of the JL's team who are all specialists in fraud and international insolvency with many years experience.  The US team of lawyers, including the Receiver, the lead lawyer from Baker Botts, the Examiner and the tort lawyers on OSIC, have virtually none collectively, never mind individually, nor does the US Court running the US case, which has declined to refer the matter to the US Bankruptcy Court, where that expertise resides. Bluntly it seems to us that this is one of the biggest reasons why the JL's have not been able to come up with a cooperative protocol, as fear by the Receiver parties for their positions  prevails rather than an understanding as to how to make the tools available work for both of the Receiver and the JLs,which was the JL's aim.

We note the JLs have pledged to continue the fight to recover funds for the earliest distribution possible and ultimately in the largest amounts possible.  If any of our members have concerns or questions with respect to what the JLs are doing, it is our experience that they are very responsive to direct communication.  

Statement by Kachroo Legal Services

"Kachroo Legal Services, P.C. wishes to inform Stanford investors that despite slanderous representations it will not file amended claims for any Stanford investors unnecessarily and it is not our intention to do so, nor has it ever been. KLS is attempting to extend an offer to review your claim and if it is found to be lacking to amend it to participate in any potential class action we file. The review would be done free of charge. Note also that unlike the 30 percent contingency of other attorneys, KLS is charging a small up front stipend and only a 15 percent contingency fee upon recovery."


Please contact us IMMEDIATELY to review your claim so that you are included in the class action at wlugo@kachroolegal.com or by calling 617-864-0755.

First Lawsuit against the SEC Announced

I would encourage everyone to read this lawsuit from start to finish, it will give you hope for our action when the time comes.

It should also make those of you who self-filed realise what is at stake here and convince you to do the right thing and make sure your Registration of Interest filing is not rejected by the SEC and you lose the chance to be part of our lawsuit.

The fact that this action has been filed will convince the SEC to go through each and every Registration of Interest to try and deny as many as they can and they know that once they have rejected your filing you cannot come back later, so please think carefully, it is worth the risk for a few hundred dollars?

Now read the case that has been filed:

Stanford Investors Sue SEC for Losses in Alleged Swindle

Stanford Investors v USA

URGENT - PROPOSAL TO ALL SELF-FILERS AND OTHERS EXPECTING COVERAGE IN THE KLS CLASS ACTION LAWSUIT AGAINST THE SEC

To: ALL SELF-FILERS AND OTHERS EXPECTING COVERAGE IN THE KLS CLASS ACTION LAWSUIT AGAINST THE SEC

From: Kachroo Legal Services, P.C. (KLS)

We are currently in the process of amending on behalf of Stanford Investors all self-filed or otherwise filed administrative claims under the U.S. Federal Tort Claims Act. It has come to our attention that many claims do not have required information and statements necessary to formulate a valid administrative claim. It has also come to our attention that the letters of claim filed by many attorneys on behalf of Stanford investors are insufficient to establish a claim under the FTCA, because not all information required in the FTCA forms is provided. All such claims will be deemed invalid with or without any response from the SEC.

IT IS IMPERATIVE that such claims be amended and refiled by KLS as soon as possible.

Kachroo Legal Services will be providing amendment of your claims if you provide the following within the next month:

1. Your last financial statement evidencing investment into Stanford International Bank, or any Stanford entity;

2. Your name and full contact information including email and phone numbers;

3. A witness name and address to your specific investment;

4. Whether you have made any insurance claim for recovery of your claim.

5. If you have invested less than $100,000 USD, legal fees of $500; If you have invested less than $1mill USD, legal fees of $1000;

If you have invested more than $1mill USD, legal fees of $1500.


Please contact us IMMEDIATELY to file your amended claim so that you are included in the class action at wlugo@kachroolegal.com or by calling 617-864-0755.

COVISAL and SVC Amend Specimen Registration Forms

This is an URGENT message for any victims who followed the advice given by COVISAL and SVC to file their own SF-95 claims using the specimen registration forms they provided.

It has come to our attention that COVISAL and SVC have just released amended specimen claim forms correcting errors in their previous release.
This raises serious concerns regarding the wisdom of taking legal advice from people who have no legal background.

Please be aware that if you have tried to complete your own registration and following the guidance provided by COVISAL & SVC, You need to look closely at the amended versions to check for more mistakes.

After waiting for months for these documents (which you were all assured by Covisal and SVC were easy to complete) and now finding out that both originals require amendments - you have to ask yourself if you are willing to take the risk that the amended versions are correct.

For those that are questioning the advice you were originally given and the fact the (long awaited) specimen registration forms are your last chance of registering your interest, perhaps now is the time to ask yourself if it is worth taking the chance of having your form rejected by the SEC?

Remember this is your one and only chance to register your claim against the SEC and you only have 7 days left, for some it is already to late! We would once again advise all victims to make contact with Gaytri Kachroo and make sure the job is done correctly by downloading the contract of engagement and sending it to info@kachroolegal.com.

These mistakes made by people who are not lawyers could cost you all dearly and leave both people who supplied you with incorrect information open to being sued. You need to think carefully about the advice you have received, but more importantly you have to question if the revised information is correct.

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Este es un mensaje urgente para que ninguna de las víctimas que siguieron el consejo dado por Covisal y SVC para presentar su propia SF-95 reclamaciones en los formularios de registro que muestra siempre.

Ha llegado a nuestra atención que Covisal y SVC acaban de publicar modificado los formularios de reclamación muestra la corrección de errores en su versión anterior.
Esto plantea serias preocupaciones acerca de la conveniencia de pedir la opinión jurídica de las personas que no tienen formación jurídica.

Tenga en cuenta que si usted ha tratado de completar su propio registro y siguiendo las orientaciones dadas por Covisal y SVC, Usted tiene que mirar de cerca las versiones modificadas para comprobar si hay más errores.

Después de esperar durante meses para estos documentos (que se asegura a todos por Covisal y SVC fueron fáciles para completar) y ahora saber que tanto los originales supone la modificación - que tiene que preguntarse si están dispuestos a asumir el riesgo de que las versiones modificadas son correcta.

Para aquellos que están cuestionando el consejo que le dieron origen y el hecho de las formas (esperado) muestra el registro son su última oportunidad de registrar su interés, tal vez ahora es el momento de preguntarse si vale la pena tomar el riesgo de que su forma rechazada por la SEC?

Recuerde que esta es su primera y única oportunidad de registrar su reclamo en contra de la SEC y que sólo han 7 días a la izquierda , para algunos ya es tarde! Queremos una vez más asesorar a todas las víctimas para hacer contacto con Gaytri Kachroo y asegúrese de que el trabajo se hace correctamente, descargue el contrato de compromiso y de enviarlo a info@kachroolegal.com.

Estos errores cometidos por personas que no son abogados podría costar muy caro a todos y dejar las dos personas que le suministró la información incorrecta abierto a ser demandado. Usted necesita pensar cuidadosamente acerca de los consejos que hemos recibido, pero lo más importante que tenemos que preguntarnos si la información revisada es correcta.

Author: Stanford's Nemesis

MORE QUESTIONABLE ADVICE - FROM COVISAL TO LATIN AMERICAN INVESTORS

The self-proclaimed ‘Leader’ of COVISAL, Jaime R. Escalona, continues to issue very questionable advice to Latin American Stanford investors.

Not only has he been requesting further ‘donations,’ now a questionnaire to register with Covisal has been issued to Latin American investors. This questionnaire requests extensive private and confidential information from Stanford victims, including; the amount of their investment; the objective of their investment, whether it was a retirement fund, family life savings, education fund, or to guarantee business loans, etc; bank details; credit card details; account statements; and even certain PIN numbers are requested.

I leave you to draw your own conclusions whether all this information is absolutely necessary to join a victim’s support group, and consider carefully what risks investors may face from the trust placed in Covisal if this information is misused, or otherwise falls into the wrong hands.

Furthermore, Covisal continues to advise investors to fill-out their own FTCA claim forms, without acknowledging the risks of such claims being incomplete; being submitted too late; or being otherwise ineligible. Please refer to some of the earlier posts for more detail of the risks involved in ‘self-filing.’ The amount of case-law and precedents that need to be understood is immense, and easy to confuse; you can easily imagine the potential for filing an incomplete or ineligible claim if your first language is not English.

We understand the ‘Leader’ of Covisal has even advised his followers that there is no urgency, to submit FTCA claims, as this is will be a class-action that all investors can join-in later. Anyone spouting such blatant misinformation should not be trusted further.

Should there be litigation, which will most likely become a class-action, ONLY those investors who have registered valid claims will be included. This is an action against the US Government under the FTCA, where the rules for eligibility are very different to other class-actions, and if the reason you give for the negligence of the SEC is significantly different to the rest of the class, your claim may not even be admissible into the class action. In which case you may have to go to court separately and litigate your claim on your own, at your own expense. Furthermore if you do not already have a contract with an attorney, such as the one we have negotiated with Kachroo Legal services for a 15% contingency, you may have to pay whatever the judge awards to the lead attorney, which could be as high as 25% contingency fees. In the past some attorneys have demanded as high as 32% contingency fees from Stanford investors who chose not to pay a retainer. Please be reminded our attorney has already offered to accept clients who are experiencing extreme hardship and can not afford to pay a retainer.

Finally, we understand the ‘Leader’ of Covisal continues to claim our attorney only has only been practicing for 6 years, when she actually has 22 years of experience , some of it highly relevant; has never lost a case; and is the most highly rated for her qualifications and experience. Anyone wishing to compare the rating of our attorney with any of the other Stanford attorneys should refer to the following link and draw their own conclusions:

http://www.avvo.com/attorneys/02142-ma-gaytri-kachroo-1356107.html and her CV can be found here: http://www.kachroolegal.com/docs/dr_kachroo_cv.pdf

Investors in the failed Stanford International Bank, a part of the Stanford Financial Group, in receivership since the arrest of Allen Stanford, who is currently in detention in Houston awaiting trial on 23 counts of fraud, have only a few days left to submit administrative claims under the Federal Tort Claims Act against the US Securities and Exchange Commission; for their negligence in not acting against Allen Stanford sooner, despite knowing for 13 years it was likely he was operating a Ponzi scheme.

The deadline for claims is fast approaching. Unless claims are submitted correctly and timely before the two year Statute of Limitations expires next month on the 16th February 2011, Stanford investors will be denied any recovery from the US government, forever.

The Stanford International Victims Group have engaged an attorney to submit FTCA claims against the SEC. This action against the SEC will not prejudice any SIPC recovery efforts, and is open to all the Stanford investors, irrespective of nationality, place of residence, or the Stanford entity in which they made their investments.

Any Stanford investors, who have not yet decided whether to join this action, should contact their own attorney at their earliest opportunity, or the attorney submitting the FTCA claims on behalf the Stanford International Victims Group: Kachroo Legal Services of Cambridge, Mass. who already have experience of submitting claims on behalf of the Madoff investors.
Email: info@kachroolegal.com

Stanford's Latin American Victims Cry Out for Justice from 87 US Legislators

Citizens of Latin America, victims of the pyramidal fraud perpetrated by the US citizen R. Allen Stanford, represented by the COALICION VICTIMAS DE STANFORD AMERICA LATINA, cry out for justice from 87 US Legislators to recover their savings that were stolen by a U.S. citizen in complicity with a group US Congressmen, before the inexplicable incompetence of the US regulatory agencies and the compromising silence of the US Department of Justice (DOJ).

Jaime R. Escalona, Leader of the Coalition, confirmed that the following US Legislators received this request for justice:

31 Senators

John Kerry, Richard G. Lugar, Christopher Dodd, David Vitter, Mary Landrieu, John Cornyn, Richard Shelby, Kay Bailey Hutchison, Johnny Isakson, Thad Cochran, Roger Wicker, Jeanne Shaheen, Bob Corker, Bill Nelson, Mark Pryor, Blanche Lincoln, Richard Burr, Robert Casey, Christopher Bond, Arleen Specter, Evan Bayh, Lamar Alexander, Jeff Sessions, Jon Kyl, Robert Menéndez, Charles Schumer, Garrett S. Richter, Kirsten Gillibrand, Christopher Bond, George LeMieux, Joseph Lieberman and Maria Cantwell.

56 Representatives

Bill Cassidy, Travis Childers, Lynn Woolsey, Charles Boustany Jr., Steve Scalice, Rodney Alexander, John Fleming, Kenny Marchant, Charlie Melancon, Allyson Schwartz, Gregg Harper, Gene Taylor, Bennie Thompson, Dennis Kucinich, Ciro Rodriguez, Ileana Ros-Lehtiner, Pete Sessions, Anh Cao, Ron Klein, Roy Blunt, Tim Murphy, Lamar Smith, John Boozman, Alcee Hastings, Jo Bonner, Pete Olson, Mike Coffman, John Duncan, Sue Myrick, William Delahunt, Tom Cole, John Hall, Blaine Luetkemeyer, Phil Gingrey, Lincoln Diaz Balart, Mario Diaz Balart, Tom Rooney, Elijah Cummings, Mike Rogers, Joe Wilson, Harold Rogers, Rush Holt, Brad Miller, Kay Granger, Michael McCaul, Gabrielle Gifford, Steve Cohen, Ron Paul, Al Green, Patrick McHenry, Marsha Blackburn, Ron Klein, Chet Edwards, Melvin L. Watt, Silvestre Reyes and Tom Grady.

"It is very important to us that these 31 Senators and 56 Representatives of the US Congress have in their hands a document that explains the extreme situation of need and hardship that thousands of innocent Latin American families are suffering because they believed in the moral ethics of the United States and the efficiency of its institutions. Today because of this pyramidal fraud perpetrated in the United States by a US citizen, these victims find themselves in misery", said Escalona.

"We know that the political support of these 87 honorable Legislators has been very valuable to the US victims, enabling the prompt recovery of their money. The Latin American victims demand equal treatment", added Escalona.

This document received by 87 Legislators of the US Congress, concludes with the following considerations:

The US Government was a necessary accomplice in the perpetration of this pyramidal fraud. Due to inefficiencies and/or negligence of its regulatory agencies, all the complaints received were permanently ignored, including the complaints from Stanford's own employees, warning of this Ponzi scheme that has ruined the lives of thousands of families around the world.

According to the Report of Investigation of the Office of the Inspector General of the United States Securities and Exchange Commission - Case No. OIG-526, dated March 31, 2010, the SEC's office in Fort Worth knew since 1997 that R. Allen Stanford was presumably operating a pyramidal fraud. However, because of its ineptitude, negligence, complicity and discriminatory treatment towards 84% of the victims because they were not US citizens, the SEC always refused to investigate him, without concern for the devastating consequences.

R. Allen Stanford maintained his fraudulent business thanks to the diligent participation of a significant group of unscrupulous US Congressmen who succeeded in blocking the enactment of financial laws that could have uncovered Stanford's frauds.

The US Government, through the Department of Justice (DOJ) and the DEA, irresponsibly did not act against R. Allen Stanford and his businesses, even though there was justified suspicion for more than a decade about his criminal actions. Instead, for their own benefit he was converted into a confidential informant without any concern for the investors' economic future.

Escalona concluded saying "The US Government must accept its role and assume its enormous responsibilities before the Latin American victims with the immediate restitution of their patrimony that was so cruelly stolen from them".

Contact:
Jaime R. Escalona
Leader Coalicion Victimas de Stanford
America Latina
E-mail: jaenrodes@gmail.com;
victimasdestanford@gmail.com
Telephone: (512) 377 9255 (512) 377 9255

A Shameful Role Played by the US Department of Justice (DOJ) in the "Stanford Case

Latin Americans, victims of the pyramidal fraud perpetrated by R. Allen Stanford, represented by the COALICION VICTIMAS DE STANFORD AMERICA LATINA, denounce the shameful role played by the US Department of Justice in its inexplicable silence on the "Stanford Case".

Jaime R. Escalona, Leader of the Coalition asks: "Why did the competent Authorities not act, even though since 1989, Scotland Yard and the FBI had suspicions that the origins of the vertiginous growth of Stanford's businesses were in Colombian drug money?"

In order to understand the miserable history of R. Allen Stanford and his criminal behavior, we should begin in 1985, when he was issued a banking license to operate his first bank, the International Guardian Bank in the small Caribbean Island of Montserrat, a British Overseas Territory.

As a result of a complaint presented to the Montserrat authorities by an American computer programmer hired to update the computer system of another Bank on the Island, Dick Marston from Scotland Yard was brought in to investigate R. Allen Stanford and his bank in Montserrat. This English officer conducted a joint investigation with the FBI that lasted several years. Once detailed intelligence was received which confirmed the presumption that R. Allen Stanford was laundering drug money for major Colombian drug traffickers, in May of 1991, the Montserrat authorities revoked the license that allowed the operation of his bank, the Guardian International Bank. He was not incarcerated.

Jaime R. Escalona asks: "Why was there merit enough to revoke his license to operate the Bank on the Island of Montserrat and but not to detain him or open a case against him for money laundering?"

"The same suspicions of fraud and money laundering accompanied Stanford's businesses in the following years, to the Island of Antigua and to the United States," explained the Leader of the COALICION VICTIMAS DE STANFORD AMERICA LATINA.

In 1999, a DEA (Drug Enforcement Administration) investigation revealed that members of the Mexican drug Cartel had deposited $3.1 million dollars into Stanford's accounts. However, instead of stopping his companies and putting him behind bars, the DEA forced him to write them a check for the same amount and made him a confidential informant.

Escalona asks: "Is it possible that because he was a DEA informant, R. Allen Stanford was spared and allowed to keep his criminal empire for more than 10 years? Why so little thought for the victims?"

As a result of the civil complaint by the SEC (Securities and Exchange Commission) that froze the funds of the certificates of deposit (CDs) issued by the Stanford International Bank Limited, the DOJ has been looking into assets related to Stanford and his Companies, in various countries, to retain them through a "Criminal Restriction Order", because of a presumed precedence of drug trafficking, until Stanford is sentenced beyond the year 2011.

The COALICION VICTIMAS DE STANFORD AMERICA LATINA asks: "If the DOJ retains Stanford's assets and does not allow their liquidation, how are the Receivers and Liquidators going to distribute them to the victims?"

"It is a shameful, indignant and unacceptable act," Escalona said of the actions of the DOJ over the last 20 years. "Is it possible that the DOJ never cared for the misfortune of the innocent depositors, and used them as part of a facade to capture drug traffickers?"

Escalona affirmed: "The honest victims of Stanford are not responsible for the use of their savings in illicit businesses. If there are doubts about the origins of some of the funds invested in CDs, is it not more just and transparent that the Receivers and Liquidators demand that the creditors show the origins of their invested funds, rather than the DOJ confiscate these insignificant found assets, which should be immediately distributed among the victims?"

Escalona concluded saying: "The US Government should assume its enormous responsibility before the victims and restitute the patrimony that was stolen from them".

Contact:
Jaime R. Escalona
Leader Coalicion Victimas de Stanford
America Latina
E-mail: jaenrodes@gmail.com;
victimasdestanford@gmail.com
Telephone: (512) 377 9255
Cell. (58 412) 617 2438

The CDs: A Financial Weapon Used with Impunity by Stanford to Defraud His Victims

The "Non-US Victims" of the pyramidal fraud perpetrated by R. Allen Stanford, represented by the COALITION VICTIMAS DE STANFORD AMERICA LATINA, respectfully remind all of the competent authorities of the "Stanford Case", that 27,992 victims distributed among 113 countries were defrauded with the same financial instrument: Stanford's certificates of deposit, and for this reason, demand "equal treatment" in the resolution of their tragedy.

According to Jaime Escalona, Leader of the COALICION VICTIMAS DE STANFORD AMERICA LATINA: "The Regulatory Authorities of the United States allowed the US citizen, R. Allen Stanford, to create in US territory a fraudulent financial empire to proliferate worldwide with impunity, under the alleged legitimacy of the US laws and the backing of its Regulatory Agencies".

"The Stanford Financial Group, jointly with its network of affiliated companies, operated from the United States and were managed by US citizens. However, in practice, Stanford's businesses traveled permanently by plane, from the United States to the rest of the world, inside the briefcases of its Financial Advisors, duly licensed by FINRA (Financial Industry Regulatory Authority)"; explained Escalona.

"During their multiple trips, its Financial Advisors personally received money destined for the pockets of the US citizen, R. Allen Stanford, through the sale of certificates of deposit issued by the Stanford International Bank Limited (SIBL), domiciled in Antigua. The promotion and sale of these CDs were conducted with the use of fraudulent marketing tools. Very frequently the seals and emblems of FINRA (Financial Industry Regulatory Corporation) and the SIPC (Securities Investor Protection Corporation) were used to legitimize unlawful applications, forms, brochures, books, etc., used by Stanford's companies in its businesses around the world", continued Escalona.

For these reasons, the COALICION VICTIMAS DE STANFORD AMERICA LATINA concludes making the following considerations:

First: The jurisdiction in the "Stanford Case" is a Utopia. There are CD holders in 113 countries that purchased their certificates of deposit through one of Stanford's tangled and impossible to audit companies, without viability or identity.

Second: For accounting purposes, the innocent victims deposited their money directly, without knowing it, in a financial fraudulent empire of which the only owner was the swindler R. Allen Stanford.

Third: Consequently, all of the defrauded investors, US citizens and Non-US citizens, with residence or without residence in the United States, should be considered as "Accredited Victims" with the same status; they should not be discriminated either because of their nationality, or residence in a US territory; neither they should be classified according to the name of the Stanford's company that sold them the CDs.

Escalona asks: "If the Ponzi's Pyramid in the Stanford Case has four (4) faces: R. Allen Stanford the" The Swindler", the CDs his "Lethal Weapon", the depositors "His Victims" and the Regulatory Agencies "His Necessary Accomplices"; why add more faces to the Ponzi's pyramid? Why further deepen more pain to the victims with legal technicalities?

Ultimately Escalona exhorts the US authorities to assume their responsibility without discrimination, and immediately restitute the money that was stolen from the victims.

Contact:
Jaime R. Escalona
Leader Coalicion Victimas de Stanford
America Latina
E-mail: jaenrodes@gmail.com; victimasdestanford@gmail.com
Teléfono: (512)377 9255

The Latin America Victims Coalition Begs For help to 71 Legislators Of The US Congress

The Coalición Víctimas de Stanford América Latina begs for help to 71 Legislators of the US Congress

Citizens of Latin America, victims of the pyramidal fraud perpetrated by R. Allen Stanford, represented by the Coalición Víctimas de Stanford América Latina, are begging 71 US Legislators from Congress to help them recover their savings that vilely were stolen by this U.S. citizen, in complicity with a group of US Congressmen, before the inexplicable negligence of the US regulatory agencies and, the compromising silence of the US Department of Justice (DOJ).

Jaime R. Escalona, Leader of the Coalition, confirmed the mailings of this request for humanitarian help to the following members of Congress:

27 Senators

John Kerry, Richard G. Lugar, Christopher Dodd, David Vitter, Mary Landrieu, John Cornyn, Richard Shelby, Kay Bailey Hutchison, Johnny Isakson, Thad Conhran, Roger Wicker, Jeanne Shaheen, Bob Corker, Bill Nelson, Mark Pryor, Blanche Lincoln, Richard Burr, Robert Casey, Christopher Bond, Arleen Specter, Evan Bayh, Lamar Alexander, Jeff Sessions, Jon Kyl, Robert Menéndez, Charles Schumer, y Garrett S. Richter.

44 Representantes

Bill Cassidy, Travis Childers, Lynn Woolsey, Charles Boustany Jr., Steve Scalice, Rodney Alexander, John Fleming, Kenny Marchant, Charlie Melancon, Allyson Schwartz, Gregg Harper, Gene Taylor, Bennie Thompson, Dennis Kucinich, Ciro Rodriguez, Ileana Ros-Lehtiner, Pete Sessions, Anh Cao, Ron Klein, Roy Blunt, Tim Murphy, Lamar Smith, John Boozman, Alcee Hastings, Jo Bonner, Pete Olson, Mike Coffman, John Duncan, Sue Myrick, William Delahunt, Tom Cole, John Hall, Blaine Luetkemeyer, Phil Gingrey, Lincoln Diaz Balart, Mario Diaz Balart, Tom Rooney, Elijah Cummings, Mike Rogers, Joe Wilson, Harold Rogers, Rush Holt, Brad Miller, y Tom Grady.

“It is very important to us that these 27 Senators and 44 Representatives of the US Congress have in their hands a document that explains the situation of need and hardship that thousands of innocent Latin American families are suffering because they believed in the moral ethics of the United States and the efficiency of its institutions”, said Escalona.

He also mentioned: “We know that the political support of these 71 honorable Legislators has been very valuable to the US victims, enabling the prompt recovery of their money. The Latin American victims demand equal treatment”.

In regards to the robbery of the $7.2 billion US dollars, Escalona said: “For at least 10 years, R. Allen Stanford and his accomplices perpetrated a massive Ponzi scheme, cleverly orchestrated, through the sales of certificates of deposit (CDs) issued by Stanford International Bank Limited (SIBL). Of the defrauded $7.2 billion dollars, more that 78% was foreign capital (non US), which was injected into the United States to boost the depressed economy and to create jobs”.

In regards to the profile of Latin American Depositors, Escalona explained: “The majority of Latin American victims affected are honest people, many are elderly, ill or close to retirement who, in order to preserve their patrimony from devaluations, high inflation and the arbitrary decisions from their governments, sold their properties and along with their savings purchased certificates of deposit to ensure a monthly income to cover their medical and living expenses. Of the 27,992 clients distributed in 113 countries around the world, more than 84% are foreign victims (non US citizens)”.

In regards to Stanford International Bank Limited (SIBL), Escalona said: “Even though SIBL had its domicile in St. John’s - Antigua, the operations were controlled and administered from the United States by US citizens - subject to the jurisdiction of the US Courts”.

In regards to the legality of the Certificates of Deposit (CDs), the Leader of the Coalition remarked: “All 27,992 Stanford’s victims were robbed of their savings with the same financial instrument: certificates of deposit (CDs) issued by SIBL domiciled in Antigua. SIBL marketed the CDs to investors in the United States exclusively through SGC (Stanford Group Company) advisers pursuant to a Regulation D private placement. In connection with the private placement, SIB filed several forms D with the SEC. For this reason the financial advisors made use of the legitimacy offered by the United States regulations to incentivize the sale of the CDs around the world”.

In regards to Stanford International Bank Limited (SIBL) and the Law for Investment companies, the COALITION VICTIMAS DE STANFORD AMERICA LATINA asks: “How did the SEC allow the public offering of the CDs through the use of the mail and other instruments of interstate commerce, if SIBL as the issuer of the CDs was not registered in conformity to the laws applied to a foreign country (Investment Company Act)”.

This document from the COALICION VICTIMAS DE STANFORD AMERICA LATINA, sent to 71 Legislators of the US Congress concludes with the following considerations:

That the US Government was a necessary accomplice in the perpetration of this pyramidal fraud. Its inefficiencies and/or negligence of its regulatory agencies such as the SEC (Securities and Exchange Commission), FINRA (Financial Industry Regulatory Authority), SIPC (Securities Investor Protection Corporation), the Department of Treasury, the Board of Governors of the Federal Reserve, and dozens of state regulatory agencies of securities and banking, among others, ignored the complaints that Stanford employees began to formulate in 2001, warning of this Ponzi scheme that has ruined the lives of thousands of families around the world.
That R. Allen Stanford maintained his fraudulent business thanks to the diligent participation of a significant group of unscrupulous US Congressmen who succeeded in blocking the enactment of financial laws that could have uncovered Stanford’s frauds.
That the US Government through the Department of Justice (DOJ) and its related agencies irresponsibly did not act against R. Allen Stanford and his businesses, even though there was justified suspicion for more than a decade about his criminal actions.
Escalona concluded saying “The US Government must accept its role and assume its responsibilities before the Latin American victims with the immediate restitution of their patrimony that was stolen from them”.

Victims target Stanford base

Some Latin American citizens say they plan to punish cruise lines for financial losses allegedly suffered at the hands of jailed Texas promoter Robert Allen Stanford.

Stanford, 60, is in a Houston detention center. He has been in custody since June, when a federal grand jury indicted him and several associates for allegedly defrauding thousands of investors of more than $7 billion. His trial is scheduled for January.

Approximately $1 billion of the Stanford losses occurred in the Baton Rouge, Lafayette and Covington areas, according to estimates by state Rep. Bodi White, R-Central, and Baton Rouge lawyer Phillip W. Preis.

But the U.S. Securities and Exchange Commission has alleged in court filings in Dallas that significant losses also occurred in more than 100 other countries.

Most losses resulted from the purchase of worthless certificates of deposit from Stanford International Bank, based in the island nation of Antigua and Barbuda in the Caribbean Sea, SEC officials allege in their court filings.

And the Stanford Victims Coalition of Latin America now plans to punish cruise lines that bring tourists to that island nation.

Jaime Rodriguez Escalona, of Caracas, Venezuela, was announced as one of two leaders of that group when it was formed in May.

Escalona said last week that damaging Antigua and Barbuda’s tourism business is the only leverage Latin American investors have over that country.

He said the governments of Latin American countries do not appear interested in pursuing any legal action on Stanford victims’ behalf.

“The Venezuelans … are in the worst situation because they live under a non-democratic government that criminally persecutes those people that have savings overseas,” Escalona said.

He added that a former Venezuelan finance minister said in a television interview “that the government would do nothing to help the victims.”

Under Escalona’s name, the coalition’s blog has referred to Antigua as “Pirates of the Caribbean.”

One of Antigua’s former top bank regulators is under indictment in the U.S. for allegedly accepting bribes from Stanford as payment for blocking investigations into the Texan’s island operations.
Escalona conceded that cruise lines had nothing to do with Stanford’s alleged crimes. But he said his group will work to enforce a boycott of those companies if they do not cease service to Antigua and Barbuda.

Escalona said the government of Antigua and Barbuda seized more than $200 million of Stanford’s property after his arrest. He said his coalition wants to pressure the island nation to return that money to Latin American people who lost their retirement savings to Stanford.

Four cruise lines that currently stop at Antigua — Royal Caribbean International, Princess Cruises, Carnival Cruise Lines, and Norwegian Cruise Line — did not respond Friday to requests for comment on the threatened boycott.

Escalona said his group is relatively small, consisting of fewer than 500 of the more than 10,000 Latin Americans who lost money when the SEC shut down Stanford’s operations 13 months ago.

He said members of the coalition reside in Mexico, Argentina, Bolivia, Colombia, Ecuador, the Dominican Republic, El Salvador, Honduras, Nicaragua, Costa Rica, Peru, Puerto Rico (a U.S. territory) and Venezuela.

Some investors in Spain and Portugal also have joined the coalition, Escalona said.

Escalona described himself as a consultant in both real estate and wind turbine technology. He said he divides his time between Venezuela and Austin, Texas.