Allen Stanford
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Robert Allen Stanford (born March 24, 1950) is an American financial fraudster, former financier, and sponsor of professional sports. He is serving a 110-year federal prison sentence, having been convicted in 2012 of fraud, on charges that his investment company was the vehicle for a massive
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
. Stanford was the chairman of the now-defunct
Stanford Financial Group The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Headquartered at 5050 Westheimer in Uptown H ...
of Companies. A fifth-generation Texan who once resided in
Saint Croix, U.S. Virgin Islands Saint Croix; nl, Sint-Kruis; french: link=no, Sainte-Croix; Danish and no, Sankt Croix, Taino: ''Ay Ay'' ( ) is an island in the Caribbean Sea, and a county and constituent district of the United States Virgin Islands (USVI), an unincor ...
, he holds
dual citizenship Multiple/dual citizenship (or multiple/dual nationality) is a legal status in which a person is concurrently regarded as a national or citizen of more than one country under the laws of those countries. Conceptually, citizenship is focused on ...
, as a citizen of
Antigua and Barbuda Antigua and Barbuda (, ) is a sovereign country in the West Indies. It lies at the juncture of the Caribbean Sea and the Atlantic Ocean in the Leeward Islands part of the Lesser Antilles, at 17°N latitude. The country consists of two maj ...
and of the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
. He contributed millions of dollars to politicians in Antigua and the United States, amongst other countries. In early 2009, Stanford became the subject of several fraud investigations, and on February 17, 2009, was charged by the
U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
with fraud and multiple violations of U.S. securities laws for alleged "massive ongoing fraud" involving $7 billion in
certificates of deposit A certificate of deposit (CD) is a time deposit, a financial product commonly sold by banks, thrift institutions, and credit unions in the United States. CDs differ from savings accounts in that the CD has a specific, fixed term (often one, t ...
s. The
Federal Bureau of Investigation The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, ...
raided Stanford's offices in
Houston, Texas Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
;
Memphis, Tennessee Memphis is a city in the U.S. state of Tennessee. It is the seat of Shelby County in the southwest part of the state; it is situated along the Mississippi River. With a population of 633,104 at the 2020 U.S. census, Memphis is the second-mos ...
; and
Tupelo, Mississippi Tupelo () is a city in and the county seat of Lee County, Mississippi, United States. With an estimated population of 38,300, Tupelo is the sixth-largest city in Mississippi and is considered a commercial, industrial, and cultural hub of North M ...
. On February 27, 2009, the SEC amended its complaint to describe the alleged fraud as a "massive Ponzi scheme". He voluntarily surrendered to authorities on June 18, 2009. On March 6, 2012, Stanford was convicted on all charges except a single count of
wire fraud Mail fraud and wire fraud are terms used in the United States to describe the use of a physical or electronic mail system to fraud, defraud another, and are Federal crime in the United States, federal crimes there. Jurisdiction is claimed by the ...
. He is serving a 110-year sentence at
United States Penitentiary, Coleman The United States Penitentiary, Coleman I and II (USP Coleman I and II) are high-security United States federal prisons for male inmates in Florida. It is part of the Coleman Federal Correctional Complex (FCC Coleman) and is operated by the Fede ...
II in
Coleman, Florida Coleman is a city in Sumter County, Florida, United States. The population was 703 at the 2010 census. According to the U.S. Census estimates of 2018, the city had a population of 877. History Second Seminole War On June 8, 1840, Colonel W. J. Wo ...
. In September 2014, Stanford filed an appeal; it was rejected in October 2015.


Early years

Stanford grew up in
Mexia, Texas Mexia ( ) is a city in Limestone County, Texas, Limestone County, Texas, United States. The population was 6,893 at the 2020 census. The city's motto, based on the fact that outsiders tend to mispronounce the name , is "A great place to live, ...
. His father, James Stanford (1927–2021), was mayor of Mexia and a member of the Board of Directors of
Stanford Financial Group The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Headquartered at 5050 Westheimer in Uptown H ...
. His mother, Sammie (née Conn), is a nurse. After his parents divorced in 1959, Stanford and his brother went to live with their mother. Stanford graduated from
Eastern Hills High School Eastern Hills High School is a four-year public high school in Fort Worth, Texas, United States. The school is educating students in grades 9–12, as part of the Fort Worth Independent School District. In an historical footnote, the band from ...
in
Fort Worth, Texas Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
.Swartz, Mimi. "The Dark Knight." ''
Texas Monthly ''Texas Monthly'' (stylized as ''TexasMonthly'') is a monthly American magazine headquartered in Downtown Austin, Texas. ''Texas Monthly'' was founded in 1973 by Michael R. Levy and has been published by Emmis Publishing, L.P. since 1998 and is ...
''. May 2009. Volume 37, Issue 5. 211.
In 1974, Stanford graduated from
Baylor University Baylor University is a private Baptist Christian research university in Waco, Texas. Baylor was chartered in 1845 by the last Congress of the Republic of Texas. Baylor is the oldest continuously operating university in Texas and one of the fir ...
in
Waco, Texas Waco ( ) is the county seat of McLennan County, Texas, United States. It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2020 population of 138,486, making it the 22nd-most populous city in the ...
, earning a BA degree in
finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fina ...
.


Career

Stanford started in business in
Waco, Texas Waco ( ) is the county seat of McLennan County, Texas, United States. It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2020 population of 138,486, making it the 22nd-most populous city in the ...
, opening a bodybuilding gym that failed. His first success in business came from speculating in real estate in Houston after the Texas oil bubble burst in the early 1980s; his father was his partner in this venture. The men made a fortune in the 1980s, buying up depressed real estate and selling it years later as the market recovered. After his father retired in 1993, Stanford took control of the company, which by then had 500 employees. Stanford moved to the
Caribbean The Caribbean (, ) ( es, El Caribe; french: la Caraïbe; ht, Karayib; nl, De Caraïben) is a region of the Americas that consists of the Caribbean Sea, its islands (some surrounded by the Caribbean Sea and some bordering both the Caribbean Se ...
in the 1980s, first to
Montserrat Montserrat ( ) is a British Overseas Territories, British Overseas Territory in the Caribbean. It is part of the Leeward Islands, the northern portion of the Lesser Antilles chain of the West Indies. Montserrat is about long and wide, with r ...
, then to
Antigua Antigua ( ), also known as Waladli or Wadadli by the native population, is an island in the Lesser Antilles. It is one of the Leeward Islands in the Caribbean region and the main island of the country of Antigua and Barbuda. Antigua and Bar ...
. With Stanford Finance, he started Guardian International Bank on the island of
Montserrat Montserrat ( ) is a British Overseas Territories, British Overseas Territory in the Caribbean. It is part of the Leeward Islands, the northern portion of the Lesser Antilles chain of the West Indies. Montserrat is about long and wide, with r ...
in 1985; he moved it to
Antigua Antigua ( ), also known as Waladli or Wadadli by the native population, is an island in the Lesser Antilles. It is one of the Leeward Islands in the Caribbean region and the main island of the country of Antigua and Barbuda. Antigua and Bar ...
during a British crackdown on Montserrat's offshore-banking industry in the 1980s, renaming it
Stanford International Bank Stanford International Bank was a bank based in the Caribbean, which operated from 1986 to 2009 when it went into receivership. It was an affiliate of the Stanford Financial Group and failed when its parent was seized by United States authorities i ...
, an affiliate of Stanford Financial. Early in 2007, Stanford and Baldwin Spencer, prime minister of
Antigua and Barbuda Antigua and Barbuda (, ) is a sovereign country in the West Indies. It lies at the juncture of the Caribbean Sea and the Atlantic Ocean in the Leeward Islands part of the Lesser Antilles, at 17°N latitude. The country consists of two maj ...
and formerly an ally, began verbally feuding in public. In 2009, Antigua's Financial Services Regulatory Commission named a British firm,
Vantis Vantis plc was an accountancy firm based in London, England, providing accounting, tax and business advice to owner-managed businesses, listed companies, not for profit organisations, high-net-worth individuals and other professionals. It was pla ...
Business Recovery Services, the receiver for Stanford International Bank and Stanford Trust Company, the
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
reported.


Criminal activity


Ponzi scheme and fraud convictions

Reports surfaced in early February 2009 that the SEC, the FBI, the Florida Office of Financial Regulation, and the
Financial Industry Regulatory Authority The Financial Industry Regulatory Authority (FINRA) is a private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets. FINRA is the successor to the National Associati ...
, a major U.S. private-sector oversight body, were investigating
Stanford Financial Group The Stanford Financial Group was a privately held international group of financial services companies controlled by Allen Stanford, until it was seized by United States (U.S.) authorities in early 2009. Headquartered at 5050 Westheimer in Uptown H ...
, questioning the consistently higher-than-market returns which Stanford International Bank claimed to make for its depositors. A former executive told SEC officials that Stanford presented hypothetical investment results as actual historical data in sales pitches to clients."Stanford Presented Hypothetical Data as Actual, Executive Says"
Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and ma ...
, February 18, 2009.
Stanford claimed his certificates of deposit were as safe as, or safer than, U.S. government-insured accounts.Stanford Lured Clients With "No Worry" Promise, Rates
Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and ma ...
, February 19, 2009.
A leaked cable message from the U.S. Embassy in the
Bahamas The Bahamas (), officially the Commonwealth of The Bahamas, is an island country within the Lucayan Archipelago of the West Indies in the Atlantic Ocean, North Atlantic. It takes up 97% of the Lucayan Archipelago's land area and is home to ...
reported as early as 2006 that companies under Stanford's control were "rumored to engage in
bribery Bribery is the Offer and acceptance, offering, Gift, giving, Offer and acceptance, receiving, or Solicitation, soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With reg ...
,
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
, and political manipulation". The U.S. Ambassador to the Bahamas at the time was reported to have "managed to stay out of any one-on-one photos with Stanford" during a charity breakfast event. Federal agents raided the offices of Stanford Financial on February 17, 2009, and treated it as "a kind of
crime scene A crime scene is any location that may be associated with a committed crime. Crime scenes contain physical evidence that is pertinent to a criminal investigation. This evidence is collected by crime scene investigators (CSI) and law enforcement ...
—cautioning people not to leave fingerprints".Baltimore 2009. The SEC charged Stanford with "massive ongoing fraud" centered on an eight-billion-dollar investment scheme. Stanford's assets, along with those of his companies, were frozen and placed into
receivership In law, receivership is a situation in which an institution or enterprise is held by a receiver—a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights"—especially in ca ...
by a U.S. federal judge,SEC charges Texas financier with 'massive' fraud
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
, February 17, 2009.
who ordered Stanford to surrender his passport.Fraud case felt in Baton Rouge
'' The Advocate'', February 18, 2009.
CNBC CNBC (formerly Consumer News and Business Channel) is an American basic cable business news channel. It provides business news programming on weekdays from 5:00 a.m. to 7:00 p.m., Eastern Time, while broadcasting talk sho ...
reported that Stanford tried to flee the country on the same day as the raids on his headquarters. He contacted a private jet owner and attempted to pay for a flight to
Antigua Antigua ( ), also known as Waladli or Wadadli by the native population, is an island in the Lesser Antilles. It is one of the Leeward Islands in the Caribbean region and the main island of the country of Antigua and Barbuda. Antigua and Bar ...
with a credit card, but was refused because the company would accept only a wire transfer."Stanford Financial Chief Tried to Flee Country: Source"
CNBC, February 18, 2009.
On February 19, acting at the request of the SEC, FBI agents located Stanford at his girlfriend's house near
Fredericksburg, Virginia Fredericksburg is an independent city located in the Commonwealth of Virginia. As of the 2020 census, the population was 27,982. The Bureau of Economic Analysis of the United States Department of Commerce combines the city of Fredericksburg wi ...
, and served him with civil legal papers filed by the SEC.Elusive Financier Located Here – Billionaire accused of fraud is found in Stafford
Free Lance-Star Free may refer to: Concept * Freedom, having the ability to do something, without having to obey anyone/anything * Freethought, a position that beliefs should be formed only on the basis of logic, reason, and empiricism * Emancipate, to procure ...
, February 20, 2009.
The SEC often files civil charges before criminal charges are filed."Stanford Found in Virginia and Served Papers"
''
The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'', February 20, 2009.
Stanford was arrested on June 18, 2009.Disgraced banker found, served court papers
MSNBC MSNBC (originally the Microsoft National Broadcasting Company) is an American news-based pay television cable channel. It is owned by NBCUniversala subsidiary of Comcast. Headquartered in New York City, it provides news coverage and political ...
, February 19, 2009.
He surrendered his passport to federal prosecutors, and hired criminal defense lawyer
Brendan Sullivan Brendan V. Sullivan Jr. (born March 11, 1942, Providence, Rhode Island) is an American lawyer who is currently a senior partner in the law firm Williams & Connolly. Sullivan is a white-collar criminal defense attorney best known for his defens ...
, who had represented
Oliver North Oliver Laurence North (born October 7, 1943) is an American political commentator, television host, military historian, author, and retired United States Marine Corps lieutenant colonel. A veteran of the Vietnam War, North was a National Secu ...
."Found! Accused Scammer Stanford Turns in Passport in Washington"
ABC News ABC News is the news division of the American broadcast network ABC. Its flagship program is the daily evening newscast ''ABC World News Tonight, ABC World News Tonight with David Muir''; other programs include Breakfast television, morning ...
, February 19, 2009.
Various governments took over Stanford's business operations. The
Eastern Caribbean Central Bank The Eastern Caribbean Central Bank (ECCB) is the central bank for the Eastern Caribbean dollar and is the monetary authority for the members of the Organisation of Eastern Caribbean States (OECS), with the exception of the British Virgin Islands ...
announced that it had taken over the local operations of the Bank of Antigua, which was renamed the Eastern Caribbean Amalgamated Bank. The Venezuelan government took over Stanford Bank Venezuela, the branch of Stanford's bank in that nation. On February 27, 2009, the SEC said that Stanford and his accomplices operated a "massive
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
", misappropriating billions of dollars of investors' money and falsifying the Stanford International Bank's records to hide their fraud. "Stanford International Bank's financial statements, including its investment income, are fictional," the SEC said."New SEC Complaint Says Stanford Ran Ponzi Scheme"
''
The Wall Street Journal ''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'', February 27, 2009.
In an interview on April 20 at the law offices of Houston criminal attorney
Dick DeGuerin Dick DeGuerin (born February 16, 1941 in Austin, Texas, Austin, Texas) is a Criminal Law, criminal defense Lawyer, attorney based in Houston, Texas, most notable for defending Tom DeLay, Allen Stanford, David Koresh and Robert Durst. In 1994, DeG ...
, Stanford denied any wrongdoing. His companies had been well-run, he claimed, until the SEC "disembowelled" them. On June 18, 2009, Stanford was taken into custody by FBI agents."Disgraced Financier Arrested In Virginia"
CBS News, June 18, 2009.
On June 25, 2009, he appeared in a Houston court and pleaded not guilty to charges of fraud, conspiracy, and obstruction. On August 27, 2009, Stanford was admitted into the
Conroe, Texas Conroe is a city in and the county seat of Montgomery County, Texas, United States, about north of Houston. It is a principal city in the metropolitan area. As of 2021, the population was 98,081, up from 56,207 in 2010. Since 2007, the ...
, Regional Medical Center. He had complained of a racing heart while being transported from the
private prison A private prison, or for-profit prison, is a place where people are imprisoned by a third party that is contracted by a government agency. Private prison companies typically enter into contractual agreements with governments that commit pr ...
in
Huntsville, Texas Huntsville is a city in and the county seat of Walker County, Texas. The population was 45,941 as of the 2020 census. It is the center of the Huntsville micropolitan area. Huntsville is in the East Texas Piney Woods on Interstate 45 and home to ...
, to the Federal Courthouse in Houston to attend a hearing concerning his attorney,
Dick DeGuerin Dick DeGuerin (born February 16, 1941 in Austin, Texas, Austin, Texas) is a Criminal Law, criminal defense Lawyer, attorney based in Houston, Texas, most notable for defending Tom DeLay, Allen Stanford, David Koresh and Robert Durst. In 1994, DeG ...
, who had asked the court for permission to withdraw from Stanford's case. Robert Luskin of Patton-Boggs, which had been representing Stanford in a simultaneous civil case, was to be lead counsel. On September 26, 2009, Stanford was hospitalized due to injuries sustained while being severely beaten by another inmate at the
Cornell Companies Cornell Companies (NYSE:CRN) was an American corporation that operated correctional facilities, contracting them to state and local governments. The company's headquarters were located in Houston, Texas. On August 12, 2010, Cornell was acquired by ...
-operated, Joe Corley Detention Facility in Conroe. His injuries were described as non-life-threatening. In March 2010, SEC Inspector General H. David Kotz issued a report finding the SEC had failed to uncover the Ponzi scheme perpetrated by Stanford. Because of concerns raised by former SEC Chief Investigator
David P. Weber David Paul Weber is an American criminalist, and the former Assistant Inspector General for Investigations at the U.S. Securities and Exchange Commission (SEC). He is the Principal Investigator of a $2.6 million grant by the U.S. Department of H ...
of improper conduct by Kotz, Inspector General David C. Williams of the
U.S. Postal Service The United States Postal Service (USPS), also known as the Post Office, U.S. Mail, or Postal Service, is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the U. ...
was brought in to conduct an independent review. The Williams report found that Kotz "appeared to have a conflict of interest" because he had a personal relationship with an attorney representing Stanford's victims. Stanford's trial date was set for January 2011. The district judge deemed that Stanford's anti-anxiety drug addiction impaired his judgment and therefore made him unfit to stand trial. Stanford was incarcerated at the
Federal Detention Center, Houston The Federal Detention Center, Houston (FDC Houston) is a United States federal prison in Downtown Houston, Texas which holds male and female inmates prior to and during court proceedings, as well an inmates serving short sentences. It is operated b ...
. In February 2011 Stanford issued a counter-claim of $7.2 billion of damages against the FBI and the SEC. In May, prosecutors dropped seven charges against Stanford, leaving 14 charges ongoing. By November 5, 2011, Stanford was being held at the Federal Medical Center at the
Federal Correctional Complex, Butner The Federal Correctional Complex, Butner (FCC Butner) is a United States federal prison complex for men near Butner, North Carolina. It is operated by the Federal Bureau of Prisons, a division of the United States Department of Justice. FCC Butner ...
in Butner, North Carolina. His attorneys claimed that Stanford was unfit to stand trial due to amnesia resulting from his sustained injuries. On December 22, 2011, he was found competent to stand trial by U.S. District Judge
David Hittner David Hittner (born July 10, 1939) is a senior United States District Judge on the United States District Court for the Southern District of Texas. He also has served by temporary assignment on the U.S. Court of Appeals for the 5th Circuit, as w ...
. The trial began on January 24, 2012, at the Houston Federal Courthouse, Judge Hittner presiding. On March 6, after three hours of deliberation, the jury convicted him of masterminding a Ponzi scheme. Prosecutors sought a sentence of 230 years in prison—the maximum permitted by law, and 80 years more than the 150-year sentence handed to
Bernard Madoff Bernard Lawrence Madoff ( ; April 29, 1938April 14, 2021) was an American fraudster and financier who was the admitted mastermind of the largest Ponzi scheme in history, worth about $64.8 billion. He was at one time chairman of the NASDAQ s ...
—calling him "a ruthless predator" who "lived a life steeped in deceit." Stanford's lawyers pressed for a sentence of 31 to 44 months and a maximum of 10 years; the former sentence, with credit for time served, could have allowed him to walk out of prison without further jail time. According to Peter Henning of ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', judges have been more willing to impose sentences for financial fraudsters that effectively amount to
life sentences Life imprisonment is any sentence of imprisonment for a crime under which convicted people are to remain in prison for the rest of their natural lives or indefinitely until pardoned, paroled, or otherwise commuted to a fixed term. Crimes fo ...
in recent years. The extent to which such frauds wreck people's lives, Henning wrote, amounts to "economic homicide," and such outsized sentences are a way to express society's anger at such conduct. On June 14, 2012, Stanford was sentenced to 110 years in prison. Although it is less than half of the maximum sentence sought by prosecutors, it ensures he will obviously die in prison. Hittner ordered Stanford to forfeit $5.9 billion, saying that Stanford had orchestrated "one of the most egregious frauds ever presented to a trial jury in federal court." At sentencing, Stanford spoke for the first time in the proceedings, denying that he had ever swindled anyone. He blamed his company's failure on "Gestapo tactics" by government regulators. He is incarcerated at Coleman II USP in Sumterville, Florida; his earliest possible release is March 13, 2103 – at which time he would be 152 years old. On April 26, 2013, federal district judge
David Godbey David Charles Godbey (born September 17, 1957) is the Chief United States district judge of the United States District Court for the Northern District of Texas. Education and career Godbey was born in Temple, Texas. He received a Bachelor of S ...
sided with the SEC in its civil suit against Stanford and ordered him to disgorge $6.7 billion ($5.9 billion in illegal profits and $861 million in interest) and pay a $5.9 billion fine. He was permanently banned from the securities industry. Godbey wrote that Stanford had carried out the fraud for over a decade "with a high degree of
scienter In law, (Law Latin for "knowingly", ) is a legal term for intent or knowledge of wrongdoing. An offending party then has knowledge of the "wrongness" of an act or event prior to committing it. For example, if a man sells a car with brakes that ...
," or knowledge that what he was doing was illegal. Stanford filed a 299-page brief in September 2014 with the 5th U.S. Circuit Court of Appeals in New Orleans on his conviction. The appeal was rejected in October 2015.


Other business matters


Tax liens

The
United States Court of Appeals for the Fifth Circuit The United States Court of Appeals for the Fifth Circuit (in case citations, 5th Cir.) is a federal court with appellate jurisdiction over the district courts in the following federal judicial districts: * Eastern District of Louisiana * M ...
, affirming much of a
United States Tax Court The United States Tax Court (in case citations, T.C.) is a federal trial court of record established by Congress under Article I of the U.S. Constitution, section 8 of which provides (in part) that the Congress has the power to "constitute Trib ...
’s ruling, found that Stanford and his wife, Susan, under-reported their 1990 federal taxes by $423,531.36. Public records suggest that Stanford may owe hundreds of millions of dollars in federal taxes. There are four federal
tax lien A tax lien is a lien which is imposed upon a property by law in order to secure the payment of taxes. A tax lien may be imposed for the purpose of collecting delinquent taxes which are owed on real property or personal property, or it may be im ...
s from 2007 and 2008 against Stanford, totaling more than $212 million."Disgraced banker Stanford didn't pay his own taxes"
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
, February 18, 2009.


Money laundering investigation

The FBI and other agencies have been conducting an ongoing investigation of Stanford since 2008 for possible involvement in
money laundering Money laundering is the process of concealing the origin of money, obtained from illicit activities such as drug trafficking, corruption, embezzlement or gambling, by converting it into a legitimate source. It is a crime in many jurisdictions ...
for Mexico's Gulf Cartel."Charges Against Stanford a Long Time Coming, Offshore Banking Experts Say – Accused Financier Under Federal Drug Investigation"
ABC News ABC News is the news division of the American broadcast network ABC. Its flagship program is the daily evening newscast ''ABC World News Tonight, ABC World News Tonight with David Muir''; other programs include Breakfast television, morning ...
, February 19, 2009.
According to ''The New York Times'', Stanford once held a
Cook Islands ) , image_map = Cook Islands on the globe (small islands magnified) (Polynesia centered).svg , capital = Avarua , coordinates = , largest_city = Avarua , official_languages = , lan ...
trust called "Baby Mama", with his mistress and two children as beneficiaries. The trust protected proceeds deposited into Swiss and Isle of Man bank accounts from the sale of a $2.5 million Florida home.Wayne, Leslie
Cook Islands, a Paradise of Untouchable Assets
''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
'', December 14, 2013, accessed December 27, 2013.


Trademark infringement lawsuit

In 2001, Stanford said that his great-great-great grandfather was a relative of
Leland Stanford Amasa Leland Stanford (March 9, 1824June 21, 1893) was an American industrialist and politician. A member of the Republican Party, he served as the 8th governor of California from 1862 to 1863 and represented California in the United States Se ...
, the founder of
Stanford University Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is consider ...
. He funded the restoration of Leland Stanford's mansion in
Sacramento, California ) , image_map = Sacramento County California Incorporated and Unincorporated areas Sacramento Highlighted.svg , mapsize = 250x200px , map_caption = Location within Sacramento C ...
, in an effort "to help preserve an important piece of Stanford family history," and hired genealogists to prove he was a member of the Leland Stanford family.Warning signs showed Stanford empire was built on 'threats and innuendos'
''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers ''The Observer'' and ''The Guardian Weekly'', ''The Guardian'' is part of the Gu ...
'', February 20, 2009.
A university spokesperson said "We are not aware of any genealogical relationship between Allen Stanford and Leland Stanford". In 2008 the university filed a trademark infringement suit against Stanford, claiming the school's name was being used "in a way that creates public confusion" and is "injurious".Stanford Wielded Jets, Junkets and Cricket to Woo Clients
Bloomberg Bloomberg may refer to: People * Daniel J. Bloomberg (1905–1984), audio engineer * Georgina Bloomberg (born 1983), professional equestrian * Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician and ma ...
, February 18, 2009.


Knighthood and revocation

A February 2009 ''
Houston Chronicle The ''Houston Chronicle'' is the largest daily newspaper in Houston, Texas, United States. , it is the third-largest newspaper by Sunday circulation in the United States, behind only ''The New York Times'' and the ''Los Angeles Times''. With it ...
'' article described Stanford as "the leading benefactor, promoter, employer and public persona" of
Antigua and Barbuda Antigua and Barbuda (, ) is a sovereign country in the West Indies. It lies at the juncture of the Caribbean Sea and the Atlantic Ocean in the Leeward Islands part of the Lesser Antilles, at 17°N latitude. The country consists of two maj ...
. On November 1, 2006, Stanford was appointed Knight Commander of the Order of the Nation (KCN) of Antigua and Barbuda by the Antiguan government.
Prince Edward, Earl of Wessex Prince Edward, Earl of Wessex and Forfar, (Edward Antony Richard Louis; born 10 March 1964) is a member of the British royal family. He is the youngest child of Queen Elizabeth II and Prince Philip, Duke of Edinburgh, and the youngest sibl ...
, joined the then Governor-General of Antigua and Barbuda, Sir James Carlisle, to make this announcement during the Silver Jubilee Independence Day Celebration. After being knighted, Stanford used the awarded title "Sir Allen" often; he was generally referred to as such both by Antiguans and internationally. In October 2009, the National Honours Committee of Antigua and Barbuda voted unanimously to strip Stanford of his knighthood. On November 2, 2009, the recommendation was forwarded to the Governor-General, Dame
Louise Lake-Tack Dame Louise Agnetha Lake-Tack (born 26 July 1944) is a former Governor-General of Antigua and Barbuda. She was the first woman to hold the office. Background and earlier career Louise Lake-Tack was born in St Philip Parish, Antigua in 1944. ...
. The order to revoke Stanford's knighthood and insignia was approved and was served upon Stanford on April 1, 2010.


Other interests


Cricket

Stanford created and funded the Stanford 20/20
cricket Cricket is a bat-and-ball game played between two teams of eleven players on a field at the centre of which is a pitch with a wicket at each end, each comprising two bails balanced on three stumps. The batting side scores runs by striki ...
tournament in the
West Indies The West Indies is a subregion of North America, surrounded by the North Atlantic Ocean and the Caribbean Sea that includes 13 independent island countries and 18 dependencies and other territories in three major archipelagos: the Greater A ...
, for which he built his own ground in Antigua. The first Stanford 20/20 Cricket Tournament was held in July and August 2006 where Guyana took 1st place defeating Trinidad and Tobago in the final. The second tournament took place in January and February 2008 with a global television audience of 300 million. Trinidad and Tobago took first place and with it the US $280,000
Stanford Super Series The Stanford Super Series were a series of Twenty20 cricket matches in 2008, sponsored by Allen Stanford. The main game of the Series matched the English national cricket team against an all-star team from the Caribbean, called the Stanford Sup ...
prize after defeating
Middlesex Middlesex (; abbreviation: Middx) is a Historic counties of England, historic county in South East England, southeast England. Its area is almost entirely within the wider urbanised area of London and mostly within the Ceremonial counties of ...
on October 27, 2008. In June 2008, Stanford and the
England and Wales Cricket Board The England and Wales Cricket Board (ECB) is the Sports governing body, national governing body of cricket in England and Wales. It was formed on 1 January 1997 as a single governing body to combine the roles formerly fulfilled by the Test and ...
(ECB) signed a deal for five
Twenty20 Twenty20 (T20) is a shortened game format of cricket. At the professional level, it was introduced by the England and Wales Cricket Board (ECB) in 2003 for the inter-county competition. In a Twenty20 game, the two teams have a single innin ...
internationals between England and a West Indies all-star XI, with a total prize fund of £12.27 million (US$20 million) to be awarded to the team that won the Championship. It was the largest prize ever offered to a team for a single tournament. This was in jeopardy after a row with
Digicel Digicel is a Jamaican and Caribbean mobile phone network and home entertainment provider operating in 33 markets worldwide. Digicel has operated in several countries, including Guyana, Fiji, Haiti, Trinidad and Tobago, St. Lucia, Suriname, and Ja ...
, the sponsors of the West Indies cricket team, who were unhappy about sponsorship of the event. Eventually, the dispute was sorted out and the championship was won by Stanford Superstars, who defeated the England team by 10 wickets. On February 17, 2009, when news of the fraud investigation became public, the ECB and
WICB WICB (91.7 FM) is a radio station licensed to serve Ithaca, New York, United States. Established in 1947, the station is owned by Ithaca College. WICB broadcasts an alternative music format to the greater Ithaca area. Along with alternative m ...
withdrew from talks with Stanford on sponsorship. On February 20, 2009, the ECB announced it had severed its ties with Stanford and cancelled all contracts with him.England and Wales Cricket Board ends contract with Allen Stanford
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. newspa ...
, February 20, 2009.


Media

Stanford owned two newspaper businesses in
Antigua and Barbuda Antigua and Barbuda (, ) is a sovereign country in the West Indies. It lies at the juncture of the Caribbean Sea and the Atlantic Ocean in the Leeward Islands part of the Lesser Antilles, at 17°N latitude. The country consists of two maj ...
and
Saint Kitts and Nevis Saint Kitts and Nevis (), officially the Federation of Saint Christopher and Nevis, is an island country and microstate consisting of the two islands of Saint Kitts and Nevis, both located in the West Indies, in the Leeward Islands chain of ...
, both called ''The Sun''. Following the scandal, both newspapers put workers on notice that their full operations would cease in April 2010.


Property

Stanford owned Maiden Island in Antigua and Barbuda.


See also

*
Caribbean Star Airlines Caribbean Star Airlines was an airline based in Antigua and Barbuda. It operated scheduled passenger services in conjunction with Leeward Islands Air Transport (LIAT) to destinations in the eastern Caribbean. Its main base was VC Bird Internation ...
* James M. Davis *
LIAT LIAT (1974) Ltd, also known as Leeward Islands Air Transport Services and operating as LIAT, is a regional airline headquartered in Antigua and Barbuda that operated high-frequency inter-island scheduled services to 15 destinations in the Caribb ...
* Laura Pendergest-Holt *
Stanford Cricket Ground The Coolidge Cricket Ground is a cricket ground in Osbourn, Saint George Parish, Antigua. It was previously known as the Airport Cricket Ground, before it was taken over by American businessman and cricket enthusiast Allen Stanford, rebuilt in ...
, Coolidge, Antigua


References


External links


Allen Stanford
nbsp;– Personal Web site (site inoperative as of June 19, 2009; ) an
allenstanford.id
*


The Eastern Caribbean Central Bank regarding Stanford's bank in Antigua

The Stanford Ponzi Scheme: Lessons for Protecting Investors from the Next Securities Fraud: Hearing before the Subcommittee on Oversight and Investigations of the Committee on Financial Services, U.S. House Of Representatives, One Hundred Twelfth Congress, First Session, May 13, 2011
{{DEFAULTSORT:Stanford, Allen 1950 births Living people 2009 in economics 20th-century American businesspeople 21st-century American businesspeople 21st-century American criminals American businesspeople convicted of crimes American confidence tricksters American cricket administrators American emigrants to Antigua and Barbuda American male criminals American people convicted of fraud American prisoners and detainees American newspaper publishers (people) American real estate businesspeople Antigua and Barbuda people imprisoned abroad Baylor University alumni Criminals from Texas Former billionaires Journalists from Texas People from Mexia, Texas People from Saint Croix, U.S. Virgin Islands People stripped of a British Commonwealth honour Prisoners and detainees of the United States federal government Recipients of the Order of the Nation (Antigua and Barbuda) Stanford Financial Group Wealth in the United States