A 2009 Ponzi Rogues' Gallery
Sir Allen Stanford
Size of Alleged Scheme: $8 Billion
Status: In Prison Awaiting a 2011 Trial
The Sir in financier Allen Stanford's name was conferred by the Caribbean nation of Antigua, and the Texan turned tanned offshore billionaire embraced the role of colonial gentleman with relish, even funding a cricket team. But Stanford became just plain Allen again, and a federal prisoner, after he was arrested in June on charges of orchestrating an $8 billion pyramid scheme. The Antiguan government has revoked his title.
Authorities say Stanford and his alleged co-conspirators engaged in a scheme to defraud investors who purchased approximately $7 billion of CDs from the Stanford International Bank, an off-shore entity based in Antigua. Stanford and his co-defendants are accused of misusing and misappropriating most of their investment assets. Stanford told ABC News he \"would die and go to hell if it's a Ponzi scheme.\"
The indictment alleges that Stanford and his associates falsely claimed that the bank's assets had grown from $1.2 billion in 2001 to $8.5 billion by December 2008. The bank also allegedly made thousands of dollars in bribes to the former head of Antigua's Financial Services Authority to ensure the bank was not audited.
Stanford was charged with fraud, conspiracy and obstruction in a 21 count indictment. If convicted, he faces a maximum sentence of 250 years in a federal prison. The financier surrendered to the FBI in Virginia and has pleaded not guilty to the charges. He is being held in Texas and will not face trial until at least early 2011.
Tom PettersSize of Scheme: $3.65 Billion
Status: In Prison Awaiting Sentencing
On December 2, a federal jury in Minneapolis convicted Tom Petters, 53, of carrying out a $3.65 billion Ponzi scheme. After a month-long trial, he was found guilty of ten counts of wire fraud, three counts of mail fraud, one count of conspiracy to commit mail and wire fraud, one count of conspiracy to commit money laundering, and five counts of money laundering.
As CEO and chairman of Petters Group Worldwide, LLC, he acquired other businesses to divert attention from the fraud, prosecutors said. He used false bank statements about the sale of nonexistent merchandise to obtain huge loans. The acquisitions included Polaroid Corp. and Sun Country Airlines. Petters had about 2,400 people working at his companies, but after the scam was exposed, nearly all of them lost their jobs.
Prosecutors say Petters defrauded investors to finance his \"extravagant lifestyle\" that included luxury homes in an upscale suburb of Minneapolis and gambling. The Associated Press reported he spent $10 million at one casino. He was also a major contributor to several charities.
Petters is currently awaiting sentencing and could get life in prison.","publishedDate":"2009-12-25T23:59:43Z","contributors":[{"name":"ABC News","url":"","role":"","logo":"","logoAlt":""}],"authorsStr":"ABC News","modifiedDate":"2010-01-02T15:52:42Z","section":"Blotter","wordCount":617,"relatedTags":{"heading":"Related Topics","tags":[]},"lead":{"ratio":"16x9","disableForMobile":false,"type":"xl","mediaType":"image","alignCaptionToBody":true},"ads":{"Sticky":{"kvps":{"test":true}},"RightRail":{"kvps":{"test":true}},"InlineBox":{},"InlineOutstream":{"disabled":false},"Taboola":{"position":"bottom","pageType":"article","config":{"network":"abcnews-abcnews","mode":"thumbnails-a","container":"taboola-below-article-thumbnails","type":"article","targetType":"mix","placement":"Below Article Thumbnails"}}},"featuredVideo":null,"featuredImage":{},"dateline":"Jan. 1, 2010 ","seo":{},"LivePromotion":{},"isShared":false},"autoUpdate":{"enabled":false,"topics":["general-elections-2020-balance-of-power"]}},"upw":{"balanceOfPower":{"electoral":{"header":"Biden Projected to be President-Elect","winningParty":"democrats","candidates":{"democrats":{"id":1036,"displayName":"Joe Biden","shortDisplayName":"J. 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