Why Is Stanford Still A Free Man?
EmailWith Bernie Madoff now behind bars, some are wondering: Why is Allen Stanford, the man the U.S. government accuses of basically being the nation’s second-biggest financial scam artist, still free?
Consider: the Securities and Exchange Commission filed suit against Stanford almost a month ago. Although it was a civil action, the SEC alleged that Stanford “perpetrated a massive fraud” that separated $8 billion from the people who had earned it.
If it wasn’t clear enough, Feb. 27 the SEC amended its complaint, charging outright that Stanford had been running a “massive Ponzi scheme” and that he personally pocketed some share of a $1.6 billion bounty from the swindle.
Moreover, the Feds arrested one of his top executives and alleged co-conspirator, Laura Pendergest-Holt. If they thought bracelets looked so good on her, why not try them on “Sir” Allen himself?
The feds have been predictably quiet on their strategy. But I spoke with a number of former federal prosecutors with experience in white-collar prosecutions. (None has been involved in the Stanford matter.) They generally agreed that while it appeared the feds had enough to arrest Stanford, it was not beyond comprehension that they would leave him be for now, while they built their case.
For one, the case is a sprawling financial mess complicated by the fact that lots of evidence is apparently overseas, outside U.S. prosecutors’ jurisdiction. Unless they thought Stanford was a serious flight risk or a (current) threat to the public, it makes sense to wait, the former prosecutors agreed. If they booked Stanford, prosecutors would be required by law to bring an indictment or file a complaint within weeks, and the consensus was they could likely use more time.
Stanford has reportedly surrendered his passport, reducing the chances he might flee. He has declined to cooperate with the investigation, citing his Fifth Amendment right not to incriminate himself. In other filings, his lawyer has said the SEC’s claims are false.
There could be other benefits to leaving Stanford on the street, some of the ex-prosecutors said. Under surveillance, he could lead investigators to other conspirators or assets they had not found and frozen. And if investigators gather proof Stanford attempted to conceal evidence, it could bring new charges as well as “consciousness of guilt” evidence, which could help win a conviction.
Only one of the ex-feds, former SEC enforcement officer and special AUSA Phillip L. Stern, agreed to be named. Stern, now a lawyer with the firm Neal, Gerber and Eisenberg, doubted Stanford would lead investigators to much of use. “Presumably Stanford knows where the money is,” said Stern. “But I think the government’s going to have to try and find it through other ways.”
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He has Political Cover?
Posted by: Thinking | March 13, 2009, 11:54 am 11:54 am
It was reprted in the news htat members of the Biden family were a part of this scheme. Will the Vice President have to resign?
Posted by: JR Johnson | March 13, 2009, 2:46 pm 2:46 pm
I can’t believe ABC news wrote this and left off the most important reason Stanford is not in jail. He has not admitted guilt. Madoff is in jail, because he admitted he was guilty.
Posted by: John | March 13, 2009, 4:25 pm 4:25 pm
TO JOHN: The most important reason Stanford is not in jail is because he has not admitted guilt? What are ya – goofy? People are arrested EACH and EVERY day in this country and they all cry not guilty. They’re still in jail, however. Casey Anthony STILL says she didn’t kill her daughter. Well, she’s in jail, isn’t she? You’re a real maroon………………….one doesn’t have to admit to anything to be arrested and put in jail.
Posted by: Cindy | March 13, 2009, 4:43 pm 4:43 pm
If everyone who was involved in dirty financial schemes had to be arrested, there would be a lot of space on Wall Street and the rest of the financial district. Stanford most probably knows people in high places and for that he is still walking free. Surrendering a passport is not proof of not being able to flee. He can do that anytime he wishes to do so. If there is the slightest chance that he was involved in any kind of illicit money scheme, then take him to jail the same way they did Madoff. There are too many bastard crooks walking around, like peacocks, at the expense of others.
Posted by: Joanne | March 13, 2009, 11:38 pm 11:38 pm
From the Wall Street Journal, 2/24/09:
“There is no connection between the Bidens and Allen Stanford or Stanford…There never was any meeting between any member of the Biden family, no phone calls, zero correspondence.”
http://online.wsj.com/article/SB123543815326954907.html
So why, other than partisan ideology and bias, would anyone make a misleading statement like “It was reprted [sic] in the news htat [sic] members of the Biden family were a part of this scheme”?
Posted by: JJ | March 14, 2009, 2:14 am 2:14 am
Biden Fammily involvement – On February 23, 2009, the Wall Street Journal reported the following: A fund of hedge funds run by two members of Vice President Joe Biden’s family was marketed exclusively by companies controlled by Texas financier R. Allen Stanford, who is facing Securities and Exchange Commission accusations of engaging in an $8 billion fraud.
The $50 million fund was jointly branded between the Bidens’ Paradigm Global Advisors LLC and a Stanford Financial Group entity and was known as the Paradigm Stanford Capital Management Core Alternative Fund. Stanford-related companies marketed the fund to investors and also invested about $2.7 million of their own money in the fund, according to a lawyer for Paradigm. Paradigm Global Advisors is owned through a holding company by the vice president’s son, Hunter, and Joe Biden’s brother, James.
Posted by: JR Johnson | March 14, 2009, 6:19 am 6:19 am
Why are these men still “free”?
http://michaelfury.wordpress.com/2008/08/20/the-ghost-in-the-machines-the-mystery-of-the-wtc-hard-drive-recoveries/
Posted by: ghost | March 14, 2009, 12:17 pm 12:17 pm
You don’t hear generals complain about field rations.
You don’t hear admirals complain about sea rations.
Microsoft never complains about anyone stealing Their
software designs. You won’t hear J&J complain about
anybody stealing their patient and medications ID system.
Harpo Productions doesn’t complain about anybody ripping
off Their shockjock tv format. You’ll never read of Yankee
whaling ships captains complain abut the living conditions
of the slaves they transported in their rendering holds.
You won’t hear Oprah and Obama witching about the Democratic
nomination process, anymore than you’ll hear George Bush
complain about the 2000 Florida election. You won’t hear
the CEOs of the banks complain about the lax enforcement
at the FDIC; and you won’t hear congress complain about
who holds the purse strings.
No, for it is in organizations and politics as it is in
life: the people doin’ the screwin’ almost never complain;
and, why would they?
Posted by: j | March 14, 2009, 1:34 pm 1:34 pm
A pattern is emerging and it has nothing to do with right/left. it’s organised crime and political cronyism combining to provide an umbrella of cover for all involved. We’re so screwed.
Below is from WMR, a credible site that carries a lot of details scrubbed from the news.
Allen Stanford appears to be yet another multi-billion dollar cog in a network of off-shore banks, corporate contrivances, and folding tent operations. Although Stanford is being investigated for a $8 billion fraud scheme, the U.S. Attorney for the U.S. Virgin Islands, where Stanford has “extensive” holdings on the island of St. Croix, told the Associated Press that the Obama Justice Department is “not actively pursuing” Stanford.
The Obama campaign dumped $4,600 in donations from Stanford to the Chicago Coalition for the Homeless after the news broke…
Democrats and Republicans reaped donations from Stanford, including jailed ex-Rep Bob Ney (R-OH), who was convicted in the Jack Abramoff scandal; frm Rep Tom DeLay (R-TX); Rep Charles Rangel (D-NY), and Senators John McCain (R-AZ), John Cornyn (R-TX), Bill Nelson (D-FL), Richard Shelby (R-AL), Charles Schumer (D-NY), and Kay Bailey Hutchison (R-TX).
Antigua, where Stanford International Bank maintains its headquarters [recently raided]is a primary center for Russian-Israeli Mafia money laundering activities in the Caribbean.
That may come as unwelcome news not only to Stanford but to the CIA that could see its illegal money laundering operations if Stanford is arrested and tried. Of course, that may also be problematic since the Obama Justice Department has decided to maintain a Bush policy of invoking a privilege of state secrets in criminal and civil cases involving national security matters. http://onlinejournal.com/artman/publish/article_4402.shtml
Posted by: KMansfield | March 15, 2009, 8:35 pm 8:35 pm
has Mr. Stanford surrendered his Antigua passport as well as his US passport?
Posted by: peter | March 17, 2009, 12:24 pm 12:24 pm