Sunday, January 29, 2012


Last week  the long-awaited criminal trial, in US District Court in Texas, of alleged $7bn master Ponzi schemer R. Allen Stanford (Stanford International Bank) finally started. There are a reported 22 witnesses on the US Attorney's list, and the trial is expected to last several weeks.

To date, two early witnesses have presented extremely damaging testimony which corroborates the government's allegations about the Ponzi scheme nature of the bank's operations:

(1) A senor Stanford staff member stated that he saw that Allen Stanford has loaned an estimated $15m to himself out of deposits, when the bank told investors that all funds would be placed in conservative, liquid investments.

(2) A graphics designed charged with creating Stanford bank's annual report saw Stanford, and his CEO, who has since pleaded guilty,  changing the figures in the report draft, to make it appear more favourable. They did so in such a haphazard manner that the addition was incorrect. The designer brought the inaccuracies to their attention, whereafter the two officers abruptly changed the figures again.

We will be closely monitoring the trial, and shall continue to bring you updates periodically.


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