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ST. JOHN'S (Antigua) - PANICKY depositors were turned away from Stanford International Bank and some of its Latin American affiliates on Wednesday, unable to withdraw their money now after US regulators accused Texas financier R. Allen Stanford of perpetrating an US$8 billion (S$12 billion) fraud against his companies' investors.
Some customers arrived in Antigua by private jet and were driven up the lushly landscaped driveway of the bank's headquarters, only to be told that all assets have been frozen pending an investigation by Antiguan banking regulators.
Governments act to protect Stanford assets
GOVERNMENTS across the region took a variety of actions on Wednesday to protect Stanford assets.
Colombia suspended the activities of Stanford International Bank's local brokerage Wednesday to protect 'clients and investors.' Panama occupied Stanford bank branches following a run on deposits, which its banking agency described as an isolated 'consequence of decisions adopted by foreign authorities'.
... more
'I don't know what to think. I have my life savings here,' said Reinaldo Pinto Ramos, 48, a Venezuelan software firm owner who flew in by chartered plane from Caracas Wednesday with five other investors to check on their accounts. 'We're waiting to see some light.'
Banking regulators and politicians around the region are scrambling to contain the damage after US Securities and Exchange Commission filed civil fraud charges against the billionaire on Tuesday. Regional Director Rose Romero of the SEC's Fort Worth office called it a 'fraud of shocking magnitude that has spread its tentacles throughout the world'.
Specifically, US regulators accused Stanford, two other executives and three of their companies of luring investors with promises of 'improbable and unsubstantiated' high returns on certificate of deposits and other investments. They asked a federal judge to freeze all three companies' US assets and seek the repatriation of any company assets overseas.
That would include the US$7.2 billion managed by the Antigua-based Stanford International Bank, which has affiliates in Mexico, Panama, Colombia, Ecuador, Peru and Venezuela. Also ordered frozen were the assets of Houston-based Stanford Group Company and Stanford Capital Management.
'The fallout threatens catastrophic and immediate consequences' for the economy of the twin-island nation of Antigua and Barbuda, said Prime Minister Baldwin Spencer.
Stanford, 58, has a personal fortune of US$2.2 billion, according to Forbes magazine. He owns a home in St. Croix, in the US Virgin Islands, and operates his businesses from Houston and Antigua, where his businesses and charity have had such a prominent role that the islands' government knighted him in 2006.
Stanford's whereabouts on Wednesday were not known. James Sullivan, the US marshal for the Virgin Islands, said agents are monitoring Stanford's 'extensive holdings' in St. Croix, including a boat he sometimes he docks there, but he could not say whether he is currently in the territory.
'As of right now, all we are doing is an ongoing investigation to monitor his holdings, for lack of better term, and we are not actively pursuing him,' Mr Sullivan told The Associated Press.
Stanford also has been a major political player in the US, where some congressmen quickly announced they would donate his campaign contributions to charity.
The Stanford Financial Group, through its political action committee and employees, has contributed US$2.4 million to political candidates, parties and committees in the US since 1989, with nearly two-thirds going to Democrats, according to the Center for Responsive Politics, a group that tracks campaign spending.
Stanford and his wife Susan also donated US$931,100 of their own money, with 78 perc ent going to Democrats, including US$4,600 to President Barack Obama's presidential campaign last May 31. Records show US$2,300 of that was returned on the same day. -- AP
Some customers arrived in Antigua by private jet and were driven up the lushly landscaped driveway of the bank's headquarters, only to be told that all assets have been frozen pending an investigation by Antiguan banking regulators.
Governments act to protect Stanford assets
GOVERNMENTS across the region took a variety of actions on Wednesday to protect Stanford assets.
Colombia suspended the activities of Stanford International Bank's local brokerage Wednesday to protect 'clients and investors.' Panama occupied Stanford bank branches following a run on deposits, which its banking agency described as an isolated 'consequence of decisions adopted by foreign authorities'.
... more
'I don't know what to think. I have my life savings here,' said Reinaldo Pinto Ramos, 48, a Venezuelan software firm owner who flew in by chartered plane from Caracas Wednesday with five other investors to check on their accounts. 'We're waiting to see some light.'
Banking regulators and politicians around the region are scrambling to contain the damage after US Securities and Exchange Commission filed civil fraud charges against the billionaire on Tuesday. Regional Director Rose Romero of the SEC's Fort Worth office called it a 'fraud of shocking magnitude that has spread its tentacles throughout the world'.
Specifically, US regulators accused Stanford, two other executives and three of their companies of luring investors with promises of 'improbable and unsubstantiated' high returns on certificate of deposits and other investments. They asked a federal judge to freeze all three companies' US assets and seek the repatriation of any company assets overseas.
That would include the US$7.2 billion managed by the Antigua-based Stanford International Bank, which has affiliates in Mexico, Panama, Colombia, Ecuador, Peru and Venezuela. Also ordered frozen were the assets of Houston-based Stanford Group Company and Stanford Capital Management.
'The fallout threatens catastrophic and immediate consequences' for the economy of the twin-island nation of Antigua and Barbuda, said Prime Minister Baldwin Spencer.
Stanford, 58, has a personal fortune of US$2.2 billion, according to Forbes magazine. He owns a home in St. Croix, in the US Virgin Islands, and operates his businesses from Houston and Antigua, where his businesses and charity have had such a prominent role that the islands' government knighted him in 2006.
Stanford's whereabouts on Wednesday were not known. James Sullivan, the US marshal for the Virgin Islands, said agents are monitoring Stanford's 'extensive holdings' in St. Croix, including a boat he sometimes he docks there, but he could not say whether he is currently in the territory.
'As of right now, all we are doing is an ongoing investigation to monitor his holdings, for lack of better term, and we are not actively pursuing him,' Mr Sullivan told The Associated Press.
Stanford also has been a major political player in the US, where some congressmen quickly announced they would donate his campaign contributions to charity.
The Stanford Financial Group, through its political action committee and employees, has contributed US$2.4 million to political candidates, parties and committees in the US since 1989, with nearly two-thirds going to Democrats, according to the Center for Responsive Politics, a group that tracks campaign spending.
Stanford and his wife Susan also donated US$931,100 of their own money, with 78 perc ent going to Democrats, including US$4,600 to President Barack Obama's presidential campaign last May 31. Records show US$2,300 of that was returned on the same day. -- AP
