Tuesday, June 12, 2012

U.S. seeks $5.9 billion from indigent Allen Stanford


Reuters writes that in a demand more likely to remain symbolic than be fulfilled, the U.S. government wants Allen Stanford to forfeit $5.9 billion from his massive Ponzi scheme, even though the convicted financier has been declared indigent.

The demand requires court approval, and was made two days before Stanford, who was once considered a billionaire, is to be sentenced for operating a multi-billion dollar fraud. Stanford, 62, could spend the rest of his life behind bars.

According to a Tuesday filing with the U.S. District Court in Houston, the government said the $5.9 billion represents a sum that Stanford's Antigua-based bank had received from investors in certificates of deposit when it was put into receivership in February 2009. Prosecutors said Stanford International Bank Ltd had $7.2 billion of CD account balances at that time, of which $1.3 billion was fictitious interest….

No comments:

Post a Comment