The U.S. Supreme Court debated the reach of the federal securities laws, questioning whether investors can sue law firms and outside companies for their alleged roles in R. Allen Stanford’s $7 billion Ponzi scheme.
A former Stanford Financial Group Co. accountant testified that he grew concerned about $2 billion R. Allen Stanford secretly borrowed from his Antiguan bank after hearing the company’s finance chief say repeatedly in 2007 and 2008, “The emperor has no more clothes.”
R. Allen Stanford told his top brokers in late 2008 that his Antiguan bank “was sitting on $5.1 billion” more cash than it needed as his treasury manager was privately e-mailing him that there was just $173.6 million on hand, Stanford’s former finance chief testified.
R. Allen Stanford ’s girlfriend, Andrea M. Stoelker, was sued by the indicted financier’s court- appointed receiver for $560,000 that she received in wages and other payments from the Stanford Financial Group of companies.
California and New York, along with Florida, agreed to join more than 40 other states in a nationwide settlement 16 months in the making that seeks to end abusive bank foreclosure practices that followed the collapse of the housing bubble, a person familiar with the matter said.
Laura Pendergest Holt, the former chief investment officer for Stanford Financial Group Co., was sentenced to three years in prison for obstructing a U.S. Securities and Exchange Commission investigation of the $7 billion Ponzi scheme at the company.
Laura Pendergest Holt, the former chief investment officer for R. Allen Stanford, has agreed to plead guilty and serve three years in prison for her role in a $7 billion fraud, three people familiar with the matter said.
Four of R. Allen Stanford ’s highest- ranking former employees were sued by a court-appointed receiver for about $12.4 million in allegedly fraudulent proceeds they received from certificates of deposit sold by the accused Ponzi schemer’s Antiguan bank.