29/Aug/2014 - Last News Update: 10:05

Allen Stanford jailed for 110 years for $7bn Ponzi

Category: Business

Published: 14th Jun 2012 19:48:23

Disgraced tycoon Allen Stanford has been sentenced to 110 years in jail for operating a Ponzi scheme that defrauded investors of more than $7bn (£4.5bn).

The scheme was described as one of the largest in US history.

In court, Stanford denied any guilt, telling the judge at his sentencing hearing: "I did not defraud anybody."

A Texan banker, Stanford rose to prominence outside the US when he bankrolled international cricket competitions in the UK and Caribbean.

But after the collapse of his agreement to stage Twenty20 cricket in England, his financial empire began to crumble amid investigations by US regulators.

Forbes Magazine listed him as the 605th richest man in the world in 2006.

However, since his arrest in 2009 he has spent three years in detention after being denied bail.

Stanford's Ponzi scheme centred on his banking operation based in the Caribbean island nation of Antigua.

Some 30,000 individual investors were swindled, it was alleged. Prosecutors failed to find as much as 92% of the assets Stanford International Bank claimed to have.

In his statement in court on Thursday, which ran for some 40 minutes, he told the judge: "I'm not here to ask for sympathy or forgiveness or to throw myself at your mercy.

"I did not run a Ponzi scheme. I didn't defraud anybody."

US District Judge David Hittner, who presided over Stanford's trial, called Stanford's actions "egregious criminal frauds" during the hearing.

Two victims of the scheme spoke during the hearing, including Angela Shaw, who told the court Stanford was worse than convicted Ponzi schemer Bernard Madoff because he preyed on middle-class investors.

"He stole more than millions," Ms Shaw said. "He stole our lives as we knew them."

His sentence is 40 years shorter than the jail term handed down to Madoff, who pleaded guilty in 2009 to a Ponzi scheme targeting wealthy investors.

Stanford was convicted in March on 13 of 14 charges against him, despite his lawyers attempting to shift most of the blame on his chief financial officer.

Prosecutors had asked for a 230-year sentence, with defence lawyers arguing for a lenient term of 44 months.

Three other former executives at Stanford's company are awaiting trial, while a former Antiguan financial regulator is expected to be extradited to the US for related charges.

While a jury has cleared the way for access to about $330m in stolen funds sitting in Stanford's frozen bank accounts across Canada, England and Switzerland, legal wrangling could make it years before investors recover any of that money.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Allen Stanford jailed for 110 years for $7bn Ponzi [Online] (Updated 14th Jun 2012)
Available at: http://www.ukwirednews.com/news/1434719/Allen-Stanford-jailed-for-110-years-for-7bn-Ponzi [Accessed 29th Aug 2014]

News In Other Categories

  • Nato summit momentous in Wales' history, says Carwyn Jones

    First Minister Carwyn Jones says next week's Nato summit in Newport will be a "momentous occasion in the history of Wales".
  • Joan Rivers 'resting comfortably' after health scare

    US comedienne Joan Rivers is "resting comfortably" and with her family after reportedly going into cardiac arrest during surgery on her vocal chords.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
  • Japan defence ministry makes largest-ever budget request

    Japan's defence ministry has made its biggest ever budget request, amid severe tensions with China over a maritime dispute in the East China Sea.
  • Morecambe sign Bury's Joe Widdowson on two-month loan

    Morecambe have signed Bury left-back Joe Widdowson on loan for two months.
  • Joan Rivers 'resting comfortably' after health scare

    US comedienne Joan Rivers is "resting comfortably" and with her family after reportedly going into cardiac arrest during surgery on her vocal chords.