When you marry a rich man whose income affords you the opportunity to quit your job, it’s important to have a skill-set to fall back on in the event it turns out he’s running a Ponzi scheme. Luckily, Diane Passage, who was told by an SEC lawyer today that regulators will “oppose any attempt to unfreeze [her husband Kenneth] Starr’s crooked assets to cover living expenses for her and her 12-year-old son Jordan” has got some extremely monetizable skills as a former stripper. Read more »
Prosecutors said Starr recently used $7.5 million from clients to buy a lavish Upper East Side condo complete with 5-bedrooms, 6.5 baths, an indoor 32-foot lap pool, a rec room with a wet bar, and “spa like baths and walk in closets.” Read more »
Allen Stanford Wants Out Of Prison, Claims Constitutional Rights, Among Other Things, Are Being ViolatedBy Bess Levin
Hey remember Allen Stanford? It’s been a while, hasn’t it? When we last checked in with the accused Ponzier, in December, a prison psychologist was arguing that if the guy wasn’t let out of jail ASAP, it was very likely he’d “a complete nervous breakdown.” Apparently that wasn’t a convincing argument for those who make the decisions as to whether or not people are just allowed to up and leave because he’s still there, asking to be freed. Stanford, who never recovered after the SEC robbed him of being listed as the 405th wealthiest person in the world by Forbes, said in a filing that he should be cut loose because 1) keeping him behind bars is unconstitutional 2) he’s been getting some serious shit kicked out of him.
In a filing on Tuesday with the federal court in Houston, lawyers for Stanford said their client had been “subjected to substantial and undeniable punishment,” including nearly a year of incarceration and both physical and psychological damage. This and the prospect of more than a year of further custody until and during his trial, which is scheduled to start in January 2011, violates his constitutional rights to due process, effective assistance of counsel, a speedy trial, and an absence of excessive bail, the lawyers said. “When Mr. Stanford surrendered to authorities, he was a healthy 59-year-old man,” Stanford’s Houston-based lawyer, Robert Bennett, wrote in a brief on which Harvard Law Professor Alan Dershowitz consulted.
Looks like Bernie Madoff’s right hand man, Frank DiPascali, is squealing like a pig to federal investigators, who are preparing criminal charges against two more Madoff employees.
It’s unclear who the new charges are being brought against, but it appears Bernie’s two boys and his brother may have dodged securities fraud for now.
Shapiro, who liked to hang out with pro athletes, was arrested last week on charges of running a $900 million Ponzi scheme. He promised investors annual returns of as much as 25 percent from buying cheap groceries in one region and selling them in another locale where prices were higher. In a press release last week, prosecutors said Shapiro gave the cuffs to a “prominent professional athlete.” Read more »
Reminds you of the Seinfeld episode when Kramer and Newman decided to collect empty bottles in New York and drive them to Michigan to get the extra deposit money. But, that’s exactly what Nevin Shapiro, a 41-year-old Miami Beach businessman, did from 2004 until the feds caught up with him.
Shapiro turned himself in to authorities in New Jersey (we’re not sure what he was doing in Newark) this morning and has been charged with civil fraud by the Securities and Exchange Commission. (read the SEC complaint.) Under the name, Capital Investments USA Inc., Shapiro ran a classic Ponzi scheme, collecting cash from hundreds of Floridians with new investors going to pay off old ones. Read more »
If accused Ponzi schemer Allen Stanford is not released from the big house on bail, it’s very likely that he will go batshit insane, according to a prison psychologist. This is sad for a couple of reasons: 1) it sounds like he really might be losing it and should be let out and 2) no more prison yard brawls for us.
A psychiatrist who examined R. Allen Stanford believes he is in danger of suffering “a complete nervous breakdown” if he is not released from prison on bail and allowed to properly prepare for his scheduled criminal trial, according to court documents.
In documents asking that the jailed businessman be released on bail, attorneys argue Stanford’s deteriorating mental and physical health, combined with the difficulty of seeing his attorneys while at the downtown Houston Federal Detention Center, make it impossible for him to properly prepare for trial.