Apparently, the women who can’t even remember to bring her ID to court is a dangerous and crafty agent of intrigue prone to flight at any moment.
Laura Pendergest-Holt, the Stanford Financial Group Co. executive indicted for obstructing a U.S. regulator’s probe into an alleged $8 billion fraud, is a flight risk requiring electronic monitoring, U.S. prosecutors say.
Pendergest-Holt, chief investment officer for one of three R. Allen Stanford-led businesses sued by the U.S. Securities and Exchange Commission for misleading investors, pleaded innocent to the criminal charges on May 14. Freed on a $300,000 bond, she is wearing an electronic-monitoring ankle bracelet her lawyers say is unnecessary. Prosecutors disagree.
We’re sold.
Stanford’s Pendergest-Holt a Flight Risk, U.S. Prosecutors Say [Bloomberg]
Or a scam of any kind? Laura Pendergest-Holt’s totally at ease demeanor says no! Interrupting commentator Mike Darda to show us footage of the firm’s Chief Investment Officer arriving in a Houston courthouse to be arraigned on charges of one count of conspiracy and one count of obstruction, CNBC’s cameraman shows us a calm, cool and collected LPH. In fact, she looks like she’s having a downright great time! There she is with her water bottle, smiling away, laughing and chattin’ it up in the lobby, making plans with a couple of bros to meet up later. Of course, she should probably consider bringing on the waterworks, in the interest of sympathy and whatnot, but for now it’s nice to see this thing isn’t phasing her.
Update: Oh, perhaps it was nervous laughter. According to Scott Cohn, LPH had forgotten to bring ID with her this morning, which was why she was chilling/socializing in the lobby long enough for prying eyes to get the impression she’s not sweating this thing. This is why it’s always a good idea to pack your bag the night before showing up in court. You wait ’til that morning and you’re definitely going to leave the house without everything you need. Think, LPH, THINK!
One count of conspiracy, one count of obstruction for the Stanford CFO CIO. Ow.
“Hey, Charles, how are ya? It’s Allen, I was wondering if… Allen Stanford. Sir… Allen Stanford. Yeah. I know. I know. Well, I’m sure you know that we sure could use a little help. We sure could. Well, come on now. I don’t think those charges are credible. That’s right. No way that stands up. Look, we’re calling everyone and reminding you about all those favors we did and all those parties we had and… Well, Charles, I don’t think that was anyone’s fault but the valet. That’s right. Well, ok, I hear you on that too, I know, but it was just my knee. Really, there wasn’t anything to it. Nothing. Anyhow, I was hoping that you might consider being a character witness, you know. I just need someone to… hello? Hello? Charles?”
Accused fraudster and Texas billionaire Allen Stanford has been making calls to his Caribbean base of Antigua to try and gain support and allies, CNBC has learned.
Stanford, head of Stanford Financial Group, was charged with orchestrating an $8 billion fraud. He attempted to get a one-way flight out of the country to Antigua, where his offshore banking operations are based.
Of the money Stanford allegedly swindled, as much as $1.5 billion belonged to U.S. investors, who recouped most of their investments through redemptions that began to pour in following the Bernie Madoff Ponzi scheme.
Stanford Makes Calls to Antigua to Gain Support [CNBC]
You know, we had our ticket ready to go, especially after we saw the big lines in Antigua. We figured we had to hurry. We had the sunblock and the bulletproof vest packed. Unfortunately, it looks like our preparations were all for nothing.
Now that we think about it, how is Allen Stanford going to flee to Venezuela when he’s (potentially) screwed them out of $2.5 billion? That wasn’t so sharp, Sir Allen.
Venezuela is unlikely to help investors faced with the loss of billions of dollars deposited at the discredited Stanford International Bank, Finance Minister Ali Rodriguez said on Wednesday.
The OPEC nation’s bank regulators say Venezuelans may have invested up to $2.5 billion in high-yield certificates of deposit at the Antigua-based unit of a global financial network owned by Texan billionaire Allen Stanford.
Venezuela says no plans to help Stanford investors [Reuters]
We suspect that when Harry Markopolis called FINRA “corrupt,” he at least seems to have hit the nail on the head:
Two employees of Allen Stanford’s financial business, which U.S. regulators have accused of massive fraud, held advisory roles at a watchdog group overseeing U.S. broker-dealers aimed at preventing abuses.
Lena Stinson, director of global compliance at Stanford Financial Group, is listed as serving on the membership committee of the Financial Industry Regulatory Authority, or FINRA, which describes itself as the largest independent regulator of U.S. securities firms.
Frederick Fram, the chief operating officer of Stanford Group Holdings, serves on the FINRA continuing education content committee, “where he participates in creating material for the Regulatory Element continuing education program,” according to a biography on Stanford’s website.
Entertaining. Of course, don’t forget:
On Tuesday, FINRA named Richard Ketchum as its chief executive officer. He replaces Mary Schapiro, who resigned after she was confirmed as chairman of the U.S. Securities and Exchange Commission.
Stanford workers have ties to regulator FINRA [Reuters]
Indeed, the size is barely comparable, but it continues to grow interesting to watch who finds themselves caught up in scandal via a connection to “feeder funds” or feederesque funds for fraud. (Of course, its not at all clear that this is what was going on here, since, at least on these facts, it doesn’t look like Stanford was managing the capital in question, but the connection is interesting).
A fund of hedge funds run by two members of Vice President Joe Biden’s family was marketed exclusively by companies controlled by Texas financier R. Allen Stanford, who is facing Securities and Exchange Commission accusations of engaging in an $8 billion fraud.
The $50 million fund was jointly branded between the Bidens’ Paradigm Global Advisors LLC and a Stanford Financial Group entity and was known as the Paradigm Stanford Capital Management Core Alternative Fund. Stanford-related companies marketed the fund to investors and also invested about $2.7 million of their own money in the fund, according to a lawyer for Paradigm. Paradigm Global Advisors is owned through a holding company by the vice president’s son, Hunter, and Joe Biden’s brother, James.
No word yet on the fate of the Stanford Capital Management Alternative Suction That Will Pull Your Insides Out Core Opportunities Fund.
We shouldn’t be at all surprised that these frauds ensnare political luminaries. To a great extent, they require a visible association with political luminaries to preserve themselves, shield them from scrutiny, and to lend the endeavor a shiny coat of legitimacy. After all, if SenatorVice President Biden’s family is involved….
Of course, Antigua knows the smackdown is coming.
“The Americans have a tendency to act in such a big manner,” Mr. Simon said. “It’s a very, very serious situation. One has to look at it from a nationalistic standpoint.”
You almost want to feel sorry for them. But not really.
Stanford Had Links to a Fund Run by Bidens [The Wall Street Journal]
Antigua Is Hurt by U.S.’s Crackdown [The Wall Street Journal]
Apparently, Sir Allen was working on a “private island” development for all his favorite victims pals. Thirty estates, exclusivity, undisclosed location. All we need now is to blow up Tim Geithner’s seaplane with a solar powered laser and for Nick Nack to show up and start tempting regulators into a funhouse gun battle on the Man With The Golden Gun’s private island. (Of course, that island was near Thailand, not the Caribbean, but still- you get the point).
Scheduled to open in 2011, it would have featured the largest private aviation complex in the world, Forbes said, with enough room to park 100 private jets as well as a jumbo marina with enough dock space for 30 massive yachts. The super-exclusive resort would require members to shell out a $50 million deposit, which would be refunded if they left the development. That was on top of the $15 million annual membership fee.
No word on the actual presence of a solar powered laser on the island, but we wouldn’t be the least bit surprised. Stanford was nothing if not environmentally conscious.
Allen Stanford’s Mystery Island [Dealbook]
You can’t tell me you didn’t at least suspect it a little bit. Can you? I mean look at that picture. Those are not the looks of a group unable to find good stimulants.
The SEC’s fraud charges may be the least of accused financial scammer R. Allen Stanford’s worries. Federal authorities tell ABC News that the FBI and others have been investigating whether Stanford was involved in laundering drug money for Mexico’s notorious Gulf Cartel.
Accused Financier Under Federal Drug Investigation [ABC News]
Aside from grim speculation that he may or may not have been on a NetJets flight from Houston to Antigua, no one has a fucking clue where Stanford is- but that’s not for lack of trying.
U.S. marshals assisting the SEC have been unable to serve Stanford with court orders freezing assets and appointing a receiver to run his Stanford Financial Group companies since a raid on his Houston headquarters Tuesday, Garber said.
Garber said she was unaware of any warrants for Stanford’s arrest and said the SEC was still hoping for his voluntary cooperation on the civil fraud charges.
“Certainly he is still subject to the court orders. To that extent, we certainly want to ensure that he is served,” Garber said. She said two executive who were charged with Stanford, Laura Pendergest-Holt and Jim Davis, had been served.
Finally, someone seems to have read How To Properly Escape Capture Following Your Massive (or Relatively Massive) Financial Fraud: A Dealbreaker Guide. Of course, this “he’s gone” talk is coming from the SEC which would be unable to find its own ass with a full-length mirror and a multilingual diagram. Either that, or the speculation that Stanford has been enjoying the help of certain Federal agencies has some merit. We wondered before why Sir Allen should have such a large presence in Venezuela and Ecuador.
Hmmmm.
Stanford whereabouts unknown after charges: SEC [Reuters]
Can you imagine anything more pointless than rushing to Antigua to try and salvage your deposits from an institution after the investigation is in full swing and the SEC has labeled the entire endeavor a fraud? What is left to do at that point? “Besiege” the offices, of course, as if there is a vault there, and you have only to wait them out until they provide you with the key to a safety deposit box that contains your pro-rata share of the loot.
The entire scene smacks of desperation, as if life savings were tied up in the bank’s coffers. And after Made-off, who in the world would deposit their life savings in a single institution?
The reverberations from Texas billionaire Sir Allen Stanford’s alleged $8bn fraud continued to spread on Wednesday, as Antiguan authorities attempted to calm panicked locals who had been queuing up to withdraw money from a Stanford-owned retail bank.
Depositors attempted to withdraw their money from the Bank of Antigua the day after Mr Stanford was charged by US securities regulators over a “massive” investment fraud through Stanford International Bank, the cricket bankroller’s Antigua-based offshore bank.
[...]
Mr Stanford’s operations in Venezuela and Panama have been similarly besieged, with hundreds of depositors attempting to withdraw their investments from local offices of SIB, Reuters reported.
And if there is no cash left? Well then, burn the witch! I think we’d actually pay good money to cover that. (Especially in Antigua). We kid… we kid. (We’re serious!)
Panicked Antiguans besiege Stanford bank [The Financial Times]
