You knew it was coming. Allen Stanford was running a Ponzi scheme. Or so says the SEC:
The Securities and Exchange Commission filed an amended civil complaint late Friday alleging that Texas financier R. Allen Stanford and his company's Chief Financial Officer James M. Davis operated a massive Ponzi scheme.
In carrying out this scheme, the SEC claims, Messrs. Stanford and Davis misappropriated billions of investors' money and falsified the Stanford International Bank's records to hide their fraud.
"Stanford International Bank's financial statements, including its investment income, are fictional," the SEC said.
New SEC Complaint Says Stanford Ran Ponzi Scheme [The Wall Street Journal]