10 former members of Sir Allen's empire are looking to make a better name for themselves by setting up a new wealth management firm, Solamere Advisors, in the SouthPark area of Charlotte. Among those who are betting the former Stanfordites can make a buck or two without having to answer questions from the SEC is Mitt Romney's son, Tagg. In his due diligence efforts, junior Romney discovered that clients were more concerned about big banks being pushy than handing over their money to people whose former employer ran an $8 billion fraud.
A lot of what we found, as we did due diligence and talked to clients, is they're frustrated with the big banks because the big banks recommend using the bank's index fund, they recommend using the bank's bond fund, and you don't know if that's actually in your best interest or the bank's best interest. But this group (of advisors) ... won't profit by recommending one product over another.
For one of the new partners, Leila Evans, who spent an exciting four months at Stanford before watching her CEO show off his new orange jumpsuit and handcuffs, her brief time at the fraud factory was quite educational.
We learned wonderful lessons from an incredibly unfortunate situation. We learned how to build our firm so those situations can't happen again.
Hopefully one of the lessons learned was that CDs offering three times the rate of return as everybody else may not be suitable for investors who are looking for legitimate investments.
Romney's son is a backer of new firm [Charlotte Observer]