Allen Stanford Told To Disgorge $6.7bn In SEC Case

R Allen Stanford Convicted Pic

R. Allen Stanford, the Texas financier convicted last year of leading an investment fraud scheme, was ordered to disgorge more than $6.7bn by the judge in a U.S. Securities and Exchange Commission lawsuit.

Bloomberg reports that U.S. District Judge David Godbey in Dallas issued the order Friday against Stanford, his Stanford Group Co. and the Antigua-based Stanford International Bank Ltd.

The order may clear the way for Godbey to grant a court-appointed receiver’s request to make an interim $55m payout to investors who lost money after buying certificates of deposit issued by the Stanford Bank.

'The fraud perpetrated was obviously egregious, was done with a high degree of scienter, caused billions in losses and occurred over the course of a decade', Godbey said, using the legal term to describe the mental state of intent to deceive.

A federal jury in Houston convicted Stanford of lying to investors about how their money was being handled.

'The truth is that he flushed it away', Justice Department lawyer William Stellmach told jurors in his closing arguments at the March 2012 trial. 'He told depositors he was using their money in one way and the truth was completely different'.

Stanford, 63, was sentenced to 110 years in prison. Maintaining his innocence, he has appealed the verdict.

Hit the link below to access the complete Bloomberg article:

Allen Stanford Told to Disgorge $6.7 Billion in SEC Case

Stripping Dimon of Chairman Title Is ‘Nuts,’ Langone Says

Debris From 9/11 Plane Found Between Buildings, NYPD Says

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News