Investigation of Billionaire Banker Stanford Goes Global, Drug Money Laundering Accusation Added

Texas banker and financial manager R. Allen Stanford, named this week by U.S. regulators in an alleged $8 billion investment scam, now faces broadening and increasing charges of international financial fraud.

Also, it was announced that the flamboyant billionaire – whose exact whereabouts remain a mystery – has been under investigation by Federal Bureau of Investigation and Mexican authorities for allegedly laundering money for a drug cartel in that nation.

Across the globe, from Europe to the Caribbean and Latin America, financial authorities are pouring over Stanford’s vast money empire, which reportedly had assets in excess of $51 billion. Stanford’s personal wealth has been estimated at about $2.2 billion.

Stanford is Accused of ‘Massive Fraud’

This week, the U.S. Securities and Exchange Commission filed a civil complaint naming Stanford International Bank and two other companies he controls in a vast financial scheme involving the sale of fraudulent certificates of deposit. Stanford and two of his top associates stand accused of manipulating data to entice investors into a program which promised high interest rate returns that were not realistic. Investigators said the scam may have netted billions in fraudulently obtained funds.

Federal agents have raided the Stanford Financial Group’s Houston headquarters and other locations around the world as part of the growing investigation of fraud.

International Reaction to Stanford Grows

Banking authorities in Venezuela and Panama seized banks owned by or affiliated with Stanford in an effort to protect investments by their citizens. In Peru and Ecuador, securities regulators suspended operations of financial entities controlled by Stanford, while officials in the United Kingdom were watching the situation after a link between Stanford and banks in those countries was reported.

In Antigua, the tiny Caribbean island where Stanford is a main investor and larger-than-life personality, hundreds of nervous investors lined up outside the national bank, anxious to recover their money. Antiguan officials have said the funds are safe and protected.

Drug Money Laundering Added to the List

As the ripples of Stanford’s financial fraud reach around the world, Mexican authorities have reportedly detained one of Stanford’s private planes as part of an FBI investigation into possible drug money laundering.

The FBI investigation reportedly began before the financial fraud case was launched, and officials said Stanford could face criminal charges of money laundering and bribery of foreign officials. However, authorities also said the SEC’s action against Stanford may have thrown a wrench into the federal drug probe.

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