Billionaire Allen Stanford Denies Ponzi Scheme, Expects to Be Indicted Soon

Texas billionaire banker Allen Stanford, who is charged with carrying out an $8 billion investment fraud, has made his first public comments about the federal allegations. In an interview with ABC News, Stanford denied running a Ponzi scheme and said he expects to be indicted by a federal grand jury in the next two weeks.

An emotional Stanford, who reportedly cried during the interview, questioned the government’s case against him, including allegations that he ripped off thousands of investors from around the world.

“I would die and go to hell if it’s a Ponzi scheme,” Stanford is quoted as saying in the to-be televised interview. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?”

SEC Civil Charges Filed

Stanford and two of his top two corporate officers were charged by the SEC in February with duping investors through high-yield certificates of deposit in his Antigua-based Stanford International Bank. Federal securities regulators allege the investments were a Ponzi scheme, in which early investors are paid purported profits from funds contributed to the scam by later investors.

Are Criminal Charges on the Way?

No criminal charges have been filed against Stanford, although that could change soon if a federal indictment is handed down, as he apparently expects. His former chief investment officer has been charged with obstructing the federal probe into the alleged investment fraud and lying to investigators about her role in the company’s investments.

Also, news reports are circulating that Stanford’s longtime friend, former college roommate, and chief financial officer is now working with investigators and helping track down investors funds in bank accounts scattered around the world. James M. Davis has said that when the probe is complete and the dust has settled, he will be cleared of any wrongdoing.

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