Tuesday, February 17, 2009

More Madoffery

Another alleged scoundrel is uncovered.

Texan billionaire and cricket promoter Sir Allen Stanford has been charged over a $8bn (£5.6bn) investment fraud, US financial regulators say.

The SEC said that Stanford International Bank sold approximately $8bn worth of certificates of deposit to investors, promising "improbable and unsubstantiated high interest rates".

It has another similarity to Madoff.

The bank was "operated by a close circle of Stanford's family and friends", the SEC said in a statement.