Ponzi Record

Antigua and Barbuda, United States ยท About 20 years, according to the Justice Department

Stanford International Bank certificates of deposit

The Justice Department said Stanford used Stanford International Bank, an offshore bank in Antigua and Barbuda, to sell certificates of deposit that typically paid a premium over interest rates on CDs issued by US banks. It said only about 10 to 15 percent of assets were managed as claimed, that Stanford diverted money to his own businesses through undisclosed loans, and that he used sales from new CDs to pay existing depositors who redeemed their CDs.1

Losses as statedThe Justice Department said Stanford misappropriated $7 billion from the bank and that more than $8 billion was owed to CD depositors by 2008.1
Victims as statedThe Justice Department said more than 350 victim impact letters were sent to the court. It did not give a total number of investors.
Recovered for investorsBaker Botts, counsel for the court appointed Receiver, said on 1 July 2024 that the Receiver had collected $1.305 billion in bank litigation settlement payments since 20 June 2024 and expected to seek court approval for a distribution of more than $1 billion. A total distributed figure from the Receiver or the court was not confirmed.2

People and outcomes

R. Allen Stanford

Convicted by a federal jury in Houston on 6 March 2012 on 13 of 14 counts. Sentenced on 14 June 2012 to 110 years in prison, with a $5.9 billion personal money judgment and forfeiture of 29 foreign accounts worth about $330 million.1

Response: Stanford contested the charges at a six week jury trial, according to the Justice Department.1

Timeline

  1. Federal jury convicts Stanford on 13 of 14 counts.1
  2. Judge David Hittner sentences Stanford to 110 years in prison.1
  3. Receiver's counsel reports $1.305 billion collected from bank litigation settlements.2

Sources

  1. US Department of Justice, Allen Stanford sentenced to 110 years in prison for orchestrating $7 billion investment fraud scheme (14 June 2012)
  2. Baker Botts LLP, Baker Botts client Stanford Receiver collects $1.3 billion from bank litigation settlements (1 July 2024)