Monthly Archives: May 2011

Allen Stanford Investors Sue His Accounting Firm

Nearly two years after Texas financier Allen Stanford was indicted in an alleged massive Ponzi scheme, investors have just filed a $10 billion proposed class action suit against his auditor-the giant accounting firm BDO. The suit-filed Thursday in federal court in Dallas-says BDO did not only aid and abet the $7 billion dollar fraud…it was […]

SEC could owe millions over lease deal

By: Sarah N. Lynch * SEC in legal dispute with building owner * Agency signed lease, then Congress did not provide funds * Kotz calls for disciplinary action against employees * SEC says it is working to fix the problems * Rep. Neugebauer says SEC should be ashamed WASHINGTON, May 24 (Reuters) – The U.S. […]

SEC says decision near on Stanford coverage

By Stewart M. Powell – Washington Bureau Investors want insurance on their losses. Possible federal brokerage insurance in the Stanford case. WASHINGTON — Investors in R. Allen Stanford’s alleged $7 billion Ponzi scheme should know “within the next few weeks” whether they will be able to collect federal brokerage insurance to cover some of their […]

SEC employee testifies she paid a price for protest

By David S. Hilzenrath An SEC employee who fought for years to get the agency to stop an alleged massive Ponzi scheme told a House panel that she “paid a heavy price” for protesting her boss’s weak approach to exposing such scams. In prepared testimony Friday, Julie Preuitt, a longtime employee in the Securities and […]

Former S.E.C. Official Said to Be Subject of Criminal Inquiry

By EDWARD WYATT WASHINGTON — A former Securities and Exchange Commission enforcement official who has been accused of repeatedly blocking efforts to investigate R. Allen Stanford, the Houston financier charged with running a $7 billion Ponzi scheme, is the subject of a federal criminal inquiry for having done legal work for Mr. Stanford after leaving […]

Ketchum on monitoring Stanford: Finra could have done better

By Dan Jamieson Financial Industry Regulatory Authority Inc. chief executive Richard Ketchum issued a mea culpa today for Finra’s failure to uncover R. Allen Stanford’s alleged $8 billion Ponzi scheme. “Finra clearly could have done better and we deeply regret we did not,” Mr. Ketchum said today in prepared testimony to the House Financial Services […]

FBI probing ex-SEC official on Stanford matter

By Sarah N. Lynch WASHINGTON, (Reuters) – Federal criminal authorities are investigating whether a former U.S. securities regulator inappropriately represented alleged fraudster Allen Stanford after he left the agency in 2005. Spencer Barasch, former head of enforcement for the U.S. Securities and Exchange Commission in Fort Worth, Texas, is being probed by the U.S. Attorney’s […]

SEC Officials: Units Collaborating Better After Stanford Fraud

By Jessica Holzer WASHINGTON -(Dow Jones)- The Securities and Exchange Commission’s investigation and examination units are now coordinating more closely on cases after the regulator ignored claims that now-jailed money manager R. Allen Stanford was running a $7 billion Ponzi scheme, top SEC officials will testify in a hearing Friday. The improved collaboration “has resulted […]

SEC to Release Finding on Stanford Clients’ SIPC Eligibility

By Joshua Gallu The U.S. Securities and Exchange Commission, faulted for missing R. Allen Stanford’s alleged $7 billion fraud, said it will decide “in the near future” whether victims should receive federal insurance payments. The SEC has devoted “substantial time and effort” to determine whether the Securities Investor Protection Corp. erred in denying investors coverage, […]

SEC Missing Stanford Fraud Not Excused by Law

The U.S. Securities and Exchange Commission’s delay in cracking down on R. Allen Stanford’s alleged Ponzi scheme isn’t excused by a law that protects regulators’ discretionary decisions, Stanford’s investors claim. While U.S. law may shield the agency from poor policy choices, it doesn’t protect against allegations of official misconduct and abuse of office, lawyers for […]