As Warren Buffett once said, "It's only when the tide goes out that you learn who's been swimming naked."
Just two months after Bernie Madoff was arrested for allegedly running a $50 billion Ponzi scam, the SEC today charged Robert Stanford and three of his companies for defrauding investors through a CD program. The SEC says Stanford International Bank sold roughly $8 billion of "so-called 'certificates of deposit' to investors by promising improbable and unsubstantiated high interest rates."
Interestingly, Stanford suffered $400,000 in losses related to the alleged Madoff scheme, according to the NYT.
The commission said the CD rates were "supposedly earned through SIB's unique investment strategy, which purportedly allowed the bank to achieve double-digit returns on its investments for the past 15 years."
Reports say about 15 agents raided Stanford's Houston and Memphis offices today.
Habib of FL @ Feb 20, 2009 19:45:23 PM
belinda of TX @ Feb 18, 2009 17:04:13 PM
greg of TX @ Feb 17, 2009 21:32:50 PM