Stanford used CD funds for lavish life
HOUSTON |
HOUSTON (Reuters) - Allen Stanford, the Texas financier accused of an $8.5 billion fraud by U.S. regulators, used client funds to pay for his jet-set lifestyle, the Antiguan liquidator in the case said on Monday.
"I believe that depositor funds in Stanford Bank were moved into other Stanford Group companies to fund the expansion and the running of the Stanford empire," said Nigel Hamilton-Smith, the Antiguan liquidator of the firm's offshore bank.
Stanford used the money to pay for jets, lavish homes and yachts, Hamilton-Smith told Reuters.
Hamilton-Smith also said that no one from the U.S. government had asked for his help in its investigation of the Stanford International Bank.
The U.S. Securities and Exchange Commission has alleged that funds from certificates of deposit issued by Stanford International Bank Ltd in Antigua propped up a massive fraud.
(Reporting by Anna Driver; Editing by Lisa Von Ahn)
- Tweet this
- Link this
- Share this
- Digg this
- Reprints
Follow Reuters