Want to hear something funny?

[Joanne98]

The "Texas Madoff" Stanford. His company is a member of FINRA!

Securities products and services are offered in the United States through Stanford Group Company, member FINRA/SIPC. Member of the Stanford Financial Group. Stanford Financial Group is not a legal entity, but a registered trademark that encompasses the global network of independent, but affiliated, privately held and wholly owned entities

http://www.stanfordgroup.com/

I wonder what Marko Polo has to say about that?

"I told you so".......

[Joanne98]

1. Stanford, flamboyant Texan, faces media glare

BOSTON (Reuters) - Just three weeks ago, Allen Stanford was listed as one of the 100 most influential people in British sport. Now, the Texas billionaire is at the center of the latest investigation by Wall Street regulators.

In recent years, the flamboyant 58-year-old financier and cricket mogul has seldom strayed far from controversy -- from tangling with leaders of Antigua where he is the biggest single investor to ruffling the well-mannered world of international cricket by cavorting with the players' girlfriends.

Once described as "haughty, arrogant and obnoxious" by Antiguan Prime Minister Baldwin Spencer, America's 205th richest man often walks a fine line between critics and admirers in a business and sporting empire that reaches well beyond Texas to Europe and across the Caribbean.

"Allen enjoys life and is the kind of person that doesn't worry about what other people think," said David LeBoeuf, a Texas home builder who went to school with Stanford and counts him as one of his closest friends.

"Larger than life is one way to describe him but he's also an extremely talented, unique and hard-working individual," he said in an interview. "If you are one his friends and he cares about you, he'll do quite a bit for you and be there for you."

The tall, mustached Texan is facing the glare of the media anew as his $50 billion investment operation, Stanford Group Co, comes under investigation by U.S. regulators at a time when Bernard Madoff's suspected $50 billion fraud has put regulators and investors on high-alert for any whiff of wrongdoing.

The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority are examining sales of certificates of deposit in its affiliated, Antigua-based offshore bank and the steady, above-average returns those investments pay, sources say.

http://www.reuters.com/article/topNews/idUSTRE51C66O20090213

[pleah]

2. K&R

[Joanne98]

3. Oh boy. This is going to get very interesting.

The story from Friday, February 13, notes that Stanford is being examined by the SEC, the Financial Industry Regulatory Authority (FINRA), and the Florida Office of Financial Regulation.

The focus of the probe isn't clear. Mr. Stanford's firm offers many financial services, chief among them wealth-management services, and markets certificates of deposit through his offshore bank, Stanford International Bank Ltd., in Antigua. The CDs offer unusually high and consistent returns. Mr. Stanford controls both the bank and the financial group that markets the CDs the bank issues.

By Valentine's Day, yesterday, WSJ reported that the FBI had entered the probe. It seems that Stanford Financial Group had recently been telling its depositors that they couldn't redeem their CD's for two months. Sir Allen emailed his customers, telling them that he had been "infusing cash" into the Antigua-based Stanford International Bank, Ltd. How did Stanford reach the FBI's radar? It seems that like our old pal Bernie Madoff, some of Stanford's returns are too good to be true given the investments he claims to have made:

Stanford Financial Group previously has been in the sights of various regulatory and law-enforcement agencies, according to the people familiar with the matter. Those people say the agencies now are focusing on certificates of deposit, which are marketed by the financial group's wealth-management arm and sold by Mr. Stanford's Antiguan bank. The CDs offer unusually high returns; for example, as of Nov. 28, a one-year, $100,000 CD paid 4.5%.

"The first thing that grabs your eye is the business model," says Alex Dalmady, an analyst who unveiled concerns about Stanford International Bank in the magazine VenEconomy Monthly but isn't involved in the investigation. "Taking deposits and playing the stock market -- this is way too risky. "

Stanford's Web site says that the bank has invested in a diversified portfolio including stocks, while banks generally make money by lending. A memo on Stanford's Web site says that the bank has never made a structured loan or a commercial loan. . .

"We want our depositors to know that SIBL had no direct or indirect exposure to any of Madoff's investments...Also, SIBL has never made a structured loan or a commercial loan. All loans are cash secured and to SIBL clients only at a maximum 80% loan to 100% cash collateral ratio."

Now here is where it gets interesting. A second WSJ article from February 14, 2009, tells us:
An offshore bank at the center of two U.S. federal investigations recently curtailed financing commitments to two small American companies, regulatory filings show.

Stanford International Bank Ltd. of Antigua recently failed to provide some $16 million in funding to a small Florida telecommunications firm, while a small Alabama health-care firm said it was unable to complete a roughly $62 million merger after funding fell through. Stanford International had previously planned to provide funding to complete the deal, according to the health-care firm.

It was understood that Stanford was funding Health Systems Solutions' bid for Emageon. But the true relationship appears to be a little deeper:

Stanford also owns a majority of the shares of Health Systems Solutions Inc. of New York City, which is traded on the OTC Bulletin Board. In October the firm agreed to acquire Emageon Inc. of Birmingham, Ala, but the deal was terminated Friday with Emageon attributing the development to Health Systems' inability to obtain funding on or before the closing deadline of Feb. 11. Executives of Emageon couldn't be reached for comment and Health Systems executives didn't respond to requests for comment.

Hmmmm. Interesting. As an aside, Stanford had a similar relationship, and a similar deal-retraction with Elandia International, a communications firm:

The Florida firm losing $16 million in financing from Stanford International is called Elandia International Inc. of Coral Gables, which trades over-the-counter on the so-called pink sheets. Elandia says it controls a collection of small telecommunications firms in Latin America and the South Pacific. Regulatory filings show that the Elandia's chief financial officer is James M. Davis, who is also chief financial officer of both Stanford International Bank and Stanford Financial Group.

Efforts to contact Elandia executives by phone and e-mail were unsuccessful.

In a new SEC filing, Elandia also said Stanford International Bank had also agreed to convert an outstanding $12 million loan it had made to Elandia into shares of Elandia equity. Such debt-equity swaps often take place when borrowers lack the cash to pay loans back.

Since Emageon got their $9 Million payoff for the deal's collapse (I assume the check cleared), they came out of this "merger" better than they might have had it actually gone through. I have just two words of advice, though: due diligence..... Someone should have had a deeper look into the inner workings of HSS and Stanford. But I guess it's rather rare for people about to get married to look deeply into anything but the eyes of their beloved.

Posted by Dalai at 2/15/2009 09:36:00 AM

http://doctordalai.blogspot.com/2009/02/emageons-suitors-financiers-tangled.html

[Joanne98]

4. "overseeing the firm's books is "a tiny accounting firm in Antigua" whose CEO recently died"

We thought Bernie Madoff's world record in Ponzi-scheming would be safe for a while, maybe for all of time. But now comes the news that the SEC is investigating one R. Allen Stanford, a billionaire who runs a money-management firm out of tropical, tax-free St. Croix. To his moneyed clients, Stanford offers certificates of deposit that offer "unusually high and consistent returns" (double the market average, according to Business Week). Hmmm, where have we heard that phrase before? Oh, also: The company overseeing the firm's books is "a tiny accounting firm in Antigua" whose CEO recently died. Oh, dear.

Stanford manages $51 billion, just nosing out the amount that Madoff had "under management." But before we award him the new world record, we should say: Stanford has yet to be accused of any crime, and he has said that the SEC is on a fool's errand, acting on false tips from disgruntled ex-employees and trying to make up for its years of deficient management. The firm has 50,000 clients. We would be surprised if a few of them haven't been making anxious inquiries as to the whereabouts of their money.

But Stanford spreads his dough around plenty. He's a pillar of the community in the Caribbean, where he is one of the largest property owners and employers. Also, he has a corporate jet with "a toilet seat emblazoned with a golden eagle, the Stanford Financial logo." A fine spot for the company seal!

http://nymag.com/daily/intel/2009/02/suspected_ponzi-schemer_r_alle.html

[Joanne98]

5. Standford has a "sailing week" website LOL

WELCOME TO THE OFFICIAL WEBSITE OF STANFORD ANTIGUA SAILING WEEK


Now one of the premier sailing regattas in the world, the Stanford Antigua Sailing Week welcomes participants from all corners of the globe each year competing for the chance to win this prestigious race. Five challenging days of racing in some of the best sailing conditions in the world combined with the famous Antiguan hospitality make this a regatta not to miss.

http://www.sailingweek.com/v2/index.php

Step Ondeck, the sails are hoisted and the fun begins!

Come and experience sailing in the true sense of the word. Ondeck is an ‘Antiguan must do’ along with the great beaches, Nelsons Dockyard and Shirley Heights.

http://www.ondeckoceanracing.com/antigua/

[Joanne98]

6. They have an EAGLE SHIELD that all the employees wear...

OUR EAGLE SHIELD

At Stanford, we hold ourselves to a higher standard of service and dedication across every dimension of our work. As a privately held company, we focus solely on delivering excellence for our clients.

We know that our difference is achieved through our people. We hire only the best professionals in the industry and encourage a culture of entrepreneurship, hard work, and high standards. To distinguish the men and women of the Stanford Financial Group of companies, every employee wears an eagle shield representing financial strength, integrity and commitment to our clients.

picture at link...
http://www.stanfordfinancial.com/eagle_shield

[Joanne98]

7. They have a magazine too. EAGLE

http://www.stanfordfinancial.com/Magazine/Stanford_Eagle.pdf