Stanford investigation sparks fears in Antigua

By Jason Szep

ST JOHN'S, Antigua (Reuters) - On the streets of Antigua, Texas billionaire Allen Stanford is a controversial figure. Some embrace him while others deride him as a modern-day colonialist.

But nearly all say they fear a U.S. investigation into the tycoon's financial empire and Antigua-based offshore bank could damage the Caribbean island where Stanford is a household name, its biggest private employer and powerful business force.

"He's providing jobs. He's good for the economy. If he's in trouble, that's bad for us all," said George Green, manager of Cool Down Cafe, a hole-in-the-wall restaurant on a narrow street in St. John, the island's capital.

Green's comment was echoed across the twin-island nation of Antigua and Barbuda on Monday as news spread of a deepening probe into Stanford's $50 billion Houston-based investment operation, Stanford Group Co, and its Antigua-based affiliate, Stanford International Bank.

"I'm in shock," said Sylvester Joseph, a construction worker. "Stanford is our biggest investor. His bank is the biggest bank in the country. If it's true, it's a serious concern."

Winston Derrick, publisher of The Antigua Observer newspaper, said locals were deeply divided over Stamford with about half viewing him as an arrogant, land-grabbing investor in the mould of the island's former colonial rulers.

The other half, he said, were thankful for his business.

"He's got a huge ego but he's known to be quite generous," he said in any interview.