Stanford clients comforted by arrest, still angry

By Svea Herbst-Bayliss

BOSTON (Reuters) - Investors burned by Texas billionaire Allen Stanford took solace from his indictment on Friday, but many remained devastated by their losses and frustrated at their inability so far to recover the money.

Retired school teachers, corporate executives, small business owners and others who entrusted their life's savings to Stanford applauded his arrest in Virginia and indictment on federal fraud, conspiracy and obstruction charges.

"I have spent months assuring my clients that Stanford will be arrested and that he will go to prison," said Randy Pulman, managing partner at law firm Pulman, Cappuccio, Pullen & Benson LLP in San Antonio, Texas.

"So there is some relief from that," said Pulman, whose clients had roughly $49 million invested with Stanford.

But the arrest does little to ease the pain of the 30,000 investors the SEC estimates were affected by what federal officials describe as a $7 billion pyramid scam executed by Stanford, three associates and a top Caribbean regulator.

The 59-year-old Stanford is accused by the U.S. Securities and Exchange Commission of having fraudulently sold $8 billion in high-yield certificates of deposit issued by Stanford International Bank Ltd in Antigua.

He has denied all wrongdoing.

"I've seen grown men break down and cry," said Angela Shaw, who invested $2 million with Stanford and now heads the Stanford Victims Coalition, referring to those who lost money to the tycoon.