Feb 17 Texas billionaire Allen Stanford, three
of his companies and two other executives, were charged with
"massive" fraud on Tuesday as federal agents swooped on his
U.S. headquarters. [ID:nN17381625]
Following are details from Stanford company websites about
his financial empire, including from a 2008 copy of the group's
Stanford Eagle Magazine. In the final section, the information
comes from the civil complaint filed by the U.S. Securities and
Exchange Commission (SEC).
Is a fifth-generation Texan and chairman of the Stanford
Financial Group of companies that claims clients from 140
countries and assets under management and advisement of $50
His grandfather, Lodis, founded the first Stanford Company
during the Great Depression in 1932 in the small central-Texas
town of Mexia.
Allen Stanford, 58, made his first fortune in real estate
in the early 1980s and expanded the family firm into a global
wealth management company.
He lives in St. Croix in the US Virgin Islands, and holds
dual U.S. and Antigua and Barbuda citizenship. He was the first
American to be knighted by Antigua and Barbuda in 2006 to
become Sir Allen Stanford.
Quote from Allen Stanford in magazine
"Our world is far different than the world my grandfather
lived in when the first Stanford company was founded ... As a
company founded in the midst of the Great Depression -- an
environment of despair and negativity -- we have a long-proven
understanding of how even the most severe downcycles can bring
opportunities that yield significant benefits in the long run."
Major Stanford companies and divisions include:
* Stanford Financial Group Global Management and Stanford
Global Advisory LLC, based in St.Croix.
* Stanford International Bank, headquartered in St. John's,
* Stanford Group Company, based in Houston, Texas, is the
companies' North American head office.
* Stanford Policy Research Group, a Washington-based
research team and a Government Affairs Office.
Among the financial services Stanford offers:
* Wealth management, including planning, asset management,
brokerage, trust services, insurance and coins and bullion.
* Institutional services, including research, investment
banking, and institutional sales and trading.
Support for sports includes:
* Stanford's own private Twenty20 cricket competition in
the Caribbean, including a $20 million game in November between
England and his own team made up of West Indian players.
* Endorsement relationships with Fijian golfer Vijay Singh
and England soccer player Michael Owen.
* Host sponsor of the 2009 Sony Ericsson Open tennis event
in Biscayne, Florida on March 23-April 5.
* Sponsors venues at the Houston Polo Club and
International Polo Club in Palm Beach, and sponsors the
Stanford Charity Polo Day at the Royal Military Academy
Sandhurst in the UK.
* In golf, it sponsors the PGA Tour's Stanford St. Jude
Championship in Memphis, Tennessee.
* Sponsors the Stanford Antigua Sailing Week
SEC Complaint says:
* Since 1994, Stanford International Bank claims it has
never failed to hit investment returns in excess of 10 percent
* In 2008, the bank said its "diversified portfolio of
investments" lost only 1.3 percent, while the S&P 500 U.S.
stocks benchmark declined 39 percent.
* SEC says the bank's historical returns are "improbable,
if not impossible."
* The bank quoted certificate of deposit rates of more than
7 percent during 2005 and 2006, and quoted a 3-year CD at 5.375
percent annual rate in November 2008, against comparable U.S.
bank CDs of 3.2 percent.
* Did not disclose that its investment portfolio includes a
significant portion in illiquid private equity and real estate
(Reporting by Martin Howell; Editing by Ian Geoghegan)