Allen Stanford Convicted In Ponzi Scheme Case
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The financier and one-time sponsor of PGA Tour and LPGA Tour events was convicted on 13 out of 14 counts in a worldwide fraud scheme that involved more than $7 billion in investments, including those of PGA Tour players.
The jury decision came three years after Mr. Stanford was accused of defrauding nearly 30,000 investors in 113 countries in a Ponzi scheme involving $7 billion in fraudulent high-interest certificates of deposit at the Stanford International Bank, which was based on the Caribbean island of Antigua. Prosecutors argued that Mr. Stanford had lied for more than two decades, promoting safe investments for money that he channeled into an unimaginably luxurious lifestyle, a secret Swiss bank account and half-baked business deals that consistently lost money.
The prosecutors heavily relied on James M. Davis, Mr. Stanford’s old roommate from Baylor University, who served as his chief financial officer. Mr. Davis testified that the Stanford business empire was a fraud complete with bribes for Antiguan regulators and schemes to cover up operations from federal investigators. He described how Mr. Stanford had sent him to London to send a fax to a prospective client from a bogus insurance company office to reassure him that his investment would be safe.
Still to be resolved are disputes between the receiver and various golf entities, including Golf Channel, the PGA Tour, David Toms and IMG.
