Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases
« Trial Begins for Indiana Man Accused of $200 Million Ponzi Scheme | Main | Self-Described "Financial Pyramid" Collapses in Russia; Police Open Criminal Investigation »

Allen Stanford Sentenced to 110 Years in Prison for $7 Billion Ponzi Scheme

A federal judge handed down a 110-year sentence to R. Allen Stanford for bilking thousands of investors in a $7 billion Ponzi scheme that spanned the globe.  United States District Judge David Hittner delivered the sentence after hearing from prosecutors, defense attorneys, two victims and Stanford himself.  Prosecutors had argued for a sentence of 230 years, the maximum allowed, while Stanford's attorneys had urged Judge Hittner to sentence Stanford to a maximum of 44 months - essentially a sentence for time served.  

Stanford gave a 40-minute statement to Judge Hittner before the court, claiming he was a scapegoat and regusing to take responsibility for his actions.  He blamed the federal government and the SEC-initiated receivership for the demise of his business, continuing to maintain that his financial enterprise was a legitimate business, and arguing that he did not run a Ponzi scheme.  Said Stanford, “I did not run a Ponzi scheme. I didn’t defraud anybody.”  

Prosecutor William Stellmach seized on this lack of remorse, calling him arrogant and remorseless and pointing to the massive losses sustained by the victims of Stanford's scheme that numbered in the thousands.  Two victims also spoke, explaining the financial devastation wrought by Stanford's actions.  

In handing down the sentence, Judge Hittner both ensured that Stanford will spend the rest of his life in prison (assuming that any appeals are unsuccessful) and made sure that Stanford's sentence, like his crime, would pale in comparison only to Bernard Madoff's scheme.   The sentence places Stanford between Madoff, who was  sentenced to 150 years in prison in June 2009, and Thomas Petters, who was sentenced to 50 years in prison for his $3.65 billion Ponzi scheme.  Additionally, in a largely symbolic move, Judge Hittner approved prosecutors' request for a $5.9 billion restitution order, which is highly unlikely to ever be satisfied considering Stanford's indigent status.

Three other Stanford executives are scheduled to stand trial later this year, and a former Antiguan regulator is currently awaiting extradition to face charges after being indicted.   

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (1)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Response: Titus Selman
    I cannot thank you enough for the article post. Awesome.

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>