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Securities attorneys representing investors duped in the Stanford investment fraud are getting ready to persuade Ralph Janvey, the U.S. receiver of Allen Stanford's assets, to release frozen assets. Also, the two receivers in the U.S. and Antigua are locking horns over Stanford Financial Group asset control and the man at the center of the scandal seems to have zeroed in on a criminal lawyer to represent him.

Janvey has released a set of procedures that investors, who believe their accounts should not be frozen as part of the freeze on all Stanford assets, can use to prove their money was not tainted by the scandal and should, therefore, be released. The money in question is tied up in funds and amounts to a total of $1.7 billion dollars. Investors who wish to see their frozen funds released will have to agree not to sue the group elsewhere and to abide by the court's decisions. Earlier in March, Judge David Godbey released approximately 28,000 of the frozen investor accounts that amounted to over $4 billion. The other investors will have to furnish details about the interest they earned during their investment and what they did with the money. They will also be required to convince Janvey that their funds are clean and should be released.

Meanwhile, the dispute over who exactly controls the Stanford Financial Group's assets in Antigua continues with Janvey and Antigua government appointed receiver, Nigel Hamilton Smith. The receivers continue to play tug-of-war over the assets. Janvey insists his control extends to all Stanford Group assets, including those in Antigua, while Smith claims he is the sole receiver for the assets. The two are expected to meet soon to come to an agreement. 

Finally, capping off days of hectic legal activity, Allen Stanford is likely to be represented by a Houston-based criminal attorney. The lawyer, Dick DeGuerin, has not formally been appointed as the billionaire's lawyer because Stanford has no money to retain legal services.

Stanford Financial Fraud

Losing money in an investment scam can be a painful experience with the nightmare seemingly never ending. The process of recovering your money is not an easy one and can it take weeks and even months for legal experts to build a case. It is extremely important to have an experienced securities attorney on your side to represent you and help you through tough times.

If you have lost money in the Stanford Financial Group scam, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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As of Friday, March 6th nearly 1,000 U.S. Stanford employees were without jobs. The receiver of Allen Stanford's assets, Ralph Janvey explained that, due to Stanford's extreme financial troubles, business would be discontinued.

According to CNBC, The near 1,000 Stanford employees without jobs account for 85% of the fraudster's employees in the United States. In addition to the absolute termination of all salary and benefits, the unfortunate group will receive no bonuses or severance.

A few employees from the Houston headquarters will be kept on long enough to wrap things up at the office and close the company down. After, however, they will also be out of a job.

In a statement on Friday Janvey explained, "After a review of the circumstances, the receiver concluded that continuing employment for these employees is not in the interest of conserving and preserving the value of the estate because there are insufficient resources to continue to compensate all present employees."

Nearly 1,000 employees are now left to find a job and benefits for their families in today's bleak job market.

Investment Fraud Attorney

Recovering lost funds due to a schemer like Stanford can be extremely difficult and exhausting. Our team of securities attorneys can help you get through tough times and recover lost investments.

If you have lost money in the Stanford investment fraud or any other securities fraud, contact an experienced securities attorney at Arnold & Itkin LLP for a free consultation.

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Allen Stanford, accused of running an $8 billion Ponzi scheme, leads an extravagant lifestyle with private jets, multiple homes, billions of dollars and, recently discovered, an Antiguan island. Antigua and Barbuda's government is taking steps to seize the island to help their financial situation in the wake of Stanford's thievery.

Guiana Island

Guiana Island is Antigua's largest island measuring 2.5 miles across and .5 miles wide. With extensive mangroves, coral reefs and wildlife it is one of Antigua's ecological treasures. It is home to Antigua's national animal, the European fallow deer, and the endangered West Indian whistling duck.

In the early 1990's the island was sold to Tan Kay Hock with intentions of developing the land and building resorts, casinos, conference centers, etc. The land was never developed due to the Asian financial crisis in 1998. At some point after that, the land was acquired by a British Virgin Island company. Stanford bought the shares of that company and now controls the land.

Seizing the Island

According to Reuters UK, the Antigua and Barbuda government has already been approved to seize 250 acres of the land and seeks to seize the remainder. Stanford's scandal hit the country and its people hard, financially. He is Antigua and Barbuda's biggest employer after the national government and is its largest investor.

Government officials hope to take control of the island to help alleviate Stanford's fraudulent impact on the local economy. Their three main goals include:

• stabilizing the Stanford-owned Bank of Antigua
• keeping 800 Stanford workers employed
• paying off a "massive outstanding debt to local suppliers"

Overall, Prime Minister Baldwin Spencer and his government are focused on the "well being of the employees and the entire economic situation".

Antigua and Barbuda officials hope to get control of the island without any difficulty from the U.S. Securities and Exchange Commission (SEC) and Ralph Janvey, the man appointed receiver of Stanford's assets. Many of Stanford's victims are American.

Investment Fraud Attorney

Clearly, the Stanford case is a complex one, involving many layers of deception. Recovering investments lost to a fraudster can be difficult and exhausting. An experienced securities attorney can help you take the necessary steps to get your money back.

If you have lost money in the Stanford investment fraud or any other securities fraud, contact a securities attorney at Arnold & Itkin LLP for a free consultation.

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76-year-old Arthur Nadel faces 40 years in prison and fines of up to $5.25 million for alleged securities fraud and wire fraud.

Arthur Nadel, a Sarasota, FL resident, operated two firms: Scoop Management and Scoop Capital which controlled six different hedge funds: Victory, Victory IRA, Viking IRA, Scoop Real Estate, Valhalla Investment Partners and Viking Funds.

In Allen Stanford style, Nadel misled 500 to 600 investors nationwide, purporting assets of nearly $350 million when, in reality, they totaled only about $1 million. Also, last year's returns were negative, but Nadel told his clients their returns were 11 and 12%. The Securities and Exchange Commission (SEC) has charged Nadel with securities fraud and wire fraud and has frozen his assets, both personal and business.

The Search for Nadel

Just after the Bernie Madoff bust, partners at Nadel's Scoop Management and Scoop Capital suggested he hire an independent accountant to audit the books. According to reports by USA Today, Nadel agreed to the audit on January 8th and disappeared on January 14th.

The next day, authorities found Nadel's vehicle in a local airport parking lot. He also left his wife a handwritten note explaining he left documentation enough for her to take over what is left, "even documentation for divorce" and felt "extreme guilt." He also advised her to withdraw money as soon as possible, knowing the assets would be frozen shortly.

Federal officials traced Nadel's cell phone transmissions to New Orleans and on January 27th he surrendered to officials in Tampa. Later that day he was seen in a courtroom wearing shackles. The judge handling the case, Mark Pizzo, denied bail for the swindler claiming he was a flight risk and might have money stashed away somewhere.

The Damage

According to the SEC, Nadel has been running his investment fraud since 2004. During that time Mace Securities International invested $2 million dollars with Nadel and lost nearly half. Another investor is left with only $3,000 after a recent statement lists his fund as worth $603,000.

In an attempt to recover lost investments and repay swindled investors, Nadel agreed to work with the SEC, identifying his assets. According to reports, however, he has been uncooperative. Authorities have discovered that $1.25 million was recently transferred from two of the hedge funds into a secret personal account and found two private jets and 500 acres of land in North Carolina.

Securities Fraud Attorney

Sorting through the tangled mess fraudsters like Nadel create can be exhausting. A securities attorney with expertise in cases like this can help you find the answers and resources you need to recover lost investments.

If you have lost money in a securities fraud, contact an experienced secuities fraud attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Last Friday, the Securities and Exchange Commission (SEC) amended their complaint against Allen Stanford, James Davis, Laura Pendergest-Holt and the three affiliated companies, accusing Stanford and Davis of executing a Ponzi scheme and Pendergest-Holt of "facilitating" the scheme.

According to the Houston Chronicle, SEC officials say the threesome had been executing the Ponzi scheme for at least a decade. While Stanford and Davis misappropriated billions of dollars, Pendergest-Holt convinced naive investors that she and a team of analysts were keeping tabs on their investments.

According to the SEC, on a monthly basis, Stanford and Davis came up with a set return on Stanford International Bank investments and worked backward from there, falsifying financial documents to support their deception.

By February 2009, $1.6 billion of investor money had been misappropriated by Stanford through fake personal loans to himself, which he threw away in "speculative, unprofitable" businesses he controlled.

Ponzi Scheme Attorney

Considering the various illegal activities Stanford was involved in, knowing where to being when involved in an investment fraud can be exhausting. An experienced securities attorney can help you sort through Stanford's mess and recover your lost investments.

If you have lost money in the Stanford Investment fraud or Ponzi scheme, contact a securites attorney at Arnold & Itkin LLP for a free consultation.

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Allen Stanford, James Davis, Laura Pendergest-Holt and Stanford Financial Group's various firms allegedly violated the Securities Exchange Act of 1934 and the Investment Advisors Act of 1940. Allen Stanford, the flamboyant billionaire, allegedly set up a scheme convincing naive investors that his incredible returns were feasible.

Securities Exchange Act of 1934

The Securities Exchange Act of 1934 created the U.S. Securities and Exchange Commission (SEC) and prohibits manipulative and improper securities practices. The law also requires firms to disclose financial information and insider trading information.

Investment Advisors Act of 1940

The Investment Advisors Act of 1940 requires investment firms and investment advisors to register with the SEC and follow SEC regulations. This way, the SEC can regulate and oversee advisors' actions.

Allegations in the Stanford Investment Scam

In violation of the Securities Exchange Act, Stanford and company used misleading facts and omitted imperative information when pitching to their clients. Rather than using true historical returns, the company used figures from a group of mutual funds that had done well from 1999 to 2004 purporting them to be historical results. Stanford and company knew the facts they delivered to clients were false and misleading and, ultimately, convinced clients to invest nearly $1 billion in their Stanford Allocation Strategy program. Because Stanford, Davis and Pendergest-Holt were all in a position to correct false information and correct employees pitching the improbable returns, they are liable for the losses clients suffered. Stanford and company violated the Investment Advisors Act by knowingly employing misleading and abusive practices to dupe investors.

Securities Attorney

Digging through and understanding the many laws that apply to investment fraud can be difficult and exhausting. Our experienced team of securities attorneys has the expertise needed to tackle schemers like Stanford.

If you have lost money in the Stanford Investment fraud or any other investment scam, contact a securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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It seems as though tricking naive investors wasn't Allen Stanford's only profession. The Texas billionaire, accused of running an $8 billion CD investment fraud, is and has been in other legal trouble.

In addition to investment fraud, Stanford is also being investigated by the FBI for a money laundering scheme connected with the infamous Mexican drug trafficking gang, Gulf Cartel. For a long time, the Securities and Exchange Commission (SEC) and FBI have worked together to ensure good timing and sufficient evidence against the financial titan, but after Stanford began to withdraw large amounts of cash from his bank, the SEC couldn't wait. As a part of the FBI investigation, Mexican authorities seized one of one of Stanford's private planes and, inside, found checks believed to be linked to the Gulf Cartel. Stanford could face charges of money laundering and bribery of foreign officials in addition to securities fraud charges.

Also, in 2001, Stanford, claimed he was a descendant of Stanford University's founder, Leland Stanford. Stanford University officials denied any relation and, in 2008, filed a trademark infringement lawsuit against the billionaire, claiming his actions were "injurious" to the university's name and caused "public confusion." This odd attempt at name dropping supports the idea that the egomaniacal Stanford is after power in every way. 

Another legal "oops" on Stanford's record is his failure to pay taxes. According to public records, he owes more than $212 million in federal taxes. This is the sum of four federal tax liens against the accused fraudster from 2007 and 2008.

Securities Attorney

Taking on a deep-pocketed fraudster like Stanford can require extreme amounts of time, research, money and expertise. Our team of securities attorneys has the experience necessary to recover funds lost in an investment scam.

If you have lost money in the Stanford Financial fraud contact an experienced securities attorney at Arnold & Itkin LLP for a free consultation.

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Concerns over the increasing number of investment fraud schemes being uncovered have spurred Florida’s lawmakers to introduce legislation they hope will protect investors.

Two southwest Florida lawmakers, Representatives Tom Grady and Senator Garrett Richter, have collaborated with Florida attorney general Bill McCollum to introduce a bill known as the Florida’s Securities and Investors Protection Act. The proposals aim at enhancing the attorney general's powers to begin investigating possible fraud sooner. Prosecutors will need less proof to pursue a case, enabling them to easily crack down on any violations that come to their attention. The bill will also provide for stricter registration requirements for investment advisers and brokers.

Florida has been hit particularly hard in the recent series of investment fraud scandals that have come to light. The victims of Bernie Madoff's scheme included a large number of retirees who invested their funds in the scheme and moved to Florida to live out their golden years. Soon after in January, hedge fund manager Arthur Nadel surrendered in Tampa after leading investigating officers on a cross country chase. Nadel is being sued by federal regulators for inflating investment values in the funds he managed by approximately $300 million.

According to attorney general McCollum, the current system to investigate investment fraud in Florida is in dire need of change. Under the present system, prosecutors cannot interfere in a case until the financial regulation office refers it to them. The new bill allows the attorney general's office to initiate civil investigations.

A lack of attention and poor regulatory practices, both at federal and state levels, has allowed the likes of Madoff, Nadel and more recently, Allen Stanford to continue their fantastical schemes with no fear of getting caught. Their schemes remained under the radar as long as the economy was fine and credit was flowing freely. The credit squeeze has exposed a number of these schemes, audacious Ponzi schemes for the most part.

Investment Fraud Attorney

Pursuing claims in an investment or securities fraud can be a complex affair. Authorities may have access to more than one source for dispensing compensation and the amount of compensation for each investor who lost money can vary. 

A professional investment fraud attorney can help you recover damages from all sources possible. If you have lost money in a fraudulent scheme, contact an investment fraud attorney at Arnold & Itkin LLP for a free evaluation of your claim.

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Stanford investment fraud whistleblowers left the company when they realized Stanford's unethical practices were intentional and unchanging. They went to the Securities Exchange Commission and helped build a case against the Texas billionaire.

In December of 2007, former Stanford Financial Group (SFG) financial advisers, Charles Rawl and Mark Tidwell quit their jobs for fear of being held criminally liable due to the investment fraud they feared was taking place at SFG. While working at SFG the men were aware of the company's unethical marketing methods and asked management to correct the wrong doing. When the company refused to change its ways Rawl and Tidwell quit and went to Securities and Exchange Commission (SEC) authorities with their concerns. With the mens' help, the SEC began building a case against the extravagant billionaire and his companies. When Stanford's lawyer, Thomas Sjoblom, stepped down, the SEC took it as a red flag and confirmation of their suspicions and pounced, raiding Stanford's offices just days later. Sjoblom's resignation, according to Peter Henning, a criminal and securities law instructor, was a "massive red flag" and "scream[ed] fraud."

In many instances whistleblowing has been looked down upon, whistleblowers are often referred to as tattle-tales or as selfish snitches, throwing others under the bus, so to speak, to save themselves. Due to this, it has also been known to bring on discrimination and difficulty finding work. Recently, however, the SEC has turned a positive light on whistleblowers, calling on them to help stop investment frauds earlier and, in turn, help restore the Commission's reputation.

Now, the whistleblowers, Rawl and Tidwell, have filed a wrongful termination and employment discrimination lawsuit against SFG. Also, investors have recently joined a class action lawsuit against SFG filed by former Stanford employees.

Securities Attorneys

Sorting through the paperwork and deciphering the financial jargon used in an investment fraud can be extremely difficult. Our team of securities attorneys can help you take the appropriate steps in recovering lost investments.

If you or a loved was has lost money in the Stanford investment scandal or any other securities fraud, contact an experienced securities attorney at Arnold & Itkin LLP for a free evaluation of your case.

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Arnold & Itkin LLP has filed a securities fraud lawsuit against Stanford International Bank Ltd., Stanford Group Company, Stanford Capital Management, Allen Stanford, James Davis and Laura Pendergest-Holt alleging the defendants fraudulently deceived the plaintiff by making false and misleading statements. Their deceit in the investment fraud caused the plaintiff economic loss and Arnold & Itkin LLP is proud to represent them and help recover the lost investment.

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R. Allen Stanford, the Texas billionaire accused of perpetrating the $8 billion Stanford investment fraud, has been tracked down in Virginia.

Federal employees were unable to find the extravagant billionaire until the FBI joined in the hunt and found Stanford Thursday in Fredricksburg, Viriginia. In addition to being served legal documents by federal agents, Stanford was required to turn over his passport to officials. A federal judge has frozen his assets and appointed a receiver to identify and watch over the billions of dollars in assets that Stanford's company, Stanford Financial Group, holds around the globe. Stanford was not charged with any crimes or taken into custody.

Earlier in the week R. Allen Stanford emailed his employees assuring them he would fight the allegations and cooperate with investigators.

Defrauded by Stanford Financial Group?

Were you scammed by the deceit and false statements proffered by R. Allen Stanford and the Stanford Financial Group companies?  If so, you have a right to claim compensation for your losses from those responsible.

If you have incurred a serious financial loss in the Stanford Investment Fraud or another investment fraud, the experienced securities attorneys at Arnold & Itkin LLP want to help you.

Call toll-free 1-866-222-2606 today, or contact us online to schedule a FREE, no obligation consultation.

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Texas billionaire Allen Stanford has been accused by the U.S. Securities and Exchange Commission (SEC) of a massive $8 billion investment fraud. The complaint alleges that the Stanford Financial Group “lured investors” by promising exceedingly high returns on certificates of deposit, while continuing to siphon their funds into a “black box of hard to trade assets.”

The Antigua-based Stanford International Bank Limited assured clients that it’s certificates of deposit were as secure as “U.S. government insured accounts”. As SEC agents and U.S. marshals raided the company's Houston office, investors had already begun to reveal the attraction the Stanford Financial Group scam presented. One investor who stands to lose $150,000 in Stanford's CDs says the bank assured him of the highest security. Funds placed in the bank were insured, the bank told its customers. According to the SEC, which names Stanford Financial Group, Stanford International and Stanford Capital Management LLC, Stanford informed clients that their money would be secure in "easily sellable" instruments and that the accounts would be audited by regulators in Antigua. Clients were informed that their funds would be monitored by "more than 20 analysts." Instead, most of the portfolio management was done by Stanford and James Davis, the chief financial officer of the Antigua company. According to the SEC complaint, which also names Davis, a sizable portion of the funds were invested in real estate and private equity.

Stanford Financial Group Not Registered Investment Advisor

The Stanford fraud has only increased the pressure on the SEC which is having to answer why the agency has again been so slow in stopping fraudsters in their tracks. According to the SEC complaint, Stanford's company was never registered as an investment advisor, which by itself, should have been enough to alert the SEC. At least two former Stanford brokers have come forward to confirm that they stopped dealing with the company a year ago because they did not want to “engage in business practices they deemed improper”. Those allegations were made by former brokers Charles Rawl and Mark Tidwell in a lawsuit filed in January 2008, claiming that their refusal to indulge in shady business practices led to them being forced to resign from the company a month earlier.

Investment Fraud Attorneys

As more investment and securities scams emerge, investors are relying on experienced securities attorneys to help recover their losses.

If you have lost money in the Stanford Financial Investment Fraud, the law firm of Arnold & Itkin LLP can help.  Contact an investment fraud attorney at Arnold & Itkin LLP today for a FREE consultation.

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