America's Next Big Scammer: Will Stanford Need Payday Loans?

Payday loans won’t clear Stanford’s name

Allen Stanford

Billionaire Allen Stanford could find himself needing payday loans if his fortune is wiped away with the new revelation that Stanford is being charged with fraud.

The U.S. Securities and Exchange Commission says Stanford Financial Group fraudulently sold $8 billion in high-yield certificates of deposit. Stanford and two other top executives are being charged with fraud.

Ordered to the court

In the lawsuit the commission alleges that Stanford’s scheme stretched throughout the globe. Three of Stanford Financial Group’s companies are involved in the suit. There has been news recently of payday loans companies being involved in lawsuits recently, but they were nothing close to this magnitude.

The SEC was seeking to freeze the assets of the Stanford group and appoint a receiver “to take possession and control of defendants’ assets for the protection of defendants’ victims,” according to Reuters.

Whisked away

Fifteen federal agents descended on the company headquarters in Houston, Texas, to cart Stanford away. For the time being, financial operations are continuing at Stanford’s companies. However, a note on the door at the Houston headquarters said Standford Financial was “under the management of a receiver.”

Year of the scam

Stanford Financial claims to oversee $50 billion in funds. ... click here to read the rest of the article titled "America's Next Big Scammer: Will Stanford Need Payday Loans?"