Former Stanford execs slapped with fines

Court NewsBy Patsy R. Brumfield
Daily Journal

Three former Stanford brokerage executives were ordered to pay nearly $5.5 million for their roles in a $7 billion worldwide fraud.

They are liable for fraud and should be banned from the industry, a Securities and Exchange Commission judge also ruled Friday in Washington, D.C.

Judge Carol Fox Foelak termed “egregious” the conduct of former Stanford Group Co. chief compliance officer Bernerd Young, former president Daniel Bogar and Jason Green, a former head of the private client group.
Bogar is brother-in-law to ex-Stanford CFO James M. Davis, who once lived in the Dry Creek community of Union County.

The judge ordered them to pay fines and forfeit ill-gotten profits.

The SEC did not claim the three execs knew about R. Allen Stanford’s Ponzi scheme, which bilked investors out of nearly $7 billion in fraudulent certificates of deposit through Stanford International Bank on Antigua.

Rather, their case hinged on whether they sufficiently ensured that their marketing materials and other disclosures were adequate for investors.

They all denied wrongdoing.

Foelak ordered Young, Bogar and Green each to pay a $260,000 civil penalty.

Young also was ordered to return some $592,000, plus interest. Bogar was ordered to forfeit about $1.5 million, and Green must pay $2.6 million.

Lawyers for Young and Bogar said they are disappointed in the judge’s ruling and are considering their options.

If they decide to appeal, the case would first go before the full five-member SEC.

More than 20,000 investors worldwide lost their life savings when the Stanford financial empire collapsed in early 2009 under the SEC investigation.

Stanford was sentenced to 110 years in prison. Four other executives, including Davis, were sentenced to lighter prison terms.

Many CD investors said later that they were told their savings were insured.

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