By Patsy R. Brumfield/NEMS Daily Journal
WASHINGTON, D.C. – Expect former Stanford Financial executives to face civil charges from the the Securities and Exchange Commission, the Wall Street Journal reports.
Friday’s WSJ published a report that “within days” the SEC will announce charges of securities violations against Danny Bogar, former president of Stanford Group Co., and Bernerd Young, former chief compliance officer, in connection with jailed former CEO R. Allen Stanford’s $7.2-billion Ponzi scheme on CD investors.
Other former company officials also may be charged, WSJ states.
Last March, a Houston, Texas, federal jury found Stanford guilty of stealing billions of investors’ money and using it to finance his playboy lifestyle, as well as unprofitable private businesses he controlled.
He was sentenced to 110 years in prison.
Bogar is brother-in-law to former Stanford CFO James Davis, formerly of Union County.
Davis pleaded guilty to his part in the scheme in 2009 and faces sentencing in Houston.
Stanford and other co-defendants were accused of lying about high returns on CDs sold through his Stanford International Bank Ltd. in Antigua.
About half of the phoney CDs were sold by registered representatives of Stanford Group Co. out of Houston, although other offices – such as in Tupelo and Memphis – sold the investments.
The SEC is expected, WSJ says, to accuse SGC officials of misleading investors about whether the CDs were government-insured. They also reportedly will be cited with not disclosing to investors that they couldn’t verify what SIBL senior management told them about the bank’s holdings.
Young’s attorney said he will fight the charges. Bogar’s attorney declined to comment.