By Patsy R. Brumfield/NEMS Daily Journal
Stanford financial empire losses may be even higher than originally thought.
The Advocate in Baton Rouge, La., reported Monday that the IRS’s investigation of the collapse of Allen Stanford’s financial empire reveals that potential losses, last year estimated at about $7.2 billion by court-appointed receiver Ralph Janvey, could be greater.
A former federal prosecutor representing more than a dozen investors, many from the Lafayette area, said this could certainly be the case – with on-the-book and off-the-book transactions.
“Why would Allen Stanford do that?” former assistant U.S. attorney Ed Gonzales mused. “There are all sorts of reasons if you’re a crook.”
He said Stanford’s financial brokers, who sold the investments, may have more accurate knowledge of how much was lost than Janvey.
“The inference is that more people have been hurt more badly than has been talked about.”
Stanford, four top executives and an Antiguan regulator are accused of conspiring to bilk certificate of deposit holders out of millions of dollars. They face a civil lawsuit by the U.S. Securities and Exchange Commission and criminal charges by the U.S. attorney’s office in Houston, Texas.
In Panama, the SEC said it’s regained some $14.2 million from the sale of several Stanford properties, including some banks. The sale approval included unfreezing some Stanford Bank of Panama accounts in foreign jurisdictions.
The funds, the SEC said, were secured to benefit worldwide victims of the alleged massive fraud.
In a third report, lawyers for Tom Raffanello of Miami, Fla., are demanding the government pay him hundreds of thousands of dollars he spent in legal fees for a case eventually thrown out by a federal judge.
They say he was the victim of bad-faith prosecution when the government accused him of trying to thwart their fraud case against Stanford.
During the trial, Raffanello and co-defendant Bruce Perraud were cleared by U.S. District Judge Richard Goldberg of destroying thousands of records belonging to Stanford while working on the banker’s security team.
Contact Patsy Brumfield at (662) 678-1596 or firstname.lastname@example.org.