FBI Tracks Down Texas Financier In Fraud Case

FBI Tracks Down Texas Financier In Fraud Case - 2/19/2009

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FBI Tracks Down Texas Financier In Fraud Case
Devlin Barrett

Associated Press. February 19, 2009
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EXCERPT: Texas financier R. Allen Stanford was tracked down Thursday in Virginia, where FBI agents served him with legal papers in a multibillion-dollar fraud case. FBI agents, acting at the request of the Securities and Exchange Commission, served Stanford papers in Fredericksburg, Va., said FBI spokesman Richard Kolko. Stanford is not under arrest and is not in custody. […] Until regulators got help Thursday from the FBI, the SEC had not been able to find Stanford. A law enforcement official said the billionaire was served around 1:45 p.m. while sitting in a car, and authorities do not believe he had been purposely hiding or fleeing. Under the terms of the court case, Stanford had to surrender his passport. The official spoke anonymously because he was not authorized to discuss specifics of the case. Stanford has not been charged with any crime, though federal agents continue to investigate the case. The fallout from the fraud case is already rattling around the global financial system. Venezuela on Thursday seized a failed bank controlled by Stanford after a run on deposits there, while clients were prevented from withdrawing their money from Stanford International Bank and its affiliates in a half-dozen other countries. Stanford's father, James Stanford, told The Associated Press in Mexia, Texas, on Thursday that he hopes the allegations aren't true. "I have no earthly knowledge of it," said the elder Stanford, listed as chairman emeritus and a director for Stanford Financial Group. "I would be totally surprised if there would be truth to it. And disappointed, heartbroken." Asked what advice he would give his son, Stanford, 81, said: "Do the right thing." Stanford, 58, is a larger-than-life figure in the Caribbean, using his personal fortune — estimated at $2.2 billion by Forbes magazine — to bankroll public works and cricket tournaments.

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