Written by ppachuta on Mar 26, 2009 at 6:48 pm
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On Tuesday, federal law enforcement officials raided the Houston offices of the Stanford Financial Group amid accusations that company chairman R. Allen Stanford and other top executives ran an $8 billion fraud involving the sale of certificates of deposit issued by Stanford International Bank in Antigua. Through its Boca Raton, Fla., equity research office, Stanford Financial Group offered stock investment analysis, including reports about the three publicly traded tower companies, American Tower, Crown Castle International and SBA Communications. The telephone lines at the Boca Raton office rang “busy” throughout the day on Thursday. The company website refers all media inquiries to the SEC division headquarters in Fort Worth, Texas.
The Securities and Exchange Commission shuttered the offices it raided, leaving many investors frightened and panicked. A judge froze Stanford’s assets. A receiver was appointed to take charge of his companies.
The SEC charged Stanford, his three companies and two associates with fraud. FBI agents found Stanford in Fredericksburg, Va., yesterday and served him with court papers. The SEC’s initial step is a civil complaint, so Stanford was not arrested.
The Associated Press reported that public records show four federal tax liens from 2007 and 2008 against Stanford for more than $212 million.