FBI Arrests Sir Allen Stanford, Antigua Government Official & Others For US$7 Billion Fraud, Money Laundering. Striking Similarities With Barbados CLICO Fraud

Sir Allen Stanford - Drug Money, Fraud

Sir Allen Stanford - Massive Fraud, Money Laundering for Drug Cartels, Organised Crime

“…Stanford and his co-defendants engaged in a scheme to defraud investors who purchased approximately seven billion dollars in certificates of deposit, cds, and administered by Stanford International Bank Limited, an offshore bank controlled by Stanford and located in the island of Antigua. According to the indictment, Stanford and his co-defendants allegedly misused and misappropriated most of those investment assets, including diverting at least 1.6 billion dollars into undisclosed personal loans to Stanford himself.

All the while, Stanford and his co-conspirators allegedly misrepresented to investors the financial condition of Stanford International Bank, its investment strategy and the extent of regulatory oversight by the Antigua authorities.

The indictment charges Stanford with conspiracy to commit wire fraud, mail fraud and securities fraud. Seven counts of wire fraud, ten counts of mail fraud, conspiracy to obstruct an investigation by the FTC, obstruction of an investigation by the FTC, and conspiracy to commit money laundering.

Mr. Stanford was taken into custody by Federal agents in Virginia last night. Also charged today and arrested this morning in Houston was Gilberto Lopez, the Stanford Financial Group’s Chief Accounting Officer, and Mark Kuhrt, the global controller for Stanford Financial Group Management. All are expected to make court appearances this afternoon (Friday).

Also charged today is Leroy King, the former administrator and Chief Executive Officer of Antigua’s Financial Services Regulatory Commission, an agency of the Antigua Government that is responsible for monitoring and regulating banking activity on the island.”

… transcribed by Shona from a US Department of Justice press conference shown on CNN. (Stanford Arrest Indictment Video Here – AP)

Antigua Government Official Received Bribes Of Cash, Vacations & BUSINESS JET RIDES

When government officials receive “gifts” from business it just has to influence their decisions and loyalties. I mean, why do corporations give these “gifts” in the first place? When the “gifts” ramp up with vacations, jobs for government officials’ family members, scholarships over and away for their children, the use of corporate business jets and cash, WELL… government officials soon forget about their duty to the public. That is why corporations give “gifts” to government officials.

So it was with Mr. Leroy King, head of the Antigua and Barbuda Financial Services Regulatory Commission (FSRC), who now stands charged with being a “key inside collaborator” assisting SIR Allen Stanford to commit a US$7 billion dollar fraud and money laundering.

It just goes to show how little it takes to buy a country’s integrity and reputation – which is exactly what Sir Allen Stanford did when Antigua said his bank was solid.

Mr. King received “gifts” from Sir Allen Stanford including jet rides, vacations, cash and treats of expensive entertainment like Super Bowl tickets. How much cash? According to the news media, a paltry $100,000. Chicken feed for Sir Allen, but no small sum for me, you or any government official.

PM Thompson Says His Use Of CLICO's Business Jet Is None Of Your Business

PM Thompson Says His Use Of CLICO's Business Jet Is None Of Your Business

Similarities With The CLICO Scandal

In Barbados we have an ongoing situation evolving with CL Financial and an associated company called CLICO – an insurance company regulated by Barbados that was “solid”, “well managed”, “transparent” and “well regulated” …

… until it tumbled like a house of cards.

How are the Stanford and CLICO Barbados cases similar, you ask? Consider this…

1/ Both companies were under Government Regulations & Oversight. Stanford & CLICO were supposedly well regulated by government authorities – Stanford by Antigua, and CLICO by Barbados.

2/Both companies and their upper-level executives maintained close relations personally with individual politicians and corporately with the same government that was supposed to be regulating their activities and standards. In Barbados, CLICO CEO Leroy Parris and Prime Minister David Thompson are so close that they are Godfathers to each other’s child!

Ex-PM Owen Arthur "Just let the FBI be blind to my Swiss accounts, Oh Lawd!"

Ex-PM Owen Arthur "Just let the FBI be blind to my Swiss accounts, Oh Lawd!"

3/ Both companies were heavily involved in politics and funding political campaigns. In the USA, Stanford provided millions to both the Republicans and the Democrats – covering all bets by backing both John McCain and Barack Obama in the last Presidential election! Only God knows how much Stanford gave to Antigua and Barbados politicians. The same God might also know how much CLICO gave to the BLP and the DLP, including Prime Minister Thompson’s last campaign… because campaign donations in Barbados are kept secret from the citizens.

4/ Government officials and politicians used company business jets. In Antigua the head of the Antigua and Barbuda Financial Services Regulatory Commission used Sir Allen’s jets. In Barbados, Prime Minister David Thompson used CLICO’s private jet.

5/ Years in advance, there were reports and signs of trouble brewing that were ignored and covered-up by the respective government agencies and the politicians in power.

6/ Both companies were allowed to break various government laws and requirements to file financial records and audits. In Antigua, government officials allowed faked outside audit reports and even faked government audits. In Barbados, under both the current David Thompson DLP government and the past Arthur/Mottley BLP government, CLICO was allowed to violate laws respecting reserves and financial integrity of insurance companies.

In the case of David Thompson, he personally acted as CLICO’s lawyer when the company failed to file financial statements for 13 years!!! (See Keltruth blog’s Did Thompson’s DLP Have Audited Financials for the Companies that they Bailed Out?)

7/ Both Stanford companies and CLICO “invested” in risky property deals and provided highly irregular loans for such “investments” to associated companies – sometimes paying much more for land than the true value. These actions transferred company funds to other entities and people even as investors were told their funds were safe in highly liquid and conservative assets. In Barbados, CLICO provided loans to other CL Financial companies that paid hundreds of millions of dollars for Florida swampland that wasn’t worth anywhere near the purchase price… and kickbacks were paid to CL Financial / CLICO company officials!

EXCLUSIVE REPORT: Bribes paid to insiders in CLICO land fraud. Read our stories…

EXCLUSIVE REPORT BY BFP: CL Financial Group Collapse – Insiders Took Bribes To Have Company Purchase Land For More Than Market Value!

CL Financial, CLICO Fraud Report: Dummy Company, Phantom “Consultancy” Payments, Vanishing Money Transfers From Company To Company

8/ Politicians approved unusual land deals for both companies. In Antigua, Stanford’s companies purchased and developed lands where others had been unable to obtain permissions. In Barbados, CLICO did many questionable land deals and was not challenged when it allowed a Barbados national heritage site – Sam Lord’s Castle – to deteriorate beyond saving. In another deal with the devil, CLICO’s land holdings in the Graeme Hall Wetlands were excluded from RAMSAR protection by the BLP government. Subsequently, the DLP government changed the law to allow building on the Graeme Hall wetlands.

9/ Government officials and politicians continued to defend both companies and their upper executives long after it was obvious to everyone that something was rotten.

10/ Even after the scandals broke, Government officials and others took action to protect themselves and their friends in high places. In Antigua, the head of the Antigua and Barbuda Financial Services Regulatory Commission falsified audits. In Florida, Stanford’s security staff shredded bank documents after a court order freezing the business records. In Barbados, Prime Minister David Thompson refused to allow the supervisor of insurance to take over CLICO. Instead, and without any legal authority to do so, Thompson appointed a group of “special” people to a board to oversee CLICO’s operations because he couldn’t afford to lose control to the courts.

The One Big Difference Between Stanford & CLICO Frauds

Antigua has integrity legislation, so presumably Mr. Leroy King, as a government official and head of the Antigua and Barbuda Financial Services Regulatory Commission, could not receive gifts legally from Sir Allan Stanford.

PM Thompson Lied About Integrity Legislation

PM Thompson Lied About Integrity Legislation

Contrast the situation in Antigua with that of Barbados where it is perfectly legal for elected and appointed government officials to accept “gifts” from persons or entities they deal with in government service. In fact, we have no Integrity Legislation or conflicts of interest laws that prohibit government officials from profiting from their position. Heck, it is perfectly legal for Barbados government officials to award government contracts to themselves or their immediate family members!

Thanks To Prime Minister David Thompson, Barbados Government Officials Can Still Legally Use Their Office For Personal Profit

Prime Minister Thompson and the DLP promised to implement Integrity Legislation within 100 days of being elected and to implement a Ministerial Code immediately that would define and prohibit conflicts of interest for government officials.

Now a year and a half after the DLP took power, it is widely acknowledged that the DLP and David Thompson lied about Integrity Legislation, Freedom of Information laws and conflicts of interest rules.

And finally…

No word yet from either the Barbados Labour Party or the Democratic Labour Party as to how much in “campaign donations” they received from Sir Allen Stanford over the years.

No sir… the DLP and the BLP are pretty quiet on that one!

Advertisements

28 Comments

Filed under Barbados, Business & Banking, Corruption, Crime & Law, Ethics, Freedom Of Information, Offshore Investments, Political Corruption, Politics, Politics & Corruption

28 responses to “FBI Arrests Sir Allen Stanford, Antigua Government Official & Others For US$7 Billion Fraud, Money Laundering. Striking Similarities With Barbados CLICO Fraud

  1. 327

    /well done BFP. I believe you are spot on about the reasons behind Prime Minister Thompson appointing his own people to the Clico board and not allowing the regulator to become involved.

  2. Red Lake Lassie

    I agree, excellent story and analysis. Barbados doesn’t have elections financing laws does it? What a wild place when you get right down to it. Its like anything goes.

  3. Paradox

    And we remember the wrongs by the last BLP. “The DLP is quiet on that two”.
    If there were wrongs, the DLP would have found them out, now 18 months later.

    OR is it:
    You scratch my back and I’ll scratch yours; pretty nice arrangement.
    The Bajan electorate are the losers. Appears the 2 parties are happy with this arrangement.

    BFP:
    You must agree MORAL BEHAVIOUR is a thing of the past for most governments and probably will get worse.

    Many of us look to the UK for guidance & leadership. We read both parties are involved in immoral behaviour.
    Those so-called politicians go into politics for themselves. They ‘string’ people along in order to achieve a privileged position and then abuse it.
    They dislike criticism, perhaps deluded in the fact that they are now ‘THERE”, makes them untouchable.
    BFP: You and I and many more are to blame; we put them “THERE”.

    Like you and I and many more wanted change. We got that change.

    Alan Stanford’s:
    Government in black countries are far too eager to accommodate them..

  4. reluctant nonbeliever

    A lot of truth in the above post. Personally I feel ashamed of myself when I remember how excited I was on election night.

    I’m old enough not to have been fooled and to have known the truth:

    a new government is just a change of one elite for another;

    apparently bitter public opponents are often drinking buddies in private;

    polticians will say anything, absolutely anything, to get elected; and that once in power they will do and say anything to hold on to that power, and bleed the country dry if necessary.

    And the worst thing is that so many of us will be fooled again next time round…

  5. Jason

    Next time around I will vote for an independent candidate or some 3rd party. Anyone but Thompson or Mottley

  6. reality check

    so Jason

    start putting up independents who are incorruptible and have’t been polluted by the old boys network.

    The track record of these people should be out there for all to see.

  7. paul sealy

    You got to hand it to this network of politicos we have down here though..not even the FBI can touch them..you go Owen and Thompy..lol

  8. boredickey

    I thought he was God. Hey! Hey! I only hope that the cricketers Benn and Gayle etc. got the millions promised in the last 20/20 match held in Antigua.

  9. Jason

    What does it take to be a candidate? Could an independent person get enough votes to make a difference? Would there be trouble for my family? It is not a simple thing to be a candidate. LOL my brother would turn against me for breaking party rank.

  10. PiedPiper

    boredickey et al: there is a fascinating article in this month’s edition of Vanity Fair magazine entitled “The Pirate of The Caribbean” all about Stanford. Many interesting facts such as, he vanished after his fitness club in Texas went bankrupt and then he resurfaces later in Monserrat, of all places, to open his first bank. There is also information on his involvement in cricket and the 20/20 match. Vanity Fair magazine is accessible online.

  11. change

    Jason you would be totally surprised to find out how few votes it would take to win by a moderate and honest third party candidate. Total transparency needed!

  12. rhubarb

    What is wrong with you bajan bloggers? You’ll debate endlessly about trivialities, but this item that might play a part in the future of all bajans you’ll pass by lightly!!

  13. Sir Bentwood Dick

    Oh, but they can be tocuhed. The question is ‘will they be’.

    Do you really think that the ‘pwoers that be’ wish to destabilise these little islands?

    The answer is a resounding no.

    A few little people, to them. Largely irrelevant.

    So, they are left to their own devices, as long as these little islands toe the line and cooperate when necessary.

    That is the deal.

  14. Sir Bentwood Dick

    The important thing is that change came when it was necessary.

    The world over, elections are rarely won, mostly lost.

    Only in rare cases, are elections actually won by outstanding candidates.

    Even in Obama’s case, an outstanding gentleman, the Democrats had the assistance of the incumbent GOP’s crass, unsuitable and irrelevant policies, to assist in the victory.

    As such, the important factor is removing any arrogance, excess power and stagnation, that derives from too long a political reign.

  15. West Side Davie

    DLP and BLP preach “transparency” but both hide their campaign donations and expenses.

    This country needs campaign financing laws just like it needs integrity laws and FOI.

    No chance with this bunch. DLP or BLP. WE NEED A NEW PARTY DEDICATED TO CLEANING UP THIS MESS WITH LAWS.

  16. Johnny Postle

    Such a fowl stench coming from these two long serving parties. Thompson whom we all thought would be a prodigal son is turning out to be a real wolf in sheep’s clothing. To think that I honestly believe that he of all people would learn from history’s past and execute commonsense in running the affairs of this country, has let his monkey tail exposed. The CLICO affair stands to bury the Democratic Labour Party.

    At the worse point of our political system, where scandals, alleges of corruption and ministers getting to big for the boots presented the current administration with the perfect opportunity to display a degree of integrity and transparency to the people, this administration has allow themselves to be tarnish by speculation, rumour mongering and lies. Many are of the belief that a party in opposition for 14 years is hungry to tap into the resources of wealth for their own personal accumulation. The last administration did it so there is the chant of “why not we”. The Thompson administration so seemingly are allowing themselves to fall victim to the very thing that ousted the Arthur administration. IF this continue the assurance of victory in the next general election will be thwarted. It makes no sense providing negative fuel that could put the party and himself right out of office. The Barbados Labour Party have already done their wrecking and I doubt if Mia and her crew, particularly with the huge question mark hanging over corrupt heads of this party, can bounce back to win the people’s confidence. But bajans are forgetful people and Mia just have to come straight up and she might just be our first female premiere.

    It is obvious that there is no great divide between these two parties except that which we are being led to believe. What will happen in the next general election will have to be something short of spectacular if not miraculous as the views of many have placed politicians in a very corrupt and deceitful light. Time I believe will be deciding factor.

  17. First it was BERNIE MADOFF – who “made of” (LOL) with $50 Billion in other people’s money including duped celebrities like Steven Spielberg and other so-called notables, where his PONZI scheme was circulated to investors around the world as far away as Australia, offering a viable high-yield investment (see GREATER FOOL’s Theory) and the money was then used by his wife and his cronies to prop up a lifestyle of the rich and infamous.

    What is becoming increasingly laughable in the 21st century is the level of GREED, AVARICE, CORRUPTION and the INSIDIOUS machinations on the part of those who want to get rich at any cost, forgetting that sooner or later “karma” will catch up with you.

    In the case of Allen Stanford or should I be gracious enough in saying “SIR” (who gives a flying-fish anyway) – but for all intents and purposes “sir” is really an oxymoron as it would seem that all these so-called “knights of the realm” including those here in the United Kingdom are guilty of such gross breaches of the code of social morality arguing vehemently that they have done nothing wrong.

    Could these idiots be so divorced from reality? Or are they so warped mentally that the lines between right and wrong is so blatantly blurred that even wrong doing is justifiable? Do they not recognize how they have literally undermined the structural integrity of the system for which they have been mandated to represent given public trust and confidence?

    This “dis”-honorable behaviour by men who ought to know better merely gives more ammunition to those “underworld vermin” in our societies further excuses to justify their own treachery, malevolence and rapaciousness.

    Maybe now, Her Royal Majesty Queen Elizabeth (live forever) will strip some of these phony ‘lords’ and ‘renegade knights’ of their titles and use the “trusted” sword a second time to slice off an ear or two (sorry, I forgot this is not the era of King Henry V111)…

    Politicians across the board have gone stark raving mad it would seem given the level of diabolical machinations they exhibit especially when it comes to wanton excessive misuse and abuse of the public purse.

    Barbados apparently has not been exempt!

    But why am I surprised given the fact that a culture of “I can do whatever I like” has always been the mantra and governing ethos of the political classes and is now an entrenched social norm where ministers (“honorable gentlemen” – as they are called) are granted pretty much license to steal, misappropriate, embezzle and cover up their shenanigans without fear of reciprocity, censure or jail-time.

    The British political establishment is currently in the throes (after 300 years of parliamentary democracy) an advancing “barbarian” revolution of uncommon “sorts” which will result in a metamorphosized vacuous conundrum where fascists, extremist groups and radical independents will come to hold the sway of political power in the coming years but what is so ominous is given the fact that between 1939 and 1945, men and women (including West Indians) fought, bled and died for the liberation of Europe, to free this “glorious land” from the tentacles of fascists NAZI oppressive scum – one would surely assume that the possibilities of such a socio-political and historical mirage would NEVER again be revisited upon a people who had been so deeply scared by the sophistries of war, oppression, bigotry and human extermination – now shows that such a rude and poignant lesson of history is likely to be repeated (if not averted) because of this clear and present danger of distrust and the ominously looming specter of nationalization that could very well be our undoing.

    As the ‘ole maxim goes, ” those who refuse to learn the lessons of the past are doomed to repeat the same mistakes in the future”….

    My hope is that the current government of Barbados will adopt and implement its manifesto promises to its people as we too are not exempt from insurrectionists rogue elements (remember Sydney Burnett-Alleyne).

    As a Bajan with probably the largest count of family members on the island of Barbados, my concern is the future of my posterity and the ultimate legacy which will be left for those who are now in kindergarden and primary school who will have the arduous task to fixing and cleaning up the mess we leave behind.

    The 21st century must not be riddled and rife with the politics of a bygone era, as there is no place for this in a past-modern society. If men want to subject us to the tyranny of the past by continuing to burden us with subterfuge, lies and lack of accountability – the end result will be REVOLUTION!!!

    British parliamentary democracy has never seen such a silent revolution in its 300 year process as it is seeing today. The sad irony is that the vacuum that is left is being filled by RACISTS, BIGOTS and FASCISTS SCUM!!!

    Let this be a lesson to those in Barbados and elsewhere who think because they wield power for a short season that we the people will NOT do the unthinkable if it means safeguarding the interests of our families and those we love.

    We are calling on our religious, civic, institutional and political leaders to open up the PROCESS to greater transparency, accountability and integrity for the sake of future generations.

    We can no longer afford to be riddled with the guilt and miasma of a broken society where distrust, crime and social degradation are the chains which enslave us. There CANNOT be one set of laws for one group of people and another set for the political and elitist classes within Barbadian society.

    This is totally unacceptable in this day and age!!!

    Let me remind those who currently wield political, religious and economic power in my country and are all currently drinking from the sacred “trough” – the handwriting is on the wall. Remember the words to Belshazzar the King of Babylon “MENE, MENE, TEKEL, PARSIN”….

  18. rhubarb

    Let’s start clamouring now for foreign observers at our next general election. Both parties have stooped so low that there is a real possibility that the next election might be the first in Barbados of an unfree and unfair election!

  19. Jodiperry

    Nice piece Terrence. Lack of vision coupled with greed is a recipe for certain disaster and those two weak points epitomize our politicians here in the c’bean.

    Are you related to Dr Alfred Blackett by any chance. He was my headmaster at the Antigua Grammar School for a couple of years and hailed from Barbados.

  20. Pat

    Very nice article.

    However I had difficulty reading and understanding the paragraph starting – “The British political establishment……”, until I realilzed that it was one long sentence!

    Duh? You be living up there and should know better than to massacre the language. In short, I guess that sentence to be about 150 words, should have been at least ten sentences.

    I must say, however, that I like what is happening with the political resignations up there in Ole Blighty. Cant see that happening in Bim anytime soon.

  21. Yes I am Dr. Blackett’s nephew. I also went to school at the AGS and lived with Dr. Blackett while he was Headmaster of the school.

    If you would like to get in touch email me at: terencemac@yahoo.com

    Looking forward to hearing from you…

    Blessings…

  22. I apologize Pat for the “massacre” of the language….LOL

    But when you are “PISSED OFF” – it happens to the best of us….

    As a BRIT, who ought to speak the QUEEN’s English, I should know better, right?

    LOL…

    I will try to do better next time and not be so riled up….

    Thanks dear….

    God bless!!!

  23. Pingback: Barbados Supervisor Of Insurance Announces $2,500 Voluntary Fine For Infractions… That Should Stop Multi-Million Dollar Insurance Frauds Like CLICO! « Barbados Free Press

  24. Pingback: I am penniless because my brain simplifies complexities | personal finances

  25. This is starting to make sense. Allen Stanford is listed as one of two owners of Elandia according to SEC filing. It appears that Allen Stanford has a merry band of thieves that operate in true “Stanford form”. According to a SEC filing, Allen Stanford forced Sydney Trip Camper to resign from Elandia a few years back when a money deal went bad.

    This story is getting better by the minute. I didn’t realize just how far back Stanford goes. The Elandia SEC filing shows him as major shareholder with Kelton. Petty minions like Sydney Donald “Trip” Camper are part of this network of scammers. According to the SEC filing, Trip Camper was forced to resign from Elandia by Stanford himself a few years back because a deal went bad with a certain Mr. Ahkoy (see link below to see letter to board of directors). As any good con would do, Mr. Camper immediately moved on to another state, to his next victim – a privately owned “OTC” company.

    According to a VERY reliable source: After a promise to take the company public, a free trip to London with his friends, a company Amex Credit Card, and thousands of dollars later, Mr. Camper managed to illegally get shares of the company stock signed over to himself and his partner in crime, Ed Berkhof. Eventually they performed a hostile takeover that was so illegal that only now do I understand the big picture and the history of their PONZI schemes – Sir Allen Stanford! Their pattern is to use other people’s money to attract more loans, etc. Because they’re actually using this loan money to pay themselves and their creditors, it caught up to them – finally!

    Well Sir Allen Stanford is now in the hands of the FBI and I can’t wait to see the way this story ends. I’m sure there will be plenty of finger pointing so I think I’ll get some popcorn and watch the show. Bad boys bad boys, whatchu gonna do, whatchu gonna do when they come for you!!!!! Interesting links below.

    http://www.secinfo.com/d14D5a.v6Q98.c.htm
    http://www.secinfo.com/d14D5a.v5Fxp.c.htm
    http://fsmprint.wordpress.com/2009/06/24/trip-camper-chairman-of-wealth-management-committee/

  26. Anonymous

    Apparently Stanford is finding the jail he is in is too hot and he wants to relocate.

  27. sirgerald

    ENOUGH IS ENOUGH!!!! A recent article states that “FMC is adding SMS to the company fold”. This is nothing but MORE name-dropping and empty technology dribble to form ANOTHER “shell” holding company for Ed Berkhof. Who does he think he is? Allen Stanford? Ed Berkhof and his previous co-conspirator, Sidney D. “Trip” Camper used name dropping, donations to St. Jude’s, and falsified tax documents to gain trust and get private investors to hand over thousands of dollars in cash, trips to England, and ultimately control of their company. Ed berkhof is NOT a president or COO of anything – Ed Berkhof is a third rate bass player looking for another victim to give him money so he can pay his creditors = PONZI. SEC files state that Sidney Trip Camper was fired from Elandia by Allen Stanford when the Ahkoy family’s business fell victim to investment fraud. Before the ink was dry on his resignation letter, Trip Camper and Ed Berkhof were already busy ruining ANOTHER company – in Los Angeles. Trip Camper and Ed Berkhof illegally signed over company stock to themselves and eventually performed a hostile takeover and ruined an honest and profitable company. The FBI has nabbed Allen Stanford and is now looking for other schemers in his network like Sidney D. Trip Camper and Ed Berkhof.

  28. Pingback: Texas Billionaire Crook Sir Allen Stanford hospitalised after jailhouse attack. Can we get a deal on his yacht? « Barbados Free Press