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CD Crook Ordered To Pay $6.7B

Friday, May 10, 2013 - 10:13 AM
From Bankrate.com:
A judge [in April 2013] ordered disgraced financier R. Allen Stanford to disgorge more than $6.7 billion of his ill-gotten gains.

The order, reported by Andrew Harris of Bloomberg News, requires Stanford to pay a $5.9 billion penalty along with $861 million in interest, which may help clear the way for Stanford victims to begin receiving payments.

... The horrendous losses of Stanford's victims offer a cautionary tale for investors who would seek high yields from foreign CDs that are not backed by the Federal Deposit Insurance Corp.

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The article states that Stanford's victims are unlikely to ever be made whole.  
5
pearlbrownpearlbrown1,465 posts since
Nov 2, 2010
Rep Points: 6,373
1. Friday, May 10, 2013 - 12:46 PM
Thanks for the post. It has already been over four years since the SEC first filed charges against Stanford.
5
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,600
2. Friday, May 10, 2013 - 1:15 PM
And sadly a painful reminder, If it is too good to be true, it probably is.  I remember people calling us and inquiring about the bank.  I always told them the bank isn't FDIC insured and I would ask them what protections are in place so that you can get your funds back. 
3
ChrisCDChrisCD70 posts since
Nov 18, 2010
Rep Points: 457
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