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Stanford Guilty Of Bilking CD Investors Of Billions

Tuesday, March 6, 2012 - 4:31 PM
From Reuters via Yahoo! Finance:
Allen Stanford was convicted on Tuesday of running a $7 billion Ponzi scheme, a verdict that caps a riches-to-rags trajectory for the former Texas financier and Caribbean playboy.
[...]
Still, the verdict may prove only a moral victory for Stanford's victims. Most have received none of the money back they invested in Stanford's certificates of deposit.

I first reported on Stanford in February 2009.
2
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,699
1. Wednesday, March 7, 2012 - 10:31 AM
Let's see here.

1) Higher than market interest rates on CD's

2) Off shore accounts

3) NOT FDIC insured

Anyone surprised that those investors got burned?
4
bobertbobert19 posts since
Jan 16, 2010
Rep Points: 99
2. Wednesday, March 7, 2012 - 11:37 AM
The "Red Flag" for me with CD rates in this scenario is if the rate is higher than the norm by 1% or more.  If I research it, I will always find the bank is not solvent or has a low star rating with my favorite rating websites.  Bobert:  You gave 3 red flags!  I can't feel sorry for those desperate enough to still go ahead and purchase the CDs.  Desperate times call for desperate actions but unfortunately we don't get to do these things without serious problems, imo.
1
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565
Reply