On March 13, 2009, a judge for the US District Court for the Northern District of Texas ordered the assets of financier Allen Stanford indefinitely frozen at the request of the US Securities and Exchange Commission (SEC). Stanford faced charges relating to his orchestration of a $8 billion fraudulent investment scheme in which he sold certificates of deposit on a promise of exorbitantly high interest rates. Stanford ran his operation through his investment companies Stanford International Bank (SIB), Stanford Group Company (SGC), and Stanford Capital Management (SCM) in violation of the Securities Act of 1933 [PDF], the Securities Exchange Act of 1934 [PDF] and the Investment Company Act of 1940 [PDF]. Standford was convicted by the US District Court for the District of Southern Texas in March 2012.
Learn more about the SEC from the JURIST news archive and read commentary about recent case developments and its effects on SEC from JURIST Guest Columnists Bradley Bondi and Douglas Fischer in Sidebar.