Stanford Indicted for $7B Ponzi Scheme

By Harry Kimball,  Newser Staff
Posted Jun 19, 2009 3:56 PM CDT
Stanford Indicted for $7B Ponzi Scheme
Assistant Attorney General Lanny Breuer, at podium, speaks at a news conference at the Justice Department today regarding the recent surrender of Texas billionaire R. Allen Stanford.   (AP Photo)

Alleged billionaire fraudster Robert Allen Stanford and six of his associates were indicted today on charges that they ran a $7 billion Ponzi scheme, the AP reports. Stanford turned himself in to authorities yesterday. “A fair jury will find him not guilty of any criminal wrongdoing,” Stanford’s lawyer said. He argues that any missing money is the result of the negative impact of the investigation.

“The present insolvency of the Stanford Companies was caused by the SEC’s heavy-handed actions, which have destroyed and continue to destroy much of the value,” the lawyer continued. Authorities weren’t having it. “This case is a typical Ponzi scheme, robbing Peter to pay Paul,” an official said. The SEC said the Justice Department had put together “an impressive criminal case from the rubble of this massive fraud.” (More Robert Allen Stanford stories.)

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