Sunday, February 20, 2011
Robert Allen Stanford is, allegedly, the other great purveyor of a ponzi scheme that collapsed during the financial crisis. In early 2009, shortly after Madoff confessed to his fraud, the SEC raided Stanford's offices in Texas to shut down what regulators described as a massive ongoing fraud. Stanford has consistently maintained his innocence and blames the government for investors' losses.
Since his arrest in 2009 he has been incarcerated, and he has not had an easy time of it. In 2010 he was found to lack the mental capacity to participate in his defense, resulting from a combination of factors, including addiction to drugs and a beating suffered in prison.
Stanford, apparently, is not so mentally incapacitated that he cannot bring a lawsuit and sue those he blames for his troubles -- the government. In a complaint filed this week, Stanford charges that prosecutors, FBI agents and SEC staff members (no government agency was named as a defendant) engaged in abusive law enforcement. He seeks $7.2 billion in damages. NYTimes, Allen Stanford, Indicted Financier, Sues Authorities