BusinessBusiness RecoveryStanford CIO indicted as CFO spills the beans

Stanford CIO indicted as CFO spills the beans

Stanford Financial Group's chief investment officer charged while CFO co-operates with the SEC

The chief investment officer of banking and financial services company
Stanford Financial Group was charged by a federal grand jury earlier this week
for charges of conspiracy and obstruction of justice.

The chief financial officer James Davis, chairman Allen Stanford and chief
investment officer Laura Pendergest-Holt had charges of fraud made against them
by the Securities and Exchange Commission earlier this year,
Chron.com
reported.

The fraud case is over a Ponzi scheme, an operation that pays investors from
their own money rather than from an actual profit, that is alleged to have taken
place at Stanford.

Davis is said to be co-operating with investigators while Stanford has said
he expects to be indicted. Pendergest-Holt was arrested in February and given a
$300,000 (£196,000) bail. She has been charged for giving false information
regarding the Ponzi scheme to investigators. She alleged that she didn’t know
the value of some of the assets at Stanford Financial Group.

Dan Cogdell, Pendergest-Holt’s legal representative, said: ‘While being
indicted is never a good day for any defendant, we are very confident that the
facts will defeat this indictment.

‘The fact that we are the sole defendant charged will make it easier for the
jury to focus on Laura and only Laura.’

Further reading:

Auditors to be enlisted by SEC for compliance work

Live and learn: is history repeating itself?

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor