Stanford Financial Problems

As a former licensed broker and securities supervisor, I have advised several brokers about the potential of facing an SEC action and civil lawsuit. It is a daunting thought but it doesn't have to be overwhelming. Just talking to someone knowledgeable in the area can really give you peace of mind.

Last week, the financial behemoth of Texas, Stanford Financial, saw it's doors closed and locked and it's assets frozen. Investor's from all of the world rushed to get their money out, but they were too late. The SEC filed a civil suit against Allen Stanford and his four top advisers.

You can review the documents filed by the SEC. They are the SEC Complaint.pdf, the SEC Memorandum of Law.pdf, the Order freezing assets.pdf and the Order appointing receiver.pdf
It's still too early to tell but there are certainly going to be criminal charges following the civil action. That means that it's likely that several of Stanford's key employees could be charged with several different charges ranging in seriousness from Fraud to Fraudulent Prospectus filing.

When the story first broke, everyone assumed that Stanford was guilty and he was hiding out. They were wrong. Yesterday, he turned himself in and made a point of turning over his passport to reassure the SEC authorities that he intends to face the allegations against him.

It's important that Mr. Stanford and all of his key employees and anyone else charged with any crime be given the presumption of innocence. Until all of the facts are known, rushing to judge and labeling someone as a criminal violates the sanctity of our United States Constitution. Innocent until proven guilty.

Mr. Stanford and his employees will have a long road to travel if they are going to face these charges and have any hopes of surviving this ordeal.

The agents of the federal government are very good at what they do and it is important that anyone associated or affiliated with Stanford, consult with a qualified lawyer immediately. Trying to discuss the problem with a top notch lawyer after making a statement to the government is useless.

As an attorney, licensed in Federal District Court as well as many other courts and being a former broker, I am extremely familiar with securities cases and "white collar crimes." If you or anyone you know needs to talk to someone familiar with the rules and regulations of the SEC, please give me a call.