Financial Crime Weekly: Judge Orders $5.9 Billion Fine In Ponzi Scheme Case, SEC Chairman Appoints New Staff Members

Federal Judge Orders $5.9 Billion Fine In Ponzi Scheme Case

Chief Judge David Godbey of the Dallas federal court on Wednesday ordered Allen Stanford to pay a $5.9 billion civil fine, ending the Securities and Exchange Commission’s 16-year lawsuit against Stanford. 

Stanford is serving a 110-year prison sentence after being convicted in 2012 of defrauding investors in a $7.6 billion ponzi scheme, according to a Reuters report. Authorities said Stanford operated an Antigua-based financial institution, Stanford International Bank, and sold fraudulent high-yielding certificates of deposit over a 20 year period. 

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