Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Missing billionaire found in Virginia

The FBI locates and officially serves papers to financier Robert Allen Stanford, who is accused of running a $9.2 billion investment fraud scheme.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Terry Frieden, CNN

SEC accuses financier R. Allen Stanford (shown) of $9.2 billion fraud.

(CNN) -- Federal agents have located financier Robert Allen Stanford and served him with papers accusing him and three of his companies of orchestrating a $9.2 billion investment fraud scheme, the FBI said Thursday.

Stanford, who was located in Fredericksburg, Virginia, has no criminal charges pending against him and was not taken into custody, FBI spokesman Richard Kolko said. But the Securities and Exchange Commission said Stanford was behind "a fraud of shocking magnitude," and the FBI served him a copy of the SEC complaint, Kolko said.

The FBI won't talk about a criminal investigation of Stanford's activities, but federal law enforcement officials familiar with the case leave no doubt that federal agents are investigating his financial dealings. Multiple officials indicated criminal charges are not imminent and would not discuss potential charges.

Stanford has arranged to give his passport to one of his attorneys who will offer it to federal authorities.

The FBI would not say whether Stanford is under surveillance, but said they expect to know his whereabouts. "He's not hiding from us at all," one official said.

CNN's efforts to reach Stanford or company representatives were unsuccessful. In September, Forbes magazine ranked him No. 205 in its "400 Richest Americans" article.

In a complaint filed Tuesday in federal court in Dallas, Texas, the SEC accused the financier's Stanford International Bank of using a network of financial advisers to sell about $8 billion of "certificates of deposit" to investors. The bank boasted of a unique investment strategy that it said had allowed it to reap double-digit returns on its investments for the previous 15 years, the SEC said.

The civil complaint alleged an additional scheme relating to $1.2 billion in sales.

The bank, based on the Caribbean island of Antigua, claims its network has $51 billion in deposits and assets under management or advisement, with more than 70,000 clients in 140 countries. But the allegations against Stanford and his companies have sparked runs on Stanford banks in Antigua and in Venezuela, where the government took over the local subsidiary after it recorded "extraordinary" withdrawals Tuesday and Wednesday, said Edgar Hernandez Behrens, Venezuela's superintendent of banks.

The SEC complaint also named James Davis, SIB's chief financial officer; Laura Pendergest-Holt, chief investment officer of Stanford Financial Group; and investment adviser Stanford Capital Management. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
17 cool gadgets that tease the future Smart telescopes, surveillance for dogs, an electric roadster and more from CES 2018. More
These 12 airplane beds let you really sleep on a flight For the price of a premium class ticket, you may just get a space that's comfortable, private, and quiet enough to ensure a good rest. More
CES 2018 kicks off with oddball gadgets The biggest tech show of the year opened with a collection of quirky gadgets. More