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FBI seeks Stanford victims
WASHINGTON - THE FBI on Monday called on victims of a fraud allegedly perpetrated by Texas financier Allen Stanford to provide information on their transactions, to help discover the scale of the scam.
'Our case is ongoing, and while we can't provide any additional information on our investigation at this time, we do need to hear from you to identify victims and to determine the extent of the potential fraud,' the Federal Bureau of Investigation said in a statement.
Stanford, a wealthy cricket impresario who lives most of the year in the Caribbean, was charged last month in a civil complaint by the Securities and Exchange Commission (SEC) with perpetrating 'a massive Ponzi scheme' of global scope.
He stands accused of lying to investors about the safety and real returns of US$8 billion in 'certificates of deposits' and US$1.2 billion in mutual funds.
Several governments have seized Stanford banks and frozen their assets with concern mounting that the global reach of the billionaire's banking operations could complicate the return of an estimated US$50 billion in assets belonging to an estimated 50,000 clients in 140 countries.
Stanford has not been arrested but is under investigation and could face criminal charges. On Feb 26, Stanford Financial Group's chief investment officer was charged with obstructing a separate investigation by the SEC.
'The FBI understands the devastating financial, emotional, and physical impact that fraud can have in the lives of individuals and families ... the victims and their losses are not just numbers to us,' Kathryn Turman, director of the FBI's Office for Victim Assistance, said in the statement.
'Even when we cannot restore lost funds we can usually provide help, hope, and support as we also work to bring justice to the perpetrators who are suspected of inflicting the damage,' she added.
A Ponzi scheme, named after a crook in the 1920s, is a pyramid scheme where new investors' money is stolen to pay profits to existing clients.
New York financier Bernard Madoff was accused in December of masterminding a similar scheme for US$50 billion. |
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