Stanford used the famous to suggest respectability

Observer/Guardian:

Sir Allen Stanford, the billionaire at the centre of one of the world's largest fraud investigations, repeatedly used the British royal family to convince investors that he was a bona fide businessman with impeccable credentials.

Stanford Financial Group (SFG) used at least four royals in its glossy publicity brochures, magazines and websites to emphasise the tycoon's respectability - at a time when difficult questions were being asked about how his operations made money.

Through his sponsorship of prestigious polo tournaments in London and the US, Stanford, who is also suspected of having links with a Mexican drug cartel, rubbed shoulders with Britain's aristocracy, laying on lavish hospitality that garnered him much favourable PR.

SFG's website boasts of its sponsorship of the Stanford charity polo day, hosted by Prince Charles, which raises money for the British Forces Foundation. An article in Stanford Financial's magazine, Eagle, displays a photograph of Prince Harry, who played in another Stanford-sponsored polo event. In addition, Sarah Ferguson, Duchess of York, has distributed the prizes at Stanford's tournaments and has been pictured with some of his executives.

Eagle magazine also carries news and pictures of Stanford's knighthood in 2006, in his adopted home of Antigua, at a ceremony attended by Prince Edward. Stanford was forced to alter his website after complaints that it suggested the Earl of Wessex had personally knighted Stanford rather than its governor general, Sir James Carlisle.

Stanford's attempts to secure respectability appear to be a leitmotif in his life. Documents filed by his lawyers in a legal dispute last year over a disputed domain name refer to their client as a "world-renowned former cricketer". There is no evidence the Texan, whose Stanford Superstars cricket team pocketed $20m of his money after beating England in a controversial match last year, has played the game at any significant level.

The billionaire, 58, has also erroneously claimed to be related to the founder of Stanford university, to which he has donated some $2.5m.

Yesterday it emerged that the helicopter emblazoned with his name and crest in which he touched down at Lord's last year - in order to announce his deal with the England and Wales Cricket Board - was hired and the logos stuck on just for the day.

Last night further links between Stanford and the UK were emerging. The Observer has established that discussions were held last week between the City of London police, the Federal Bureau of Investigation and the Securities and Exchange Commission following last Tuesday's decision to charge Stanford in connection with an alleged $8bn investment fraud.

The disclosure is the first indication the US investigation could spread to Britain, where Stanford has property and business interests.

A senior source said the informal talks centred on help the British could give in tracing Stanford's assets. "The FBI and SEC now know City of London officers are interested in the case and can help," a source said. "Its implications in Britain are huge because of the sheer size of the alleged fraud. This is an investigation that will spread across many continents and will have implications for many British investors."

There is increasing speculation a number of blue-blooded British investors have ploughed millions into Stanford's financial empire. Company documents show that in 2007 Stanford hired two well-connected London-based advisers to target high-net-worth individuals in Europe. Barbara Hauser, described by the company as an internationally recognised expert on private wealth, and James Thompson, formerly head of marketing at Rothschild, were employed to tap wealthy clients for cash.

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There is much more.

It is not that unusual for a promoter to rent celebrities to call attention to his business. Stanford's use appears to be on the extreme end of the scale, but for a while he seem to be getting his money's worth. Ultimately respectability has to be earned. So far, Stanford has made no attempt to demonstrate how he earned it.