What happened to the $1.6 billion Stanford borrowed

Times:

The Texan cricket impresario Allen Stanford borrowed $1.6 billion from his investment empire, it emerged yesterday as his chief investment officer was due in a court in Houston to hear charges that she had obstructed regulators.

Laura Pendergest-Holt, who US regulators had hoped would lead them to the heart of what they believed to be one of the biggest frauds in the world, was charged with obstruction on Thursday. She was held in a detention centre and was due to appear in court yesterday.

The FBI, which is investigating an alleged $9.2 billion (£6.5 billion) fraud at Mr Stanford’s American investment business, indicated in court papers that they became frustrated with Ms Pendergest-Holt after she failed to reveal how much she knew about Stanford International Bank.

In an affidavit the FBI said that she repeatedly misrepresented how much she knew about the whereabouts of the bulk of the assets of the bank and failed to mention that her boss had borrowed $1.6 billion from the company.

She is also accused of failing to tell regulators that she was a member of the investment committee of the bank.

...

It does not sound like she was a cooperating witness. This report suggest she was acting as a hostile witness. The story does not indicate what Stanford did with the $1.6 billion, but then the investigators don't know either at this point and so far Pendergast-Holt has not been helpful in that regard according to authorities.

With $1.6 billion stashed away, why would he go to Northern Virginia?

The Houston Chronicle reports that Pendergast-Holt has been released on bail.

The NY Times has more detail on the investments and the alleged discrepancy in Pendergast-Holt's testimony.

Comments

Popular posts from this blog

Police body cam video shows a difference story of what happened to George Floyd

The plot against the President

While blocking pipeline for US , Biden backs one for Taliban