HOUSTON (AP) - A filing by a court-appointed receiver said companies owned by
Texas billionaire
R. Allen Stanford were a confusing mess and
sold certificates of deposit in which top executives might not have
invested.
Court-appointed receiver Ralph Janvey's filing described a
series of businesses with bloated payrolls, high overhead and
dozens of different accounting systems.
The Houston Chronicle reports
Stanford Financial Group brokerages and
financial companies were not capable of operating independently
without the revenue received from the sale of the CDs issued by the
Stanford International Bank in Antigua.
Janvey said it was the most convoluted accounting and
record-keeping he had ever seen. The
Securities and
Exchange Commission alleges Chairman R. Allen Stanford and
Chief Financial Officer James Davis ran a Ponzi scheme in which
earlier CD investors were paid using the proceeds from new
investors.
Stanford denied the allegations and said if there was any fraud,
he was not a part of it.