Stanford Financial Group Activities Suspended in Latin America

by Tina Kells | February 19, 2009 at 10:45 am

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Reaction by Latin America to the US Securities and Exchange Commission (SEC) "massive fraud" suit against Texas based financier Sir Allen Stanford has been swift and decisive. In order to restore confidence in the Latin American banks several countries have either halted the activities, or taken control, of Stanford banks within their boarders.

Venezuela has taken control of a local commercial bank owned by R. Allen Stanford to ensure confidence in the banking system after he was U.S. investors. accused by the U.S. Securities and Exchange Commission of defrauding

Venezuela’s government is intervening to protect depositors at Stanford Bank SA Banco Comercial, Finance Minister Ali Rodriguez said today at a news conference in Caracas.

Peru's securities regulator suspended local operations of the Stanford Financial Group for 30 days.
It follows action by Panama, Ecuador and Antigua after billionaire Sir Allen Stanford was accused in connection with an $8bn (£5.6bn) investment fraud.

The regulators are hoping to calm customers worried about investments.

Sir Allen, a 58-year-old Texan, has not been seen by officials since the US Securities and Exchange Commission filed a civil case on Tuesday.

More details on the Standford Financial Group "Massive Fraud" Case

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