"Let's split it 50/50: half to me, half to myself..." Photo: http://www.flickr.com/photos/suburbandollar

When Sir Allen Stanford bilked investors out of millions of dollars in the largest known Ponzi scheme this side of Bernie Madoff, the world was outraged that a such a wealthy man felt it was necessary to take advantage of the public trust in order to get his hands on more money. Now that he’s in the hands of the law, AMC Liquidators is going to sell off some of Stanford’s assets to make amends for the millions of dollars lost. I think victims may also need low interest loans and instant cash, but maybe that’s just me.

Tamara Lush reports for The Huffington Post that AMC Liquidators is holding an auction in Fort Lauderdale, Florida. The furniture and other items up for sale will come from the disgraced businessman’s Miami offices.

One Boca Raton restaurateur bought a maroon leather chair, cherry-wood desk and  matching credenza for $1,500. A steal for that quality of furniture, to be sure, nickels and dimes compared to what Stanford did to his investors.

Where’s the rest of the $2 billion?

“Value in Volume” is the slogan AMC Liquidators brings to their auctions, and the same should hold true as they attempt to hock Stanford’s office assets on the open market. At least 25 truckloads of luxury office goods are up for sale, including Oriental rugs, marble tables and leather couches. Bronze eagles (the symbol of Stanford Financial Group) are also on the block, as are photos of Palm Beach County polo grounds that Stanford sponsored. Oh yeah, there’s also a tapestry of Louis XIV of France, the “sun king.” No delusions of grandeur on Sir Allen’s part, are there?

Estimates place the total value of the Fort Lauderdale sale at around $2 million. However, that’s only the tip of the iceberg. According to Forbes, Stanford was worth $2 billion in 2008.

Trying to stick the setup man

In February 2009, Stanford was accused of “promising clients unrealistic returns on $8 billion in certificates of deposit” and other vehicles for financial fraud through an offshore bank in Antigua, writes Lush. The following month, a federal judge ruled at least $226.6 million in “back taxes, penalties and interest” were fair game for the government to go after. Yet Stanford continues to deny allegations and has not even been accused of a crime. Chief Investment Officer Laura Pendergest-Holt has been the scapegoat so far. She claims through her attorney that she had been “set up” by Stanford.

Meanwhile, Stanford and his lawyers are “concerned” about the liquidation being run by AMC Liquidators, claiming it is “part and parcel of an overly hasty effort to liquidate a viable business that viable revenues.” Only until they find something that sticks, Teflon man.

But liquidate they shall

A federal judge in Dallas has ordered it, and AMC Liquidators is happy to oblige. Michael Grimme, owner of AMC, has noted that business is up in recent years because of the number of bankruptcies and company downsizing. AMC was asked by courts to bid on all five of Stanford’s Florida offices, but only won the bid for the Miami office. According to Grimme, this is partly because “the owners of the other four offices decided to keep the furnishings in place of back rent. The Miami property owner decided to sell the contents.”

“A lot of my friends were targeted in the Madoff scheme, and I’ve lost a lot of money in my accounts, too,” he said. “We were very well aware of who we were buying this inventory from. You could say, maybe it’s payback time.”

Pay them back. Give them low interest loans for instant cash, even. Just make sure justice is done.

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Here, let me take that money of yours...

BBC News reports that FBI agents in Virginia have located and served Sir Allen Stanford with civil papers, a quick loan courtesy of the SEC. They would like to see him pay it back with other people’s money… and jail time.

Stanford has been accused of $8 billion fraud against investors. The claim is that they were lured by the promises of “improbably and unsubstantiated high returns on certificates of deposit and other investments.” The SEC calls the case “fraud of shocking magnitude” that loans itself quickly and easily to the recent memory of Bernie Madoff’s $50 billion Ponzi scheme.

Richard Kolko of the FBI revealed that agents had served the legal papers to Stanford in Fredericksburg, Virginia, at the request of the Securities and Exchange Commission. This step was necessary in order to ensure that Stanford would turn in his passport and be made aware of what he faced, said the BBC’s Richard Lister from Washington. Criminal charges have yet to be filed, so Stanford is not currently being held in custody.

Bank terror bonanza

As a result of Stanford’s fraudulent operations, branches of banks controlled by the Stanford Group have been shut down or placed under national control in Peru and Venezuela. The former nation suspended operations for 30 days, while Venezuela has announced it will take control. Panama, Ecuador and Antigua have also have taken action against Stanford’s interests there.

Regulators would have liked to allay investor fears about the banks Stanford is associated with, but runs on banks were perhaps inevitable in light of the news.

A US civil court judge has frozen Stanford’s assets and those of the Stanford Group, Stanford International Bank (SIB) and investment adviser Stanford Capital Management. Experts predict that criminal charges will be brought on Stanford soon. Until then, Bernie Madoff remains the sole charged financial shyster to light up the news boards from 2008. Eventually, when Stanford joins the club, perhaps both will go on quick loan to jail. Quick, because the resourceful never stay for long…

Related articles

• SEC files charges in another “massive” fraud (americablog.com)
• Stanford charges spark run on banks (guardian.co.uk)