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Mar 05, 2012

Another Ponzi fraudster headed to the slammer

Stanford now faces up to 20 years in prison.

R Allen Stanford was convicted today of a major Ponzi fraud that involved money laundering and falsifying certificates of deposit at his Antigua-based bank.

A federal jury convicted the former head of Houston-based Stanford Financial Group on 13 out of 14 counts of fraud in which the financier funneled $7 billion from investors by selling high-interest certificates of deposit at the Stanford International Bank. He then invested these profits in fluctuating real-estate assets, over-the-top lifestyle aboard yachts and jets, and his own business.  

According to the Associated Press, Stanford now faces up to 20 years in prison. He was found not guilty of one count of wire fraud.

Aarti Maharaj

Aarti is deputy editor at Corporate Secretary magazine