Accéder au contenu principal

Allen Stanford: Antigua feels the fallout of Ponzi case


Cricketer Chris Gayle and Allen Stanford pose with a giant cheque during the Stanford Twenty20 Super Series in November 2008Stanford organised money-spinning Twenty20 cricket tournaments in the Caribbean

Related Stories

The trial of Allen Stanford has finally ended, with the Texan financier found guilty of a massive $7bn (£4.5bn) Ponzi scheme by a court in Houston.
The fraud was run from his offshore bank in Antigua and investors' money was used to pay for his lavish billionaire's lifestyle. Customers who lost money from across the globe are suing the Caribbean nation but many there think that they too were victims.
From the moment you arrive in Antigua, Stanford's presence still looms large.
He redeveloped the land around the main airport, so directly opposite arrivals is the Stanford Cricket Ground, and across the road stand the buildings of Stanford International Bank and his former newspaper the Antigua Sun.
It was an image that wooed many of his high-value clients to invest in his companies.
Crumbling empire
Stanford was widely respected until his arrest on suspicion of fraud back in February 2009.
Stanford International Bank headquarters in AntiguaHe built the headquarters of the Stanford International Bank in Antigua
He was the island's largest private employer, but when he was charged his empire crumbled.
He paid first-world wages, and when his staff lost their jobs it had a knock-on effect. They in turn fired their helpers, gardeners, nannies; thousands of people were left out of work in a population of just 85,000.
"It's been difficult for many of us. We were getting good money so we spent a bit more on a better house, a new car, and before you know it you're struggling to pay the mortgage, to repay the car loan," says Tim Payne looking through the latest edition of his paper, the Antigua & Barbuda News Pages.
He was the managing editor of the Stanford-owned Sun Newspaper, but started his own publication after the company folded.
"It's amazing that nobody has gone off the deep end," he says.
Political connections
But for many there has been no work since. Some have had to migrate to the US or Canada to find jobs.
Allen Stanford outside the Sticky Wicket sports barStanford was the man behind the Sticky Wicket restaurant and bar
Stanford's arrest came at a bad time for Antigua. As the world went into an economic crisis, the island had to face this internal shock.
The country is the most tourism-dependent nation in the Caribbean, with more than 70% of economic activity coming from this source.
Mikeda Mikael runs a company that caters for the private jets that fly into this billionaire's playground.
"I handled four or five of his planes once, bringing in senators, congressmen and bigwigs," she says.
"They were partying on yachts in an exclusive resort, and when you have US politicians supporting a man like Mr Stanford on an island as small as Antigua of only 108 square miles, if you had any doubts before they go out the window. America has sanctioned him, he's good to go."
She claims that despite having reservations, many people did business with Stanford because of his US government connections.
Investment welcomed
Stanford first came to Antigua in the 1980s after the authorities closed down his offshore bank in the British overseas territory of Montserrat.

Start Quote

It is costing us quite a bit to defend the matter but defend we will”
Justin SimonAntigua Attorney General
He was welcomed by the Antiguans, who were in dire need of foreign direct investment.
Stanford lent millions to the government. He also built new offices for the administration and even paid for a new hospital. Some say he was buying favour.
"I can't see how anyone would want to blame the Antiguan government... the US government couldn't prove he was running a Ponzi scheme, then how would they expect our regulators with less experience, less resources would be in a position to do something?" asks Gaston Browne, deputy leader and chairman of the Antigua Labour Party (ALP).
Now in opposition, the ALP was in government during most of the time Stanford was based here.
Dealing with the fallout is the job of the current United Progressive Party (UPP) administration.
'Dead broke'
Allen Stanford leaves the federal courthouse in Houston where the jury found him guiltyDespite his arrest, many people in Antigua remember Stanford fondly
Investors abroad have started legal action against Antigua and Barbuda. They want $24bn (£15bn) in damages.
The Stanford Victims Coalition is also trying to get the International Monetary Fund to block loans to the country while the case is being fought.
"They have begun legal action in the United States against the government. It is costing us quite a bit to defend the matter, but defend we will," says Attorney General Justin Simon.
"Looking at what is left here and the money owed to these investors and creditors, the value of the assets really don't come up to that much."
In the twin islands, most people still feel that Stanford did a lot of good. I asked a group of men playing dominoes in the capital St John's about him.
"He loved black people and he loved Antiguans, that's why he settled here. It was making headway. And without him the country just dropped automatically. In fact it's broke, dead broke," says one.
"He did good for the country but he made a mistake in his life," another man says.
Antigua's financial reputation has been clearly damaged by Stanford's fraud. The former head of the country's Financial Services Regulatory body is fighting extradition to the US.
It is expected he would face charges related to the Stanford fraud, while its people wait to see if they will pay a heavier price in the future.

Commentaires

Posts les plus consultés de ce blog

Male or Female

Wednesday, August 19, 2009 Caster Semenya: Male or female? Caster Semenya's sex in doubt, as reports of sex testing and potential disqualification surfaceBy now, most of you will be aware that South Africa's 800m sensation, Caster Semenya, has been reported as a potential disqualification from tonight's 800m final in Berlin, on the grounds that the IAAF had conducted tests on her to establish her sex, and that she might be male (I must clarify this - it's not an issue of male vs female, but of "entirely female", since she may possess secondary male characteristics as a result of some condition, reported as hermaphroditism).This latest report (unconfirmed, I might add, at least with respects to the DQ - apparently the testing was done) is the climax of rumors that have been doing the rounds ever since the 18-year set the world's fastest time of 1:56.72 in a low key meeting in Mauritius recently.I have been quite silent on the issue, and will continue to do...

2020 US Presidential Election Map

2020 US Presidential Election Map By County & Vote Share December 3, 2020 2020 US Presidential Election Map By County & Vote Share Map created by Magog the Ogre via Wikimedia The map above shows the county level and vote share results of the 2020 US Presidential Election. The darker the blue the more a county went for Joe Biden and the darker the red the more the county went for Donald Trump.

Colombia tiene reina negra

La elección de Vanessa fue precedida de fuertes polémicas. Escribe José Baig, corresponsal de la BBC en Colombia Por primera vez en la historia del Concurso Nacional de la Belleza en Colombia, el jurado eligió el domingo a una joven negra como la mujer más bonita del país. La elección de Vanessa Mendoza, una estudiante de turismo de 21 años de edad, estuvo precedida de fuertes polémicas y acusaciones de racismo a los organizadores del concurso por la descalificación de dos aspirantes negras. Vanessa Mendoza, primera reina de belleza negra de Colombia. Los promotores de la elección de la Señorita Colombia se defendieron en aquella ocasión explicando que las dos retiradas violaron las normas impuestas por los organizadores. Una de ellas participó en un desfile de modas vistiendo prendas transparentes y la otra no entregó a tiempo sus documentos, fue la explicación de...