Financial Crime Weekly: Judge Orders $5.9 Billion Fine In Ponzi Scheme Case, SEC Chairman Appoints New Staff Members

Federal Judge Orders $5.9 Billion Fine In Ponzi Scheme Case

Chief Judge David Godbey of the Dallas federal court on Wednesday ordered Allen Stanford to pay a $5.9 billion civil fine, ending the Securities and Exchange Commission’s 16-year lawsuit against Stanford. 

Stanford is serving a 110-year prison sentence after being convicted in 2012 of defrauding investors in a $7.6 billion ponzi scheme, according to a Reuters report. Authorities said Stanford operated an Antigua-based financial institution, Stanford International Bank, and sold fraudulent high-yielding certificates of deposit over a 20 year period. 

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Judge Godbey also ordered Stanford Financial Group’s former CFO James Davis to pay $17.66 million and its former chief accounting officer Gilberto Lopez to pay $3.42 million related to their roles in the fraud. 

SEC Chairman Appoints New Staff Members

The Securities and Exchange Commission on Thursday announced Acting Chairman 

Mark T. Uyeda has named Natalia Díez Riggin as Senior Advisor and Acting Director of the Office of Legislative and Intergovernmental Affairs.  

“I’m thrilled that Natalia has joined us after her tenure working for Chairman Scott on the Senate Banking Committee,” Acting Chairman Uyeda said. “Her expertise will help guide us as we focus our efforts at the SEC on capital formation and ensuring companies aren’t impeded by ineffective regulation.”

Last Saturday, Acting Chairman Uyeda selected several senior staff members to replace recent departures from the SEC. 

The SEC senior staff selected by Acting Chairman Uyeda include:

• Jeffrey Finnell, Acting General Counsel
• Robert Fisher, Acting Director of the Division of Economic and Risk Analysis
• Kathleen Hutchinson, Acting Director of the Office of International Affairs
• Samuel Waldon, Acting Director of the Division of Enforcement
• Ryan Wolfe, Acting Chief Accountant 

“These talented individuals are committed to protecting the investing public, building trust with American companies and market participants, and promoting capital formation,” Acting Chairman Uyeda said.

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