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SEC files charges in another "massive" fraud



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There seems to be no end in sight with such cases. As the economy continues to decline, it won't be a surprise to see more of these cases that have fallen apart due to the credit crisis. A bit of oversight won't help the scams either. Are the Republicans still promoting business self regulation or are they hiding from that position now as well? CNNMoney:

The Securities and Exchange Commission said Tuesday that it has charged financier R. Allen Stanford and three of his companies with orchestrating an $8 billion investment fraud.

The SEC's complaint alleges that the fraud centered on a CD program in which Stanford International Bank promised "improbable and unsubstantiated high interest rates."

SIB, based in Antigua, allegedly acted through a network of Stanford Group Company financial advisers to sell approximately $8 billion of "certificates of deposit" to investors.

The bank boasted a unique investment strategy that it said allowed it to receive double-digit returns on its investments for the past 15 years, the SEC said.

"We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world," Rose Romero, director of the SEC's Fort Worth regional office, said in the statement.


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