US Securities and Exchange Commission (SEC) has sued former executives of Stanford Group’s brokerage unit for their role in the downfall of the brokerage and Antiguan bank controlled by Ponzi-schemer Allen Stanford.
The US watchdog filed an administrative proceeding against Daniel Bogar, the former president of Stanford’s brokerage unit, Bernerd Young, the bank’s former chief compliance officer and a former regulator, and Jason Green, the former president of Stanford’s private client group, as reported by the Financial Times.
All the accused facilitated a $7bn Ponzi scheme, says SEC.
The SEC said that all the top executives of Stanford were fully aware that offering documents in connection to certificates of deposits disposed of by Stanford International Bank were false or misleading and encouraged their colleagues to use the incomplete offering documents to help sell the CDs.
Reacting over the SEC charges, Green said through his lawyer John Kincade and George Freeman that he was not aware of any defraud committed.
Earlier, Allen Stanford was sentenced by a Houston jury in prison for cheating investors by running a decade long Ponzi scheme.
During the course of investigation, SEC found that Allen Stanford failed to disclose the facts before the investors that they are not aware as how the money will be invested.