Despite many years of investigations by the Securities and Exchange Commission, Allen Stafford’s CD scam ran for more than a decade.
CD scams are a dime-a-dozen, there is no shortage of scammers out there trying to take advantage of people. But wildly successful scams such as the one run by R. Allen Stanford are unusual — he got away with it for years and operated right under the nose of regulators. Stanford sold fake CD’s in
In 2009, Allen Stanford was arrested for running an $8 billion investment scam. He sold extremely high-yielding, yet fake, CDs to unwitting investors. Naturally, many of those optimistic CD buyers ended up losing their shirts when the operation was busted. On Wednesday, the Securities and Exchange Commission, or SEC, announced that some of those investors
Let’s be honest, it’s easy to believe we can’t be scammed. But what if the fraudulent instrument is something as benign and unassuming as a CD? In February 2009, the SEC raided the offices of Allen Stanford and charged him with running an $8 billion investment fraud, according to an Associated Press story written at