Stanford Convicted In $7 Billion Ponzi Scheme


  • Playlist
  • Download
  • Embed
    Embed <iframe src="" width="100%" height="290" frameborder="0" scrolling="no">
  • Transcript

In Houston Tuesday, a federal jury convicted Texas financier R. Allen Stanford of running a massive Ponzi scheme. Jurors agreed with prosecutors, who claimed he ran a global scheme that lasted more than 20 years and involved more than $7 billion in investments.


And in Houston, a federal jury has found financier R. Allen Stanford guilty of running a Ponzi scheme that cost investors more than $7 billion. From member station KUHF, Andrew Schneider reports.

ANDREW SCHNEIDER, BYLINE: For more than 20 years, R. Allen Stanford convinced investors that certificates of deposit in his Caribbean bank offered both a safe haven, and a slightly higher return, than CDs in U.S. banks. The truth, as revealed over a six-week trial, was that Stanford used depositors' cash to pay for dozens of money-losing business ventures. He also used it to fund a lavish lifestyle that included private yachts, and sponsorship of an international cricket tournament.

The jury found Stanford guilty on 13 of the 14 counts against him - including multiple charges of wire and mail fraud. Cassie Wilkinson, a former Stanford investor, was in the courtroom for the verdict.

CASSIE WILKINSON: It's almost like I was forgiven of a sin, because I've doubted my ability to make any sort of a decision at all related to finances. And we didn't really feel that we were such fools, but it ended up that we looked like fools.

And so many people have questioned, why would you ever do that? We've heard that so many times. And it's because we trusted the wrong people.

SCHNEIDER: Stanford's Ponzi scheme was the second largest in U.S. history, affecting tens of thousands of investors from more than 100 countries. It's not clear how much of the missing $7 billion can ever be recovered.

For NPR News, I'm Andrew Schneider in Houston.

Copyright © 2012 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR’s programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.