by Caitlin Kenney

The Securities and Exchange Commission has filed a civil complaint against Robert Allen Stanford, head of the Standford Financial Group. The S.E.C. has accused Stanford International Bank Ltd. and its affiliates of "massive and ongoing fraud," alleging that it promised "improbable, if not impossible" returns on certificates of deposits. The New York Times reports:

The S.E.C. accused the bank and its affiliates of falsely stating in marketing materials that client funds were placed in liquid financial instruments, when in fact they were invested in private equity funds and real estate. On Nov. 28, Stanford International Bank quoted a rate of 5.375 percent on a $100,000 three-year CD, compared with rates of less than 3.2 percent at American banks. The bank recently has offered rates of more than 10 percent on five-year CDs, the filing stated.

The S.E.C. says the Stanford operation suffered an estimated $400,000 in losses from investments associated with Bernie Madoff, despite promising investors it had no "direct or indirect" exposure to the alleged Ponzi scheme.