Stanford Sues the Feeds for $7.2 Billion
On the second anniversary of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Stanford Financial Group and its founder, R. Allen Stanford, the indicted financier filed suit against the U.S. prosecutors, FBI agents and the SEC, accusing them of “abusive law enforcement” and seeking $7.2 billion in damages. Ironically, the amount of damages he is seeking is almost exactly the same amount that he is accused of defrauding investors, as reported by Bloomberg. Stanford alleges in the complaint that agents undertook illegal tactics to prosecute him and engaged in unfair, abusive law enforcement methods and tactics, by using more than $51 million of his own money to pursue the cases against him.
The extravagance of Mr. Stanford is legendary. Out of the money he received from investors, he helped himself to roughly $2 billion that was used to purchase expensive cars, airplanes, to support girlfriends, support lavish cricket matches, having the firm name displayed before all audiences and generally providing him with a jet setting lifestyle.
Houston lawyer Brian Wice, who has been following the Stanford cases, said the case is unlikely to succeed and that, “Stanford’s claim is monumentally absurd on its face.”