HOUSTON, (Reuters) – Allen Stanford, the Texas financier accused of an $8.5 billion fraud by U.S. regulators, used client funds to pay for his jet-set lifestyle, the Antiguan liquidator in the case said on Monday.
“I believe that depositor funds in Stanford Bank were moved into other Stanford Group companies to fund the expansion and the running of the Stanford empire,” said Nigel Hamilton-Smith, the Antiguan liquidator of the firm’s offshore bank.
Stanford used the money to pay for jets, lavish homes and yachts, Hamilton-Smith told Reuters.
The U.S. Securities and Exchange Commission has alleged funds from certificates of deposit issued by Stanford International Bank Ltd in Antigua propped up a massive fraud.
Before the SEC leveled fraud charges against Stanford, his personal fortune was estimated at $2.2 billion by Forbes Magazine. He was a generous sports patron and owned homes in Antigua, St. Croix, Florida and Texas.
