James Allen Father of Rorbert Allen Stanford to Testify to the SEC

On Tuesday afternoon, FOX Business tracked down James Stanford, father of Robert Allen Stanford, the financier being investigated for an $8 billion fraud in connection with Stanford Financial Group.

The elder Stanford, James, who spoke to FOX Business in Robert Allen’s hometown of Mexia, Texas, is listed as the “Chairman Emeritus” of the Board of Directors at Stanford Financial Group. He was the founder of the company, and turned it over to his son in 1993.

The elder Stanford will travel to Waco, Texas, later this afternoon to answer questions posed by federal investigators from the Securities and Exchange Commission pertaining to the alleged Ponzi scheme that his son may be involved in.

The SEC is investigating whether Robert Allen Stanford’s Antigua-based bank illegally sold $8 billion worth of CDs through Stanford Financial Group based in Houston, Texas Stanford allegedly promised investors a 10% return on those CDs, amounting to a Ponzi scheme or fraud.

However, James Stanford told FOX Business it was “common,” to offer CDs at an interest rate a point or two higher than what banks in the U.S. were offering at the time. He insists there was no fraud in the operation at all.

“This is a rush to judgment on the part of the government,” James Stanford told FOX Business. “I feel that my son Allen Stanford and Jim Davis are completely honorable people. I have been associated in this affair with them for many years, and I want the country and the world to know I think they are completely above board.”

“Time alone will show that this whole thing is completely not a scam,” added the elder Stanford.

Mr. Stanford will speak to the Securities and Exchange Commission Tuesday afternoon without an attorney present.

Fox News

Where in the World is Allen Stanford?

Caribbean, USA: Where in the World is Allen Stanford?

UPDATE: Barbadian diaspora blogger Keltruth Corp. links to mainstream media reports confirming that Mr. Stanford has been located in Virginia. He has not, at the time of this posting, been charged with any criminal violations.

• It's one thing for the U.S. Securities and Exchange Commission to lay fraud charges against Texas billionaire-cum-Caribbean cricket magnate Allen Stanford - but first, authorities have to find him.
• As panicky investors flock to Stanford-owned banks from Antigua to South America to try and withdraw their funds, speculation is rife as to where Mr. Stanford might be.
• Live in Guyana, on hearing the news that “billionaire investor and cricket financier Allen Stanford has gone off the radar”, says that he has “done a Dataram”, comparing his flight tactics to those of “Guyanese drug accused and US fugitive, Barry Dataram”.
• This is not the only talk of this nature in the regional blogosphere - Barbados Free Press says:

Current and past allegations include drug money-laundering by Stanford’s companies.
…and goes on to post another entry which suggests that:

• United States federal authorities are putting out the word that as well as the Ponzi-scheme fraud charges, Sir Allen might be facing the music for money-laundering for a Mexican drug cartel and bribing public officials.
• Living in Barbados views these developments as “a very good reason to argue for politicians to disclose their assets…to remove as much as possible the taint of possible conflicts of interest.”

He continues:

"The recent financial troubles befalling CL Financial Group's Trinidad operations and now the leveling of fraud charges against Allan Stanford and his Antigua-registered Stanford Financial Group point to one aspect of the possible conflicts in our own back yard.

• To what extent are politicians personally tied to the ailing institution or those who run them?
• To the extent that such ties exist, how has it affected or will it affect political and policy decisions? .....

With Mr. Stanford going AWOL (reportedly in St. Croix, US Virgin Islands), the trail to find him and his assets may lead to some unwelcome doors.

Barbados Money Laundering Advisory meanwhile, sees parallels with “the ‘Lord Conrad Black' story” but some bloggers' main concern is still the potential effect of the fraud charges on the future of West Indies cricket:

The Rest From Sourced from.com who drew from this Barbados Money Laundering Advisory

Robert Allen Stanford being Investigated in relation to Gulf Cartel

++ The FBI is investigating whether Robert Allen Stanford was involved in money laundering activities for the Gulf drug Cartel… ABC News said Mexican authorities seized one of his private planes because they found checks inside that could be linked to the Gulf cartel.

Source Mexico Today News Feed