WASHINGTON, (Reuters) – Texas billionaire Allen Stanford and two of his aides failed to answer subpoenas to testify about what investigators are calling a “massive” fraud, and the government said late yesterday that it could not comment on Stanford’s whereabouts.
The Securities and Exchange Commission said in court documents yesterday that it had subpoenaed Stanford, his aide James Davis and O.Y. Goswick, a board member of Antiguan-based Stanford International Bank.
“None of these witnesses appeared for testimony or produced a single document,” the SEC said in the court filing.
The SEC released a copy of the document after it charged Stanford, three of his companies, and two aides with fraudulently selling some $8 billion in high-yield certificates of deposit (CDs). Federal agents raided the headquarters of Stanford Financial Group in Houston, Texas, yesterday.
The Justice Department declined to comment on where Stanford might be, and the SEC had no comment.
The SEC said it had sought a court order for Stanford and his aides to surrender their passports and return any money they control outside the United States.
“An order for repatriation of funds and records sent offshore and still under the control of the defendants is appropriate. There is evidence that funds and records have been transferred overseas,” the SEC said.
“In addition, based on the defendants’ frequent foreign travel, the fact that Stanford maintains vast holdings (including residential real estate) in foreign locales, and Stanford’s self-proclaimed dual residency, the commission seeks an order requiring the defendants to surrender their passports to the court.”
