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Stanford Lawyer: "SEC Came In Like A Bunch Of Storm Troopers"
Dick DeGuerin, the hard-charging Texas lawyer who just signed on to represent Allen Stanford, isn't pulling any punches.
In an interview with TPMmuckraker moments ago, DeGuerin denied that Stanford was running a Ponzi scheme. And, referring to federal investigators' raids on Stanford offices as the SEC prepared charges last month, DeGuerin played the Nazi card, declaring:
The SEC came in like a bunch of Storm Troopers, which caused a panic, and caused the banks in Venezuela and elsewhere to nationalize his banks, just take them away.
This move, combined with the decline in the stock market, caused a severe diminution in the value of Stanford's assets, DeGuerin said. "It's a perfect storm of panic caused by the SEC's heavy-handed actions"
DeGuerin also argued, as he did earlier today to BusinessWeek, that the SEC is going after Stanford as a distraction from its failures on the Bernard Madoff case.
"They got egg all over their faces when they failed to sufficiently oversee the Madoff Ponzi scheme," DeGuerin said. "What the SEC is trying to do is make up for their embarrassment over Madoff."
DeGuerin also said he'd soon be asking a judge to unfreeze a portion of Stanford's assets, so he could pay for a defense.
And he previewed an argument he'll likely make in that effort, asserting that lawyers who have represented Stanford and his companies have now been hired by the court-appointed receiver, Ralph Janvey, who is going through Stanford's assets. DeGuerin called this "a clear conflict."
Asked whether he'd continue to represent Stanford if a judge declined to unfreeze the assets, DeGuerin was typically blunt: "I'm not going to do this for free," he said. "This is a massive undertaking."
It sure is.
Josh
Zachary
Just looking at the heartless, brash arrogant photo of DeG, i think he should be cast as himself when the movie comes out!
March 26, 2009 5:43 PM | Reply | Permalink
DeGuerin is basically admitting that he's got nothing.
March 26, 2009 5:45 PM | Reply | Permalink
I agree with DeGuerin that the Stanford Group's problems are not a Ponzi scheme. With the knowledge and approval of his trio of leaders, he loaned himself $1.6 billion. For years he has paid a higher CD rate than every competitor other than Madoff. Even though his client list has been growing annually, it has not grown enough to establish a true Ponzi scheme.
More investigation needs to be done on the two deaths associated with his Group. One of his auditor/accountant for more than 10 years, CAS Hewlett. Shelley Hewlett died on Jan 1, 2009. His 4 offices in London and one in Antigua were "shell" companies like a CIA front.
The second death occurred on January 29, 2009. David "Bull" Baker was a highly decorated military officer with CIA associations. Although he was at Schwab before Stanford bought them out, he provided Allen Stanford with loads of "political intelligence" from inside the walls of Congress.
Finally, I will ask that those interested look closely at his association with Peter Romero, formerly from the State Department under both Clinton and Bush. Romero also has many friends in dark places in Latin America. Romero is also tight with many in DC even inside the Obama WH. With Romaro handling deals in Colombia, Peru, and Venzuela and supporting the American corporate interests through the State Department you have the makings for a great movie once this unravels if it ever does.
The subterfuge of information that the CIA is planting in the media throughout the world may help keep the lid on the truth. Once the truth really comes out we will find that all the fighting over drugs in Mexico is not just over drugs from South America. The Russian and Eastern European mobs have been using Antigua for years to distribute their products and launder their money. That is just one of the reasons the CIA set up this false front international banker as the Guardian International Bank back in 1986.
March 27, 2009 7:48 AM | Reply | Permalink