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Stanford Number 2, "Devastated" By Alleged Fraud, Talks With Investigators
Is the noose tightening?
James Davis, Allen Stanford's number 2, sat down with FBI and SEC investigators yesterday, Davis' lawyer, David Finn, told Bloomberg. Finn said earlier this week that Davis would fully cooperate with both investigations.
The SEC has filed a civil complaint against Stanford, Davis, and a third Stanford Financial Group executive, Laura Pendergest-Holt, alleging a "massive ongoing fraud". Only Pendergest-Holt has thus far been criminally charged, in connection to giving false statements to investigators.
Finn reiterated that Davis - who last month took the fifth, refusing to cooperate with the investigation -- had shifted his position. "Jim is fully and actively cooperating, and trying to get investors who lost their money some help," Finn told Bloomberg. "He's absolutely devastated, because he knows a lot of good people got hurt."
Finn, who didn't give details of what Davis told the Feds, even claimed that Davis was a"whistleblower," saying Davis told regulators about the fraud after a meeting of Stanford execs in early February, to prepare for SEC questioning.
"[H]e was the one who blew the whistle and brought the house of cards down," said Finn.
At the very least, it looks like Stanford and Davis, former college room-mates and previously, by all accounts, the closest of friends, may be on the outs. And given what Davis likely knows about the inner working of SFG, that can't be good for Sir Allen.
Josh
Zachary
I was goggling news for Allen Stanford when I saw your article come out. The Stanford Group has close ties with our government and we may never get true information on his operation. The key is finding out the source of funds for the $6 million that bankrolled his first international bank venture, Guardian International in 1985. This was less than two years after he declared bankruptcy in Texas from a second failed business. The first was a restaurant and the second a fitness center that he owned in Waco.
If you track the planes that Stanford Aviation owned and now FAA records show as being sold in the last few months, you quickly see the pattern forming like with previous CIA operated planes that crashed with loaded bundles of drugs.
On May 5th, 2006, President Bush issued a memorandum that was published in the Federal Register that ceded power to newly appointed DNI chief, John Negroponte, the right to avoid the laws of the financial world and the SEC Act of 1934 if it was needed for "national security". Dawn Kopecki reported on it when she was with BusinessWeek in that same month.
30% of the CD funds that are missing came from Venezuela where rich landowners were encouraged to place their money to avoid detection by Chavez but with an understanding that a portion of the proceeds would be used to undermine the government of Venezuela. Now what government would be supportive of American corporate interests that it would operate secret ops like this in Venezuela. Only one.
March 26, 2009 9:51 AM | Reply | Permalink
LOL - Love the number 2 reference!
March 26, 2009 11:07 AM | Reply | Permalink
I don't understand the reference. Could you explain it, please? Not everyone who reads this site lives in the US.
Also, ditto the comment by dar regarding the post by NC Dem. Very interesting story that needs more investigation.
March 26, 2009 4:49 PM | Reply | Permalink
"James Davis, Allen Stanford's number 2,"
Refers to James Davis as the second most powerful person in Allen Stafford's business - after Allen Stafford himself. Like an only vice president. He is presumably someone who had inside knowledge of the workings of Stafford's business and his cooperating with investigators is a serious blow to Stafford's defense.
March 26, 2009 5:13 PM | Reply | Permalink
My question was actually about the photo. I had assumed that was what GTFOOH had meant in the previous post. I thought it was a photo of the actor that was married to Natalie Wood and was a joke, only I didn't get it. If it's a photo of Davis, he's a ringer for that actor.
March 26, 2009 8:13 PM | Reply | Permalink
It's from the first Austin Powers movie. Dr. Evil's second in command was called Number Two.
March 27, 2009 2:03 PM | Reply | Permalink
Thank you for the explanation.
March 27, 2009 3:50 PM | Reply | Permalink
Hope someone on TPM will follow up on the post above posted by NC Dem. I want we be surprised if our own intelligencies are involved? Naw, we won't.
March 26, 2009 11:37 AM | Reply | Permalink
Hopefully he'll also roll over on all the congress people bribed and involved in his schemes. He has to have first hand knowledge so here's hoping.
March 26, 2009 7:57 PM | Reply | Permalink