UK authorities freeze Stanford assets
THE UK prosecuting authorities yesterday froze $100m (£60.2m) linked to the alleged financial fraudster Allen Stanford within five hours of a request from the US Department of Justice, officials stated yesterday.
Stanford spent Monday night in a Texas jail after prosecutors told a federal judge he would likely flee the country rather than face life in prison if released on bail.
The once high-flying billionaire and sports promoter, who faces life in prison if convicted of all 21 criminal charges against him in relation to a $7bn Ponzi scheme, last week pleaded not guilty.
London’s Serious Fraud Office (SFO) said yesterday it had obtained a restraining order on assets believed to be held by financial institutions in London on 7 April.
“These funds were allegedly acquired in connection with a suspected $7bn investment fraud scheme operated by Stanford,” the SFO said in a statement.
The SFO said it felt able to release details of action taken by British authorities because Stanford had now been taken into FBI custody as part of a criminal investigation.
SFO director Richard Alderman said he was determined such cross-border support for US authorities became routine.
The watchdog said it had recently reviewed procedures related to the freezing of assets believed to be the proceeds of crime and that it was earmarking dedicated resources.
“The organisation aims to increase the volume of assets restrained, confiscated, recovered and – in the future – forfeited,” the SFO said.
In his heyday Stanford dazzled the UK’s cricketing authorities with his ideas for jazzing up the game and he courted the authorities with cash.