The receiver unraveling the Stanford empire web has urged 66 financial advisers to return 'huge' commissions and bonuses paid by Sir Allen Stanford's company to sell the financial products and certificates of deposit (CDs) at the centres of the alleged $8bn fraud.
The court-appointed official leading the quest to compensate victims hit by the Texan billionaire's investment fraud seeks to recover over $40m of commissions paid to brokers who solicited clients across the US, according to the FT. "The CDs sold to Stanford customers were not genuine investments, but rather, part of a massive Ponzi scheme that bilked investors out of billions of dollars," Dallas-based receiver Ralph Janvey claimed in a lawsuit. He says an "elaborate and sophisticated" programme of incentives was used to keep brokers "highly motivated" to bring in new money, sell CDs an...
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