Accountant Says Stanford Used Clients' Money To Fund Own Businesses
by: Andrew Schneider, February 2, 2012 9:02:00 am
Former Stanford Financial Group accountant Henry Amadio testified that, from 2005 through 2009, he was required to track loans drawn on Stanford International Bank by Allen Stanford. The loans were then used to pay for the operations of other Stanford-owned companies. These included airlines Caribbean Sun and Caribbean Star, companies that organized cricket tournaments, and a firm that maintained Stanford’s private yachts.
Amadio said these loans were never paid back. By the end of 2008, shortly before Stanford’s operations were put into receivership, the loans to Stanford totaled more than $2 billion. Amadio said Stanford International Bank’s profits were not large enough to account for these loans. He testified the money could only have come from client deposits. That would have been at odds with what Stanford told clients of Stanford International Bank in the bank’s annual report. The report said the bank made no commercial loans and that any profits were being reinvested in the bank.