New SEC Complaint Says Stanford Ran Ponzi Scheme
The Securities and Exchange Commission filed an amended civil complaint late Friday (February 27th 2009) alleging that Texas financier R. Allen Stanford and his company’s Chief Financial Officer James M. Davis operated a massive Ponzi scheme.

In carrying out this scheme, the SEC claims, Messrs. Stanford and Davis misappropriated billions of investors’ money and falsified the Stanford International Bank’s records to hide their fraud.

“Stanford International Bank’s financial statements, including its investment income, are fictional,” the SEC said.

The SEC’s amended complaint comes one day after the Department of Justice arrested Laura Pendergest-Holt, the chief investment officer for the Houston-based Company.
The Wall Street Journal

The Caribbean needed to increase its enforcement to discourage rogue investors.

“Individuals and corporations … come to our debt-ridden, small-island nations desperate for foreign investment and in simple terms, rob them. The reality is that hardly any investor is properly vetted.”
R Allen Stanford November 2007 Caribbean International Leadership Summit,

“The bank’s deposits have grown from $624 million in 1999 to over $8.4 billion at year-end 2008. That’s an average compound growth rate of 34%! Now, that [emphasis his] is unusual. Very aggressive deposit growth is usually a ‘red flag’ for banks. It’s difficult to invest such a deluge of money efficiently. It also indicates that something may be ‘too attractive.'”
Independent analyst Alex Dalmady questioned Stanford’s returns in a piece he penned for a Venezuelan economic publication and first floated the idea of fraud.

Keep us from injuring ourselves

“It would make me feel very uncomfortable if the SEC were to relax its oversight. The S.E.C. must, as they have always been, sort of been the overseer of everything that we do to keep us from injuring ourselves, as well as injuring the public.”
December 2000, Bernie Madoff speaking to the SEC advisory committee meeting,

Company’s high interest rate spreads

“Hylton stated that the last year’s performance would not have been possible without the support of the Company’s customers, diverse revenue streams and unyielding attention to cost management. He noted that people may take notice of the Company’s high interest rate spreads (when compared with US banks, for example), but said that the reality was that it is simply more expensive to operate in Jamaica as borrowers are more likely to default on loans. The Group Managing Director said that it is integral that banks keep a dialogue with their clients regarding interest rate spreads.”
Mr. Patrick Hylton, Group Managing Director
National Commercial Bank of Jamaica Ltd (NCBJ) hosted its Annual General Meeting at the Hilton Kingston Hotel, Thursday February 26th 2009

As reported by Shari Da Costa (sdacosta@sslinvest.com) Research Analysts Stocks & Securities Ltd (SSL)

Everybody wants waivers

“Everybody wants waivers, waivers for vegetables, waivers for peppers to put in the processing, waiver for every conceivable thing, waiver for meats of all kinds. I am sick and tired of signing waivers for imported goods that we together as a people can produce right here in Jamaica. Mark my word; I’m going to do something about it,”
Finance Minister Audley Shaw addressing PC bank officials at the organisation’s annual general meeting held at the Kendal Conference Centre

‘I’m greedy in crisis’

“You get the best deals in a recession when prices are depressed. In Jamaica institutional investors like pension funds should be fully invested in stocks, which are downgraded. The Caribbean is a wonderful place to invest at this time. You can buy great businesses inexpensively.”
Michael Lee Chin, NCB Chairman

Golding cautions against speculation – Says Jamaican economy will decline 2.2% this year

“If earners of foreign exchange withhold it with the hope that the rate will go up, the rate will go up. If those who needed $100 demanded $200 in anticipation of a rate increase the rate will go up and if foreign conglomerates purchased foreign exchange in the local market to meet demands in other markets, the rate will go up.”
Prime Minister Bruce Golding speaking to members of Montego Bay Chamber of Commerce gathered aboard the cruise ship Liberty of the Seas