Thursday, February 12, 2009

Stanford Financial – Fraud Warning!!!

If you have invested with Stanford Financial, particularly in offshore "CD's," I strongly recommend moving your money to safer waters. According to this story in Businessweek, they have placed a large portion of their client's money in CD's issued by a "bank" in Aruba. This "bank" pays rates that are significantly higher than rates offered by traditional (and regulated and insured) banks.

As a golf fan, I noticed Stanford Financial moved big in sports marketing a few years ago. Curious, I googled them and discovered the are run by a Texan who goes by the name "Sir Allen Stanford." They don't appear to have any special skills and they spend a ton of money on marketing. I don't have enough money to call him the next Madoff; however, I would not want be his client if he is.

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