Sir Allen Stanford’s empire came crashing down last week in an $8bn fraud inquiry that is now set to extend to Britain.
Jamie Doward and Rajeev Syal reveal how the Texan tycoon manipulated his links with royals, sports stars and politicians to give his credentials a veneer of credibility – and why it took so long for the alarm to sound Sir , the billionaire at the centre of one of the world’s largest fraud investigations, repeatedly used the British royal family to convince investors that he was a bona fide businessman with impeccable credentials. Stanford Financial Group (SFG) used at least four royals in its glossy publicity brochures, magazines and websites to emphasise the tycoon’s respectability – at a time when difficult questions were being asked about how his operations made money. Eagle magazine also carries news and pictures of Stanford’s knighthood in 2006, in his adopted home of Antigua, at a ceremony attended by Prince Edward. Stanford was forced to alter his website after complaints that it suggested the Earl of Wessex had personally knighted Stanford rather than its governor general, Sir James Carlisle. Stanford’s attempts to secure respectability appear to be a leitmotif in his life. Documents filed by his lawyers in a legal dispute last year over a disputed domain name refer to their client as a “world-renowned former cricketer”. There is no evidence the Texan, whose Stanford Superstars cricket team pocketed $20m of his money after beating England in a controversial match last year, has played the game at any significant level. Yesterday it emerged that the helicopter emblazoned with his name and crest in which he touched down at Lord’s last year – in order to announce his deal with the England and Wales Cricket Board – was hired and the logos stuck on just for the day. Last night further links between Stanford and the UK were emerging. The Observer has established that discussions were held last week between the City of London police, the Federal Bureau of Investigation and the Securities and Exchange Commission following last Tuesday’s decision to charge Stanford in connection with an alleged $8bn investment fraud.
The disclosure is the first indication the US investigation could spread to Britain, where Stanford has property and business interests.