Federal authorities are searching for R. Allen Stanford, the man accused of cheating as many as 50,000 investors out of $8 billion. Many of those investors are right here in the Houston area.
We went to Stanford's home early this morning and the house was dark. There was no sign of anyone or even any vehicle. It's located not far from the Galleria offices where Stanford has operated, and the Securities and Exchange Commission claims, he defrauded thousands of clients.
U.S. Marshals seized control of the offices yesterday, and SEC investigators are claiming Stanford and his close associates defrauded tens of thousands of investors out of billions of dollars, persuading them to invest in seemingly safe CDs -- certificates of deposits -- but faking double-digit returns.
In December, two former employees of the Houston-based firm left Stanford and filed a lawsuit, saying they were forced to resign once they discovered the financial impropriety.
The civil lawsuit, filed by former employees D. Mark Tidwell and Charles Rawl, alleges, "Rawl and Tidwell repeatedly asked Stanford management to change Stanford's business practices. Stanford refused to cease its illegal activity." The two left the financial firm.
Stanford also operates out of the Caribbean island of Antigua. No doubt authorities are also searching for him there.
The Houston offices remain closed today. The SEC plans on an update in the next 24 hours as to the operations there.
The Prime Minister of Antigua has said the Stanford situation could be "catastrophic" for his nation.
In Focus reporter Ted Oberg is in the island nation. Look for his reports in later editions of Eyewitness News.
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