A run on Stanford's Antiguan bank as US authorities cry fraud

18 February 2009

Hundreds of depositors lined up at Sir Robert Allen Stanford's Antiguan bank today, seeking to withdraw funds, a day after US authorities charged the Texas billionaire with an $8 billion fraud.

The US Securities and Exchange Commission (SEC) has accused the businessman of running a ''massive, ongoing fraud" while selling roughly $8-billion in deposit certificates through his Antigua-based Stanford International Bank Ltd.

According to the SEC, Stanford's investment firm made "improbable and unsubstantiated'' claims about its ability to generate "safe" returns of more than 10 per cent, while also misleading investors of their exposure to Bernie Madoff's alleged Ponzi scheme.

The SEC also asked the Dallas federal court to freeze assets and appoint a receiver to return money to investors.

In Antigua, nearly 600 people stood in a long queue despite assurances from regional monetary authorities that the bank had sufficient reserves.

The six-nation Eastern Caribbean Central Bank posted a statement at Bank of Antigua saying many depositors had started to withdraw funds, "causing some anxiety," adding that the bank had sufficient reserves.