Major Financial Institutions and Stanford Financial

by: Jake Zamansky

Unfortunately, my position that Ponzi Schemes, such as those of Peter Dawson, Nicholas Cosmo, Andrew Bowdoin, and Bernard Madoff, have the implicit support of major financial institutions is holding true. According to reports this week, Stanford Financial investors are suing five major banks that handled customer deposits for Allen Stanford’s Antigua based, Stanford International Bank.

The suit alleges the Bank of Houston, HSBC Bank (HBC), Societe Generale (OTCPK:SCGLY), Toronto Dominion Bank (NYSE:TD), and Trustmark National Bank (NASDAQ:TRMK) provided an “essential conduit” to Mr. Stanford’s alleged fraud. The suit specifically singles out HSBC and Toronto Dominion as handling a substantial amount of Stanford deposits.

Earlier this year, I filed lawsuits against Fiserv for its support in the Bernie Madoff fraud and against Bank of America for its support of the Agape World fraud. So it doesn’t surprise me that major banks are now being sued related to Allen Stanford’s alleged fraud.

As I’ve argued before, with every Ponzi scheme, large or small, a major financial institution is typically lurking in the background. Zamansky & Associates is investigating further how the alleged financial institutions may have contributed to Stanford’s fraud.