STANFORD, Allen

Allen Stanford built a financial empire centered on Stanford International Bank, based in Antigua, which he used to operate one of the largest Ponzi schemes in U.S. history. From the 1990s through 2009, Stanford International Bank offered certificates of deposit promising impossibly high returns to investors, primarily targeting wealthy Latin American clients seeking offshore banking services.

Stanford's scheme promised annual returns of 10-15% by claiming to invest deposits in a diversified portfolio of international securities. In reality, the bank used new investor deposits to pay earlier investors while Stanford diverted billions to fund his lavish lifestyle, including private jets, yachts, and a cricket empire he built in the Caribbean.

The Securities and Exchange Commission and FBI simultaneously raided Stanford's offices in February 2009 as the scheme collapsed amid the global financial crisis. Investigators discovered that Stanford International Bank held only a fraction of the $7.2 billion in deposits it claimed, with most customer funds missing or improperly invested in Stanford's personal ventures.

Federal prosecutors charged Stanford with 13 counts of conspiracy, fraud, and obstruction of justice. After a lengthy extradition battle from Antigua, he was convicted in 2012 and sentenced to 110 years in federal prison. The Stanford case highlighted regulatory gaps in offshore banking oversight and led to increased scrutiny of Caribbean financial centers.