Romney & Son Investigated for 8 Billion Ponzi Scheme

Original Post: May 1, 2012

Updated: Sept 3, 2012

A federal court judge struck down an SEC lawsuit in the R. Allen Stanford 7.2 billion dollar ponzi scheme. The Securities and Exchange Commission tried to sue the Securities Investor Protection Corp., to secure compensation for investors who lost their money. (See: Business Insider link below) 

US. District Court Judge Robert Wilkins ruled that the SEC failed to prove that investors were victims, under the definition of the law, but that the court is sympathetic.   Prosecutors said Stanford used the money for a lavish lifestyle including yachts, a fleet of private jets and sponsoring cricket tournaments. 

Although, Allen Stanford received a 110 year jail sentence in the scheme the money was never recovered that thousands of investors lost around the world.  As happened with the Wall Street trillions that were lost, no one has ever found out where the money really went, and in this case 7 to 9 billion dollars just plainly disappeared into thin air. Certainly, Stanford did not spend all of 7 billion dollars during his tenure at the bank. The first place to look is in the Caribbean, namely the island of Antigua where Stanford had his bank and other islands just to give investigators a hint, the money can still be recovered if they started looking for it.

Mitt Romney and his son Tagg Romney have been implicated in a 8.5 billion dollar ponzi scheme with Wall Street investors Allen Stanford and James M. Davis.

The pair are not cleared including their three partners in a court document verified, ongoing legal proceeding involving selling fraudulent CD’s to potential investors.

The statement of fact, includes SIBL, Stanford International Bank, SGC Stanford Capital Management and the associates R. Allen Stanford, ( Allen Stanford) and James M. Davis stole money from investors through fraud. The group bilked investors by diverting funds to their own lifestyles through bonus money, salaries and compensation packages.

The Stanford Financial Group now in receivership headed by Allen Stanford sold investments  described as a “well-diversified portfolio”. Instead Stanford diverted the money to finance his own lavish lifestyle which include: jet planes, yacht, pleasure crafts, luxury cars, homes, travel on a company credit card.

Tagg Romney seed money from Ann Romney’s Private Trust

Tagg Romney

Allen Stanford, James M. Davis and Laura Pendergest-Holt  through SIBL (the bank) Stanford International Bank) hid the fraud by continuing to buy CD’s (Certificate of Deposit) and fabricated the performance of their investments. (More court documents: HERE) More information on the legal procedures: HERE 

A court date was set for January 23, 2012 but according to various reports Allen Stanford is incompetent to stand trial and he was found guilty sentenced to 110 years in prison for bilking investors in a his ponzi scheme.

Mitt Romney and Son Tagg in 2008 invested in Allen Stanford’s ponzi scheme to the tune of 10 million dollars initially in Solamere Capital a seed investment and received 1 million in returns. The seed money was said to come from Ann Romney’s personal family trust account that is supposedly a Blind Trust.

Tagg Romney joined in to help Solamere Capital company started after the ponzi scheme was discovered and is located in Charlotte, North Carolina with three other prominent brokers.

Tagg Romney is quoted as saying he was proud of his investment with Solamere now run by former executives of Stanford, ” They’re friends of ours, they used the Solamere name, we own a piece of them”. “We helped them get started”

Despite claims by Tagg and Mitt Romney the investigation is still “ongoing” and the profits from Stanford and Solemere were unreported by Tagg Romney. He also did possess a minority stake in the business with Spencer Zwick and Eric Scheuermann.

Spencer Zwich is Mitt Romney’s Chief Fundraiser. Investors in Stanford have not recovered their money, and the assets are still in receivership and frozen until the case is resolved. A total of 8.5 billion dollars is still unaccounted for and the billion dollar Ponzi scheme lays at Mitt Romney’s feet for his and his son’s investment partners who were all involved.

Curated News

ABC News Politics – Romney Camp Dismissive of Ponzi Accusation

“But according to Think Progress, Tagg Romney’s account isn’t entirely accurate: “According to documents reviewed by ThinkProgess using the Pacer search engine, charges against Tim Bambauer, Deems May, and Brandon Phillips have not been dropped. A recent court filing shows May requesting the court for arbitration instead of going to trial.

ThinkProgress also spoke to the deputy clerk for the federal District Court in Dallas, and confirmed that the three men are still defendants in the lawsuit to recover the Ponzi scheme money.”

Huffington Post - Tagg Romney Partnered Family Investment Group with Employees Behind Alleged Ponzi Scheme

Crooks and Liars - Mitt Romney Entwined with Players in Stanford Ponzi Scheme

Business Insider:  Sorry: Investors in Allen Stanford Ponzi Scheme May Get Zero Reimbursement

Tagg Romney now invested in Solamere Capital which owns HART Intercivic company that owns the voting machines used in Ohio a key state for the election win, in particular Cincinnati Ohio which could guarantee Mitt Romney the Election.