Ponzi Scheme Master Robert Allen Stanford Enjoined, Fined and Penalized by SEC

Ponzi schemes have long been a focus of SEC enforcement. Last week we published an article regarding the latest case in this area initiated by the agency. While Bernie Madoff may still be the most well-known operator of such a scheme, close behind is Robert Allen Stanford. Indeed, he may be one of the most notorious fraudsters in history.

In June 2009 the Commission filed a complaint which named as defendants Mr. Stanford and his associates and entities. SEC v. Stanford International Bank, Ltd., Civil Action No. 3:09-cv-298 (N.D. Tex. Filed Fevb. 16, 2009). On January 29, 2025, the court entered a final judgement against Mr. Stanford and a number of his associates and entities. The final judgments order permanent injunctions based on the antifraud provisions of the federal securities laws for perpetrating a massive multi-billion Ponzi scheme and misappropriating billions of investor dollars using his offshore “certificates of deposit” approach of convincing investors to give him their money in return for a CD. The final judgments were based, in addition to the antifraud provisions, on Investment Company Act Section (d) as to the entity defendants. The relief ordered included the following:

Disgorgement and prejudgment interest totaling $6,761,189,969.06; also included in this judgment was Stanford International Bank and Stanford Group Company on a joint and several bases. Mr. Stanford’s obligation to pay was satisfied by the forfeiture orders entered in U.S. v. Robert Allen Stanford, No. 4:0-cr-342(1)(S.D. Tx. Huston Division. A civil penalty of $5.9 billion was also imposed.

: Disgorgement plus prejudgment interest totaling $13,504,749.06, offset by $841,288.08 obtained by the court-appointed receiver. A civil penalty of $5 million was imposed.

Gilberto Lopez: Disgorgement plus prejudgment interest totaling $3,423,794.05.

Stanford International Bank: Disgorgement plus prejudgment interest totaling $6,716,189,969.06, jointly and severally, with Stanford and Stanford International Bank but deeming Stanford Group Company’s obligation to pay satisfied by the court-appointed receiver’s ultimate collection efforts and distributions to investors.

Stanford Group Company: Disgorgement plus prejudgment interest totaling $6,761,189,969.06, jointly and severally with Stanford and Stanford International Bank, but deeming Stanford Group Company’s obligation to pay this amount satisfied upon the court-appointed receiver’s ultimate collection efforts and distributions to investors.

Stanford Capital Management: Disgorgement plus prejudgment interest totaling $23,647,189.35 but deeming Stanford Capital Management’s obligation to pay this amount satisfied by the collection efforts and distributions to investors of the court-appointed receiver.

Stanford Financial Group Company: Disgorgement plus prejudgment interest totaling $2,229,094.83 but deeming Stanford Capital Management’s obligation to pay this amount satisfied by the collection efforts and distributions to investors by the court-appointed receiver.

Stanford Financial Group Company Building: Disgorgement plus prejudgment interest totaling $6,428,833.27, but deeming The Financial Group Building’s obligation to pay this amount satisfied by the collection efforts and distributions to investors by the court-appointed receiver. See Lit. Rel. No. 26255 (Feb. 24, 2025),

Mr. Stanford is serving a 110-year sentence at United States Penitentiary, Coleman II in Coleman, Florida.