Stanford Execs 'Borrowed' $1.6B From Investors: SEC

Law360, New York (March 2, 2009, 12:00 AM EST) -- Two men accused of masterminding an $8 billion Ponzi scheme through Stanford International Bank Ltd. also misappropriated $1.6 billion worth of investors' money, redirecting it into speculative and unprofitable private ventures, the U.S. Securities Exchange Commission alleged in an amended complaint filed Friday.

R. Allen Stanford and James M. Davis misappropriated the money through "bogus personal loans," the regulator said, adding to its original complaint filed Feb. 16 in the U.S. District Court for the Northern District of Texas.

The amended complaint goes on to say...
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