Allen Stanford Financial Scandal

ICMR HOME | Case Studies Collection

To download Allen Stanford Financial Scandal case study (Case Code: FINC069) click on the button below, and select the case from the list of available cases:

» Finance Case Studies
» Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Custom Search

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Chat with us

Please leave your feedback

Case Details:			Price:
Case Code	:	FINC069	For delivery in electronic format: Rs. 500; For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges Themes Scam and Scandal, Financial Scandal, Business Ethics
Case Length	:	21 Pages
Period	:	2009-2010
Pub. Date	:	2011
Teaching Note	:	Not Available
Organization	:	Stanford Financial Group, Stanford International Bank, Stanford Group Company, Stanford Capital Management
Industry	:	Finance Services
Countries	:	US and Antigua

Abstract:

The case study examines the massive 'Ponzi Scheme' run by Allen Stanford (Allen), one time honored with the 'Sir' title by the Antigua government and ranked the 239th richest person in America by Forbes. Stanford was famous for his philanthropy and luxurious life style before he was caught by federal agents in February 2009 just a few weeks after an article published in VenEconomy Monthly written by Alex Dalmady. This article had raised, for the first time in 13 years (1996-2009), some very basic questions about the financials of Stanford International Bank (SIB), one of the companies run by Stanford

Later, the Securities and Exchange Commission (SEC) alleged in its complaint to the US District

Finance | Case Study in Management, Operations, Strategies, Finance, Case Studies

Court for the Northern District of Texas, Dallas Division that Stanford and his group had sold more than US$ 7.2 billion of self styled very high interest bearing 'Certificate of Deposits' (CDs) by touting that the bank was safe and strong. The bank had continuously earned double digit returns on its investment portfolio since 1992. However, experts raised questions on the functionality of the SEC which had had some suspicions about Stanford but did not take any serious action against him and his companies before the scam broke out in 2009.

Issues:

» Understand the events which led to the exposure of 13-year-old financial scandal
» Analyze how the scam was carried out
» Analyze the impact of fraud on the economy of US
» Analyze the need for overhauling SEC functionality
» Examine the need for overhauling the architecture of international investment
» Understand the impact of fraud on investors' confidence

Keywords:

Financial Scam, Ponzi Scheme, Certificate of Deposits, Allen Stanford, Stanford Financial Group, Securities and Exchange Commission, Bernard Madoff, Stanford International Bank

Allen Stanford Financial Scandal - Next Page>>