Stanford Employee’s Allegedly Reported Problems Years Ago

February 20, 2009

US (ChattahBox) – Investigations into complaints by former Allen Stanford employees is raising quite a few eyebrows, after it became clear that many had given warnings that possible fraud was occurring years ago.

Senior staff at the Houston-based bank of the Texan billionaire disclosed that they raised concerned as early as 2003.  However, no action was taken by the Securities and Exchange Commission (SEC) until Stanford’s operations were raided and shut down on Tuesday.

A number of employees have come forward, saying that they were concerned about goings-on within the company for many years, and that many had been threatened with firings after bringing their concerns into the light.

One such employee was Charles Hazlett, who worked as a broker out of Miami, and had sold millions for the company within a single year, making him a valuable asset. Although he was rewarded for his efforts at first, the moment he began asking questions about promises that were being made to clients, the tune quickly changed.

“As I started questioning things at the bank, they were setting up to let me go,” he said, as he recalled the threats of being fired for his questions.

Several other brokers made similar claims, and said that long meetings were held, in which problems with files and accounts were glossed over unconvincingly.

“They tried to pull the wool over our eyes in a meeting,” Charles Rawl. Another former broker with Standford said, explaining why he, like several others, had decided to resign after it became clear as far back as 2007 that some kind of shady behavior was being conducted within management.

The issue has raised questions as to why these warnings, which are only a few of many, were left unheeded, and seems eerily similar to Bernard Madoff’s $50 billion pyramid scheme, where employees and investor’s calls for investigation were also ignored by the SEC. In that case, major discrepancies, as well as the use of unknown accounting agencies, were never looked into.

Stanford was tracked down in Virginia earlier this week, and many assets have been frozen, including those of investors, pending investigation.


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