The US Securities and Exchange Commission on Tuesday (February 17) charged Texas billionaire Allen Stanford and three of his companies with massive fraud. Stanford and two executives were accused of fraudulently selling $8 billion in high-yield certificates of deposit in a scheme that stretched from Texas to the Caribbean. The Securities and Exchange Commission has named Antigua-based Stanford International Bank (SIB), group's broker-dealer in Houston and investment adviser units. In all, the company claims to manage $50 billion in assets.

 

After the news of massive fraud broke out, all the assets of Stanford were frozen. Repots say that a US federal judge has appointed a receiver who will take the procession and control of defendants' assets for the protection of defendants' victims. The 58-yer-old high-profile cricket promoter, Allen Stanford has however denied of any wrongdoing.

 

After the charges on Allen Stanford and his companies, the England and West Indies cricket boards suspended sponsorship talks with the group. The Stanford group played an increasing role in sports and it has endorsed golfer Vijay Singh and soccer star Michael Owen. The group is also involved in polo and expensive effort to rehabilitate West Indian cricket. Allen Stanford was one of sponsors of a world-class tennis tournament, the 2009 Sony Ericsson Open in Key Biscayne, Florida, in March.

 

Allen Stanford emerged as a high-profile cricket promoter after he organised his private Twenty20 competition in the Caribbean and the $20 million game between England and his own team of West Indian players. England Cricket Board (ECB) is also likely to suspend the proposed quadrangular Twenty20 series scheduled to be held in England in May.