Lafayette businessman Mike Moreno got more than half of his money out of Stanford Group but still had $20 million invested in the company when regulators shut it down in February 2009, according to court testimony last week.
Allen Stanford, 61, is on trial in Houston, accused of masterminding a $7 billion Ponzi scheme centered on the sale of so-called CDs at the Stanford International Bank, based on Antigua. Court testimony in the fraud trial revealed Moreno’s substantial losses. Jason Green, a former Baton Rouge-based financial adviser, testified that Moreno tried to pull his money out before the company crashed, but his request was denied. Bloomberg reported Friday on the ongoing trial:
A former Stanford Group Co. executive told a jury that one client of R. Allen Stanford’s securities brokerage lost at least $20 million before the business was closed by U.S. regulators.
Jason Green, who led Stanford Group’s private-client group, offered the figure while being cross-examined by the defense on the fifth day of Stanford’s investor fraud trial in federal court in Houston.
Stanford’s lawyers have said that customers who bought the certificates of deposit issued by Antigua-based Stanford International Bank Ltd. and sold by the brokerage were able to withdraw every penny of their money until the Securities and Exchange Commission sued in February 2009.
Asked by defense attorney Ali Fazel if anybody had not gotten their money back before then, Green replied, “Yes, one person I know of specifically” was denied $20 million. Green later identified the client as Michael [stet] Moreno, who had residences in Lafayette, Louisiana, and in Houston.
As the INDsider previously reported, Moreno was among 49 investors Stanford receiver Ralph Janvey listed in July 2009 court filings who either cashed out some of their holdings before Stanford was shut down or moved their money into non-Stanford accounts. Those 49 investors took out a total of $494 million, $47 million of that withdrawn out by Moreno. Green testified that Moreno needed the money to settle tax obligations, according to Bloomberg.
Moreno, [Green] said, entrusted Stanford’s business with almost $50 million before withdrawing some of those funds to address a tax obligation. The $20 million withdrawal request was made shortly before Stanford stopped allowing clients to redeem CDs before their maturity date to stanch the outflow of capital as the global financial crisis deepened.
Receiver Janvey tried unsuccessfully in 2009 to claw back Moreno and other investors’ proceeds. Read more on that here.
In their opening last week, prosecutors said Stanford treated the savings of thousands of investors as his “personal piggy bank” to buy two airlines, build a cricket team and stadium, funnel money to a Swiss bank account and otherwise live a life of luxury on the Caribbean island of Antigua, The New York Times reported.
Stanford faces 14 charges of defrauding nearly 30,000 investors from 113 countries.
Moreno said in mid-October that he has been living temporarily in Dallas, raising $300 million to start a new fracking company.
Read the Bloomberg story here.
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Halliburton's agreement to pay more than $1 billion to settle numerous claims involving the 2010 BP Gulf of Mexico oil spill could be a way for the company and victims of the spill to avoid years of costly litigation — if all the pieces fall into place.
BP says it recently obtained correspondence between Patrick Juneau's Lafayette law firm and the Gulf Coast Claims Facility showing he argued for liberal compensation, flexible documentation requirements and other terms that would help Louisiana claimants at BP's expense.
A replacement is expected by January to fill the vacancy left when Greg Roberts resigned after allegedly pointing a fake gun at an engineer during a June meeting.
Halliburton says it has agreed to pay $1.1 billion to settle a substantial portion of plaintiff claims arising from the 2010 Gulf of Mexico oil spill.
The Houston firm said Friday in its weekly report that 1,575 rigs were exploring for oil and 338 for gas. One was listed as miscellaneous. A year ago there were 1,776 active rigs.
It will be next month before Gov. Bobby Jindal will likely get a chance to change the membership of a South Louisiana flood board that is suing dozens of oil, gas and pipeline companies.
Newly established honor recognizes outstanding local attorneys; Neuner and McGoffin win President's Award; and Blanchard named Outstanding Young Lawyer.
Daily paper constructing new digs near production plant on Rieger Road at Siegen Lane, near I-10.
Investigation finds Arnaud’s Furniture, Carroll Building Specialties and Crazy Charlie’s Shoes running misleading going-out-of-business sales.
Critics say workers and retirees are being held responsible for the Jindal administration's mismanagement of their program.
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Local 101 class Friday
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Brittan Bush joins Liskow & Lewis, Blake David installed as the Third District Member of the Louisiana State Bar Association’s board of governors, and Simien & Miniex announces 2014 scholarship winners.
“In some cases, we’ve found that these parts are nothing more than used junk yard parts. In others, we’ve found them to be foreign knock-off parts of questionable quality.”
The old Daily Advertiser building on Jefferson Street is being rehabbed as the owner prepares to move it back into commerce.
Its fourth leader gone after two years on the job, the facility struggles to balance the tension between its two missions.
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