Green and two other former Stanford executives ordered to pay $5.5 million

Three former executives of the Stanford Group have been found liable in the $7 billion scam of convicted Ponzi-schemer R. Allen Stanford and ordered to collectively pay roughly $5.5 million for their roles in it. The ruling handed down by Securities and Exchange Commission Administrative Law Judge Carol Fox Foelak on Friday also bars Bernerd Young, Daniel Bogar and Jason Green from working in the securities industry. Though the SEC didn’t allege that any of the three knew about the fraud while they worked for Stanford, Foelak ruled their conduct was so “egregious” that they were nonetheless liable—essentially agreeing with the SEC’s charge that they didn’t do enough to ensure that Stanford’s marketing materials and disclosures were adequate. Young was Stanford Group’s chief compliance officer, Bogar was its president and Green—a prominent figure in the Baton Rouge community and the firm’s downtown Baton Rouge office—was head of its private client group. Each was ordered by Foelak to pay a $260,000 civil penalty, as well as pay back “ill-gotten gains.” In Green’s case, that’s slightly more than $2.6 million, while Bogar was ordered to pay back more than $1.5 million and Young nearly $600,000. All three denied wrongdoing and can appeal the decision. The ruling comes a year after Stanford himself was sentenced to 110 years in prison and months after three other former Stanford executives received prison terms ranging from five to 20 years. Read the full ruling. —Staff report