Two former Stanford Financial executives told The Houston Chronicle they saw “red flags” in the company. D. Mark Tidwell and Charles “Charlie” Rawl sued Stanford last year, charging that they were forced to resign because they did not want to engage in business practices they thought improper. “I saw a pattern of management making decisions for the wrong reasons, not focusing on what was best for the client,” Rawl says. That included Stanford’s trust company in Baton Rouge not filing certain required federal documents, Tidwell and Rawl told the newspaper. Read the story here.
Reuters reports that Stanford’s downtown Baton Rouge office is being shut down by a court appointed receiver, along with operations in Miami. Read the story here.
Another former executive, Michael Zarich, told SEC officials that Stanford was presenting hypothetical investment results as actual historical data in sales pitches to clients, Bloomberg News reports. Zarich gave a sworn deposition last month that Stanford was “misleading” in presenting its performance. To read the story, click here.
Meanwhile, the Stanford receivership has set up a Web site to communicate with investors, stanfordfinancialreceivership.com.
Stanford officials are reportedly under a federal gag order and all assets are frozen.