Officials at St. Jude Children’s Research Hospital in Memphis, Tenn., are realizing the hospital might not get the millions of dollars Allen Stanford has pledged to them, reports Reuters. Hospital officials are trying to find out what it means for the world-renowned center now that a federal judge has frozen Stanford’s assets. “We hate to lose any of our corporate sponsors, especially considering that it costs over $1 million a day to run the hospital,” says a St. Jude’s spokesman.
Meanwhile, local attorneys and financial advisors are saying the $8 billion fraud Stanford has been charged with could ripple through the Baton Rouge economy. Some local law firms reportedly held client funds with Stanford. A financial adviser who asked not to be identified says the Stanford bust has claimed its fair share of victims locally—but nobody’s protesting too loudly. “You would be amazed. They’re all downplaying their losses. No one wants to look stupid,” the adviser says. “That’s why these scams work. Because when you’re making money, you’re telling everyone. When you’re losing money, you don’t tell anyone. It’s human nature.”
Stanford’s political donations are gaining scrutiny. According to the Center for Responsive Politics, a Washington, D.C., watchdog organization, since 2000 Stanford has given $2.4 million to candidates and political parties, between its PAC and employees. U.S. Sen. Bill Nelson, D-Fla., was the biggest single recipient, getting $45,900. President Barack Obama received $31,750. The biggest receiver of Stanford contributions from Louisiana is state Treasurer John Kennedy, who received $5,000 for his various campaigns. See the full list here.
