A Ponzi scheme, named after a crook in the 1920s, is a pyramid scheme where new investors' money is stolen to pay profits to existing clients.
New York financier Bernard Madoff was accused in December of masterminding a similar scheme for 50 billion dollars . "In carrying out the scheme, Stanford and Davis misappropriated billions of dollars of investor funds and falsified ( Stanford International Bank ) SIB's financial statements in an effort to conceal their fraudulent conduct," the SEC added.
Full Story: SEC accuses Stanford of Madoff-type scam (AFP)
New York financier Bernard Madoff was accused in December of masterminding a similar scheme for 50 billion dollars . "In carrying out the scheme, Stanford and Davis misappropriated billions of dollars of investor funds and falsified ( Stanford International Bank ) SIB's financial statements in an effort to conceal their fraudulent conduct," the SEC added.
Full Story: SEC accuses Stanford of Madoff-type scam (AFP)
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