Mystery of Billionaire Stanford's Whereabouts Ends in Virginia (Justin Blum, Alison Fitzgerald)

Story Updated

Feb. 19 (Bloomberg) -- Billionaire R. Allen Stanford, who disappeared after the U.S. Securities and Exchange Commission accused him of running a “massive, ongoing fraud,” has been located by the FBI in Virginia.

The Federal Bureau of Investigation found Stanford in the Fredericksburg area and served him with court papers related to an SEC civil filing against the Stanford Financial Group, said Richard Kolko, an FBI spokesman, in a statement today. Stanford was found with a girlfriend, according to a U.S. official who spoke on condition of anonymity.

The Securities and Exchange Commission sued Stanford and two aides two days ago, accusing them of misleading investors about $8 billion in certificates of deposit in Antigua-based Stanford International Bank.

No criminal charges have been filed against Stanford or his co-defendants in the SEC case: Stanford’s Chief Financial Officer James M. Davis and Laura Pendergest-Holt, chief investment officer of the Stanford Financial Group. Federal marshals shut down the Houston office of Stanford Group Co. on Feb. 17.

Link Deprecated

(Update)

Feb. 20 (Bloomberg) -- Two days after being accused of massive fraud, billionaire R. Allen Stanford surfaced in a Virginia community about 50 miles south of Washington. {xtypo_quote_right} Stanford International Bank reported “improbable, if not impossible” returns, the SEC said in its complaint. {/xtypo_quote_right}

Federal Bureau of Investigation agents were waiting yesterday at a residence in the Fredericksburg area when Stanford’s car pulled up, according to a person familiar with what transpired. The FBI then served him court papers. He was described as cooperative and cordial.

Stanford, 58, accused by the U.S. Securities and Exchange Commission this week of running a “massive, ongoing fraud,” was served with papers related to an SEC civil filing against him and the Stanford Financial Group. Stanford, whose whereabouts were unknown to the SEC earlier in the week, was found with an unidentified woman.

The SEC sued Stanford and two aides on Feb. 17, accusing them of misleading investors about $8 billion in certificates of deposit in Antigua-based Stanford International Bank.

more