“Texan Allen Stanford first appeared on the radars of financial regulators in 1997. Julie Preuitt, then a branch chief in the SEC’s Fort Worth Broker-Dealer Examination group, was becoming “very concerned” about the “extraordinary revenue” Stanford claimed to me making in his investment fund. It took authorities more than 12 years until Stanford was charged with a crime.
H. David Kotz, who served as the inspector general of the Securities and Exchange Commission for over four years, takes us inside the investigation—or lackthereof—and explains why Stanford got away with it for so long.”
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