Allen Stanford: The mini-Madoff
How the two alleged financial fraudsters stack up
What happened
The FBI located Texas billionaire R. Allen Stanford in Virginia Thursday and served him papers related to his alleged $8 billion international financial fraud. Venezuela seized the local subsidiary of Stanford’s Antigua-based bank. Earlier this week, the Securities and Exchange Commission charged Stanford with defrauding thousands of investors by promising improbably high and steady returns. (AP in Yahoo! Finance)
What the commentators said
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
If it weren’t for Bernard Madoff’s $50 billion Ponzi scheme, said USA Today in an editorial, Stanford’s alleged $8 billion fraud would be a much bigger story. But it also may not have been a story at all, since it took the “shocking Madoff scandal” to “light a fire” under the lax SEC. Investors need to learn to avoid too-good-to-be-true deals, but the SEC needs to watch out for those “red flags,” too.
The SEC is getting better, opening six investment-fraud cases last month alone, said David Weidner in MarketWatch. In fact, the competition to become a famous fraudster is so fierce now, you almost have to feel bad for Stanford. Madoff’s "star-studded client list,” Holocaust-charity bilking, and Russian mobsters make Stanford’s scam look “pedestrian by comparison.”
Stanford’s fraud may be a “story for the financial pages” in the U.S., said Britain’s The Guardian in an editorial. But it’s a “sports-page story” in Britain, due to his flamboyant and fraudulent sponsorship of cricket. And in the “tax haven island of Antigua,” where he’s a major employer, event sponsor, and a knight, it’s front-page news, “akin to a financial hurricane.”
So with dual Antiguan and U.S. passports, billions in wealth, and his own jets, he’s caught “holed up in Virginia”? said Ann Woolner in Bloomberg. “What’s with that?” Fellow fraud fugitives like Marc Rich and Robert Vesco lived large in Switzerland and Latin America, respectively, and Stanford doesn’t even have a warrant out for his arrest—yet. Now his moment’s passed, and he’ll have to face the music.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
Democrats win costly Wisconsin court seat
Speed Read Democrats prevailed in an election for the Wisconsin Supreme Court despite Elon Musk's robust financial support of the Republican candidate
By Peter Weber, The Week US Published
-
Today's political cartoons - April 2, 2025
Cartoons Wednesday's cartoons - Trump's third term, teenager's screen time, and more
By The Week US Published
-
Is Israel annexing Gaza?
Today's Big Question Israeli army prepares a major ground offensive and is said to have plans to 'fully occupy the territory'
By Harriet Marsden, The Week UK Published