From the very beginning of the Allen Stanford scandal, there’s been speculation of his playing some role in the drug trade, and talk that he may have been some kind of US government asset.
That’s been confirmed by the BBC:
Secret documents seen by Panorama (BBC) show both governments knew in 1990 that the Texan was a former bankrupt and his first bank was suspected of involvement with Latin American money-launderers.
He was initially investigated by the SEC for running a possible Ponzi fraud in the summer of 2006, but by the winter of that year the inquiry was stopped.
Panorama understands that the decision was taken because of a request by another government agency.
Panorama is aware of strong evidence that Sir Allen was a confidential agent of the DEA as far back as 1999 – the year he made out the $3.1m cheque to the DEA.
Sources close to the DEA believe he worked with the agency, turning over details of money-laundering from Latin American clients from Colombia, Mexico and Venezuela and Ecuador, effectively guaranteeing himself a decade’s worth of “protection” from the authorities, especially the SEC.
This could easily explain why Stanford hasn’t been arrested yet. You have to figure, if he’s been involved with the DEA for 10 years, helping them investigate drug dealing in Colombia, Mexico and Venezuela and Ecuador, he knows some pretty sordid and embarrassing stuff relating to America’s disastrously fought war on drugs. How do you arrest a guy and engage in a legitimate trial without him spilling everything he knows?
In fact it could even explain Stanford’s bizarre defence strategy of talking to the media, which is something lawyers rarely have their clients do. The message is to the government: You’re dealing with a volatile guy here who will say or do anything. Don’t push us around or we’ll really start to talk.
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