Allen Stanford Is Not the DEA's First Run-In With Financial Fraud


The BBC’s report that Allen Stanford was an asset of the Drug Enforcement Agency was shocking in that agency actively waived off the SEC from potentially busting his fraud much earlier.

Apparently this isn’t the only case of a DEA informant engaging in financial malfeasance.

A reader opints us to a recent case up north:

Vancouver Sun: A former Burmese drug informant has been cited by the B.C. Securities Commission for allegedly engaging in illegal insider trading and lying to commission investigators.

Michael Kyaw Myint Hua Hu is accused of buying $861,445 worth of shares of Maple Leaf Reforestation Inc., a TSX Venture Exchange company based in Calgary, in 2007 when he was chairman of the company and obtained material information that hadn’t been generally disclosed to the public.

The commission contends that it wasn’t until after Hu bought his shares that Maple Leaf announced a tentative deal to build a biodiesel production project in China. At that point, the stock jumped to $1.60, which was 60-per-cent more than Hu’s average purchase price of $1 per share.

Michael Kyaw Myint Hua Hu has a rather unusual background, it seems:

During a February interview, Michael Kyaw Myint Hua Hu provided a five-page biography that purports to tell the “true story” of his life.

It states that Hu was a loyal member of the Communist Party of Burma (now Myanmar) in the late 1980s. As a commander in the CPB army, he fought many fierce battles against insurgent groups, but later became disillusioned with the communist party and switched sides.

He gained control of a militia group in the Mong Koe region and began fighting against the CPB army. But his troops faced serious supply shortages and he became concerned that his junior commanders would revolt, so he initiated a cease-fire agreement. Other insurgent groups followed his lead and peace returned to the country.

In 1993, the biography states, he established a company called Kyone Yeom Co. Ltd., which was engaged in mining, forestry and border trade with China. He also joined the management team of Prime Commercial Bank, which financed major construction and development projects across the country.

However, when he pressed the government to share power with opposition groups, the government shut down his business and threw him in prison.

After more than a year in jail, he escaped and fled to Thailand. From there, he moved with his wife and two children to the United States, and eventually to Vancouver, where he created NAH Developments (which invests in unspecified businesses) and founded the United Democratic Party of Burma.

Read more at the Vancouver Sun

You’ve got to love the characters we interract with and protect in the name of our war on drugs.

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