SEC Backtracks On Claim It Stood Down From Stanford


Was the SEC really “waived off” Sir Allen Stanford when it was poking into his businesses back in 2006? A former employee said so to the NYT, but the agency is now trying to muddy that. Here’s their un-clarification to the Washington Post:

An SEC official in Fort Worth told the New York Times this week that the investigation had begun in October 2006. SEC spokesman John Nester said he could not confirm that date. The Fort Worth official said that sometime after the investigation began, the SEC “stood down” at the request of another federal agency. Nester said the official didn’t express himself clearly.

Nester said the investigation depended on cooperation with criminal authorities who have different tools and techniques at their disposal. “The pace of the investigation was also determined by its complexities, including whether the products were in our jurisdiction, and difficulty in accessing records and documents in offshore institutions in foreign jurisdictions,” Nester said.

Do you buy it?