Acadiana Business

SEC charges former Stanford officials with fraud

by Leslie Turk

The SEC says Stanford Group Co. officials, including Jason Green of Baton Rouge, knew or should have known that documents about the company's so-called CDs were false or misleading. The Securities and Exchange Commission has filed civil fraud charges against former officials of Stanford Group Co. for their role in the $7 billion Ponzi scheme that sent Allen Stanford to prison for the rest of his life.

Thomson Reuters reported that former Stanford Group Co. President Daniel Bogar, former compliance officer Bernerd Young, and Jason Green, who oversaw parts of the private client group at Stanford in Baton Rouge, were charged with aiding in the fraud:
In the order, the SEC alleged that the three executives knew or should have known that offering documents in connection to certificates of deposits sold by Stanford International Bank were false or misleading. Instead, the SEC alleged, they encouraged their colleagues to use the incomplete offering documents to help sell the CDs.

In a statement, Green's lawyers, John Kincade and George Freeman, said that Green had no knowledge of the fraud. ...

Separately, on Friday the SEC settled allegations of securities fraud against Jay Comeaux, who managed the brokerage's Houston branch office, according to a filing that instituted administrative proceedings against him.

Comeaux, who settled the case without admitting or denying the SEC's findings, faces a bar from the industry, and may face penalties that have not yet been determined, the SEC said.

Comeaux was responsible for supervising the brokerage's financial consultants, and received commissions of at least $1.3 million on the sales of fraudulent CDs, the SEC said.

According to the SEC, Comeaux knew that the bank wouldn't disclose details of its investment holdings, but still used marketing material that told investors that the bank maintained a "well-diversified portfolio of highly marketable securities."
Read the full story here.