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UPDATE: Allen Stanford and Whitey Bulger: Two Peas in a Pod?

Posted by Larry Doyle on June 23, 2011 11:30 AM |

UPDATE: I referenced the potential similarity in the cases of alleged financial scammer Allen Stanford and noted Boston gangster James J. “Whitey” Bulger in May 2009.

Our nation and especially Stanford Financial investors continue to wait to learn what may have really happened with Allen Stanford. Was he a pawn for the Department of Justice and/or other government agencies looking to infiltrate the Central and South American drug trade?

As for Whitey, after sixteen years of living on the lam, we wait no longer as news broke overnight that the notorious South Boston gangster was picked up in sunny Santa Monica, California.

I am sure the boys back in Boston may get a real chuckle from the fact that Whitey was allegedly using the alias, Charlie Rosenzweig. (Edit: Now reported that Whitey and his accomplice used the names Charles and Carol Glasko) That said, there is little to chuckle about the personal damage and destruction Whitey and his Winter Hill Gang wrecked by pushing drugs into the streets of South Boston,… amongst other things as well, including murder and extortion!!

There is nothing romantic about the story of Whitey Bulger. He deserves real justice and then a special place in hell.

By the same token, here’s hoping America can really learn what happened with Allen Stanford.

LD

Posted by Larry Doyle on May 11, 2009 2:58 PM

Allen Stanford and Whitey Bulger Are Allen Stanford and Whitey Bulger two peas in a pod?

For those unfamiliar with Whitey, he is Boston’s greatest gangster, a government informant who simultaneously continued to run his gangland activities, one of the FBI’s Most Wanted, and still on the lam. The Martin Scorsese film, The Departed, was largely based on Whitey and his boys. If Whitey dealt in drugs and murder, is Stanford Financial, operated by Allen Stanford, a financial version of a government cover totally run amuck?

We all know the SEC totally dropped the ball in the oversight of the Bernie Madoff Ponzi scheme. On the heels of that and to alleviate massive pressure on the commission, the SEC quickly moved on Allen Stanford.

MAJOR hat tip to MC of Investor Rebellion in sharing with me a story broken by the BBC, Stanford Drug Informer Role Claim:

Evidence has emerged that the Texan who bankrolled English cricket may have been a US government informer.

Sir Allen Stanford, who is accused of bank fraud, is the subject of an investigation by the BBC’s Panorama.

Sources told Panorama that if he was a paid anti-drug agency informer, that could explain why a 2006 probe into his financial dealings was quietly dropped.

Sir Allen vigorously denies allegations of financial wrongdoing, despite a massive shortfall in his bank’s assets.

But the British receiver of his failed Stanford International Bank – based in Antigua – told Panorama that the books clearly show the deficit.

If in fact this development is accurate, has the U.S. government, via the DEA, facilitated a Ponzi scheme? I am not so naive as to think that there aren’t massive undercover operations ongoing regularly to infiltrate and expose illicit activities. However, if in fact that were the case, how did the DEA lose control of Stanford’s investment activities? Is this situation an indication that the Obama administration will not partake of these types of undercover operations? Is there a massive in-house brawl currently ongoing between the DEA and the SEC?

The BBC reports:

Secret documents seen by Panorama 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.

In 1999, both the British and the Americans were aware of the facts surrounding a cheque for $3.1m (£2.05m) that Sir Allen paid to the Drug Enforcement Administration (DEA).

It was drug money originally paid in to Stanford International Bank by agents acting for a feared Mexican drug lord known as the ‘Lord of the Heavens’.

The cheque was proof that Stanford International Bank had been used to launder Mexican drug money – whether or not Sir Allen knew it at the time.

On 17 February of this year, the US Securities and Exchange Commission (SEC) accused Sir Allen of running a multi-billion dollar Ponzi fraud – when cash from new depositors is used to pay dividends to old depositors – civil charges he has denied.

Two and a half months after the SEC filing, the Texan has not yet faced criminal charges.

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.

Is this another version of the Whitey Bulger story in which the criminal turned informant continues to operate his own illicit activities? Whitey is now on the lam and his FBI protection, John J. Connolly, is cooling his heels in a federal penitentiary.

The intrigue of this situation is surreal, but the natural and instinctive question has to be: if Uncle Sam (DEA) provided cover for Allen Stanford in the pursuit of illicit drug related activities, did Uncle Sam also provide cover for Bernie Madoff as well?

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

 

 

  • EJS

    This is surprising news because I always just assumed that with his track record Mr. Bulger was hiding out in a lucrative position with a Wall Street investment bank.

  • Cliff

    A chilling account of Whitey’s rise is given in “Black Mass” by Dick Lehr, who describes a crime figure being assisted for a decade by the FBI.

    Whitey led the agency to his rivals and used them to end the local competition.

  • bob boo

    Read “Mafia Kingfish”, “JFK and Sam” and “Doctor Mary’s Monkey”. All show convincing evidence of crime figures being being assisted by U.S. government agencies.

  • LD

    Intrigued by the three books left by our friend, bob boo, I offer the following:

    Mafia Kingfish:

    This “engrossing, detailed” biography of Mafia don Carlos Marcello, who rose from street thug to undisputed boss of the oldest Mafia family in the country, “also presents a well-organized summary of the large body of evidence pointing to Marcello as mastermind of the assassination of JFK,” wrote PW

    JFK and Sam:

    JFK and Sam is a tale of two murders. The first occurred in Dallas on November 22, 1963. The second occurred in Oak Park, Illinois, on the evening of June 19, 1975. The first was ordered by Sam Giancana to avenge his betrayal by the Kennedys. Giancana had assured JFK’s win in Illinois with the understanding that the new administration would go easy on the Chicago mob. Instead, Bobby Kennedy stepped up prosecutions. The second assassination was carried out by the CIA and the mob to prevent Giancana from testifying before the Church Committee hearings regarding his role in the CIA’s plot to kill Fidel Castro. The irony is that both men—John Kennedy and Sam Giancana—were assassinated because of their relationship to each other and events that transpired from that relationship.

    JFK and Sam is unique from other books on the Kennedy assassination. Written by an insider with access to key figures, it names the assassins and traces the assassination team’s movements on November 22, 1963, and discusses the team leader’s life, his tape confession, and his face-to-face meeting with Antoinette in the Joliet state prison where he is serving a life sentence for killing a policeman.

    The first shot came from the Dal-Tex Building (adjacent to the book depository) and struck Kennedy in the back of the neck. The second came from Giancana’s driver who fired a CIA prototype handgun with a telescope (called a “fireball”) from the grassy knoll, using a frangible bullet, which explains why there was such a massive wound to Kennedy’s head. Lee Harvey Oswald was the fall guy and did not fire a weapon.

    Doctor Mary’s Monkey

    Review
    “No JFK book can come close to it. . . . Haslam has added many more illustrations, pictures, and maps that let you visualize his story as he tells it.” —Citizens for Truth about the Kennedy Assassination (formerly Probe Magazine)

    It’s an eye-opening ride into government cover-ups, the true role of Lee Harvey Oswald and perhaps one of the biggest medical scandals in history.” —Jim Marrs, author, Rule by Secrecy

    Product Description
    The 1964 murder of a nationally known cancer researcher sets the stage for this gripping exposé of medical professionals enmeshed in covert government operations over the course of three decades. Following a trail of police records, FBI files, cancer statistics, and medical journals, this revealing book presents evidence of a web of medical secret-keeping that began with the handling of evidence in the JFK assassination and continued apace, sweeping doctors into coverups of cancer outbreaks, contaminated polio vaccine, the arrival of the AIDS virus, and biological weapon research using infected monkeys.

    Well, well, well….I think with the comment by our friend, bob boo, Sense on Cents has entered an entirely new realm.

    You can’t make this stuff up.

  • Peter S.

    The idea of the U.S. Government running cover for Allen Stanford’s ponzi scheme is quite a stretch – but believing the former SEC Enforcement Division Director, Stephen M. Cutler, willfully ignoring the Madoff pozi scheme so as not to jeopardize potential private sector employment prospects (going along to get along) is spot on.

    http://www.sec.gov/news/studies/2009/oig-509/exhibit-0526.pdf

  • bob boo

    I am 68 years old. I grew up and still live in the New Orleans area (on the West Bank) The Marcella family lived near us. His son and daughters went to a Catholic high school with many of my friends. I knew many people who knew Carlos and his brothers personally. I attended Loyola University (of the South) in the early sixties. Perry Russo was is a few of my classes. His friend, David Ferrie used to hang out around Loyola’s Barber shop. I’ll never forget that wierd looking guy. A friend of mine was in the Civil Air Patrol youth group that was headed up by Ferrie. I knew nothing about, nor did I believe there was a conspiracy around the assassination of JFK. I followed the Jim Garrison, Clay Shaw trial and concluded that Garrison was blowing smoke. A year or so ago a friend recommended “Mafia Kingfish”. I later read “Dr. Mary’s Monkey” and most recently “JFK & Sam”.

    • LD

      Bob Boo,

      The question begs whether based upon both your upbringing and life around New Orleans and having read these books, what do you think? Was there a conspiracy?

      Any pearls of wisdom and inside perspectives are deeply appreciated on this very interesting and widely debated topic.

      Thanks in advance for your consideration and for writing.

  • bob boo

    No doubt there was a conspiracy involving Carlos Marcello. I also believe there were government agencies involved, but to what extent, I don’t know. “Dr. Mary’s Monkey” gives a lot more information about David Ferrie’s background and his relationship with Marcello and Oswall and his possible CIA connection. Oswall was raised by his uncle “Dutz” who worked for Marcello. David Ferrie was in a New Orleans court room sitting beside Marcello the day of the assasination and spent the weekend before at Marcello’s Churchhill Farms. They were not personal friends. Marcello hated homosexuals. Marcello hated Bobby Kenedy. Kenedy literally kidnapped him and dropped him off in a jungle. Marcello’s famous saying was “if you want to kill a dog, you cut off his head, not his tail. Meaning, kill JFK and Bobby will go away.

    Also, I found your blog by googling Stanford Financial which I very often do. I am very lucky. My entire 401K was invested with a Stanford advisor. Fortunately I did not invest in any of the bogus CD’s. I was very nervous while my retirement was frozen for about 4 months. A brother was not so lucky. I have probably read everything ever written about the Stanford Fraud including reader comments.

    Keep the Stanford info coming

  • ELVIRA BARBEPFLUCKER

    STANFORD
    DEBERIA ESTAR PRESO CON LA PENA MAS ALTA QUE LA JUSTICIA IMPONE EN ESTADOS UNIDOS .
    SOMOS REALMENTE VICTIMAS DE ESTE FRAUDA .
    EL DINERO QUE GUARDE ERA PARA MI RETIRO ,JAMAS SAQUE MIS AHORROS NI MIS INTERESES , SON UNOS GANGSTER,SIN MORAL NI ETICA ,HAN PERJUDICADO A MILES DE PERSONAS LLENAS DE PROBLEMAS ,SIN TENER PIEDAD . QUE SE HAGA JUSTICIA . MERECEN LA PENA MAXIMA Y QUE LES QUITEN EL DINERO Y PROPIEDADES A SUS AMIGOS Y FAMILIA . PEORES QUE LOS LADRONES COMUNES ,TENIENDO PODER Y LLEGADA FACIL A LAS PERSONAS DE GOBIERNO QUE HAN ESCONDIDO ESTE FRAUDE .

    • LD

      I put this comment in a site which translates and received back the following:

      Stanford ought TO BE PRISONER WITH THE GRIEF BUT HIGHLY THAT THE JUSTICE IMPOSES in the United States. We ARE REALLY you KILL OF THIS FRAUDA. THE MONEY THAT KEEP WAS FOR MY RETREAT, JAMAS REMOVE MY SAVINGS NEITHER MY INTERESTS, ARE SOME GANGSTER, WITHOUT MORALE NEITHER ETA, they HAVE DAMAGED TO THOUSANDS OF FULL PEOPLE OF PROBLEMS, WITHOUT HAVING PIETY. THAT JUSTICE be DONE. They ARE WORTHWHILE MAXIMA AND THAT REMOVE THE MONEY AND PROPERTIES TO THEIR FRIENDS AND FAMILY. WORSE THAN THE COMMON THIEVES, HAVING TO BE ABLE AND ARRIVED FACIL TO THE PEOPLE OF GOVERNMENT THAT HAVE HIDDEN THIS FRAUD.

  • Stanford “was informant for US anti-drug agents”

    “We were convinced that Stanford’s bank attracted millions of narco-dollars but it was very difficult to get the evidence to nail him. The word is that Stanford has been a confidential informer for the DEA since at least 1999.”

    Sincerely,
    Stanford International Victims Group

    • LD: RECOMMENDED

      Thank you to Martin Greuel for linking to this fabulous Stanford Victims group site. I would like to expand on the quote highlighted by Martin from the opening commentary at the site published in mid-2009,

      Sir Allen Stanford, the Texan billionaire who ploughed millions of pounds into English cricket, may have been working as an informant for American anti-drug agents in return for official protection which gave him free rein to run his banking empire, it emerged yesterday.

      An investigation into the financier has found that just $500m (£331m) of the claimed $7.2bn of deposits held by his Stanford International Bank, based in Antigua, has been traced by a UK-based receiver who was called in by authorities when fraud allegations were laid against Stanford in February.

      The resulting $6.7bn hole in the bank’s balance sheet, which leaves 28,000 depositors – including 200 Britons – with near-worthless investment certificates, raises serious concerns about the extent to which officials in America and Britain were aware of Stanford’s personal finance issues and the activities of his banks long before the current economic crisis.

      Sir Allen Stanford, the Texan billionaire who ploughed millions of pounds into English cricket.
      A BBC Panorama programme, to be screened tonight, alleges that the 6ft 4in-tall businessman may have been allowed to run his banking business unfettered for up to a decade because he was passing information on to America’s Drug Enforcement Administration (DEA) about the money-laundering activities of drug baron clients from Colombia, Mexico and Venezuela.

      His status as a confidential informant could have secured Stanford a degree of protection from financial regulators such as the US Securities and Exchange Commission (SEC) and may explain why a SEC investigation into his dealings in 2006 was quietly dropped following a request by another American government agency.

      How interesting that this story gets little to NO coverage here in the States but has emanated out of the UK.

      The protection provided both Whitey Bulger and Allen Stanford would seem to have some very real similarities.

      Rat out the bad guys and be given protection to go about your biz while you’re at it.

  • bob boo

    Here is another connection. Is it just a coincidence that Whitey and his girl friend spent time early in their days on the lam in Grand Isle Louisiana where Carlos Marcello had a very nice residence. He called it his fishing camp. Grand Isle is a very remote fishing village right on the coast about a 2 hour drive from New Orleans. Its population is about 200. A new comer, especially in the winter time would be very conspicuous, especially one who paid for everything with hundred dollar bills. See this article in today’s New Orleans Newspaper.

    A Mobster Was Hiding in Plain Sight in Grand Isle






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