ST. JOHN’S, Antigua - THE Chief Financial Regulator of Antigua-Barbuda, Leroy King, was fired yesterday (June 23) over allegations that he played an instrumental role in the US$7B Ponzi scheme of Texas investor Allen Stanford.
King’s criminal charges were levied against him last week by the United States Justice Department along with Stanford, and his termination was an expected move from the Antigua-Barbuda Cabinet.
According to a Reuters report, the criminal charges filed against King by the US Securities and Exchanges Commission allege that he took “thousands of dollars in bribes” from Stanford to perform false audits and ensure that the Financial Services Regulatory Commission (FSRC) of Antigua-Barbuda did not investigate his dealings.
King’s main role in the Stanford financial empire would have involved protecting his Antigua-based Stanford International Bank Ltd., which allegedly sold certificates of deposit to investors under the promise of impossibly high rates of return.
US authorities filed a formal request to the Antigua Attorney General, Justin Simon, to detain King until a “formal extradition process” could take place.
The FSRC would now be headed by Althea Crick, who had served in the past as the chair of the organisation “until Mr. Stanford may have influenced her removal,” Simon indicated to Reuters.
He also said that the FSRC would now begin to look more broadly at offshore financial institutions that may have been protected under King, so as to “ensure that the cancer which has been discovered has not spread, that it is limited to the Stanford situation”.
It has not been clarified whether or not King will face charges in Antigua-Barbuda in addition to those levied against him in the US.
While the charges levied against King reflect badly upon Antigua-Barbuda, Simon indicated his belief that King is merely a “particular individual” who abused the system and stiffer legal regulation did not need to be put in place.
Meanwhile, Stanford is preparing to face a detention hearing tomorrow (June 25) in Texas, having been charged with seven counts of wire fraud, 10 counts of mail fraud, conspiracy to obstruct an investigation for the SEC, obstruction of an investigation by the SEC and conspiracy to commit money laundering.
If Stanford is found guilty on all charges, he could face a maximum total of 250 years in prison.
Antigua News