Caracas Gringo

'When the tree falls, the monkeys scatter'

Dalmady to Stanford International Bank: Show Me The Money!

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“It took me less than 30 minutes to confirm that Stanford International Bank is a scam,” financial adviser Alex Dalmady tells Caracas Gringo. “All the data I needed was posted in plain view on Stanford’s web site,” he adds.

“I have only one question for Stanford’s owner,” Dalmady says. “Where is Stanford’s $8 billion portfolio? Where are the $8 billion hidden? Nowhere; they don’t exist.”

Meanwhile, SIB today lost $9 million held in an escrow account because Health System Solutions (HSSO), in which Stanford has a 60% stake, failed to pay $62 million for the agreed purchase of Emageon. HSSO notified Emageon that its majority partner, SIB, would not be providing the promised funds to close the acquisition.

How could a financial group with an $8 billion portfolio fail to come up with a measly $62 million, thus also losing the $9 million in the escrow account?

After studying how SIB is organized globally, Dalmady thinks it is a Ponzi scheme.

“SIB gets its money through so-called financial advisers, most of whom just aren’t that bright, who have been selling CD’s to their friends and families, who in turn suck other depositors into the scam without anyone being aware they are getting scammed. But these advisers have no idea what’s going on inside SIB,” Dalmady explains.

“SIB is probably a headless organization with a lot of limbs where secondary people are running around moving the cards,” he adds. “But the $8 billion portfolio? It doesn’t exist. Show me the money. Where is it?”

Stanford International Bank “is going down very soon,” warns Dalmady.

But Dalmady is puzzled that the SEC, which has been investigating SIB and the Stanford Group since mid-2008, has not taken any action whatsoever to prevent another billionaire scam a la Bernie Madoff.

Dalmady wonders: “What is the SEC looking at? Why are they waiting?”

And what might Sir Allan Stanford (net worth $2.2 billion, according to Forbes) be doing right now as SIB apparently teeters on the brink of collapse?

“He’s probably looking for a jurisdiction from which he can’t be extradited, and maybe some people are also now looking for Stanford,” Dalmady says.

Here’s another warning about SIB:

What’s Going On at Stanford International Bank?Conde Nast Market Movers

Excerpt: “…the Americans don’t seem particularly enamored of Sir Allen either: the SEC started issuing subpoenas to Stanford Group in July , after two employees quit, saying “that the company gave clients false historical performance data for its securities”.

Written by Caracas Gringo

11/02/2009 at 11:31

Posted in Uncategorized

One Response

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  1. [...] broke the story concentrating on the sale of SIB’s CD’s in the US, clearly a no-no. Caracas Gringo interviewed Dalmady, the Financial Times jumped on the story loving the cricket angle, a New York [...]


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