Efforts to compensate victims of Ponzi fraudster Allen Stanford have recouped more than $1bn, lawyers for a court-appointed receiver have revealed.

The milestone was hailed as a “significant achievement” – 12 years after the Texan former tycoon’s scam was exposed.

Stanford, 71, is serving a 110-year prison sentence after his conviction in 2012 for running a $7.2bn Ponzi scheme affecting around 18,000 investors.

Prosecutors said Stanford sold fraudulent high-yielding certificates of deposit through his Antigua-based Stanford International Bank.

He used investors’ money to make risky investments and fund a lavish lifestyle.

The fraud which was uncovered in February 2009, had lasted about 20 years.

In a Ponzi scheme, a company attracts investors with the promise of big returns but instead of using their money in a legitimate transaction, channels it into returns for earlier investors.

Image:

Read more…