Stanford ‘lied to fund lifestyle’ | FT Alphaville

Stanford ‘lied to fund lifestyle’

Allen Stanford told investors “lie after lie” so he could use their money to fund the “lavish lifestyle” of a billionaire as part of a $7bn Ponzi scheme, a US prosecutor said as the trial of the Texas businessman began on Tuesday, the FT says. Gregg Costa, an assistant US attorney, told the jury of 10 men and five women, Mr Stanford was “lying, stealing and bribing” so he could take people’s money “and the dreams they had with them.” Instead of using money placed in certificates of deposit to invest in easy-to-sell assets like stocks, Mr Stanford allegedly ran separate businesses, including cricket tournaments that paid purses exceeding $1m, $2bn directed to companies overseeing his personal yachts and an aeroplanes business.