Why are Stanford’s campaign donations going to charity asked Felix Salmon over at Market Movers last week.

I can see why politicians would want to distance themselves from Stanford. But if he really is a fraudster, and if the money he donated to them wasn’t his to give, then shouldn’t they really be returning the money to the Stanford receiver, where it can then get given back to the defrauded depositors?

Well, it seems the Stanford receiver, Ralph Janvey, is of rather the same opinion. From the Dow Jones newswire:

The court-appointed receiver for R. Allen Stanford’s financial group is seeking the return of all contributions made by the Texas billionaire to U.S. political committees, The Associated Press reported. Last week, the U.S. Securities and Exchange Commission filed civil charges – involving an alleged $8 billion fraud – against Stanford. Letters were sent Monday to the Republican National Committee, National Republican Senatorial Committee, National Republican Congressional Committee, Democratic Congressional Campaign Committee and Democratic Senatorial Campaign Committee. “By returning such amounts to the receivership estate, you will help reduce the losses suffered by victims of the alleged fraud,” receiver Ralph Janvey wrote.  

This entry was posted by Sam Jones on Tuesday, February 24th, 2009 at 17:00 and is filed under Capital markets, People. Tagged with obama, Sir Allen Stanford, Stanford. Edit this entry.