ft.com/alphaville

It sounds like the title of a Robert Ludlum novel, and though it’s not quite in the league of  The Parsifal Mosaic, court documents filed on Tuesday suggest the Libyan government had invested some $500m with Sir Allen Stanford by the end of 2008.

The disclosure came in the form of a signed statement by Sir Allen’s gal Andrea Stoelker, which was included in an appendix to the financier’s request that judge David Hittner reconsider the decision to remand him in custody, pending trial related to a 21-count indictment. Sir Allen had initially been granted release on bail, but judge Hittner overturned this order and dubbed the Texan a “serious flight risk“.

Speaking of flights: On January 25, Sir Allen, accompanied by his girlfriend Andrea Stoelker, flew to Tripoli (from St Croix!) in a private jet to meet with various government officials, including the chief executive of the Libyan Investment Authority, according to the documents.Their two-day jaunt to Tripoli followed meetings in October 2008 between Sir Allen and Dr Abdulhafid Zlitni, identified in one document as the secretary of planning for the Libyan government. (It also included “visiting museums and cultural sites,” Ms Stoelker said.)

The form and substance of the $500m investment is not known - but if they were depositors at Stanford International Bank, they are unlikely ever to see that sum again. Nigel Hamilton-Smith, who is administering the affairs of SIB at the behest of the Antiguan government, told the FT recovery values on those so-called certificates of deposit are likely to be “cents on the dollar”.

(H/T Reuters)

Related link:
“In an elaborate tent on the outskirts of Tripoli, David Rubenstein and Steven Schwarzman…” - FT