From Billionaire To Broke Jail Inmate – Ponzi Scheme Operator Allen Stanford’s Fall From the Top

(Once a high flying billionaire)

(Big Money, Women, Parties, No Worries)

Once a womanizing billionaire without worry, former Stanford International Bank Ltd head Allen Stanford at the height of his wealth appeared on CNBC and famously said, “It’s Fun Being a Billionaire.”

Flashback to the good life:

We later learned, of course, that Stanford’s billions were amassed on the backs of unsuspecting investors who lost a total of $7 billion in a Ponzi scheme allegedly operated by Stanford and other members of his firm. For his part, Sanford borrowed some $2 billion from the company – money which was spent on luxurious parties, child support compensation for his wives and former mistresses, and other billionaire adventures.

Just a couple years later, after having his assets seized by the U.S. government, Stanford and the rest of his family are broke:

Stanford’s health has declined since his arrest. He was injured in a jailhouse brawl in 2009 and suffered from an addiction to a powerful anti-anxiety medication. He has hepatitis B and cirrhosis of the liver, and, if convicted, will likely spend the rest of his life in prison.

The SEC seized all of Stanford’s assets in February 2009 after filing a civil lawsuit. His lawyer at the time, Dick DeGuerin, said the government’s action did not even leave enough money for his client to buy underwear.

Once No. 205 on Forbes’ list of richest Americans, Stanford’s defense is paid for with U.S. tax dollars and his 81-year-old mother is struggling to help.

…

Stanford lavished the women in his life with trips on private jets, luxury homes and, in one instance, spousal support payments of $100,000 per month, according to court documents.

His oldest daughter, Randi, lived in a luxury Houston high-rise paid for by her father, for whom she worked.

Court records from a 2007 paternity case, that was settled, showed Stanford also paid about $150,000 a year in child support for two other children who lived with their mother in a $10 million house in Florida.

But now, in addition to losing his fortune, Stanford has only the support of his parents and family and not the harem of loyalists seen earlier.

…

The man who once ran a business with operations in 140 countries has different priorities now. In a recent court hearing he could be heard complaining about being served a peanut butter sandwich on stale bread.

Source: Reuters

(inmate number 35017-183)

(Stanford After Jailhouse Beat Down in November 2011)

Life was good when it was lived at the expense of unsuspecting investors bilked by Stanford.

Tell us, Mr. Stanford, is it fun to be a broke jail inmate?