For twenty years, Allen Stanford lured investors to buy certificates of deposit in his offshore Stanford International Bank with the promise of high returns. But the investments were a scam: Stanford used money from new investors to pay off the old. The ruse fell apart when nervous investors tried to withdraw their money.
Since Stanford conducted some of his shady business through the mail, the Postal Inspection Service joined the investigation team with the Securities and Exchange Commission, the Federal Bureau of Investigation, and the Internal Revenue Service. In 2012, Allen Stanford was sentenced to 110 years in prison for masterminding a $7 billion Ponzi scheme.
Postal Inspector Clayton Gerber remarks on Stanford’s fraud victims and their inclination to trust information because it came through the mail.
Postal Inspector Clayton Gerber describes the Postal Inspection Service’s investigation into Stanford’s operation, including the tip that lead to his arrest.