February 20, 2009

Stanford was located early today and served papers in the case in which he's charged with massive investor fraud:

Feb. 20 (Bloomberg) -- Two days after being accused of massive fraud, billionaire R. Allen Stanford surfaced in a Virginia community about 50 miles south of Washington.

Federal Bureau of Investigation agents were waiting yesterday at a residence in the Fredericksburg area when Stanford’s car pulled up, according to a person familiar with what transpired. The FBI then served him court papers. He was described as cooperative and cordial.

Stanford, 58, accused by the U.S. Securities and Exchange Commission this week of running a “massive, ongoing fraud,” was served with papers related to an SEC civil filing against him and the Stanford Financial Group. Stanford, whose whereabouts were unknown to the SEC earlier in the week, was found with an unidentified woman.

The SEC sued Stanford and two aides on Feb. 17, accusing them of misleading investors about $8 billion in certificates of deposit in Antigua-based Stanford International Bank.

The FBI is investigating the fraud allegation, a person familiar with the case said this week. That investigation is separate from the bureau’s encounter with Stanford yesterday.

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