Alleged Stanford Group Fraud: Regulatory and Oversight Concerns and the Need for Reform -- Testimony Before the U.S. Senate Committee on Banking, Housing and Urban Affairs, Baton Rouge, Louisiana, August 17, 2009

Abstract

Testimony before the U.S. Senate Committee on Banking, Housing and Urban Affairs at an August 17, 2009 field hearing entitled "Alleged Stanford Financial Group Fraud: Regulatory and Oversight Concerns and the Need for Reform.” The testimony focuses specifically on the response of U.S. financial regulators and enforcement agencies to the alleged fraudulent activities of the Stanford Financial Group. The testimony addresses, among other matters, the oversight authority of the SEC and FINRA over the Stanford Financial Group and its effectiveness, gaps in the regulatory scheme that Stanford was able to utilize in connection with its alleged Ponzi scheme, and recommendations for legislation to enhance investor protection at the SEC and FINRA. His testimony also addressed the role that the Securities Investor Protection Corporation plays in the aftermath of such frauds.

Keywords: Stanford Financial Group, Fraud, SEC, FINRA, Ponzi, Securities Investor Protection Corporation