On Bauer Business Focus — A conversation on the impact of Stanford with Andrew Schneider, business reporter for KUHF 88.7 FM.
In 2009, R. Allen Stanford was charged with swindling investors out of a combined $7 billion in what is known as one of the largest Ponzi schemes in history. Stanford was sentenced to 110 years for his role, while two accountants will go to trial in the coming weeks.
Loren Steffy, who writes as a business columnist for the Houston Chronicle and has covered the Stanford story extensively, stopped by Bauer Business Focus recently to discuss the impact it had on investors and what future investors should take away from the case.
“The saddest situation of all is investors not being able to recover all their losses because there really isn’t much money left, relative to what was lost,” Steffy said. “There was $7 billion total caught up of investors’ money, and they found less than a billion dollars worth of assets.”
While investors may not regain all of their lost funds, there are still important lessons to learn for future investments, according to Steffy.
“There’s an old saying that if it’s too good to be true, it probably is. In the case of Stanford, those better-than-average returns should’ve given people some pause, and if they would’ve looked closer into the company, there would’ve been some questions that came up. But again, they’re being reassured by somebody they trust, so with any case, investors have to be skeptical.”
Click here to hear the full interview.