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UPDATE: Neighbor 'shocked' at Stanford news page 2
Billionaire accused of fraud is found in Stafford

 Stanford was reportedly staying in a townhouse in the Heather Hills subdivision in southern Stafford. The home of interest has an American flag flying in front of it.
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UPDATE (3:11 p.m.): Journalists and a half-dozen media satellite trucks continue to stake out the Heather Hills view homes for sale in Heather Hills subdivision in Stafford County ( all about Stafford), where Stanford was believed to be staying. It's unclear whether he's there or not. The residence of interest is a modest townhouse with an American flag hanging out front and a gold Lexus SUV parked directly in front of it. It has 1,454 square feet and three bedrooms, according to property records online at intelius.com. A bank repo sign hangs in front of a neighboring house.

Kitsy Young lives in a townhouse near where Stanford was believed to be staying.

"I was shocked that it was right across the street from where I live," she said.

When media broke the story to her last night, she hadn't realized exactly who they were talking about. She never imagined it was someone so prominent - until she turned on the TV news and made the connection.

"I was thinking it couldn't be the one I saw on the news," she thought at first. And then? "Oh my gosh! It is the guy across the street.

"You don't think somebody from your neighborhood is going to do something like that - let alone in a townhouse neighborhood. You'd think he'd have had some money" to stay someplace nicer, she said.

Six homes are currently listed for sale in the neighborhood, ranging in price from $129,900 to $164,360. One the same size as the home Stanford was believed to be staying in is listed at $149,900.

She said she doesn't have major concerns, but it's not a comfortable situation.

"It feels a little disconcerting that someone of that character would be across the street," said Young, who works for the Department of Defense. "Someone of that character, you don't know what else they might do."

Christina Erie, 31, lives three doors down from where Stanford was believed to be.

"I think it's kind of crazy," she said. "Of all places?"

She said relatives have been calling asking her, "Is that your neighborhood."

For her family, she said, the news has stirred some excitement. News crews trained their cameras and lights on the house a few doors down from hers all last night.

"Our house was just glowing from all the lights," she said. A hovering helicopter and unmarked cars added to the weirdness.

Erie admits to thinking about all the money Stanford might have access to - and what he might have done with it.

"I've looked over our porch and thought, 'Hmm, I wonder what's in that doghouse.' "

- Brian Baer


Have YOU had an encounter with Stanford? If so, please email reporter Edie Gross.

Click here to see the civil complaint by the Securities and Exchange Commission
Date published: 2/20/2009

By Edie Gross

continued

An encounter last November between a Free Lance-Star reader and Stanford seems to support the idea that his girlfriend has local ties.

The reader e-mailed the paper last night, saying Stanford bought the reader's family dinner at Claiborne's on Nov. 7 after the family agreed to give up its earlier reservation time.

"He introduced himself as Allen Stanford, said he lived in the Virgin Islands and that his girlfriend's parents lived in the area," the reader wrote.

The SEC filed its civil complaint against Stanford, his companies and several of his associates on Tuesday in U.S. District Court in Dallas.

The complaint alleges that he sold approximately $8 billion in certificates of deposit by promising investors "improbable, if not impossible, returns."

The claim also accuses Stanford of:

Creating "a complex web" of companies that operated with little outside oversight.

Promising investors their money would be kept in liquid assets--basically cash or assets that can quickly be converted to cash--while actually investing most of the money in private companies and real estate.

Assuring investors that their money was safe from Bernard Madoff's highly publicized $50 billion alleged Ponzi scheme when, in fact, some of Stanford's holdings were invested through Madoff's firm.

"We are alleging a fraud of shocking magnitude that has spread its tentacles throughout the world," said Rose Romero, regional director of the SEC's Fort Worth, Texas, office.

The fallout from the fraud case is already rattling around the global financial system.

Venezuela on Thursday seized a failed bank controlled by Stanford after a run on deposits there, while clients were prevented from withdrawing their money from Stanford International Bank and its affiliates in a half-dozen other countries.

A federal judge appointed a receiver to identify and protect Stanford's assets worldwide, including about $8 billion managed by the Antigua-based Stanford International Bank, which has affiliates in Mexico, Panama, Colombia, Ecuador, Peru and Venezuela.

Also frozen were assets of Houston-based Stanford Capital Management and Stanford Group Co., which has 29 brokerage offices around the U.S.

In September, Forbes magazine named Stanford No. 205 in its "400 Richest Americans" article, estimating his net worth at $2.2 billion.

According to that article, Stanford lives on a 160-acre, 14-bedroom estate in the U.S. Virgin Islands, and he owns other homes, a yacht and several planes.

Stanford is a larger-than-life figure in the Caribbean, using his personal fortune to bankroll public works and cricket tournaments.


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