- FAST FACTS:
- Laura Pendergest-Holt first Stanford Financial executive arrested
- Executive arrested for obstruction of justice
- Former SEC investigator gives inside information
stephanie.scurlock@wreg.com
(Memphis 02/27/2009) Laura Pendergest- Holt, chief investment officer, is the first Stanford Financial executive to wear a set of handcuffs. She was arrested for withholding information from investigators from the Securities Exchange Commission about the company's financial activities. Watching closely over her arrest is a former SEC investigator who is now working in private practice, Attorney Martin Aussenberg.
"I think what they're doing is they're charging her in an attempt to turn her against her former employer in an attempt to get her to provide information as part of a plea deal or the like," said Aussenberg.
Allen Stanford, the company's founder, is accused of perpetrating an $8 billion investment swindle. He was reportedly offering improbable returns on investments. Many of his investors are now left in limbo, not knowing if they'll get any of their money back.
"There's really no way of telling it could be 20 cents on the dollar. It could be 60 cents or more on the dollar but we're not going to know what it's going to be for years to come," said Aussenberg.
Where did the money go? During Pendergest-Holt's hearing it was revealed she received a hefty salary. Last year she was paid $375,000 plus a $700,000 bonus. Investigators also found Allen Stanford took out a $1.8 billion loan for himself from the company's assets. Federal officials have now frozen the assets of company officials. Unfortunately, the assets of innocent investors are also frozen.
Investors have two ways to recover their money. One is through a class action lawsuit. The other is through receivership. The problem with both is they each take a team of lawyers and experts. Investors worry after paying all of those expenses there won't be much money left to return.
