WAFB Channel 9, Baton Rouge, LA |Stanford Group charged with "massive fraud"

Stanford Group charged with "massive fraud"

BATON ROUGE, LA (WAFB) - The Stanford Group, an investment company that moved into Baton Rouge in the late 90s and scooped up lots of investors, is being charged with "massive fraud."

From doctors and lawyers to Exxon retirees, plenty of people in Metro Baton Rouge have money invested with Stanford.

The Securities and Exchange Commission accuses Stanford's owner of selling $8 billion worth of certificates of deposit and promising returns that the SEC calls "improbable and unsubstantiated."

Besides offices in downtown Baton Rouge, Stanford has offices across the southeast. Federal agents searched Stanford's Houston offices Tuesday morning.

The SEC says it's too soon to know if investors will lose money. "We have some concerns that there could be funds lost," said SEC spokeswoman Julie Preuitt. "It may be a somewhat timely process to make that determination."

A federal judge has frozen Stanford's assets as a way of trying to protect investors. So far, there's been no comment from Stanford.

The SEC says it will have a website up and running by Wednesday to answer many of the questions of Stanford investors.

To read the full news release, click here.