Fraud Expert From Fort Lauderdale Linked to Stanford Case
The New York Post reports that Cash, a former agent with the U.S. Drug Enforcement Administration, is accused in a lawsuit of telling skeptical investors that the Stanford Group made a good investment. From the article:
However, he failed to disclose that the company, through Cash, had once been "hired and paid" to consult for Stanford, according to a lawsuit filed by Electri International, a foundation for electrical workers that lost $6.3 million with Stanford.
Electri paid Cash $15,000 for what it thought was expert fraud detection.
But among the red flags that Electri claims Kroll failed to mention was a $20,000 penalty levied against Stanford by the Financial Industry Regulatory Authority, the brokerage industry's self-policing group.
Electri also claims that Kroll's report also failed to mention a 2006 lawsuit filed by a former Stanford employee "alleging that Stanford ran a Ponzi scheme." Several arbitration claims against Stanford and one of his companies were also missing from the report, according to the complaint.