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WASHINGTON (Feb. 19) - Texas financier R. Allen Stanford was tracked down Thursday in Virginia, where FBI agents served him with legal papers in a multibillion-dollar fraud case.

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FBI agents, acting at the request of the Securities and Exchange Commission, served Stanford court orders and other documents, the FBI and the SEC said.

Stanford is not under arrest and is not in custody.

In a civil complaint Tuesday, the SEC accused Stanford, two other executives and three of his companies with committing an $8 billion fraud that lured investors with promises of improbable and unsubstantiated high returns on certificates of deposit and other investments. It's not clear how much of the $8 billion was lost and how much investors might recover.

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Until regulators got help Thursday from the FBI, the SEC had not been able to find Stanford.

A law enforcement official, speaking on condition of anonymity, said the billionaire was served Thursday afternoon by an agent who had staked out a location in Fredericksburg, Va.

Around 1:45 p.m., the agent spotted Stanford in a car driven by Stanford's girlfriend. The agent spoke to Stanford, who was riding in the passenger side, the official said. The agent handed Stanford the SEC complaint, a federal court order freezing Stanford assets and another order naming a receiver.

Stanford told the agent he understood and would make arrangements to surrender his passport, the official said.

Stanford has not been charged with any crime, though federal agents continue to investigate the case.

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

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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.

Stanford's father, James Stanford, told The Associated Press in Mexia, Texas, on Thursday that he hopes the allegations aren't true. "I have no earthly knowledge of it," said the elder Stanford, listed as chairman emeritus and a director for Stanford Financial Group. "I would be totally surprised if there would be truth to it. And disappointed, heartbroken."

Asked what advice he would give his son, Stanford, 81, said: "Do the right thing."

Stanford, 58, is a larger-than-life figure in the Caribbean, using his personal fortune — estimated at $2.2 billion by Forbes magazine — to bankroll public works and cricket tournaments.

He also is a major player in U.S. politics, personally donating nearly a million dollars, mostly to Democrats. At 6-feet-4 and 240 pounds, he towered over House Speaker Nancy Pelosi while giving her a warm hug at the Democratic National Convention last year.

He owns a home in the U.S. Virgin Islands and operates businesses from Houston to Miami and Switzerland to Antigua, where he holds citizenship and the government knighted him in 2006 in recognition of his economic influence and charity work.

In an e-mail to his employees last week, Stanford said his company was cooperating with the probe and vowed to "fight with every breath to continue to uphold our good name and continue the legacy we have built together."

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.

Associated Press writers Marcy Gordon in Washington and Jamie Stengle in Mexia, Texas, contributed to this report.

Copyright 2009 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

2009-02-19 17:11:07

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486 comments

Hmmngbrdsnckrs 01:23:48 AM Mar 03 2009

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Karma! Karma! Karma! Thank youuuuu, Karma! To the countless foreigners stepping onto this plate....preapre for Karma to deliever your penalty/subpeona! The rest of you billionaires who think you are protected; I'd look behind my back now. How so true...for all those suffering because of this monsterous-kniving greed...GOOD THINGS COME FOR THOSE WHO WAIT! Justice will prevail! America should get reed and disapprove these criminal and scandulous people.

MH0431 11:35:30 PM Mar 02 2009

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As a life long Republican, I can say BOTH Republicans and Democrats have very corrupt people in their parties and will always have them in their parties. This has nothing to do with ones party. He is a corrupt individual.

Rtecoaching 10:22:30 PM Mar 02 2009

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Hey everyone...don't you think it odd martha stewart goes to jail for a big $40K and today we have heads of banks, big government officials etc etc all big money people scoring billions why aren't they in jail???? Because it's all about money and how much you can hide in powerful peoples pockets. Why doesn't the government just give everyone a 1/4 of a million (every family earning less than $250K per year and not on welfare. Our government is throwing good money after bad and if a company can't figure out how to make a profit why does it get to be the taxpayers problem. Perhaps the leaders of the corps need to reduce their salaries to 60K instead of a million a year.

Jacob14360 06:03:16 PM Mar 02 2009

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OBAMA PASS SOME NEW LAWS THAT WILL REVAP THE SEC AND HARSHER PENALITIES EVEN THE DEATH PENALITIES. MOST STATES HAVE A HARSH GUN PENALTY WHEN COMMITTING A ROBBERY. THIS IS 100X WORSE TAKING PEOPLE LIVILHOODS AWAY.

Jacob14360 05:58:42 PM Mar 02 2009

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I just don't understand this. Why is America so nice to these scandulous people.Just look at Stanford he even looks like a crook with his almost hitler stache and his tan. I would like to beat all the investors money out of him and madoff too. Obama give these spineless scUm bags the Death penalties. Afterall he took all these peoples retirement abscounded. AND REVAMP THE SEC.TIRED OF THESE THEIVES. WE KEEP WATCHING FOR THE NEXT GUY THAT HIS SCHEME BLOWS UP MAYBE IT WILL BE MEXICAN OR COLUMBIAN DRUG LORD'S MONEY AND THEY WILL GIVE JUSTICE TO THEM DEATH BY HANGING

EK MADDOX 05:53:57 PM Mar 02 2009

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Every time a story, such as this one, hits the news a republican somewhere will blame the problem on a welfare mother somewhere. Get a life, one mother can not in her lifetime cause as much irrepairable harm to this country as on of these con-men. AIG, BofA, CITIgroup, and all the others make all other crimes against American seem amatuerish and irrelevant.

Gloryfla 05:49:33 PM Mar 02 2009

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I'd say, "Unbelievable"!! BUT, it's getting to be a common event. They're allowed to wreck so many people's lives and maybe, JUST MAYBE, serve a few years in prison. They deserve the electric chair....possibly they'd think twice before doing what that do.

Randelerlandson 04:01:25 PM Mar 02 2009

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Hello Americans, Allen Stanford is one big liar and crook, hiding behind his equally crooked lawyer, Get his screwy ass put into Federal Prison, and get back all the money from him and all his buddy's , who the Cowards in the FBI, Should know thatall fhis guys friends are paper stealing crooks, Holler, DOJ Go and Get this big crook, or sit on the fat black ass, too, Dakotajoe, Loveland, Colo,,,,Voting American, for HOnest justice, NOW<

Jmillardmorris 02:58:36 PM Mar 02 2009

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HAS ANYONE NOTICED.......THIS ARTICLE IS OVER 10 DAYS OLD? STANFORD HAS NOT BEEN ARRESTED AND NO FORMAL CHARGES OF BEEN FILED. OK, WHAT' GIVES?

CaptnButch 02:33:49 PM Mar 02 2009

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COME ON AOL....This is OLD NEWS and a repeat of the very same worthless news you posted a week ago ! This is why i don't buy a News paper ! Just another scam to get readers to click on "more crap" that they don't want to read then there hijacked to other pages that want to "SELL THEM SOMETHING" or participate in a worthless Poll that has absolutely no meaningful results. In addition to "Un-varified" and "inaccurate" reporting, now were impacted with DUPLICATED NEWS REPORTS.You guys can do MUCH better than this...Give it a try !

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486 comments