Snitches

Was Stanford a Drug Informant?

Ponzi schemer may have assisted DEA for years.

Turns out that Sir Allen Stanford may not have actually been flying under the Fed's radar all those years while orchestrating his alleged multi-billion dollar Ponzi scheme. He may have been allowed to do so. An investigation by the BBC has uncovered secret documents that show Stanford's close ties to known money-laundering operations in Latin America, as well as the U.S. Drug Enforcement Agency. In 1999, Stanford wrote a check to the DEA for $3.1 million, a payment which arouses suspicions that he may have been snitching on his money-laundering clients. Also, in 2006, the SEC's initial inquiry into the Texan's shady business practices was cut short, perhaps due to the DEA's intervention.