Lafayette Reporter

Senator John Kennedy, alongside his colleagues, has expressed concerns about the Department of Justice's (DOJ) handling of the Stanford Trust Ponzi scheme case. They are urging Attorney General Merrick Garland and the DOJ to collaborate with victims affected by Allen Stanford’s fraudulent activities.

The scheme resulted in significant financial losses for over 1,000 residents from Baton Rouge, Covington, and Lafayette. These individuals lost substantial portions of their life savings due to Stanford’s sale of approximately $7 billion in illegitimate certificates of deposit through his offshore bank. In 2020, Kennedy took a stand for these victims by leading an amicus brief on their behalf.

Kennedy has also called on Securities and Exchange Commission Chairman Gary Gensler to ensure that attorney fees and settlements for the victims remain fair and reasonable.

In a letter addressing this issue, the senators stated: “We write to you on behalf of the Louisianans and Texans who were defrauded and have yet to be made whole by Allen Stanford and the Stanford International Bank." They emphasized that Société Générale holds $210 million in frozen assets related to the Ponzi scheme which should be returned to its victims immediately. The senators expressed frustration over the lack of progress in engaging with these victims.

Additionally, Congress members reached out to Toronto-Dominion Bank concerning its involvement with Stanford's operations. They highlighted issues regarding compliance oversight that could facilitate money laundering or other fraudulent actions. The letter demanded that Toronto-Dominion Bank engage with Stanford’s victims for a quick resolution.

“The Stanford Financial Receiver raised similar concerns," noted the senators while urging DOJ action against Toronto-Dominion Bank. They questioned whether DOJ considered seeking restitution penalties as part of any settlement involving Toronto-Dominion Bank's violations related to money laundering.

The full text of their communication is available online.