FBI sweeps into cricket boss Sir Allen Stanford’s bank

[Magda Hassan]

Cricket tycoon Sir Allen Stanford caught up in spying row

The Texan billionaire behind the controversial $20 million (£12 million) winner-takes-all tournament which split the world of cricket is now at the centre of an international spying row, it can be revealed.



By Patrick Sawer
Last Updated: 7:12AM GMT 09 Nov 2008

Sir Allen Stanford Photo: PA


Officials from Venezuelan military intelligence raided a branch of Sir Allen Stanford's offshore bank over claims that its employees were paid by the CIA to spy on the south American country.
The officials spent three hours searching files and documents at the Stanford International Banks' offices in the Venezuelan capital Caracas, removing several of them for closer inspection.
The raid came on the eve of Sir Allen's "Twenty20 for $20 million" tournament last Saturday, which saw England beaten by a team of West Indies stars playing under the tycoon's name at his personal cricket ground, on the Caribbean island of Antigua.
The controversy will raise further questions about Sir Allen's involvement with English cricket, which many see as damaging to the game's reputation.
The English Cricket Board has signed a $100 million five year deal with the Texan, allowing him to stage another four Twenty20 tournaments - in which the winning players are paid $1 million and the losers walk away with nothing.
Under the deal Sir Allen has promised to contribute several million dollars to the development of the game in England and the Caribbean.
But the fact that Sir Allen had to publicly deny rumours that his fiancee had an affair with one of the cricketers taking part in the tournament, as well as pictures of him cavorting with some of the England players' wives and girlfriends, did little to allay the fears of critics, who claim the deal has compromised the integrity of the game and turned it into a money-grabbing circus.
The raid, on October 31, saw officials arrive at the bank's offices in Caracas's Avenida Tamanaco armed with search warrants. It is thought to have been carried out on the orders of Venezuela's chief military prosecutor, General Ernesto Cedeno.
State-owned broadcaster Venezolana TV reported that the raid was part of an investigation into individuals it said had "allegedly committed the crime of espionage" and "may have been part of the US government".
It is understood the spying claims centre around three of the bank's employees and, in particular, its head of security, who had previously worked for the US federal government. He was first accused of being a CIA spy when he was hired by Stanford just over two years ago.
Sources suggest the case may have been revived as an anti-US propaganda ploy to boost the popularity of Venezuela's President Hugo Chavez in local and regional elections being staged this month.
The left-wing leader has long been a thorn in the side of the US Government and he has frequently accused Washington of trying to undermine his regime.
Chavez is currently in the process of nationalizing the Spanish-owned Bank of Venezuela and last year threatened to take over entire banking sector.
Stanford International Bank - which was founded during the Depression of the 1930s by Sir Allen's grandfather - handles $51 billion in worldwide deposits and assets.
The Stanford Group's spokeswoman, Lula Rodriguez, denied that any of the bank's employees were involved in spying.
She said: "As an international company, operating in over 12 countries, it is our global policy to respect and operate under the laws and regulatory framework of every country in which we operate. It is also our global policy to cooperate with any country's investigative authorities when asked to do so."
As if an espionage row was not enough, Sir Allen is also caught up in a bitter legal battle in which he is accused by Antiguan businesswoman Makeda Mikael of trying to force her off land on which she runs a firm handling VIP and celebrity flights at the island's airport.
The country's United Progressive Party administration - which unseated the Antigua Labour Party in March 2003 after five decades in power - is backing Ms Mikael, 66. She appealed to the Privy Council in Britain after losing the case in Antigua's Court of Appeal.
A judgement is expected shortly and should the Privy Council find against Sir Allen he could be forced into an embarrassing climb down over his ambitious plans for Antigua's VC Bird International Airport.
Sir Allen - who has a personal fortune of $2.2 billion from banking and property development despite a period of bankruptcy in the 1980s - is also facing questions in the US over his company's actions during an offshore banking deal.
The Stanford Group is being investigated by the Securities and Exchange Commission over deposits made at his bank's Antiguan headquarters.
The investigation was sparked by allegations made by former employees Charles Rawl and Mark Tidwell, who claimed they were forced to resign by the bank because they did not want to take part in illegal activities.
Ms Rodriguez dismissed the allegations, saying: "They have been made by disgruntled employees and are totally without merit."



http://www.telegraph.co.uk/sport/cricket...g-row.html



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