US authorities have sentenced Leroy King, the former chief of Antigua’s Financial Services Regulatory Commission (FSRC), to 10 years in prison for his part in a $7 billion Ponzi scheme involving the Stanford International Bank (SIB). The 74-year-old pleaded guilty last year to charges related to obstruction of justice by obstructing the Securities and Exchange Commission (SEC) investigation into SIB.
Starting in 2002, King became the administrator and CEO of the FSRC. He was responsible for monitoring Stanford International Bank Limited’s (SIBL) investment portfolio, reviewing the bank’s financial reports and responses to foreign regulators such as the SEC on their questions about SIBL’s operations. Around 2005, the SEC began investigating R. Allen Stanford and Stanford Financial Group (SFG). During the investigation, the SEC enquired the FSRC about SIBL’s investments.
Stanford made cash payments of over $520,963.87 to King during the conspiracy period. King also received other kickbacks from Stanford, such as tickets to the Super Bowl in 2004 and 2006. King, due to these bribes, refused to answer the SEC’s queries incorrectly saying that it was beyond the FSRC’s authority. Stanford is already serving a 110-year prison sentence in the same case. Five other convicts are also serving prison sentences ranging from 3 to 20 years.
Source: US Department of Justice