This is today's amended Securities and Exchange complaint against R. Allen Stanford, some of his firms and two of his associates.
Federal officials say that for at least a decade the two top executives at Stanford Group executed a "massive Ponzi scheme" that misappropriated billions of dollars in investor funds and falsified the company's financial statements.

In an amended civil complaint, the Securities and Exchange Commission accuses R. Allen Stanford and CFO James Davis of leading the effort and Laura Pendergest-Holt of "facilitating the fraudulent scheme" by misleading investors into believing she managed and monitored the company's investments with a team of analysts.

In truth, the complaint alleges, Stanford and Davis decided on a pre-determined return on investment for Stanford International Bank's portfolio and reverse-engineered the bank's financial statements to report investment income the bank did not actually earn.

The complaint also alleges that Stanford and Davis engineered a bogus $1.6 billion personal loan to Stanford and put an undetermined amount of the funds into "speculative, unprofitable private businesses controlled by Stanford."

Stanford and Davis also should have known that a report to investors from the bank that said it received a $541 million capital infusion from Stanford was really Stanford granting the bank equity interests in two pieces of real estate the bank already owned on Antigua. The real value of those assets was closer to $88.5 million, according to the complaint.

Much of the rest of the amended complaint is similar to the original filed on Feb. 17, including: allegations that the executives knew that inaccurate performance data was being used in sales material for a mutual fund product; and that Pendergest-Holt knew the largest portion of the bank's funds were not invested in assets that could be easily converted to cash, but in illiquid assets like real estate and private equity investments.

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