Even as he was preparing to conduct a hearing of the Senate Commerce, Labor and Agriculture committee, which he chairs, State Senator Paul Stanley of Germantown got a call informing him that federal agents were searching his office at at the Memphis offices of the Stanford Financial Group, the mega-firm which has been charged with fraud by the Securities Exchange Commission.
According to press reports, Stanley was astonished by learning of the raid and of the predicament of Stanford, where he has been one of several wealth advisors. He disclaimed any responsibility for wrongdoing and said his own duties were limited to good-faith advice to clients about their investments.
The SEC enforcement order charges Stanford principals Robert Allen Stanford, James Davis, and Laura Pendergest Holt with orchestrating a fraudulent,multi-billion dollar investment scheme. No other Stanford employees have been charged.