Sunday, April 25, 2010
SEC Lawyer Refused to Investigate Allen Stanford Ponzi Scheme…then Represented Stanford
Spencer Barasch could have done something years ago about the Allen Stanford Ponzi scheme, but didn’t. Four times red flags went up in the Securities and Exchange Commission’s Fort Worth, Texas, office about Stanford, who has been accused of crafting a $7 billion fraud, but Barasch—the SEC’s local chief of enforcement—declined to investigate or closed down probes begun by others.
Barasch ended his 17-year career with the SEC in 2005 and went to work for the law firm
Andrews Kurth. And who does he represent among his clients? Stanford.
According to the Andrews Kurth website, Barasch “has extensive experience defending regulatory and government investigations and civil and criminal litigation initiated by the Securities and Exchange Commission…”
While Barasch insists he’s done nothing wrong, the SEC’s inspector general believes otherwise and has asked the bars of Washington and Texas to determine if Barasch violated conflict of interest rules.