Lawmakers press DOJ to help victims of Ponzi scheme

Lawmakers press DOJ to help victims of Ponzi scheme
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Seven lawmakers on Monday asked the Justice Department to investigate whether a Swiss bank is illegally blocking the transfer of restitution funds for victims of the second-largest Ponzi scheme in United States history.

In a Monday letter, representatives from both parties asked Attorney General Jeff SessionsJefferson (Jeff) Beauregard SessionsTrump criticizes Justice for restoring McCabe's benefits McCabe wins back full FBI pension after being fired under Trump Overnight Hillicon Valley — Apple issues security update against spyware vulnerability MORE to review whether Swiss bank Societe Generale is complying with a 2013 settlement meant to return a major portion of $210 million to victims of Allen Stanford’s pyramid investment scheme.

The lawmakers asked Sessions “to review this issue and re-engage on behalf of U.S. victims to expedite the return of the frozen assets so they can be properly distributed.”


Stanford stole billions from customers who thought they were purchasing certificates of deposit with Antiguan Stanford International Bank. But Stanford enriched himself off the $8 billion investment scheme; he was convicted of charges in 2012 and is now serving a 110-year sentence in federal prison.

Groups representing Stanford’s victims are suing several banks that Stanford used to transfer American dollars into private offshore accounts. An affiliate of Societe Generale held roughly $210 million of the stolen money, much of which was supposed to be transferred to U.S and Antiguan officials for later restitution to victims. 

The signatories on Monday's letter were Louisiana Reps. Mike Johnson (R) and Cedric Richmond (D), Rep. Matt Gaetz (R-Fla.), and Texas Reps. Louie GohmertLouis (Louie) Buller GohmertHouse passes bill to end crack and powder cocaine sentencing disparity Republicans keep distance from 'Justice for J6' rally Security forces under pressure to prevent repeat of Jan. 6 MORE (R), Rep. Sheila Jackson LeeSheila Jackson LeeBest shot at narrowing racial homeownership gap at risk, progressives say Youth voting organization launches M registration effort in key battlegrounds The Hill's Morning Report - Presented by Alibaba - Gears begin to shift in Congress on stalled Biden agenda MORE (D), Ted PoeLloyd (Ted) Theodore PoeSheila Jackson Lee tops colleagues in House floor speaking days over past decade Senate Dem to reintroduce bill with new name after 'My Little Pony' confusion Texas New Members 2019 MORE (R) and John Ratcliffe (R).

Monday’s letter is the second effort in two weeks from lawmakers to ask executive branch officials to intervene in the Stanford aftermath.

Four members of the House Financial Services Committee asked Acting Comptroller Keith Noreika to review TD Bank’s role in Stanford’s scheme.