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FBI inquiry links Stanford to Mexican cocaine cartel
Paul Thompson in Miami19.02.09
FINANCIER Sir Allen Stanford is under investigation by the FBI over money laundering for a notorious drugs cartel, it was revealed today.
He has been linked to the Mexico Gulf group, one of the most violent involved in smuggling cocaine into the US.
Investigative sources told ABC TV last night that Mexican authorities had seized one of Sir Allen's private jets as part of an inquiry into the cartel's activities. Inside the cabin of the Gulfstream jet police found cheques connected to it.
As part of the cross-border fight to stem the tide of drugs into the US the FBI became involved.
Authorities say Sir Allen, who is accused of a $8billion fraud, could face criminal charges over money laundering and bribery. His Stanford International Bank - at the centre of the fraud allegations - has offices in Mexico and South America.
The FBI probe has been under way for more than a year and sources told ABC that the action against Sir Allen in freezing his assets in the US may complicate the drug investigation.
Violence in border towns has spiralled out of control as the Mexican military attempts to eradicate the drug trade. More than 5,000 people were killed in violence linked to the drugs trade last year.
The Gulf cartel is known as one of the most violent, carrying out mass shootings and beheadings of rivals.
It makes hundreds of millions of dollars a year by trafficking cocaine, mostly through Texas and Florida.
It is likely the FBI will work alongside the Securities and Exchange Commission which brought the fraud charges against Sir Allen. Since the fraud allegations were made Sir Allen has not been seen and he has not made any statement.
The billionaire lives in St Croix in the US Virgin Islands but also has homes in Florida and Texas.
As the fallout from his alleged fraud begins, former US president Bill Clinton has been dragged into the affair.
Sir Allen, 58, hosted a fundraising event at last year's Democratic Party convention. A video clip features Mr Clinton thanking Sir Allen for paying £100,000 to underwrite the event.
US authorities revealed Sir Allen had also spent £5million on lobbyists and campaign contributions, mostly to Democrats.
Several members of Congress who received his contributions have vowed to give the money to charity.
