La Narco Sistema: My friend Lucy Komisar has just published a great scoop in The Miami Herald that reports on the role played by the State of Florida in enabling the Ponzi scheme of Allen Stanford and the now-defunct Stanford Group.

Lucy reports: “Florida regulators — over objections by the state’s top banking lawyer — gave sweeping powers to banker Allen Stanford, accused of swindling investors of $7 billion.”

Her story just illustrates how members of the American political class have become complicit in the criminality that is sucking the blood from our society.  The fact that the State of Florida is involved here is no surprise.  Anyone familiar with the banking market in the Caribbean knows that Miami is now the nexus for drug money and offshore banking in the entire region.  State officials in FL are rented hourly by the narcos from Venezuela, Mexico and Colombia, and with the full knowledge of Washington.

Remember, Barack Obama and Hugo Chavez are good buddies.  Chavez has allowed the narco traficantes and global terrorists to turn Venezuela into a playground, but President Obama considers Chavez a friend.   Indeed, look how Obama is supporting the ousted president of Honduras, a chavista who is trying to turn his country into another haven for drug traffickers and terrorists a la Cuba and Venezuela.

Lucy writes: “The new company was also allowed to sell hundreds of millions in bank notes without allowing regulators to check for fraud.  Over the next decade, the Miami office was among Stanford’s busiest in the sale of controversial investments now at the heart of the federal government’s sweeping fraud case against Stanford and his lieutenants. ”There was no lawful way that office should have been opened,” said Richard Donelan, the state’s chief banking counsel who opposed the deal.

Here’s a comment on the story from the Herald web site: “In 1995, the Division of Banking came under the direct authority of the State Comptroller. General Milligan, a Republican, had been elected as the Comptroller the previous fall and he selected and appointed Simon, a Democrat. Back in that time the Governor had no control whatsoever over the Division of Banking. It wasn’t until 2003 that OFR was formed and then the governor had a say in the appointment of the commissioner.”

Below is the link for the story:


Best,

Chris


Source:
Florida aided Allen Stanford, suspect in huge swindle
LUCY KOMISAR, MICHAEL SALLAH AND ROB BARRY
Miami Herald, July 5, 2009

http://www.miamiherald.com/news/florida/v-fullstory/story/1127748.html

http://thekomisarscoop.com/2009/07/exclusive-florida-banking-agency-helped-stanford-set-up-unregulated-office-to-sell-his-phony-cds/

Category: Investing, Legal, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

20 Responses to “Florida banking agency helped Stanford set up unregulated office to sell his phony CDs”

  1. doughishere says:

    This is gonna get filtered but the only original work by this “guess post” is (and I quote ) “Remember, Barack Obama and Hugo Chavez are good buddies. Chavez has allowed the narco traficantes and global terrorists to turn Venezuela into a playground, but President Obama considers Chavez a friend. Indeed, look how Obama is supporting the ousted president of Honduras, a chavista who is trying to turn his country into another haven for drug traffickers and terrorists a la Cuba and Venezuela.”

    Really? Way to go TBP. Can we have Barry back? At least hes has actual critical points to make and doesn’t pander to partisan politics.

  2. Moss says:

    Stick to the facts.. Your statements that Barack Obama and Hugo Chavez are good buddies and that President Obama considers Chavez a friend are not facts but simply BS.

  3. Chris,

    with this: “..illustrates how members of the American political class have become complicit in the criminality that is sucking the blood from our society.”, alone — Nice post.

    good to see you posting, yet again. this: “State officials in FL are rented hourly by the narcos from Venezuela, Mexico and Colombia, and with the full knowledge of Washington.”, all by itself, is something that far too many ‘Cained Peep believe only happens during their nightly Soma treatment/hour-long MSM ‘tainment Shows.

    as an aside, Lucy Komisar is another one worth reading..
    ~~

    btw, Moss, speaking of Facts, do you have any to refute Whalen’s opinion? or, can we, only, expect more DKos-inspired reactionism from you?

  4. Chris Whalen says:

    http://images.google.com/images?q=Obama+%2B+Chavez&oe=utf-8&rls=org.mozilla:en-US:official&client=firefox-a&um=1&ie=UTF-8&ei=QQJSSrElkMOUB4nsxLsO&sa=X&oi=image_result_group&ct=title&resnum=4

    1) Have a look Moss. In the past, the US government would not even speak to Chavez or his lackeys in other Latin nations. This is the same Barack Obama who lives in Washington, right?

    2) In the past, the US government would have welcomed the removal of President Ayala in Honduras. Now the Obama Administration is working to put him back into office so he can continue with the chavista agenda. Do you support this Moss? How about you dough boy?

  5. MRegan says:

    Whalen-

    Your assertions regarding Chávez and Obama are asinine, regarding narcotraficantes moronic and all of these unsupported opinions only serve to place ignorance where information should be. Regarding Honduras, what are you and John Negroponte best friends or something? Listen Chrissy, why don’t you look up Billy Joya and 3-16. And then tell me what a great guy Micheletti is. Honduras is a complex issue and Zelaya es un ratón de otra laya- but Flippin’ Furry Jesus! how about some sophisticated understanding of events rather than this knee-jerk neanderthalism. You are trying to tie Stanford to Chávez when in truth he was an instrument of interests north of the Rio Grande. Why are you doing that? Why are you pushing a narrative that is patently false? Do you also believe that Bolivia is secretly sending uranium to Iran? You are allowing yourself to be used. Cladhaire.

    The really smart people will remember a guy named Rasmussen and what happened to him after the disruption of a monstrous money-laundering operation in the late eighties. Here’s an idea, ask yourself who was the gov of Florida during the time that the Stanford operation most thrived.
    For the rest if you want to read on Stanford and Venezuela, read:

    http://devilsexcrement.com/?s=Stanford

    For Honduran stuff on the coup:

    http://incakolanews.blogspot.com/

  6. Chris Whalen says:

    MRegan;

    Ditto on the early days of Stanford. I am looking for the Jeb Bush connection.

    And yes, I know John Negroponte. Have attacked him many times. But that does not change the nature of the chavista program.

    Actually I worked extensively in Venezuela and Mexico providing loan workout and other services, so I know the venues quite well. My assertions about Hugo Chavez are quite well grounded in fact. He does provide a haven for some of the worst criminals in the world. And Hugo Chavez is no buffoon. He is a very deliberate, well-trained Marxist Lenninist.

    http://www.rcwhalen.com/research/GIC_VE.html

  7. Moss says:

    I forgot that Obama pals around with terrorists and is a socialist.. pardon the lapse I have been on vacation.

  8. MRegan says:

    Ok-

    “Remember, Barack Obama and Hugo Chavez are good buddies. Chavez has allowed the narco traficantes and global terrorists to turn Venezuela into a playground, but President Obama considers Chavez a friend. Indeed, look how Obama is supporting the ousted president of Honduras, a chavista who is trying to turn his country into another haven for drug traffickers and terrorists a la Cuba and Venezuela.”

    1) “Good buddies”- you want Obama to initiate a series of behaviors that will exacerbate the ALBA phenomenon. I do not have any sympathy for Chávez but then the former ruling elite in Venezuela were complicit in producing the conditions which gave rise to his sort of misrule.
    2) “Chavez has allowed the narco traficantes and global terrorists to turn Venezuela into a playground,”
    I love to read, and I would love to read any information you might have on this angle. I suspect that as far as criminals and terrorists harboring, he likes one kind of criminal and the US likes another – how about Goni from Bolivia? Is he a criminal? Also, do recall that Chávez tossed Montesinos out (after he had taken all his travelling money).
    3) “Indeed, look how Obama is supporting the ousted president of Honduras, a chavista who is trying to turn his country into another haven for drug traffickers and terrorists a la Cuba and Venezuela.”
    Tiresome. Guess what, done and done-a long time ago…only difference a la Negroponte and Abrams. How about Uribe? … do you know what business Uribe was in prior to embarking on his political career? Do know who his father was and what he did?

    I am unconvinced by the narrative on Latin America which is produced by US-afiliated MSM. It is almost completely false. Does that mean I have a shrine to Che Guevara in the basement? No, in truth, my favorite LA politician was Valentín Paniagua. As for Chávez, no es santo de mi devoción. I would say that the best approach for him is to encourage him to continue his currency ploys. Also, find this Cuban handler, flip him/her or neutralize. There is also almost certainly a mercenary from the Levant working with his govt. Knowing his name would be useful.
    A final note on Chávez and his revolución bolivariana- Bolívar was not able to create the change he wanted using Criollo resources. It wasn’t until he recruited Irish mercenaries (veterans many of the Napoleonic wars) to serve as the core of his army that his project was able to pick up steam. I am unconvinced of his regime’s ability to weather a prolonged period of ‘low’ petroleum prices. Thanks for the pdf on Venezuela- you mention the very likely manipulation of the election but elided Smartmatic’s connection with Sequoia.

  9. bradleyn says:

    Standford’s scheme was run while Jeb Bush was the governor of Florida, the state legislature was/is under republican control and his brother, W, was the president of the US.

    So why did you bring Obama and Chavez into this story? Or Honduras?

    Seems like you were just looking for an opportunity to spew out political garbage.

  10. [...] I wonder who was helping Allen Stanford in Florida Jump to Comments Hmm: “In 1995, the Division of Banking came under the direct authority of the State Comptroller. [...]

  11. Chris Whalen says:

    Good comment Brad. Got any details on the Jeb/Stanford connection?

    Re: garbage, you might first consider that the Venezuela operations of Stanford reportedly were more significant than those in the US. You might also ponder the parallels of the facilitator role played by Jeb Bush in FL and Chavez in Venezuela vis-a-vis Stanford. Indeed, if your colorful accusations against Governor Jeb Bush are correct, both Chavez and Bush were clients of Stanford — in a political sense. Best, Chris

  12. alfred e says:

    @Chris: The intrigue continues to grow. Pretty much right out of some kind of “off the wall gumshoe novel that couldn’t possibly mirror reality – pure exaggeration”. The only thing missing is how entangled certain agencies and people are in the drug trade. I have no doubt it will re-emerge.

    Is there any govt official that is not complicit to one degree or another? And how totally morally blinded do we have to be to brush this off as a dime novel fiction.

    Oh, I know. We have enough problems right here on main street as it is. Lets leave Latin America to the banditos. Not our problem unless they start crossing the border to shoot people.

    Thanks for the expose Chris. I buy it.

  13. theorajones says:

    This is a fascinating story and I’m glad you brought it to our attention.

    It is unfortunately undermined by the weird Obama-is-a-communist-narcotrafficker-enabler editorial.

    It’s strange to flag a story about state corruption in FL and then blame the President who was not in office when Sanford was in business. It’s especially weird to do that before first looking at the Florida governor (whose Administration presumably appointed/oversaw the people who approved this deal) or the state legislature (who presumably had oversight/confirmation powers here).

    Also, it’s a joke to suggest condemning the Honduran coup makes one a “chavista.” Everyone and his brother has condemned the coup (http://en.wikipedia.org/wiki/International_reaction_to_the_2009_Honduran_coup_d'état)–certainly not out of love for the President there, but because they know that military coups in that part of the world have caused untold human suffering.

    And yes, maybe in the past the US would have supported such a coup. In spite of what the experience of disappeared husbands, stolen children, murdered nuns, and the grinding poverty that results from political instability should have taught us about supporting coups. Personally, I’m glad we’re staying out of this, and I’m even gladder that we’re joining everyone else in condemning it. Coups are bad news.

  14. Chris Whalen says:

    Theora:

    Hugo Chavez is the enemy of all people who respect human rights and the rule of law. The fact that Barack Obama would even speak to this man is an outrage. He would put a bullet in your head as soon as shake your hand. I worked in VE and Mexico for over a decade and have many friends in the country. Last time I was there as a stringer for the Washington Times, was almost arrested at the airport. Chavez is the latest in a long line of failed dictators in VE. He will be replaced by another junior grade army colonel eventually.

    http://findarticles.com/p/articles/mi_m1571/is_2003_Nov_24/ai_110364125/

    Best,

    Chris

  15. a guy called john says:

    > as a stringer for the Washington Times

    Pffaaawwww….wah?!? The Washington Times?!? Lord aw’mighty.

    Excuse me, I need to clean the coffee off my desk.

  16. a guy called john says:

    By the way, if you take out the third paragraph of your post, it’s quite interesting. Your friend does good work.

  17. rtol says:

    How odd that even though this all happened when George Bush was President and Jeb Bush was governor of Florida, it’s all Obama’s fault.

    Infantile.

  18. FrancoisT says:

    “btw, Moss, speaking of Facts, do you have any to refute Whalen’s opinion?”

    How about you Hoffer? Do you have any facts that support Whalen’s assertions?

  19. FrancoisT says:

    “In the past, the US government would not even speak to Chavez or his lackeys in other Latin nations.”

    You mean the last 8 years? That is how you define “in the past”?

    Wow! How’s that for historical comparison? At least, we now know where you stand politically.

  20. FrancoisT says:

    Chris Whalen,

    I enjoy your analyses and commentaries on the banking system and the economy.
    However, your comments on politics reeks of profound naivete and a complete lack of historical knowledge.

    ” Obama talking to Chavez is an outrage” Are you kidding me? Are you telling us that a trial lawyer that defend a suspected serial child rapist is showing outrageous behavior? no..he is doing his JOB. Whether we like it or not is an entirely different matter.

    WTF do you think politics is all about? Choosing only the ones we LOVE? This ain’t dating Sir!!

    Do stick to your field of expertise and everything shall be fine.