By Aruna Viswanatha and Andrew Longstreth
WASHINGTON, Aug 31 (Reuters) - U.S. securities regulators
charged former officials of Stanford Group Co for their role in
the demise of the brokerage and bank controlled by Ponzi-schemer
Former Stanford Group Co president Daniel Bogar, former
compliance officer Bernerd Young, and Jason Green, who oversaw
parts of the private client group at Stanford were charged with
aiding in the fraud, according to an order made public Friday
instituting administrative proceedings against them.
In the order, the SEC alleged that the three executives knew
or should have known that offering documents in connection to
certificates of deposits sold by Stanford International Bank
were false or misleading. Instead, the SEC alleged, they
encouraged their colleagues to use the incomplete offering
documents to help sell the CDs.
In a statement, Green's lawyers, John Kincade and George
Freeman, said that Green had no knowledge of the fraud.
"We look forward to the opportunity to clear Mr. Green's
name, and we are confident we will succeed," they said.
Lawyers for Bogar and Young did not immediately respond to
messages seeking comment.
Allen Stanford was sentenced in June to 110 years in prison
for bilking investors with fraudulent CDs by Stanford
International Bank, his bank in Antigua.
Separately, on Friday the SEC settled allegations of
securities fraud against Jay Comeaux, who managed the
brokerage's Houston branch office, according to a filing that
instituted administrative proceedings against him.
Comeaux, who settled the case without admitting or denying
the SEC's findings, faces a bar from the industry, and may face
penalties that have not yet been determined, the SEC said
Comeaux was responsible for supervising the brokerage's
financial consultants, and received commissions of at least $1.3
million on the sales of fraudulent CDs, the SEC said.
According to the SEC, Comeaux knew that the bank wouldn't
disclose details of its investment holdings, but still used
marketing material that told investors that the bank maintained
a "well-diversified portfolio of highly marketable securities."
A lawyer for Comeaux did not immediately respond to a
request for comment.
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