More on Sir Allen Stanford.
But SEC filings show that the Antigua bank also holds majority stakes in a handful of thinly traded American firms.
The Florida firm losing $16 million in financing from Stanford International is called Elandia International Inc. of Coral Gables, which trades over-the-counter on the so-called pink sheets. Elandia says it controls a collection of small telecommunications firms in Latin America and the South Pacific. Regulatory filings show that the Elandia\’s chief financial officer is James M. Davis, who is also chief financial officer of both Stanford International Bank and Stanford Financial Group.
Efforts to contact Elandia executives by phone and e-mail were unsuccessful.
In a new SEC filing, Elandia also said Stanford International Bank had also agreed to convert an outstanding $12 million loan it had made to Elandia into shares of Elandia equity. Such debt-equity swaps often take place when borrowers lack the cash to pay loans back.
When the "bank" doesn\’t even have enough money to fund its own sweehtheart deals then you should indeed be wondering whether everything is OK.
My advice to financial journalists? Start writing the book now, get that advance from the publisher. You\’ll want to be hitting the bookstands in June/July as people look for something for their beach reading. Most of the details will be out by then I think….