Which company collapsed in 2009 after founder Allen Stanford was accused of selling fraudulent certificates of deposit?

Stanford Financial Group collapsed in 2009 after founder Allen Stanford was accused of selling fraudulent certificates of deposit.

The company operated through Stanford International Bank in Antigua and promoted certificates of deposit with unusually high returns. U.S. regulators alleged that Stanford and associates misrepresented how customer money was invested and used new deposits to support the operation and finance personal and business activities.

Authorities charged Allen Stanford in 2009, and regulators placed Stanford-related entities into receivership. In 2012, a federal jury convicted him on multiple counts, including fraud and conspiracy. He received a 110-year prison sentence.

This scandal is distinct from Bernie Madoff’s investment-fraud case, although both involved large losses and claims that customer money was mishandled. Stanford’s scheme revolved chiefly around offshore bank CDs marketed to investors, while Madoff operated a separate investment-advisory fraud based in the United States.