A federal court in Texas has ruled in favor of the Internal Revenue Service as it seeks $226.6 million worth of back taxes from Sir Allen Stanford, the banker who has been accused of defrauding investors of $8 billion.

The IRS had objected to a freeze on Stanford’s assets by the Securities and Exchange Commission. The SEC ordered the freeze after purchasers of the Texan’s certificates of deposit at his Antigua-based bank found they could not redeem their CDs. The SEC has charged him, along with two of his associates and three of his companies, with operating the fraud. They also accuse the Texan, who was knighted by the British protectorate of Antigua, of misappropriating $1.6 billion in funds.

The court gave the IRS relief from the preliminary injunction, allowing the agency to go after $110 million in unpaid taxes, $56 million in penalties, and $60.7 million in interest for tax years 1999 to 2003.

Approximately 45 groups of investors and creditors are also pursuing Stanford’s funds, but the SEC and a court-appointed receiver have asked the court to deny their requests to join the SEC’s suit against Stanford.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access