SEC Lawyer Refused to Investigate Allen Stanford Ponzi Scheme…then Represented Stanford

Thursday, April 22, 2010
Spencer Barasch

Spencer Barasch could have done something years ago about the Allen Stanford Ponzi scheme, but didn’t. Four times red flags went up in the Securities and Exchange Commission’s Fort Worth, Texas, office about Stanford, who has been accused of crafting a $7 billion fraud, but Barasch—the SEC’s local chief of enforcement—declined to investigate or closed down probes begun by others.

 
Barasch ended his 17-year career with the SEC in 2005 and went to work for the law firm
Andrews Kurth. And who does he represent among his clients? Stanford.
 
According to the Andrews Kurth website, Barasch “has extensive experience defending regulatory and government investigations and civil and criminal litigation initiated by the Securities and Exchange Commission…”
 
While Barasch insists he’s done nothing wrong, the SEC’s inspector general believes otherwise and has asked the bars of Washington and Texas to determine if Barasch violated conflict of interest rules.
-Noel Brinkerhoff
 

Comments

Brent A. Wagman 10 years ago
Dear Sirs, I received a copy of an internal report by David Kotz a couple of weeks ago from my US Senator Bill Nelson (FL). It regarded a case Spencer Barasch and Kevin Edmundson of the SEC were involved in and Ralph Janvey who represented me. Though presented with numerous cancelled checks, a retired federal judge stating how the SEC manipulated a public company's stock price and giving away assets to create the appearance of a Ponzi, Mr. Kotz whitewashed the FT. Worth Texas SEC office. He stated point blank that they found that my attorney, Ralph Janvey was acting for the SEC in the capacity of a receiver in another case while representing me against the SEC. Yet he states no government employee did anything wrong. I guess technically, Janvey wasn't on their payroll, but he would never have received the appointment without the SEC nominating him. Let's cut hairs. Apparently Barasch didn't do anything wrong either as things go in the Dallas Federal Courts. He states he will refer Barasch to the BAR, but the fact is, as in my case, they find out about this too late and no one cares. The IG is supposed to call a spade a spade. That was why Kotz was put in that position. He has failed miserably. You should note that this latest report ONLY was done AFTER the Congress wanted to know why his report on Stanford was only a few pages. I would love for you to put more heat on these crooks at the SEC. I have Mr. Kotz's report and other evidence on the whole crew involved in the Stanford case. Including how these same lawyers asked the Courts to give away over 150 oil and gas wells, drilling rigs and other oil field equipment and even refused three (3) different offers of ten million dollars while the investors never got a dime. At this time, I am advising several oil companies on the very same wells the SEC gave away stating they were worthless. Those same wells are still worth millions of dollars. A great story someone should write would be: BIG PROFITS BUYING ASSETS FROM FT WORTH SEC PONZI SCHEMERS Oh, I forgot, there are no assets in a Ponzi scheme. Hmmm, then why is Mr. Janvey soooo anxious to obtain these kinds of appointments? And why are they in such a hurry to sell everything off before any trials? Brent A. Wagman

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