After Online Casino Fiasco, US Continues to Plunder Antigua
Antiguans may have thought the US did sufficient damage to their economy by using protectionist policies to block online casinos based on the island nation. But apparently at least one US citizen decided to rape Antigua of what value the US Internet gambling policy had left behind.Authorities announced Tuesday that the prime investor in Antigua's sputtering economy, Texas billionaire Allen Stanford, had been accused by the US Securities and Exchange commission of an $8 billion fraud. The scandal revolves around certificates of deposit sold by Stanford International Bank, an Antiguan institution.
Antigua has already suffered from the lost revenues after the US drove locally based online gambling sites out of the US market. The World Trade Organization held that the US owed $21 million annually to Antigua, but the US has basically ignored the decision. To the US, the amount is a pittance; to Antigua, it's almost equal the Gross Domestic Product.
The US refusal to settle the WTO debt, and the banning of foreign online casinos while domestic online gambling goes on unimpeded, have led Antiguans to resent and distrust the US. In regards to the Stanford affair, some residents blamed the US government.
The publisher of the Antiguan Daily Observer, Winston Derrick, said of the Standford mess, "I don't trust the Americans at all, we'll wait and see what our regulators say. Remember, the SEC doesn't regulate this bank."
Of course, considering past meddling by the US in Antiguan affairs, perhaps the SEC thinks it does regulate Antiguan banks. That would only make them consistent with the Department of Justice.
Recent Comments
| Posted by: Pellucid | When: 02/17/2009 08:13:29 PM EST |
| I think the more important lesson to come out of this affair is that a small "country" (70,000? thats a small town in most of the world) is incapable of regulating international finance. Antigua's inability (or unwillingness) to deal with violent crime, drug trafficking and terrorism (remember John Allen Mohammed and Lee Malvo?) has a history going back further than its 1981 expulsion from the British Empire. Now, instead of Robert Vesco, who committed his crimes in the US then escaped to Antigua to avoid punishment, we have "Sir Allen" doing the crime in Antigua and saving himself the travel time. Oh, and the GDP of Antigua is about $1 billion, not 21 million. The reason that the US hasn't been paid is that Antigua insists on appealing a decision it "won", hoping to get more (not likely, their lawyer is clueless). | |
| Posted by: Sam Smith | When: 02/17/2009 10:05:18 PM EST |
| Dude....this crime was planned and executed by an American in America. Antigua is a bit player in this and for sure would not be reponsible for regulating the stuff Stanford was doing through his US regulated brokerage firm...which is where the crime was committed. Read the docs and get a legal opinion before spouting off. Antigua can regulat its banks on its own island as good as or better than the US has shown over the last few years. Much of Stanfords fund was invested with Madoff who actually ripped Stanford off from his entirely US regulated operation based out of NY...Stanford is still going down for his own actions that compounded this mistake though. There is more crime per capita in the US than there is in Antigua so stop the crap...get your facts straight. This does reflect badly on Antigua at all...all the blame in this particular case is on the US regulators and a rogue US citizen abusing his trust in Antigua and among his own fellow citizens. | |
| Posted by: Pellucid | When: 02/19/2009 09:21:28 PM EST |
| * Allen Stanford is an Antiguan Citizen (and Knight?!?) * Stanford International Bank is registered, domiciled and "regulated" by Antigua. * This marks the end of any first-world jurisdiction allowing Antigua anything more than the most strictly monitored and controlled access to their financial systems. * As an offshore gaming centre, Antigua is toast. | |
| Posted by: Jacob | When: 02/28/2009 12:39:23 PM EST |
| It's apparent that antigua is not able to be a safe place to put your money! Standford international bought both the local politicians and influence.. It's long been know as a safe haven for drug dealers, gamblers and people who don't want to pay their taxes!! This small island nation did not do what they said they were doing and I would advice the same thing I have always said about antigua... You can put your money there it just might be gone one day.. | |
