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Charlotte Amalie
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HomeNewsArchivesStanford Never Received Tax Benefits OK'd By V.I.

Stanford Never Received Tax Benefits OK'd By V.I.

Feb. 18, 2009 — Though approved for them, fugitive billionaire financier Allen Stanford has not received any tax benefits from the V.I. government, and the Economic Development Authority is holding his benefit certificate in abeyance for the time being.
The Securities and Exchange Commission filed a criminal complaint in federal court Tuesday against Allen Stanford, alleging "a massive, ongoing fraud." Stanford has bought property and made plans for large offices on St. Croix. (See "St. Croix Projects Uncertain as Feds File Charges Against Stanford." )
The charges stem from actions by Stanford International Bank in Antigua, one of his numerous banks and investment houses. SIB, founded by Stanford on Antigua 22 years ago, has had suspiciously consistent and suspiciously above-normal rates of return for at least the past 15 years, according to the SEC complaint.
Wednesday, Government House issued a statement from EDA Director Percival Clouden, saying the SEC probe and federal district court temporary restraining order on Stanford's business properties prompted the move to freeze the tax certificate.
“In 2006 … Stanford … applied for economic development benefits with the Economic Development Commission, " Clouden wrote. "In 2007, the EDC approved the application for benefits, however, EDC did not issue a certificate for benefits and therefore, Stanford has not received any tax exemptions from the Government of the Virgin Islands.”
The EDA, which is the agency that oversees the Economic Development Commission, has reached out to the Securities and Exchange Commission and offered to cooperate with the investigation, according to the Government House statement.

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