February 25, 2009

IRS filed $104m lien against Stanford

Tax records show the Internal Revenue Service filed a $104 million tax lien against Texas billionaire Allen Stanford, before recent fraud allegations arose.

The IRS filed the federal tax lien against Stanford and his wife Susan Stanford in August 2008, The Miami Herald reported Wednesday.

On Feb. 17, the U.S. Securities and Exchange Commission filed a civil case against Stanford, accusing him of perpetrating investment fraud worth $8 billion.

The complaint alleges Stanford sold high-yield certificates of deposit in the Stanford International Bank Ltd., but lied to customers about how the proceeds were invested, the newspaper said.

The bank is based in Antigua.

The tax case involves tax years of 2002-04, the newspaper said. The Stanfords have contested the claim.

A source told the Herald that Stanford has hired attorney Brendan Sullivan, a senior partner at Williams & Connolly in Washington, to represent him in the fraud case.

Stanford and his wife have separated. The couple are in the midst of divorce proceedings in Texas, the Herald reported.