The SEC on Friday increased its civil charges against Texas billionaire Allen Stanford, his former Baylor University roommate, James Davis, and three of their companies to include the charge of a “massive Ponzi scheme”. In the amended complaint, the SEC alleged that by February, Stanford and Davis – who have not been charged with criminal wrongdoing – had misappropriated at least $1.6 billion in investor money through “bogus personal loans” to Stanford.
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