Anyone Burned on Stanford Gold Purchase?

Discussion in 'Commodities Forum' started by Kate, Apr 23, 2014.

  1. Kate

    Kate Senior Investor

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    Any stories here about being burned with the Stanford Group/Allen Stanford fiasco of a few years ago?

    We had bought a rather large amount of gold on a recommendation from Hannity a very short time before it all broke loose. It quickly turned into a nightmare because everything was frozen immediately by the SEC.

    Then there were claims to file... and receivership issues. Yeah, nightmare. Happy ending though, because since it was an order for merchandise that was already paid, we did receive it after a judge freed those assets (albeit a long time later.) I'm not 100% sure, but I'm thinking that investors in other areas of Stanford Financial Group didn't come away unscathed. :(

    Allen Stanford will not be getting out of prison until well after all the people who were cheated are dead... his release is scheduled for 2105.
     
  2. SteakTartare

    SteakTartare Senior Investor

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    I didn't invest in his firm, so wasn't impacted. I did watch that whole train wreck from afar though. I wasn't aware Hannity plugged for him, but that's got to be tough to live down.

    Anyway, glad to hear you were able to receive assets back. That had to have been unpleasant.
     
  3. Kate

    Kate Senior Investor

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    Yes, I don't know why... never have, but Hannity was plugging Stanford. I never bothered to check if he knew anything or not.

    And unpleasant... absolutely. :mad: It went on from Jan or early Feb 2009 until Feb of 2010 before it was settled and merchandise received. The SEC charges happened on Feb 17 if I'm not mistaken. Talk about totally lousy timing!
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Sorry about your loss. Glad you came out ok.

    I know people who know people who were burned by him.

    I also know other people who were burned by other ponzi scammers promising some "12% guaranteed, tax free, FDIC insured, Swiss Bank CD" bullshit. The fact that they were claiming SWISS accounts would be insured by the US FDIC should have raised flags, even if the 12% "guaranteed" didn't. But some don't know any better, and some get taken in by their emotions - con men prey on human emotion.

    If it sounds too good to be true, it is. If someone claims they can "guarantee" a rate that is significantly higher than everyone else can, that's a serious red flag.

    Was Hannity plugging Stanford or just plugging gold in general?
     
  5. Kate

    Kate Senior Investor

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    The ponzi, oh yes... those things are generally rather easy to detect with all those bright red flags. I would have never fallen for that. Our involvement was a direct purchase of gold. Never even heard of other "investments" being offered until after he was charged.

    :D I hope I wouldn't be ditzy enough to have mentioned it if it was just gold in general! Hmmm... can I post a link here? Hope so... http://www.huffingtonpost.com/2009/02/18/sean-hannity-allen-stanfo_n_168024.html
     
  6. one life

    one life New Member

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    I'd be very cautious when a TV politico starts giving out investment advice. Hannity is a smart guy obviously he's built himself a nice little media empire around his values and political points of view. That said, he has no idea what the best investment advice for you or me might be.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I catch Hannity's show - or at least the parts of it where he's not talking religion or crusading against pot - pretty regularly. Aside from some of the social issues, I tend to agree with him on many of his political views. But I agree that it was reckless of him to plug Stanford, and downright stupid in hindsight.

    I'm no securities lawyer, but I have to wonder if Hannity might not have some culpability here - even though I'm sure he didn't know Stanford was a crook. I'm pretty sure many didn't get anywhere near all they were owed back, and no doubt Brother Sean is himself loaded.

    Personally, I'd feel really shitty and at least partially responsible, even if I had no idea I was plugging a crook.
     
  8. Kate

    Kate Senior Investor

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    Yeah, me too... I have always wondered why people in his position (whose thoughts are heard by so many listeners) think it would be a wise move to plug *anything* in today's volatile market. Granted that was early 2009 but it wasn't much better then, if at all. Gold in general, sure... that's a pretty safe bet, but a particular place to "stock up?" No WAY!
     
  9. SteakTartare

    SteakTartare Senior Investor

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    +1. Even though Hannity was most likely completely unaware of this character's shenanigans, that's got to weigh on the mind. I know I'd feel like crapola for plugging for such an outfit.

    Out of curiosity, did Sean ever make a statement about the affair?
     
  10. Kate

    Kate Senior Investor

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    Hmmm... good question. If there was one, I never heard it. And even now today (although granted I didn't spend a lot of time on it) my search came up with a lot of references about the endorsement but nothing about a statement or any kind of retraction.

    I hope someone posts a link if they find a statement.
     

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