Stanford owes LIAT $1 million
February 8, 2011
Stanford owes LIAT $1 million

A shortlived venture between Caribbean Star, the former airline owned by embattled billionaire Allen Stanford, and LIAT resulted in that company still owing LIAT $1 million.{{more}}

Prime Minister Dr.Ralph Gonsalves, Chairman of LIAT’s shareholder Governments, said on Wednesday, February 2, following the partnership, which did not work out, LIAT had offered to purchase Caribbean Star, but when due diligence was done, it was discovered that the airline was not worth anything.

“He didn’t own any planes, you know. He had leased them and we had to go to the leasers. He had a hangar, he had a couple of other little things. In fact, the truth of the matter as the records would show, in the reconcialiation of the accounts, when (the) Stanford empire fell, he still owed us a million dollars,” said Gonsalves.

A U.S. federal judge earlier this year ruled that Stanford is currently unfit to stand trial over a $7 billion investment fraud case, due to his addiction to an anti-anxiety medication. He was ordered to remain under custody, pending recovery from the addiction.

The judge also ordered Stanford to undergo treatment for the addiction at a U.S. prison hospital and to receive additional psychiatric testing. He said he would set a new trial date on receipt of Stanford’s addiction treatment and psychiatric tests.

In early 2009, Stanford became the subject of several fraud investigations, and on February 17, 2009, was charged by the U.S. Securities and Exchange Commission with fraud and multiple violations of U.S. securities laws.