March 05, 2009

The life of Sir Allen Stanford, the cricket and polo-loving financier who is being investigated for a potential Ponzi scheme, is a case study in how to buy respectability and influence.In his adopted island nation, Antigua and Barbuda, where he was knighted and where his offshore bank is located and employs many, Stanford established his method of building up confidence and exceptional influence. By spending on local sporting events and charities, he cozied up with island politicians who let him run his fast-growing bank there in relative peace.

Stanford's cash curried favor in the U.S. too. From Memphis to Houston to Miami, money flowed from the financier and Stanford Financial Group to political campaigns, golf tournaments and art museums. His apparent goals? Less regulation of offshore banks; a quickly built philanthropic reputation in cities where the company had business; and thousands of trusting investors in $8 billion worth of what authorities say are fraudulent certificates of deposit.