Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance, and economics.
In late 2008, the world was reeling from a global financial crisis. As markets tanked and funding became scarcer by the day, two massive Ponzi schemes unraveled. One was the $17.5 billion Ponzi run by Bernie Madoff, the other was a smaller but no less interesting scheme run by R. Allen Stanford, a flamboyant Texan who lived on the small Caribbean island of Antigua and operated a bevy of companies under the Stanford brand.
Best known for his involvement in the sport of cricket, Stanford soon found himself under a much less flattering spotlight thanks to the work of one independent financial analyst, Alex Dalmady.
This is the story of how Dalmady did a favor for a friend—and found himself uncovering a $7 billion investor fraud.
Some seven years after Dalmady's work set in motion the events that would eventually culminate in Stanford's downfall, we discuss the research note that sparked a thousand stories and whether he expects more such schemes to emerge in the wake of recent market upheaval.