Fraud Expert From Fort Lauderdale Linked to Stanford Case
Thomas Cash, who lives in Fort Lauderdale but who for years has been the chairman of Kroll, Inc., the risk consulting firm in Miami, resigned from that position last week amid allegations that he helped mislead investors who sustained losses in the alleged Ponzi scheme for which Allen Stanford has been charged.
The New York Post reports that Cash, a former agent with the U.S. Drug Enforcement Administration, is accused in a lawsuit of telling skeptical investors that the Stanford Group made a good investment. From the article:
However, he failed to disclose that the company, through Cash, had once been "hired and paid" to consult for Stanford, according to a lawsuit filed by Electri International, a foundation for electrical workers that lost $6.3 million with Stanford.
Electri paid Cash $15,000 for what it thought was expert fraud detection.
But among the red flags that Electri claims Kroll failed to mention was a $20,000 penalty levied against Stanford by the Financial Industry Regulatory Authority, the brokerage industry's self-policing group.
Electri also claims that Kroll's report also failed to mention a 2006 lawsuit filed by a former Stanford employee "alleging that Stanford ran a Ponzi scheme." Several arbitration claims against Stanford and one of his companies were also missing from the report, according to the complaint.
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