Caribbean News

Former regulator to face fraud charges in US after losing extradition fight

The former head of the Financial Services Regulatory Commission (FSRC), Leroy King has lost his fight against extradition to the United States, and will now have to face several fraud charges in that jurisdiction.

The Judicial Committee of the Privy Council on Monday dismissed King’s challenge to the extradition warrant issued by former Prime Minister Baldwin Spencer in 2012 in his capacity as Foreign Affairs Minister after US authorities asked for the former regulator to face charges related to the US$7 billion Ponzi scheme carried out by billionaire and financier Allen Stanford.

Attorney General Steadroy Benjamin said the government will turn King over to US authorities to face 11 wire and mail fraud charges.

“So now that he has exhausted all the appeals to which he is entitled, the Supreme Court of the land, the Privy Council, has ruled and the government is left with no other option but to comply with the order of the Privy Council,” he told state media.

“The US Embassy in Barbados has been in contact with me and the government will carry out the effects of the order that was granted by the court. In other words, the order signed by the Prime Minister, Baldwin Spencer many years ago will take effect as and from the 6th of November in this year.”

US prosecutors have accused King of being a key player in helping to conceal the massive Ponzi scheme Stanford is charged with operating from the Stanford International Bank Ltd he owned in Antigua and Barbuda, which sold certificates of deposit that the US Securities and Exchange Commission says bilked thousands of investors out of billions of dollars.

It is alleged that King received thousands of dollars in bribes from Stanford to ensure the Antigua regulatory authority looked the other way and conducted sham audits of Stanford’s operations.

Stanford was convicted in a US court in 2012 and jailed for a total of 110 years.


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