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Annuity Watch

Texas billionaire accused of Ponzi scheme

The fate of some $8 billion dollars of investments hangs in limbo. Fox News ran an AP story that R. Allen Stanford will face federal fraud charges today. The SEC filed charges against his investment firm earlier this year. At the root -- allegedly fake CDs issued from an Antigua-based bank that bears the billionaire's name.

Stanford, 58, already faces civil charges brought by the Securities and Exchange Commission that he fraudulently sold billions of dollars in certificates of deposit with improbably high interest rates from his Stanford International Bank, headquartered in Antigua.

The emphasis is mine. Everyone knows the saying. If it seems to good to be true, it probably is. Yet people time and time again are taken in by Ponzi schemes every single day. CDs are returning low interest rates right now. Which makes strong and stable investments like fixed deferred annuities so compelling. But note that those are alternatives to CDs. Not some special type of CD that magically isn't subject to the same pressures as the rest of the banking industry. Also, their performance is verifiable via independent third parties, like our Vital Signs report. And it's free.

Early next week, we'll have a new free ebook that helps maturing investors avoid Ponzi schemes available. And it's also worth noting that Mr. Stanford is facing allegations. The story doesn't look very positive for him right now, but he'll get his time in court. Hopefully, the investors aren't completely hung out to dry. Time will tell.