If the allegations are to be believed, Robert Allen Stanford ripped off his investors to the tune of $8 billion and managed to cheat the IRS out of its cut of his ill-gotten gains as well.The IRS has asked a judge to allow it to continue its efforts to collect $226.6 million in back taxes -- and there may be more to come because Stanford still hasn't filed his 2007 tax return.
Maybe I'm naive in the ways of massive fraud and its tax implications, but here's what I don't understand: Thousands of investors are in all probability out billions of dollars because of Mr. Stanford's alleged conduct. Given that, every penny that the IRS collects from him represents a penny that won't be available to his victims.
I understand that the IRS has a legal right to pursue whatever money it feels it is owed, but shouldn't the remains of the Stanford carcass be left for his victims?
Bloomberg reports that "Investors in R. Allen Stanford's Antiguan bank may have to get in line behind the Internal Revenue Service as they seek to recover money from the alleged swindler."
Taxpayer money has already been used to pay bonuses to the AIG executives who put the company in a position to need a bailout. Given that, shouldn't we let money that was stolen from innocent investors be used to pay them back -- instead of stuffing it into the United States treasury?
Bloomberg reports that "Investors in R. Allen Stanford's Antiguan bank may have to get in line behind the Internal Revenue Service as they seek to recover money from the alleged swindler."
Taxpayer money has already been used to pay bonuses to the AIG executives who put the company in a position to need a bailout. Given that, shouldn't we let money that was stolen from innocent investors be used to pay them back -- instead of stuffing it into the United States treasury?
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Reader Comments (Page 1 of 1)
3-16-2009 @ 1:15PM
sgentilejr said...
The IRS is asking for back taxes on gains and profits, that were not actually gains or profits, but instead all Ponzi Scheme money. If the IRS takes the $225 milion then what the IRS is doing is RIPPING OFF the investors who the money actually rightfully belongs to and it should be returned to the investors, not the IRS.
There were no profits the IRS is entitled to their share of, simply because there were no profits and the whole thing was a scam of investors.
3-17-2009 @ 9:34AM
Matt L said...
Clever title - I came here thinking you were talking about the university :)