In-depth investigation | The Internet whistleblower | Leading article | Mike Atherton | Why investors fell for it | Run on the banks | SEC charge in full | Graphic: Stanford's wagon wheel

The US authorities were scrambling yesterday to find $50 billion of assets connected to Allen Stanford, the Texan cricket impresario, as the fallout from his alleged fraud rippled across the world.

Mr Stanford boasted of having customers in 140 countries. Panicked investors in the Caribbean and Latin America rushed to withdraw their savings from banks linked to his financial empire. Many left empty-handed.

Callers to the numerous Stanford offices across the US were greeted with a recorded message: “This office is temporarily closed. Have a great day.”

Stanford affair leaves sportsmen at sea

Suspicions that money could be tainted will be haunting agents and sports executives, as well as the Texan's customers

• Hunt for Allen Stanford and his billions

• Sky-high returns that investors found hard to resist

• Giles Clarke left in line of fire over fallout from Allen Stanford

Stanford: a sorry tale of greed and shame

It is not good enough to say that the ECB's contract with the Texan was signed with 'the best of intentions', says Mike Atherton

• Fallout from Allen Stanford affair leaves top sportsmen confused

• Game was used as a rich man's plaything. Its fawning bosses got what they deserve

• ECB leadership has much to answer for

Multimedia

• Should Clarke resign from the ECB?

• Is this the end for Allen Stanford?

Related Links

• Q&A: Mike Atherton

• Allen Stanford 'fraud' uncovered by favour

• Sky-high returns that investors found hard to resist

Multimedia

• Is there a Mexican drugs cartel link?

The Securities and Exchange Commission (SEC), the Wall Street regulator, has sought the help of the Financial Services Authority to help to track down money in the UK.

The flamboyant billionaire was nowhere to be seen. The SEC said that it had no idea where he was. At his luxury home on the outskirts of the Antiguan capital the shutters were down. A guard said that Mr Stanford was not at home. Locals said that he owned a yacht and an aircraft, though he would be expected to contact the immigration authorities before leaving.

Mr Stanford, who was charged by the SEC on Tuesday with defrauding investors of $9.2 billion, is understood to be under investigation by the FBI.

The scale of his influence was becoming clear. He donated funds to President Obama’s election campaign and sponsored the annual charity polo day at Sandhurst, hosted by the Prince of Wales. Michael Owen, the Newcastle United and England striker, is a global ambassador for the Stanford Financial Group. Tennis, golf and basketball tournaments and teams have benefited from his millions, not to mention cricket in England and the Caribbean.

The scam is the second major fraud to hit America in three months after Bernard Madoff confessed that his $50 billion investment firm was “just one big lie”. It is a devastating blow to the Obama Administration, which is trying to persuade investors to trust their savings to American institutions.

The FBI is convinced that the two huge frauds are just the tip of the iceberg. John Pistole, the Deputy Director of the FBI, told politicians on Capitol Hill last week that the agency was investigating 530 corporate fraud cases, including 38 directly related to the current economic crisis.

The SEC believes that Mr Stanford duped investors, who bought bonds from Stanford International Bank in Antigua and lied about the performance of their savings. The regulator also accuses Mr Stanford of lying to investors about their exposure to Mr Madoff. He lost about $400,000 to the New York financier’s Ponzi scheme.

A judge in Dallas has frozen Mr Stanford’s business activities and his personal fortune. Investigators are now trying to track down the $50 billion worth of assets that he boasted his empire owned.

Mr Stanford became known across the world after sponsoring the Twenty20 cricket match in the West Indies last year, with a prize pot of $1 million per winning player.

Times Recommends

• New York has lost its edge
• Copenhagen will fail – and quite right too
• More than 17,000 new underwater species found