Stanford Scandal Muddies Reputation of Antigua

For many years, the small Caribbean island nation of Antigua and Barbuda has been fighting to earn a reputation as one of the world's most reliable and trustworthy online gambling jurisdictions, but a recent scandal smacking of corruption and fraud may well end up destroying that same reputation.

Banking authorities in the United States recently accused Leroy King, the head of the Antigua and Barbuda Financial Services Regulatory Commission, of being in the pocket of now-jailed U.S.-born billionaire, Sir Allen Stanford, by accepting hundreds of thousands of dollars in bribes to 'look the other way.'

Stanford made news headlines in February this year, when he was charged by the U.S. Securities and Exchange Commission with fraud and multiple violations of U.S. securities laws in what is now known to be an elaborate '$8 billion Ponzi scheme'. As a result, he was arrested by the FBI in  June this year.

At the core of the Ponzi scheme was Stanford's banking operations, most of which are based on Antigua. They were supposed to be monitored by the Antigua and Barbuda Financial Services Regulatory Commission, the same commission responsible for monitoring and regulating the nation's online gambling industry.

Now, as a result of the scandal, the honesty and integrity of Antigua's online gambling sector is being called into question, given that King  - who resigned from his post following the accusations by U.S. Banking authorities - was allegedly susceptible to accepting bribes and looking the other way when instructed.

At the heart of the accusation is that the audits King conducted on Stanford's banks were 'just for appearances' and were designed to cloak any financial anomalies and inconsistencies. The news of King's fraudulent actions have gone down badly with online gambling operators based on the island, who feel betrayed.

Ironically, at the same time Antigua and Barbuda was poised to receive a coveted White Listing by UK gaming regulators - a high-level seal of approval in effect - news of the Allen Stanford scandal broke. Now, the online gambling and financial goings in Antigua will be under global scrutiny more than ever before.