ECB Suspends Stanford Talks

The England and Wales Cricket Board has suspended all negotiations with Texan billionaire Sir Allen Stanford after three of his companies were accused of alleged fraud by the US Securities and Exchange Commission, involving a multi-billion dollar investment scheme.

The ECB, which has completed the first year of a five-year deal for the Stanford Series – a tournament involving the Stanford Superstars, was in talks with the Texan billionaire regarding future Twenty20 proposals including a proposed quadrangular series to be held in England in May and involvement in the planned English Premier League set to be launched in 2010.

The SEC has charged Stanford, three of his companies and two of his business associates of ‘orchestrating a fraudulent, multi-billion dollar investment scheme centring on an $8bn dollar CD (certificate of deposit) programme’.

Following the SEC announcement, ECB chairman Giles Clarke has stated that the governing body is now reviewing the possibility of utilising get-out clauses in its contractual agreement with Stanford.

In June 2008, the ECB agreed to play five winner-takes-all Twenty20 matches in the Caribbean after signing a deal with Stanford. The first of those took place on 1st November, with England losing comprehensively to the Stanford Superstars, who netted £12.4m.

Massive publicity surrounded the Super Series, but there was also huge criticism from some quarters, with many observers labelling the Series as ‘obscene’.

Asked whether getting into a business relationship with Stanford could now be construed as a mistake by the ECB, Clarke said: ‘We had the best of intentions, so yes.’

The ECB carried out due diligence prior to making their long-term agreement with Stanford last summer.

Added Clarke: ‘He was conducting a banking operation, which, at the time, based on the information from the work that was done, showed no indication that there was anything that could prevent him from paying his obligations.

‘We did what we did because we believed we were doing the right thing to raise funds for West Indies cricket and, indeed, our own game.’

Clarke, who has just been re-elected for a second term of office, has said he will not be resigning as chairman as a result of the Stanford developments.

Stanford, who holds Antigua citizenship and is said to be the second biggest employer on the island, has an estimated fortune of $2bn.